Australian Broker Call

Macquarie rates AFG as Neutral (3) -

Activity moderated for Australian Finance Group in the Dec quarter, Macquarie notes, with lodgements down -18.4% year on year. Home loan lodgements were down -51%.

Competition in the prime segment, supported by bank deposit franchises, drove a shift in share towards banks, the broker highlights.

Macquarie has not changed its forecasts, suggesting confidence in earnings should increase as cash rates and housing outlook stabilises.

Neutral and $1.81 target retained.

Target price is $1.81 Current Price is $1.71 Difference: $0.1
If AFG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

AGL Energy reports 1H results on February 9 and Morgan Stanley expects an update on capital structure settings and is looking for commentary on replacement energy after the upcoming final closure of Liddell in April.

The Equal-weight rating and $8.01 target are retained. Industry View: Cautious.

Target price is $8.01 Current Price is $7.64 Difference: $0.37
If AGL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.74, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates ALX as Neutral (3) -

Atlas Arteria reports APRR has obtained approval for E410 capex spend in return for minor price increases. This is a minor positive, Macquarie suggests, albeit well flagged, with the missing information being the quantum of capex.

It is now eight months since ART reported back on the capex program. The ART discussion is much more significant, the broker points out, but it is likely to take years for a clear outcome.

Neutral and $7.03 target retained.

Target price is $7.03 Current Price is $7.00 Difference: $0.03
If ALX meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates AMA as Neutral (3) -

AMA Group has reaffirmed full year earnings guidance, suggesting a strong second half skew according to UBS. The broker expects this second half lift will be driven by recent ongoing price negotiations with insurance partners and likely improvement to labour constraints given increased overseas recruitment and improved visa processing. 

Elsewhere, the company reports expansion of its aftermarket parts business has continued and a new warehouse has been leased in Brisbane. 

The Neutral rating and target price of $0.16 are retained.

Target price is $0.16 Current Price is $0.20 Difference: minus $0.04 (current price is over target).
If AMA meets the UBS target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

Morgan Stanley has a neutral stance on the major banks for 2023. On the one hand, the start of the year suggests credit quality and margin expansion will underpin earnings.

On the other hand, the analysts feel the 2H will bring declining margins, higher costs and rising impairments for the loan book due to the size and speed of interest rate tightening.

ANZ Bank is second in the broker's order of preference, behind Westpac Bank and ahead of National Australia Bank and CommBank.

The Equal-weight rating and $25.50 target is unchanged. Industry view: In-line.

Target price is $25.50 Current Price is $25.28 Difference: $0.22
If ANZ meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $27.54, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates ANZ as Buy (1) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $30.00 Current Price is $25.28 Difference: $4.72
If ANZ meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $27.54, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

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

Morgan Stanley forecasts an interim dividend of 26cps when APA Group reports 1H results on February 23.

The analyst also awaits any commentary by management on further organic growth opportunities in both gas and renewables.

The Equal-weight rating and $10.81 target are retained. Industry view: Cautious. 

Target price is $10.81 Current Price is $10.63 Difference: $0.18
If APA meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Credit Suisse rates APM as Outperform (1) -

Disability Employment Services (DES) program, APM Human Services International's largest contract, has reported a -13% year-on-year decline in caseloads over the December quarter. Referrals into the program also trended down over the quarter, with Credit Suisse highlighting lower average caseloads will translate to lower service fees for providers. 

The broker expects APM Human Services' recent market share wins in the DES reallocation will offset some of this impact, and anticipates a second half weighting after a disrupted first half. 

The Outperform rating and target price of $4.00 are retained. 

Target price is $4.00 Current Price is $2.57 Difference: $1.43
If APM meets the Credit Suisse target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 38.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates ART as Add (1) -

Airtasker's 2Q trading update highlighted underlying momentum for the domestic marketplace and pointed to early stages of offshore growth, according to Morgans.

Revenue and gross marketplace volume (GMV) for the 1H exceeded the analyst's forecasts by around 10%. A reduction in cash burn for the 2Q was also considered a highlight.

Only slight changes are made to the broker's forecasts, and the target slips to 90c from 95c due to an increased in the assumed risk free rate. Add.

Target price is $0.90 Current Price is $0.35 Difference: $0.55
If ART meets the Morgans target it will return approximately 157% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates BEN as Neutral (3) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $10.00 Current Price is $10.06 Difference: minus $0.06 (current price is over target).
If BEN meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.23, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates BGL as Outperform (1) -

Bellevue Gold's Dec quarter was productive, Macquarie notes, with the camp completed and process plant construction well underway. First gold remains on track for the second half of this year. Underground development is ahead of schedule.

Importantly, the broker highlights, procurement remains “well ahead” of schedule for key process plant items. The miner remains well funded.

Outperform and $1.60 target retained.

Target price is $1.60 Current Price is $1.15 Difference: $0.45
If BGL meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates BOQ as Neutral (3) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $8.00 Current Price is $6.97 Difference: $1.03
If BOQ meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates BPT as Buy (1) -

Beach Energy's December-quarter production missed Ord Minnett's forecast due to plant outages, delayed Western Flank oil connection and lower gas customer nominations.

Meanwhile, the net cash position fell sharply to $9 from $38m at September 30, to reflect heavy capital expenditure at the Perth and Otway basin projects. Management advises that major projects should deliver a 30% rise in east-coast gas market share.

Ord Minnett recently shifted to white-labelling Morningstar research, which makes changes from December metrics (when JP Morgan's target price was $1.90 early in the month) a little muddy.

The broker has established a fair value price of $3, and, while a Buy rating is retained, warns the prospect is not for the conservative investor.

Target price is $3.00 Current Price is $1.48 Difference: $1.52
If BPT meets the Ord Minnett target it will return approximately 103% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 32.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley has a neutral stance on the major banks for 2023. On the one hand, the start of the year suggests credit quality and margin expansion will underpin earnings.

On the other hand, the analysts feel the 2H will bring declining margins, higher costs and rising impairments for the loan book due to the size and speed of interest rate tightening.

CommBank ranks last behind Westpac Bank, ANZ Bank and National Australia Bank in the broker's order of preference.

Underweight and $86.50 target retained. Industry view: In-Line.

Target price is $86.50 Current Price is $110.15 Difference: minus $23.65 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.28, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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

UBS rates CBA as Neutral (3) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $100.00 Current Price is $110.15 Difference: minus $10.15 (current price is over target).
If CBA meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.28, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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

Macquarie rates CCP as Outperform (1) -

Credit Corp's first half profit came in -33.6% below Macquarie, driven by a higher provision due to loan book growth, but there is no change to FY23 profit guidance.

The improved second half outlook is supported by upgraded Ledger and Net lending investment guidance, the broker notes. Forecast Ledger purchases were upgraded 17% and Net lending 164%.

The near-term performance for the US purchased debt ledger and consumer lending segments are set to drive second half growth, with the A&NZ PDL segment expected to be a drag until supply of PDL books improves.

Outperform and $24.90 target retained.

Target price is $24.90 Current Price is $22.00 Difference: $2.9
If CCP meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $25.80, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates CCP as Add (1) -

First half profit for Credit Corp was a -26% miss versus Morgans estimate and at the bottom end of the range of the consensus forecast. While a lending provision drag was expected, the US also missed expectations.

By implication, the 2H needs to improve significantly if unchanged profit guidance is to be met, notes the analyst, though management expects Lending to deliver the majority of the improvement.

The broker feels the platform has been built for a return to growth from FY24 via increased profits from a bigger loan book (in place) and greater scale and operational efficiency in the US.

The Add rating is unchanged and the target rises to $24.50 from $24.35.

Target price is $24.50 Current Price is $22.00 Difference: $2.5
If CCP meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $25.80, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates CCP as Accumulate (2) -

Credit Corp's December-half result broadly met Ord Minnett's forecasts.

Net profit after tax fell -30% due to higher costs (including a higher loan-loss provision and staffing), which the broker expects should fall in the June half (as confirmed by guidance).

While the June half may be steady, the broker says these issues are likely to be a recurring theme for Credit Corp should the US economy deteriorate, and as funding costs rise.

But Ord Minnett spies stronger growth in US debt ledger and consumer lending volumes, and believes the company is well positioned to leverage these trends into higher earnings, particularly given its astute debt-ledger purchasing track record.

Accumulate rating and $28 target price retained.

Target price is $28.00 Current Price is $22.00 Difference: $6
If CCP meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $25.80, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgan Stanley rates CWY as Overweight (1) -

Cleanaway Waste Management reports 1H results on February 23.

After management's strategy update last November, Morgan Stanley awaits capex and earnings updates on the company's 14 Blueprints. The analyst forecasts capex of around $380m in FY23, allowing also for investments and the Customer Connect project cost.

The Overweight rating and target price of $3.18 are retained. Industry view: Cautious.

Target price is $3.18 Current Price is $2.74 Difference: $0.44
If CWY meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates EDV as Outperform (1) -

A return to normal trading post-covid will benefit Endeavour Group's high margin Hotels business but drag on high volume Retail, Macquarie suggests, before volatility eases and earnings become more predictable by the second half.

The broker concerned that the rising cost of living, fixed rate mortgage roll-offs and normalising service consumption will erode consumer
discretionary spending in the second half of calendar 2023, leaving staples to provide relative safety.

Alcohol consumption has always proven resilient, although changes to gaming regulations do offer risk, Macquarie notes.

Outperform retained, target falls to $7.40 from $7.70.

Target price is $7.40 Current Price is $6.62 Difference: $0.78
If EDV meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates EDV as Underweight (5) -

Ahead of the NSW state election in March, Morgan Stanley notes the potential for regulatory reforms for electronic gaming machines (EGMs) in pubs and clubs. These are considered a potential headwind to Endeavour Group's medium-to longer-term earnings.

Should legislative reforms move beyond NSW/TAS to a nationwide rollout, the analysts estimate around -7% of group earnings (EBIT) would be at risk.

The broker believes implementation of any changes will likely take longer than currently expected as industry feedback suggests the technology required to implement full cashless gaming is not yet commercially available.

The Underweight rating and $5.90 target are maintained. Industry View: Underweight.

Target price is $5.90 Current Price is $6.62 Difference: minus $0.72 (current price is over target).
If EDV meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.91, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Credit Suisse rates FLT as Underperform (5) -

With Flight Centre Travel's base leisure revenue margins and earnings coming under structural pressure in recent years from declining airline commissions and a move toward online and independent agents, the Scott Dunne acquisition offers potential for the company to expand presence in luxury travel.

Credit Suisse questions the resiliency of the luxury travel segment as travel continues to normalise, believing Scott Dunne has benefited from elevated travel disruptions and complex cross-border rules. The broker believes greater clarity on historical performance is needed.

The Underperform rating is retained and the target price increases to $14.20 from $13.10.

Target price is $14.20 Current Price is $17.11 Difference: minus $2.91 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.22, suggesting downside of -7.7% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Ord Minnett rates HMY as Accumulate (2) -

Harmoney's December-quarter trading update pleased Ord Minnett, management guiding to positive cash profit in the December half, thanks to falling costs, a better performing New Zealand loan book and well-managed risks.

Management reiterated FY23 guidance.

The company's loan book grew 18% in the December half, as costs fell, due in part to its entrance into Australia (group originations grew roughly 23% year on year) and subsequent brand build. The broker expects cash profits will accelerate in the June half and run again in FY24.

Accumulate rating retained. Target price falls to 94c from $1.02.

Target price is $0.94 Current Price is $0.64 Difference: $0.3
If HMY meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates INR as Buy (1) -

ioneer's December-quarter result appears to have pleased Ord Minnett given the company achieved several key funding and commencement milestones.

On the downside, management has revised its project timeline postponing commencement of construction to the December half from the June, and expects first production in 2026 (output was previously expected in the 2025 June half).

The company's cash balance at the end of December was US$69m

Speculative Buy rating retained. Target price falls -11% to 62c to reflect the changes to the production timeline.

Target price is $0.62 Current Price is $0.43 Difference: $0.19
If INR meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgan Stanley rates JDO as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates coverage of pure-play Australian business bank Judo Capital with an Overweight rating and $1.75 target.

While competing against large incumbents, the analyst believe a differentiated business model (relationship-led with a sole focus on SME customers) will lead to strong growth and a mid-teens return on equity (ROE).

The broker also likes the founder-led and experienced senior management team and the lack of legacy systems, products or infