Australian Broker Call

Macquarie rates ABP as Neutral (3) -

For an initial result response see yesterday's Report. While Abacus Property beat the broker's FY21 forecast, the winding down of the REIT's "non-core" development operations renders the beat of lower quality, the broker suggests.

Recent acquisitions offer FY22 upside, and the balance sheet is set for further acquisitions. Storage assets have been the standout performer, the broker notes, but near term earnings visibility is undermined by short term leases, and lockdowns are a risk.

Office is also facing headwinds, keeping the broker on Neutral. Target rises to $3.46 from $3.35.

Target price is $3.46 Current Price is $3.33 Difference: $0.13
If ABP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting downside of -5.1% (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

Ord Minnett rates ABP as Hold (3) -

Abacus Property Group reported FY21 funds from operations (FFO) of 18.4cps, 3.9% ahead of Ord Minnett’s forecast, driven by a stronger storage operating performance and development contribution.

The group didn't provide FY22 guidance though stated it intends to pay a distribution based on 85-95% of FFO.

The analyst feels the group is well-placed as excess capital has been deployed and the storage portfolio is performing very strongly, driving good valuation growth. The Hold rating and $3.20 target price are maintained.

Target price is $3.20 Current Price is $3.33 Difference: minus $0.13 (current price is over target).
If ABP 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 $3.15, suggesting downside of -5.1% (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

Macquarie rates ADI as Neutral (3) -

APN Industria REIT reported in line with guidance. FY22 guidance fell short of forecast, but only because of a tenant leaving the Rhodes asset and the building not yet being re-leased. The broker assumed re-lease in FY22 but acknowledges a probable covid-based delay.

The remainder of the business is performing well, and adjusting for Rhodes, guidance is actually ahead of forecast.

With Dexus Property ((DXS)) now having taken over as responsible entity, the size and scale of the Dexus platform should be an added beneficiary, the broker suggests. But valuation is fair, hence Neutral retained. Target set at $3.36 following a period of restriction.

Target price is $3.36 Current Price is $3.41 Difference: minus $0.05 (current price is over target).
If ADI meets the Macquarie target it will return approximately minus 1% (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

Credit Suisse rates AMC as Neutral (3) -

Commenting on the FY21 result, Credit Suisse expects Amcor's FY22 earnings per share (EPS) growth to be driven by Bemis synergy - upgraded 10% to nearly US$200m - share repurchase US$400m in FY22, and momentum in volume growth in Rigids and Flexibles.

The broker notes the stock seems to have run ahead of earnings and is trading on a premium to all of its large-cap packaging peers except Aptar – to which it has closed that gap too.

Amcor has indicated that it has executed on US$500m of price increases by the start of FY22 to cover higher input costs.

Neutral rating unchanged and target rises to $17.20 from $16.

Target price is $17.20 Current Price is $17.02 Difference: $0.18
If AMC meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $18.14, suggesting upside of 6.7% (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

Macquarie rates AMC as Outperform (1) -

For an initial response to Amcor's result, see yesterday's Report. Following a slight beat on profit, the broker has increased earnings forecasts and its target to $18.02 from $16.56.

Despite a solid run-up in share price pre-result, the broker expects consensus forecast upgrades, benefit from a weaker A$, and a more defensive macro bias. Outperform retained.

Target price is $18.02 Current Price is $17.02 Difference: $1
If AMC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $18.14, suggesting upside of 6.7% (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

Morgan Stanley rates AMC as Overweight (1) -

Amcor's FY21 results moderately outpaced guidance and the company announced a US$400m buyback.

Amcor reports adjusted free cash flow at the top of prior guidance and margin improvements in Flexibles and Rigids despite rising input prices.

Management guides to EPS growth of 7% to 11% and the broker increases its FY22 EPS forecast to 7.5% growth.

Target price rises to $20. Overweight rating retained. Industry view: In line.

Target price is $20.00 Current Price is $17.02 Difference: $2.98
If AMC meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.14, suggesting upside of 6.7% (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 AMC as Add (1) -

Morgans assesses Amcor’s FY21 result was broadly in-line with expectations, with earnings (EBIT) (constant FX) for Fexibles and Rigid Plastics up 9% and 8%, respectively. The broker lifts its target price to $18.90 from $17.70 and leaves the Add rating unchanged.

Underlying EPS (constant FX) grew 16%, which was slightly ahead of the analyst's 15% forecast and management’s guidance for 14-15% growth. Guidance is for underlying EPS (constant FX) growth of 7-11% versus Morgans forecast of 9%.

The broker highlights Bemis synergies are running ahead of schedule with US$75m delivered in FY21, bringing cumulative benefits to US$155m.

Target price is $18.90 Current Price is $17.02 Difference: $1.88
If AMC meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.14, suggesting upside of 6.7% (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

UBS rates AMC as Buy (1) -

FY21 results were ahead of UBS estimates. Growth was underpinned by Bemis synergies and share buyback accretion. Guidance for FY22 is for growth of 7-11%.

The Bemis merger synergy target has also been raised to around $200m with the final benefits to be delivered in FY22. With free cash flow growth of up to 9% the company has capacity to fund $700m in dividends as well as the $400m share buyback program that was announced.

UBS finds the valuation attractive and retains a Buy rating. Target is raised to $18.93 from $17.40.

Target price is $18.93 Current Price is $17.02 Difference: $1.91
If AMC meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.14, suggesting upside of 6.7% (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 AMS as Add (1) -

All metrics in the FY21 result were comfortably ahead of Morgans expectations, with strong demand across new and existing product suites. The broker lifts its target price to $1.89 from $1.54 and retains its Add rating. The company reported a maiden profit.

The 780 basis point gross profit margin gain from the previous corresponding period was a highlight for the broker. This was considered driven by strong operating leverage, and aided by lower promotional activity and higher margins attained through recent product launches.

Target price is $1.89 Current Price is $1.30 Difference: $0.59
If AMS meets the Morgans target it will return approximately 45% (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

Ord Minnett rates AMS as Buy (1) -

FY21 revenue for Atomos was 2.1% ahead of Ord Minnett and guidance, while earnings (EBITDA) were 3.5% ahead of guidance. Gross margin expansion combined with a controlled fixed cost base led to guidance for a FY22 earnings margin in the range of 12-15%.

As a result, the broker upgrades FY22 EPS forecasts by 40.7%, lifts its target price to $1.90 from $1.47 and retains its Buy rating. It's thought benefits will flow from an accelerated shift towards video content creation and the release of new products in the second half.

Target price is $1.90 Current Price is $1.30 Difference: $0.6
If AMS meets the Ord Minnett target it will return approximately 46% (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

Ord Minnett rates ANZ as Accumulate (2) -

Ord Minnett assesses the June-quarter asset quality update was mostly positive though capital was a little disappointing from unexpected one-off items. Overall, credit quality trends were considered very positive with quarterly individual provision expense at record lows.

The broker points out ANZ Bank is slightly more exposed than the other major banks to markets income and suspects a soft performance from the Markets division due to subdued volatility.

Ord Minnett lifts cash EPS forecasts, with lower impairments more than offsetting lower Markets income and raises its target price to $30.60 from $30. The Accumulate rating is unchanged.

Target price is $30.60 Current Price is $28.47 Difference: $2.13
If ANZ meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.85, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates AQR as Add (1) -

Morgans assesses APN Convenience Retail REIT’s FY21 result was in-line with guidance. An uplift in funds from operations (FFO) was mainly considered due to a 26.1% increase in net property income (NPI).

FFO and DPS guidance is set at 22.9 cents, up 4.6% on the previous corresponding period. Management announced an underwritten $45m institutional placement and $5m share purchase plan (SPP) to fund acquisitions. 

The broker adjusts forecasts to reflect both new acquisitions and the capital raising and lowers its target price to $4.05 from $4.15 and retains its Add rating.

Target price is $4.05 Current Price is $3.66 Difference: $0.39
If AQR 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: 0.8

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

Citi rates ASX as Sell (5) -

At first glance, ASX has reported in line with Citi's expectations and 1% ahead of consensus, ditto for guidance.

Trading services revenue provided a good beat but derivatives and over-the-counter trade disappointed.

Clearing and settlement revenue also outpaced.

Sell rating and $71.10 target price retained.

Target price is $71.10 Current Price is $81.64 Difference: minus $10.54 (current price is over target).
If ASX meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.98, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Ord Minnett rates ASX as Hold (3) -

At first glance, ASX's FY21 result has outpaced Ord Minnett and consensus forecasts, thanks largely to higher post-trade revenue and lower-than-expected capital expenditure.

Interest incomes and short-end future revenue took a hit. Guidance was in line.

The broker keeps a wary eye peeled to expenses and tips a consensus upgrade.

Price target steady at $76.50 and Hold rating retained.

Target price is $76.50 Current Price is $81.64 Difference: minus $5.14 (current price is over target).
If ASX meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.98, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

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

Aventus Group posted FY21 funds from operations in line with forecast. In the current climate, no FY22 guidance was provided. That said, Macquarie notes that as of this week, 80% of the REIT's stores were trading, with 32% offering click & collect.

The broker believes Aventus' tenant base will be relatively less impacted by rent relief requirements compared to large mall peers, but is not immune, given 11% of tenants have requested rent relief.

The balance sheet stands ready for acquisitions but the problem is a lack of opportunities. With limited valuation support, and risk to discretionary spending, the broker downgrades to Neutral. Target falls to $3.30 from $3.33.

Target price is $3.30 Current Price is $3.29 Difference: $0.01
If AVN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.14, suggesting downside of -3.9% (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

Morgans rates AVN as Hold (3) -

After Aventus Group's FY21 results, Morgans retains its Hold rating and lifts its target price to $3.34 from $3.26. The result highlighted to the broker strong portfolio metrics with occupancy, rent collection, foot traffic and average rent/sqm increasing over the period.

FY21 funds from operations (FFO) rose 9.6% on the previous corresponding period and the FY21 DPS was 17.47 cents. No guidance was provided though management confirmed the payout ratio will be consistent at 90-100% of FFO.

Management stated that in lockdowns, currently around 80% of the portfolio is trading.

Target price is $3.34 Current Price is $3.29 Difference: $0.05
If AVN meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.14, suggesting downside of -3.9% (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

Ord Minnett rates AVN as Hold (3) -

Aventus Group's FY21 result was broadly in-line with Ord Minnett's forecast and no FY22 earnings guidance was provided. Some short-
term pain is anticipated, given exposure to NSW and the Household Goods sector.

The broker assesses the group has significant capital to deploy across its development and funds management platform to grow earnings in the medium term. The price target is increased to $2.99 from $2.90 and the Hold rating is unchanged.

Target price is $2.99 Current Price is $3.29 Difference: minus $0.3 (current price is over target).
If AVN meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.14, suggesting downside of -3.9% (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

UBS rates AVN as Downgrade to Neutral from Buy (3) -

FY21 results were in line with forecasts. UBS downgrades to Neutral from Buy on valuation grounds following the outperformance versus the A-REIT sector over the last 12 months.

The broker suggests growth in asset values is increasingly being priced into the portfolio. Moreover, there are income headwinds from lockdowns and higher overheads to come in FY22. Target is raised to $3.29 from $3.00.

Target price is $3.29 Current Price is $3.29 Difference: $0
If AVN meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.14, suggesting downside of -3.9% (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 AWC as Underperform (5) -

Improving market fundamentals have led Macquarie to upgrade its short and medium term aluminium price forecasts. Fundamentals for alumina nevertheless remain challenging, hence the broker retains a cautious stance and makes little adjustment.

Alumina Ltd's target price is nonetheless raised to $1.40 from $1.30, Underperform retained.

Target price is $1.40 Current Price is $1.67 Difference: minus $0.27 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.85, suggesting upside of 11.4% (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: 0.5

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

Morgan Stanley rates AX1 as Equal-weight (3) -

Accent Group's FY21 results outpaced the broker by 10% but Morgan Stanley notes lockdowns are hurting the company, which reports  a fall in like-for-like sales of -16% in the first 7 weeks of FY22.

Key metrics were strong across the board and no earnings guidance was issued.

Target price is steady at $2.80. Equal-weight rating is retained. Industry view: In line.

Target price is $2.80 Current Price is $2.34 Difference: $0.46
If AX1 meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates BAP as Outperform (1) -

Bapcor's solid FY21 result was weighed down by weak cash flow (inventory build) and a relatively muted outlook, with management aiming for “at least” flat earnings growth in FY22.

Retail earnings margin of 15.4% was down -4.2ppts on the first half which management attributes to a focus on competitive pricing. Cash flow was weak (74% conversion), due to -$45m of inventory investment to buffer.

After incorporating the impact of the AASB16 lease standard, Credit Suisse forecasts large revisions at the earnings level, but at the earnings per share (EPS) level the broker's changes are more modest, reflecting a broadly unchanged operational outlook.

Outperform rating is unchanged and the target is lowered to $9.20 from $9.25.

Target price is $9.20 Current Price is $7.70 Difference: $1.5
If BAP meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Morgan Stanley rates BAP as Overweight (1) -

Bapcor's FY21 result met the broker, the company reporting a solid performance across most metrics save cash conversion, given the higher inventories needed to meet demand.

No guidance was issued but management expects this year's figures will, at the least, be repeated.

Target price steady at $9.70. Overweight rating retained. Industry view: In line.

Target price is $9.70 Current Price is $7.70 Difference: $2
If BAP meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Morgans rates BAP as Hold (3) -

Morgans maintains its Hold rating and $8.25 target price after FY21 results provided a slight beat versus the broker and consensus forecasts.

Management is seeing material price inflation via its supplier base in addition to freight. Some is being absorbed though price increases continue to be passed on to customers.

The analyst forecasts flat profit growth in FY22 versus management guidance of ‘at least’ in-line with FY21. Solid growth in most divisions (excluding Retail) is expected to be offset by a decent step-up in depreciation and amortisation.

Target price is $8.25 Current Price is $7.70 Difference: $0.55
If BAP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates BAP as Buy (1) -

Bapcor's FY21 result showed a 46.5% increase in FY21 underlying profit to $130.1m, ahead of Ord Minnett's forecast of $128.8m
and consensus expectations of $124.7m.

The analyst highlights strong revenue and earnings (EBITDA) growth across all businesses, with growth underpinned by its Trade, Retail and Specialist Wholesale segments.

The broker lowers FY22 and FY23 profit estimates by -11.5% and -10.9%, respectively, given it may be challenging to increase earnings in FY22 during lockdowns. The target price falls to $8.60 from $9.20 and the Buy rating is unchanged.

Target price is $8.60 Current Price is $7.70 Difference: $0.9
If BAP meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Credit Suisse rates BHP as Neutral (3) -

While BHP Group's FY21 earnings were in line with consensus, net profit was marginally (-2%) lower.

Credit Suisse notes impairing Jansen at final investment decision (FID) 12-14% internal rate of return (IRR), takes the shine off the story. 

The broker also notes higher unit costs at Western Australia Iron Ore (WAIO) were the principal driver of reducing FY22/23 earnings per share (EPS) by -3%-4%.

The broker sees BHP's petroleum exit to Woodside Petroleum ((WPL)) as a positive, but notes higher unit costs/capex, asset impairments, and increases of provisions.

Neutral rating and target of $46 are both unchanged.

Target price is $46.00 Current Price is $47.70 Difference: minus $1.7 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.38, suggesting upside of 8.1% (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: 0.2

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

Citi rates BLX as Buy (1) -

At first glance, Beacon Lighting Group's FY21 result outpaced Citi's and consensus estimates by 3%.

On the upside, trade loyalty club sales were up 50.1% for the year; gross margins rose 282 basis points to 68.4% thanks to foreign exchange tailwinds and good procurement; operating expenditure fell and the dividend outpaced.

On the downside, like-for-like sales fells and working capital as a proportion of sales rose as payables fell.

The company is guiding to FY22 growth, which appears at odds with consensus forecasts for a -30% decline in net profit after tax.

Target price is steady at $2.21. Buy rating retained.

Target price is $2.21 Current Price is $1.90 Difference: $0.31
If BLX meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates BXB as Outperform (1) -

Brambles' strong FY21 earnings result, up 8% on the previous period, was in line with Credit Suisse forecasts and consensus.

While management is holding off on FY22 guidance until the 13th September investor day, the broker expects more details on the next set of initiatives to “deliver a significant and sustainable uplift” in value.

The broker notes Brambles appears to be gaining better control of its US business and is using price increases -  up 8% in second half FY21 - to address the higher cost-to-serve of customers and send pallets into channels with high rates of damage and pallet loss.

The broker has raised revenue forecasts by low single-digits for FY22 and FY23; for FY22 partly due to higher pricing potential
and favourable FX movements.

Outperform retained. Target increases to $14.15 from $12.15.

Target price is $14.15 Current Price is $12.12 Difference: $2.03
If BXB meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.63, suggesting upside of 2.4% (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: 0.5

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

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

Brambles FY21 result edged out the broker but Morgan Stanley urges caution, noting an imminent capital expenditure step-up and an absence of guidance.

The broker expects the company's September 13 investor day should be telling and in the meantime, cuts the target price to $12.50 from $12.90.

Rating falls from Overweight to Equal Weight. Industry view: In line.

Target price is $12.50 Current Price is $12.12 Difference: $0.38
If BXB meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.63, suggesting upside of 2.4% (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: 0.5

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

Citi rates COL as Neutral (3) -

Coles Group reported full year net profit of $1,005m, implying approximately 7% year-on-year growth. While Citi notes market share gains in the fourth quarter were largely due to the unwinding of local shopping habits, market share losses are likely to resume in FY22 as the consumer behaviour reverts given current lockdowns. 

The broker highlights improved online logistics compared with 2020, but also notes the company still has some way to go to catch up with Woolworths Group ((WOW)). However, Citi highlights online improvements should cushion potential market share losses. 

The Neutral rating is retained and the target price increases to $18.90 from $18.10.

Target price is $18.90 Current Price is $18.34 Difference: $0.56
If COL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.57, suggesting upside of 0.0% (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

Credit Suisse rates COL as Neutral (3) -

Credit Suisse believes the more material part of Coles Group's FY21 result was acceleration in supermarket sales growth through fourth quarter FY21 and into the first seven weeks of trading in first quarter FY22.

The broker believes the change demonstrated a material inflection in market share, which Coles had been losing through
most of 2020.

The broker sees increased investment as important to support Coles’ cost position long term and to grow its position in online.

Coles is guiding to Smarter Selling benefits of $200m in FY22.

Neutral rating retained and the target price is increased to $17.42 from $17.16.

Target price is $17.42 Current Price is $18.34 Difference: minus $0.92 (current price is over target).
If COL meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.57, suggesting upside of 0.0% (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 COL as Outperform (1) -

For an initial response see yesterday's Report. The highlight of an in-line result from Coles, the broker suggests, featuring sales growth across all of supermarkets, liquor and convenience, was increased supermarket market share in the fourth quarter.

This was due to customers reverting away from "shopping local" when restrictions eased, but now restrictions are back again. The broker is nevertheless enthusiastic about Coles' significant investment in its omnichannel and store renewals.

The balance sheet is also robust, and the broker retains Outperform and a preference over Woolworths ((WOW)). Target rises to $19.80 from $17.30.

Target price is $19.80 Current Price is $18.34 Difference: $1.46
If COL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.57, suggesting upside of 0.0% (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 COL as Add (1) -

While Coles Group’s FY21 result was slightly above Morgans estimates, it was in-line with consensus forecasts. With low net debt there’s considered plenty of capacity to pursue medium-term investment plans, while maintaining the 80-90% dividend payout ratio.

All divisions delivered earnings growth above the analyst’s expectations, with margin improvement supported by Smarter Selling benefits and good cost control. This was despite a higher investment spend.

The broker continues to see good value and maintains its Add rating, while raising its target price to $19.80 from $17.80, on higher earnings forecasts.

Target price is $19.80 Current Price is $18.34 Difference: $1.46
If COL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.57, suggesting upside of 0.0% (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 COL as Sell (5) -

FY21 results were in line with UBS estimates. The broker does not believe Coles can gain market share in the medium term as online is a headwind. Nor does the broker believe the Smarter Selling cost savings will drive margin expansion.

Capital expenditure is also on the rise in FY22. Food market share has been lost because of localised shopping and online and Coles also trails Woolworths ((WOW)) across in-store, strategic and cultural areas, UBS asserts. Sell rating and $16.50 target unchanged.

Target price is $16.50 Current Price is $18.34 Difference: minus $1.84 (current price is over target).
If COL meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.57, suggesting upside of 0.0% (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

Citi rates CSL as Neutral (3) -

Following FY21 results being largely in line with Citi's expectations, CSL is now guiding to net profit of $2,150-2,250m in FY22. Citi notes this is around -4% below consensus and implies an earnings decline of -5-9%. 

The company expects to open 40 additional plasma collection centres in FY22, as well as ramping up research and development projects that were halted during the pandemic. 

Citi notes key risk for FY23 results are the pace of recovery in plasma collections and donor fees. 

The Neutral rating is retained and the target price increases to $325.00 from $310.00.

Target price is $325.00 Current Price is $293.56 Difference: $31.44
If CSL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $308.84, suggesting upside of 2.4% (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

Credit Suisse rates CSL as Neutral (3) -

Driven by slightly stronger CSL Behring and lower net finance costs, CSL reported FY21 net profit of US$2,375m, 10% above consensus, and 2.5% above Credit Suisse.

A key highlight of the result included immunoglobulin growth up 3% in FY21, while there was mixed performance in sales of other key products.

CSL guided to FY22 net profit of US$2,150-2,250m.

The broker expects CSL’s FY22 to be impacted by covid, where collection volumes were down -20% year-on-year in FY21, while collection costs are expected to remain elevated.

The broker is forecasting FY22 net profit of US$2,228m, at the higher end of the range. Neutral rating is unchanged, and the target is increased to $315 from $310.

Target price is $315.00 Current Price is $293.56 Difference: $21.44
If CSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $308.84, suggesting upside of 2.4% (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

Macquarie rates CSL as Neutral (3) -

CSL's FY21 result fell slightly short of the broker, while FY22 profit guidance is -6% below. The problem is plasma collections remain below pre-pandemic levels, and improvement is required to meet the broker's FY23 collection assumption.

Weak collections are one factor behind lower than forecast gross margins for CSL Behring, along with higher donor fees,
PPE costs and social distancing impacts. Collection headwinds are blowing harder than the broker had to now assumed.

Neutral retained, target falls to $302.50 from $308.

Target price is $302.50 Current Price is $293.56 Difference: $8.94
If CSL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $308.84, suggesting upside of 2.4% (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

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

CSL's FY21 result beat the broker, guidance and consensus by 2%. FY22 profit guidance outpaced the broker by 11% but missed consensus by -5%.

The broker reports plasma collections remain below 2019 levels but expects a recovery by the end of this year, and is trying to quantify the expected FY23 rebound.

FY22 earning forecasts rise 9.2% and FY23 earnings fall -5% to reflect higher costs. Morgan Stanley retains its Equal-weight rating and increases the target price to $280 from $271. Industry view: In line.

The timing and strength of the rebound remains key, highlights the broker.

Target price is $280.00 Current Price is $293.56 Difference: minus $13.56 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $308.84, suggesting upside of 2.4% (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

Morgans rates CSL as Add (1) -

Morgans increases its CSL target price to $324.40 from $301.1 after FY21 results showed better than expected top/bottom line growth and improving operating cashflow. However, the gross margin contracted on higher plasma costs. The Add rating is unchanged.

The broker points out Seqirus was the standout, on strong demand for influenza vaccines. For Behring, albumin gains on transition to a direct China distribution and cost-outs were offset by flat to down growth for Immunoglobulin/Specialty/Haemophilia.

Plasma collections have improved from April lows (not back at pre-pandemic levels) on vaccine momentum, CSL initiatives and the winding up of US covid stimulus checks, notes the analyst.

Morgans considers collections are the main determinate of margin growth and earnings trajectory into FY23 and beyond.

Target price is $324.40 Current Price is $293.56 Difference: $30.84
If CSL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $308.84, suggesting upside of 2.4% (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

Ord Minnett rates CSL as Hold (3) -

For Ord Minnett's initial response to CSL's FY21 result: see yesterday's Report.

The broker increases its target price to $285 from $280 and retains its Hold rating. Net profit was 7.6% ahead of the analyst's forecast due to a US$68m currency benefit.

A 10%-franked final dividend of US141c was declared, taking the full-year payout to US222c versus Ord Minnett's US212c expectation.

Despite this, the analyst remains confident of a strong rebound by the second half of FY23 as the supply of immunoglobulin normalises and flu division earnings hold up.

Target price is $285.00 Current Price is $293.56 Difference: minus $8.56 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $308.84, suggesting upside of 2.4% (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 CTD as Buy (1) -

Following a difficult year for travel related names, Citi sees positive signs that Corporate Travel Management may return to a stronger state. 

Corporate Travel Management's FY21 results did report positive market share gain, particularly in Europe, as well as Australia and New Zealand, and the United States.

Citi has provided downward near-term revisions given lockdowns in Australia and New Zealand, but highlights potential underlying business performance improvements.

The Buy rating is retained and the target price increases to $26.06 from $23.65.

Target price is $26.06 Current Price is $21.00 Difference: $5.06
If CTD meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (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 CTD as Outperform (1) -

Corporate Travel Management's remarkably strong fourth quarter FY21 and momentum, continuing into July, surprised Credit Suisse materially to the upside.

The broker believes there are three reasons to remain bullish: upside to consensus FY23 earnings, an undemanding valuation, and the likelihood of more M&A.

Credit Suisse's FY22, FY23, and FY24 earnings per share (EPS) estimates increase 3%, 7%, and 10% respectively. The company provided no FY22 profit guidance, but is targeting the return to 2022 dividend payments.

Credit Suisse retains its Outperform rating with the price target increasing to $23 from $22.

Target price is $23.00 Current Price is $21.00 Difference: $2
If CTD meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates CTD as Overweight (1) -

Corporate Travel Management FY21 results outpaced the broker on some metrics and lagged on others.

Net, the broker downgrades earnings forecasts, despite the company returning to profitability and posting a strong second half, noting all depends on the timing of the covid rebound.

Target price falls to $23.50 from $21.50 but the broker retains an Overweight rating, noting ex-covid the business is in a strong position. Industry view: In line.

Target price is $23.50 Current Price is $21.00 Difference: $2.5
If CTD meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (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

Morgans rates CTD as Add (1) -

The FY21 result beat Morgans expectations, led by a strong fourth quarter recovery, particularly from the two largest regions of North America and Europe. Management intends to return to paying dividends in 2022.

The analyst highlights earnings (EBITDA) were positive in the second half. Compared to peers there's consided greater exposure to essential services customers, domestic travel and US/Europe. Also, there's a large pipeline of new client wins and a low cost base.

No formal FY22 guidance was provided though FY22 earnings will be materially skewed to the second half. The broker reiterates the Add rating and lifts the price target to $25.25 from $21.75.

Target price is $25.25 Current Price is $21.00 Difference: $4.25
If CTD meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (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 CTD as Buy (1) -

Ord Minnett largely ignores the FY21 result to focus upon a recovery trajectory. In so doing, the broker assumes a -20% reduction in normalised volumes versus pre-covid due to sustainability concerns, virtual conferencing and a reduction in corporate spend.

The analyst expects material improvement in Australia by the second half 2022, with Asia to follow (particularly Singapore and Japan). It's thought the company is well positioned to improve margins due to cost reductions, investment in technology/digitisation and efficiency improvements.

Ord Minnett increases its target price to $22.53 from $21.90 and retains its Buy rating.

Target price is $22.53 Current Price is $21.00 Difference: $1.53
If CTD meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (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 CTD as Buy (1) -

UBS was impressed with the turnaround in the business in the June quarter amid strong operating leverage and client wins.

The company continues to outperform the broader market and is well-placed to leverage the potential uplift from having around two thirds of pro forma EBITDA from the US and Europe.

Conditions in Australia and Asia, meanwhile, remain challenging but this only represents around 30% of the business. Buy rating unchanged. Target is reduced to $23.40 from $24.00.

Target price is $23.40 Current Price is $21.00 Difference: $2.4
If CTD meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $23.50, suggesting upside of 7.6% (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 DMP as Underperform (5) -

Having put through upgrades to store unit growth, Credit Suisse has significantly upgraded the target price on Domino's Pizza to $82.28 from $70.71 (but still well below where the share price is trading).

There was a noticeable improvement in unit economics in Europe with sales per store increasing 21.5% and earnings per store increasing 45% year-on-year in the second half FY21.

Guidance for new store openings was upgraded to 9-12% p.a, which, the broker notes, sets the expectations for a simultaneous acceleration in revenue and profit growth.

Despite the positive thematic, the broker continues to struggle to get a valuation to match the company's share price, and hence maintains an Underperform rating.

Target price is $82.28 Current Price is $136.02 Difference: minus $53.74 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $111.15, suggesting downside of -21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates DMP as Underperform (5) -

FY21 results were slightly ahead of Macquarie's estimates. The outlook is mixed, the broker suggests, with a solid roll-out of stores along with a slowing of same-store sales growth and increased capital intensity.

At current multiples the broker considers the stock priced for perfection and retains an Underperform rating. Target is raised to $113.00 from $103.50.

Target price is $113.00 Current Price is $136.02 Difference: minus $23.02 (current price is over target).
If DMP meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $111.15, suggesting downside of -21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates DMP as Hold (3) -

Morgans assesses very strong network sales and margin expansion in FY21, leading to earnings for Domino's Pizza Enterprises that were slightly above consensus expectations. Same store sales growth was 9.3%, with Europe and Japan considered especially strong.

The analyst retains a Hold rating with insufficient upside to the $146 target price (raised from $123.4) to justify an Add rating. Should the company exceeds the broker's 3.5% same store sales growth forecast in FY22, the rating will prove conservative.

Management increased its targets for network expansion and lifted its dividend payout ratio to 80%. With very strong cash generation and a robust balance sheet, Morgans believes the company can fund the dividend, capex and small acquisitions.

Target price is $146.00 Current Price is $136.02 Difference: $9.98
If DMP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $111.15, suggesting downside of -21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates DRR as Neutral (3) -

Deterra Royalties' full year results were largely in line with Citi's expectations, with revenue totaling $145.2m, net profit totaling $94.3m and underlying earnings totaling $135.5m.

Citi notes earnings results were driven by strong iron ore pricing and $2m in capacity payments. 

Citi expects the creating or acquiring of royalties aligned to its capital allocation framework to be the next catalyst for the stock.The Neutral rating and target price of $4.50 are retained. 

Target price is $4.50 Current Price is $4.41 Difference: $0.09
If DRR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 18.9% (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 DRR as Outperform (1) -

Deterra Royalties delivered a solid set of FY21 numbers and an 11.52cps final dividend in line with Credit Suisse and consensus.

The $24.2m net cash position has beaten Credit Suisse estimates ($14.6m), but the broker notes this is mostly due to lagged tax payments as reflected by the increase of current deferred tax liabilities (-$10.9m).

There was no new news on M&A as management reiterated a “patient and disciplined” approach, which the broker believes should be well perceived by shareholders against the current high-pricing backdrop.

The broker believes the company's share price has the potential to deliver strong(er) performance, along with healthy dividend returns.

Outperform rating is unchanged and the target is lowered to $4.80 from $5.00.

Target price is $4.80 Current Price is $4.41 Difference: $0.39
If DRR meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 18.9% (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

Macquarie rates DRR as Outperform (1) -

FY21 revenue was in line with Macquarie's estimates, although earnings were weaker. The South Flank ramp up will increase attributable production by around 133% and provide a boost to capacity payments over the next three years.

The spot price scenario for iron ore generates 20% and 50% higher earnings for FY22 and FY23, respectively, the broker points out.

Outperform maintained. Target is reduced to $5.50 from $5.60.

Target price is $5.50 Current Price is $4.41 Difference: $1.09
If DRR meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 18.9% (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 DRR as Overweight (1) -

Deterra Royalties reported earnings and dividend in line with Morgan Stanley and consensus.

Morgan Stanley continues to favour Deterra Royalties as an iron-ore exposure. FY22 dividend forecasts rise 6.6% in FY22 and 4.9% in FY23.

In early response estimates, the target price rises to $5 from $4.90. Overweight rating retained. Industry view: attractive.

Target price is $5.00 Current Price is $4.41 Difference: $0.59
If DRR meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 18.9% (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 DXS as Outperform (1) -

While the Dexus FY21 result was broadly in line with expectations, there was positive like-for-like growth of 2.3% and 3.7% across the Office and Industrial portfolios. This was offset by asset sales as well covid-related rent relief – noting rent collection was 98% in FY21.

The group's guidance to at least 2% dividend per share (DPS) growth in FY22, implies 52.8¢, which is also a proxy for adjusted funds from operations (AFFO).

Gearing is 27.3% and after allowing for known capital transactions, and Credit Suisse expects it will remain below 30% in FY22.

The broker notes while investor sentiment remains somewhat cautious towards the office sector, so far the company's portfolio has remained resilient in the post covid world and management remains comfortable with the longer-term outlook for it and the broader business.

Outperform rating is unchanged and the target rises to $11.03 from $10.84.

Target price is $11.03 Current Price is $10.72 Difference: $0.31
If DXS meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.81, suggesting upside of 2.7% (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

Citi rates EBO as Neutral (3) -

Ebos Group has delivered a strong result for FY21, with Citi noting revenue and earnings per share were up 5% and 14% respectively. 

While the company has not provided FY22 guidance, Citi highlights mergers and acquisitions and capital management both offer potential medium-term upside given balance sheet headroom.

The broker updates earnings per share forecasts by 1% each for FY22 and FY23, but notes this does not take into consideration potential upside from mergers and acquisitions.

The neutral rating is retained and the target price increases to $31.50 from $27.50. 

Target price is $31.50 Current Price is $30.87 Difference: $0.63
If EBO meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $31.39, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates EBO as Downgraded to Neutral from Outperform (3) -

While Ebos Group recorded FY21 underlying earnings of $294.5m, up 11.5% year-on-year, and in line with consensus, Credit Suisse has downgraded the company to Neutral from Outperform on valuation grounds.

Management did not provide FY22 guidance, but the broker is forecasting group revenue growth of 5% with earnings forecast to increase 7%, but due to higher D&A and net interest costs in FY22, net profit is forecast to increase 6% year-on-year.

While Credit Suisse views Ebos as a high-quality company, the broker notes shares were up 4% on result day and now views the shares at fair value trading at 25x FY22 P/E, noting slower growth ahead in FY22 and FY23 versus double-digit growth seen in both FY20 and FY21.

The price target has increased to $31.00 from $30.20.

Target price is $31.00 Current Price is $30.87 Difference: $0.13
If EBO meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $31.39, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Macquarie notes solid FY21 results, which reflected continued momentum in community pharmacy, in turn supporting earnings growth in the short to medium term.

Management provided no specific guidance but expects earnings growth in FY22, with risk caveats related to the pandemic. The broker finds earnings momentum quality supportive and upgrades to Outperform from Neutral. Target rises to NZ$35.49 from NZ$33.70.

Current Price is $30.87. Target price not assessed.

Current consensus price target is $31.39, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Ebos Group posted a strong FY21 result in-line with Morgans forecasts, with the highest recorded return on capital employed (ROCE), reflected by double digit earnings growth. The broker increases its rating to Add from Hold and raises its target to $31.68 from $31.03.

Announcements were made for strategic investments/acquisitions, a pet manufacturing facility and a medical device distributor. No FY22 guidance was provided though management remained positive that growth is expected to continue.

Target price is $31.68 Current Price is $30.87 Difference: $0.81
If EBO meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $31.39, suggesting upside of 1.5% (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

UBS rates EBO as Buy (1) -

FY21 underlying net profit was slightly ahead of UBS estimates. Healthcare revenue growth eased slightly in the second half while contract logistics was stronger than expected.

Pfizer's transition to wholesaler distribution in Australia is expected to lift community pharmacy revenue by $100m per annum from the second quarter of FY22.

The company has announced two institutional healthcare acquisitions for $80m. The broker lifts earnings forecasts and expects ongoing improvement in return on capital to reach 20% by FY24. Buy rating retained. Target rises to NZ$35.40 from NZ$32.70.

Current Price is $30.87. Target price not assessed.

Current consensus price target is $31.39, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates EHL as Outperform (1) -

FY21 operating earnings were at the upper end of the guidance that was reconfirmed in June. Macquarie finds the FY22 outlook positive in context of the broader market.

Capital expenditure guidance of $150-165m is higher than forecast, with the company flagging a replacement program of around 5% of fleet value.

Macquarie retains an Outperform rating and raises the target to $1.35 from $1.30.

Target price is $1.35 Current Price is $1.23 Difference: $0.12
If EHL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates EHL as Add (1) -

Emeco Holdings’ FY21 Operating earnings (EBITDA) met the upper end of guidance. Solid operating cashflow was a highlight versus some lacklustre conversion in recent years, points out Morgans. The Add rating is unchanged and the target rises to $1.50 from $1.32.

A 1.25 cent fully franked dividend was declared and a $4m buyback is indicative of balance sheet strength, thinks the analyst. It's believed a 4%-4.3% dividend yield can be sustained while still slowly de-leveraging.

Morgans believes the company has reached an inflection point after slower-than-expected de-gearing in recent years, which has likely frustrated investors.

Target price is $1.50 Current Price is $1.23 Difference: $0.27
If EHL meets the Morgans target it will return approximately 22% (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 EML as Outperform (1) -

FY21 results were ahead of Macquarie's expectations although FY22 guidance is materially below. This is largely because of lower yields and gross margin.

The remediation efforts to comply with the Central Bank of Ireland investigation are expected to be completed by the end of 2021. Certain growth restrictions apply during the remediation phase.

Macquarie was hoping for a faster resolution but notes the probability of a loss of license is unlikely. Outperform rating maintained. Target rises to $4.55 from $3.95.

Target price is $4.55 Current Price is $3.62 Difference: $0.93
If EML meets the Macquarie target it will return approximately 26% (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

UBS rates EML as Buy (1) -

The extent of progress around the CBI investigation is a key positive compared with investor expectations, UBS asserts. The loss of license appears unlikely given a focus on remediation.

As for the FY21 result; UBS found it a positive result overall.

While additional compliance costs are larger compared with the broker's previous estimates the vendor maximum earn-out has been reduced to $14m from $101m. Buy rating unchanged. Target is reduced to $4.80 from $5.30.

Target price is $4.80 Current Price is $3.62 Difference: $1.18
If EML meets the UBS target it will return approximately 33% (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

Ord Minnett rates EQT as Buy (1) -

Upon initial assessment, EQT Holdings' FY21 top-line result met the broker to the tee. No guidance was provided.

Funds under management, administration and supervision provided a significant beat, while -$1.8m of merger and acquisition expenses proved a drag especially given the deal did not proceed.

Ord Minnett retains a Buy rating, believing the results vindicate its investment thesis.

Target price is steady at $37. Risk is medium.

Target price is $37.00 Current Price is $29.15 Difference: $7.85
If EQT meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates EVN as Hold (3) -

At first glance, FY21 results were in line although the dividend missed forecasts. Ord Minnett notes integration work for the Kundana acquisition is progressing well and first ore has been delivered to the Mungari mill.

FY22 guidance is for 700-760,000 ounces and the target of 1m ounces is still on the agenda for FY24. Hold rating and $4.40 target maintained.

Target price is $4.40 Current Price is $3.95 Difference: $0.45
If EVN meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates FBU as Buy (1) -

Fletcher Building's full year results highlight the strong tailwinds in the New Zealand housing market, which Citi expects will be maintained into FY22 despite some volatility from covid-related lockdowns.

The broker expects supply chain and labour constraints to prolong the current cycle peak, and forecasts core earnings to grow an additional 7% in FY22. Further, Citi notes pricing dynamics remain favourable to offset cost inflation. 

The Buy rating and target price of NZ$8.10 are retained.

Current Price is $7.24. Target price not assessed.

Current consensus price target is $8.40, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Credit Suisse rates FBU as Outperform (1) -

Fletcher Building's FY21 earnings were 1% above the top end of 26-May guidance with second-half FY21 growth rate improving
on First half FY21.

While net debt was NZ$100m lower than Credit Suisse estimates, the company flagged a working capital build in FY22.

The broker retains a 9% earnings growth forecast for FY23 and is encouraged by company management's assertion above-market growth is being achieved in Distribution, Concrete, Building Products and Australia.

The target rises to $8.40 from $7.60.

Outperform rating is unchanged given Credit Suisse expects consensus upgrades, driven by favourable market conditions and company measures, with further upside to FY23 targets.

Target price is $8.40 Current Price is $7.24 Difference: $1.16
If FBU meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.40, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Macquarie rates FBU as Neutral (3) -

Further to the results commentary, see yesterdays Report, Macquarie updates earnings estimates, retaining a Neutral rating and raising the target to NZ$7.22 from NZ$7.15.

Current Price is $7.24. Target price not assessed.

Current consensus price target is $8.40, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Morgan Stanley rates FBU as Overweight (1) -

FY21 results were slightly ahead of Morgan Stanley's estimates and in line with guidance.

The broker believes the business is well positioned, and while coronavirus disruptions are a risk for the short term the company can beneft from strong end markets and tightness in global supply chains.

The broker's EPS forecasts rise 9% in both FY22 and FY23.

Overweight rating and NZ$8.60 are unchanged. Industry view is In-Line.

Current Price is $7.24. Target price not assessed.

Current consensus price target is $8.40, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

UBS rates FBU as Neutral (3) -

The headline results beat guidance but were in line with UBS estimates. Earnings were underpinned by stronger residential and development while offset by a soft Australian division.

The broker notes a meaningful uplift in the final dividend to NZ18c while the $300m share buyback continues into FY22. Neutral rating and NZ$7.65 target unchanged.

Current Price is $7.24. Target price not assessed.

Current consensus price target is $8.40, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Credit Suisse rates FPH as Neutral (3) -

Fisher & Paykel Healthcare's trading update for the first four months of FY22 included total revenue of NZ$583m.

If the current run rate continues, Credit Suisse assumes this implies the result was 10% above the broker's first-half FY22 forecasts.

The broker notes the decrease in hospitalisations in both the US and Europe during April-July reflects the weaker hospital growth in these regions.

The broker Increases earnings forecasts by 8% in FY22, and 2% in FY23, and expects double-digit earning per share (EPS) growth to return in FY24.

The Neutral rating is retained and the target price increases to $32.50 from $29.50.

Target price is $32.50 Current Price is $32.00 Difference: $0.5
If FPH meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $32.50, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in March.

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: -0.3

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

UBS rates FPH as Sell (5) -

The AGM revealed a sales performance that is running in line with UBS estimates. The broker suspects consensus views on hospital consumables sales are too high, particularly for FY23.

No formal FY22 revenue or earnings guidance has been provided because of volatile demand related to the pandemic. At this stage the broker is comfortable with its revenue forecast that implies a -25% decline in constant currency terms over the rest of the company's financial year.

Sell rating and NZ$22.65 target unchanged.

Current Price is $32.00. Target price not assessed.

Current consensus price target is $32.50, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in March.

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: -0.3

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

Morgans rates KLL as Add (1) -

An expansion feasibility study for Beyondie outlines a -$45.3m capital cost and is forecast to be completed during the fourth quarter of 2022. Morgans conservatively assumes expansion funding will be 100% equity, and lowers its target price to $0.24 from $0.29.

The apparent willingness of senior lender groups to restructure loans and provide additional short-term working capital support, reinforces the analyst's view of a technically sound project requiring support to “right size” the business. The Speculative Buy rating is unchanged.

Target price is $0.24 Current Price is $0.19 Difference: $0.05
If KLL meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates MCP as Hold (3) -

McPherson's reported underlying earnings (EBIT) and EPS in-line with the prior guidance range provided to the market. Current lock-down restrictions are thought likely to be impeding sales in the pharmacy categories.

As a result, the broker adopts a conservative approach to FY22 estimates and reduces its target price to $1.20 from $1.42, while retaining its Hold rating.

The fully franked dividend yield of 5%-6% supports the share price at current levels, in the broker's view. It's thought further corporate interest from industry and financial buyers is possible.

Target price is $1.20 Current Price is $1.12 Difference: $0.08
If MCP meets the Ord Minnett target it will return approximately 7% (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

Macquarie rates NEA as Neutral (3) -

Further to the FY21 results, see yesterday's Report, Macquarie adjusts its valuation methodology and reduces the target to $2.20 from $2.60. Neutral maintained.

The FY21 performance was better-than-expected on greater margin improvement in North America.

Target price is $2.20 Current Price is $2.06 Difference: $0.14
If NEA meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting upside of 26.6% (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 NEA as Overweight (1) -

Nearmap's FY21 result was in line with guidance and the company provides no FY22 guidance.

Morgan Stanley, in an early response, retains its $3.20 target price and overweight credit rating, forecasting lower cash burn over FY22.

The broker expects a re-rating as clarity is gained over top-line acceleration and operating leverage.

Target price is $3.20 Current Price is $2.06 Difference: $1.14
If NEA meets the Morgan Stanley target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting upside of 26.6% (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

Citi rates NWL as Neutral (3) -

Netwealth has reported full-year net profit of $54m, a 24% year-on-year increase but a -2% miss on Citi's forecasts. The broker notes higher revenue margin compression was a driver of results. 

It is Citi's view that Netwealth Group's increased operational expenditure in FY22 reflects a catch-up in spend given cost growth slowed to 13% year-on-year in FY21. The broker expects operational expenditure growth of 22% year-on-year in FY22.

Citi has reduced FY22 net profit forecasts by -5% on lower-than-expected fees and cash margin in the second half of FY21. 

The Neutral rating is retained and the target price decreases to $15.40 from $16.60

Target price is $15.40 Current Price is $14.24 Difference: $1.16
If NWL meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates NWL as Upgrade to Outperform from Underperform (1) -

Mostly driven by a lower-than-expected revenue margin, Netwealth Group reported FY21 net profit -2% below consensus and -3% below Credit Suisse.

The group guided to FY22 flows of around $10bn, in line with expectations.

The platform operator announced a sizeable step up in expenses in FY22 to maintain its  position of leadership with differentiated tech/offerings, support new services to generate revenue, and allow the business to scale with investment in the underlying technology infrastructure.

Credit Suisse assumes 20-25% cost growth in FY22  with an additional $2m increase in lease expenses, which the broker thinks should allow the group to deliver a 53-54% earnings margin in FY22, broadly stable with second-half FY21 levels.

Credit Suisse updates Netwealth to Outperform from Underperform and the target is lowered to $15.80 from $16.50.

Target price is $15.80 Current Price is $14.24 Difference: $1.56
If NWL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates NWL as Outperform (1) -

FY21 platform revenue margin was down materially, Macquarie notes. Netwealth Group plans to increase its investment in people and technology in FY22 to support growth and a material change to administration fee margins is not expected, although Macquarie acknowledges revenue margins are stabilising.

While uncertainty remains around the quantum of the expense uplift, the broker suggests attention will turn back to flows. Outperform maintained. Target is reduced to $17.75 from $18.25.

Target price is $17.75 Current Price is $14.24 Difference: $3.51
If NWL meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates NWL as Hold (3) -

Netwealth Group’s FY21 underlying profit growth of 23.5% was slightly below Morgans expectations due to a lower second half revenue margin. FY22 net inflow guidance is for $10bn.

Cost growth will accelerate in FY22, improving the operating infrastructure and allowing the business to scale efficiently over the medium-term, predicts the broker.

Morgans sees upside to its valuation emerging though retains its Hold rating for now. After lowering EPS forecasts primarily on cost growth, the broker’s price target falls to $16.20 from $17.75

Target price is $16.20 Current Price is $14.24 Difference: $1.96
If NWL meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 7.8% (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

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

Ord Minnett upgrades it rating to Buy from Hold and lifts its target to $17.50 from $16. While the FY21 result was just below expectations, there's believed to be upside risk to net flow guidance and significant scope for increased organic growth. 

The final dividend of 9.5cps was just below the analyst's 9.9cps forecast, while revenue was up 16.9% over the year though also below forecast. Guidance is for around $10bn of net flows in FY22, which compares to $9.8bn in FY21.

The analyst sees potential for market share gains in a rapidly changing marketplace.

Target price is $17.50 Current Price is $14.24 Difference: $3.26
If NWL meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $16.53, suggesting upside of 7.8% (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

Ord Minnett rates ORA as Hold (3) -

At first glance, it appears normalised profits missed Ord Minnett's forecast by the tiniest of margin, but the 14c in dividend came out well above the forecast 12c.

All in all, Orora's FY21 performance proved broadly in-line with the broker's numbers on most financial metrics. Management is still forecasting subdued volumes in glass for the Australian business as China continues to slap a tariff on Aussie wines.

The company's anticipation of further growth in FY22 is thus dependent on North America, points out Ord Minnett. The broker anticipates minor upgrades to consensus forecasts post today.

Target price is $3.30 Current Price is $3.66 Difference: minus $0.36 (current price is over target).
If ORA 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 $3.30, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Ord Minnett rates ORG as Hold (3) -

At first glance, FY21 results were ahead of Ord Minnett's expectations while the company reiterated energy markets earnings guidance for FY22.

Consolidated underlying EBITDA is guided at $1.85-2.15bn, based on an assumption of higher APLNG realised oil prices of US$68/bbl and an FX rate of US$0.75.

Origin Energy also provided new guidance for integrated gas and corporate of $1.40-1.55bn, slightly below the broker's forecasts.

The broker notes the main positive was a free cash flow yield of 14% while management has an immediate focus on capital discipline. Hold rating and $4.60 target retained.

Target price is $4.60 Current Price is $4.37 Difference: $0.23
If ORG meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.81, suggesting upside of 14.8% (ex-dividends)

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 OZL as Buy (1) -

A strong first half for OZ Minerals, reporting a 237% half-on-half beat on underlying net profit to total $269m, was driven by higher copper volumes and prices, reports Citi. 

The $600m Prominent Hill project expansion was approved, but Citi notes capital expenditure guidance increased 33% to $597m due to unexpected scope, as well as market pressure on raw materials and labour.

The expected mine life of the project has increased to 15 years, from 11 years reported in 2020, with annual copper production of 53,000 tonnes.

The Buy rating is retained and the target price decreases to $26.00 from $27.00.

Target price is $26.00 Current Price is $22.01 Difference: $3.99
If OZL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $23.68, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates OZL as Underperform (5) -

OZ Minerals reported a clean first half FY21 result, highlighted by a beat versus consensus on costs.

The $16cps dividend included an $8cps special dividend.

The key focus was Prominent Hill shaft expansion, with the company announcing an updated study and investment decision for PH 6mtpa shaft expansion. Capital cost estimates increased 33% to $597m due to cost inflation, scope changes, and refinement of packages.

Over the next three years, Credit Suisse modelling has limited free cash flow (FCF) generation, and EBITDA/EPS decline.

Underperform rating is unchanged and the target is lowered to $20.35 from $21.55.

Target price is $20.35 Current Price is $22.01 Difference: minus $1.66 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.68, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates OZL as Outperform (1) -

First half results were largely in line with Macquarie's expectations. The Prominent Hill expansion has been approved, although with a higher capital cost than the broker expected.

Near-term catalysts will be presented via updates on the Brazilian assets and the West Musgrave project. Macquarie retains an Outperform rating and reduces the target to $30 from $31.

Target price is $30.00 Current Price is $22.01 Difference: $7.99
If OZL meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $23.68, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates OZL as Overweight (1) -

OZ Minerals' FY21 earnings outpaced consensus by 9% but fell -6% short of Morgan Stanley's estimates.

The 16c dividend, buoyed by an 8c special dividend, outpaced on all fronts, and dividend strength is forecast to continue.

The broker expects rising dividends will translate to rising gearing over FY22-FY25 to a high of 25%.

Management guides to strong cash-flow and market conditions in the first half and the broker spies some looming capital expenditure.

Target price steady at $25. Equal-weight rating retained. Industry view: In-Line.

Target price is $25.00 Current Price is $22.01 Difference: $2.99
If OZL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $23.68, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates PGH as Neutral (3) -

FY21 net profit was ahead of expectations. The company is targeting 10% EBIT margins for the Australian business by 2025 which compares with current 6.5%. Otherwise, Macquarie notes no FY22 guidance was provided.

The broker is watching freight costs in particular as the company does not have contractual pass-through and needs to recover these in the market. Neutral maintained. Target is lifted to $4.54 from $3.90.

Target price is $4.54 Current Price is $4.32 Difference: $0.22
If PGH meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting downside of -14.1% (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

Morgan Stanley rates PGH as Underweight (5) -

Pact Group's FY21 result solidly outpaced Morgan Stanley's estimates for the second time.

The company's performance hinged on strong volumes and margin improvements, buoying the broker's confidence.

Earnings per share forecasts rise 11% in FY22 and the broker forecasts similar strength in FY23.

But Morgan Stanley baulks at the valuation, capital management and dividend, which compare unfavourably with the broker's favourite packaging company, Amcor.

Price target rises to $3.30 from $2.70. Underweight rating retained. Industry view: In-Line.

Target price is $3.30 Current Price is $4.32 Difference: minus $1.02 (current price is over target).
If PGH meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.87, suggesting downside of -14.1% (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

Morgans rates PME as Reduce (5) -

The FY21 results for Pro Medicus were lower than Morgans and consensus expectations though strong earnings (EBITDA) margins were a standout. A 735 basis points (bps) improvement exceeded the assumed 335bps uplift.

The broker lifts its price target to $54.49 from $49.69 and retains its Reduce rating and advocates holders with outsized positions trim into price strength. While FY21 margins continued to expand, they are expected to be less pronounced in FY22 as in-person trade shows and conference costs recommence.

The analyst highlights the signing of research collaboration agreements with NYU Langone Health and Mayo Clinic. In addition, the February FDA approval for the company’s Breast Density AI Algorithm is considered positive.

Target price is $54.49 Current Price is $65.35 Difference: minus $10.86 (current price is over target).
If PME meets the Morgans target it will return approximately minus 17% (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: -0.5

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

Morgan Stanley rates PSQ as Overweight (1) -

Pacific Smiles' FY21 result was in line with July guidance and -3% shy of Morgan Stanley's estimate. Covid continues to exact its toll and the broker cuts FY22 EPS forecasts -86% to reflect the first-half lockdowns.

No FY22 guidance was provided.

On the upside, the company reports a strong balance sheet and the broker likes Pacific Smiles' competitive position and policy-holder insurance flexibility.

Price target is steady at $3.20. Overweight rating is steady. Industry view: In-Line.

Target price is $3.20 Current Price is $2.33 Difference: $0.87
If PSQ meets the Morgan Stanley target it will return approximately 37% (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

Morgan Stanley rates PWR as Overweight (1) -

Peter Warren Automotive Holdings has raised guidance by 36% thanks to strong sales and margins as costs fell and efficiencies rose.

Morgan Stanley had anticipated strength but the quantum surprised.

The broker is trying to get a grip on the impact of FY22 first-half lockdowns, but at first glance retains its positive view on the company, expecting stable demand and improved reinvestment capacity.

Price target rises to $4.40. Overweight rating retained. Industry view: In-Line.

Target price is $4.40 Current Price is $3.45 Difference: $0.95
If PWR meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates PWR as Add (1) -

Peter Warren Automotive has upgraded its FY21 profit (NPBT) forecast by 35%, which is 68% above the original prospectus forecast, due to persistently strong demand. Morgans retains its Add rating and lifts its target price to $4.33 from $4.05.

The analyst raises EPS forecasts for FY21-23 by 35%, 27% and 5%, respectively, largely on higher margin forecasts.

Target price is $4.33 Current Price is $3.45 Difference: $0.88
If PWR meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates RIO as Outperform (1) -

Improving market fundamentals have led Macquarie to upgrade its short and medium term aluminium price forecasts. Fundamentals for alumina nevertheless remain challenging, hence the broker retains a cautious stance and makes little adjustment.

Rio Tinto's target price is nonetheless unchanged and Outperform retained.

Target price is $153.00 Current Price is $113.69 Difference: $39.31
If RIO meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $133.43, suggesting upside of 24.7% (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: 0.4

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

Macquarie rates S32 as Outperform (1) -

Improving market fundamentals have led Macquarie to upgrade its short and medium term aluminium price forecasts. Fundamentals for alumina nevertheless remain challenging, hence the broker retains a cautious stance and makes little adjustment.

South32's target price rises to $4.00 from $3.60, Outperform retained.

Target price is $4.00 Current Price is $2.89 Difference: $1.11
If S32 meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.9

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

Credit Suisse rates SCP as Neutral (3) -

Largely a function of $452m of acquisitions during the year, a lower impact from covid and lower net interest costs, SCA Property Group's FY21 result was in line with Credit Suisse, with funds from operations (FFO) up 12.9% on the previous period to $159m.

FY22 guidance has not been provided at this stage due to uncertainty over covid and also in light of the reintroduction of the Commercial Code in VIC and NSW.

The company is targeting a return to adjusted (FFO) of 7.5c per half in line with pre-covid levels once the impacts of the pandemic have ended. The broker suggests this target could have been achieved by second-half FY22 pre-recent lockdowns but now see this as an FY23 story.

Credit Suisse has made a modest uplift to FY22-FY23 FFOps noting that prior to the result, the broker's earnings estimates were below consensus.

Neutral maintained. Target rises to $2.59 from $2.54.

Target price is $2.59 Current Price is $2.67 Difference: minus $0.08 (current price is over target).
If SCP 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 $2.53, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23: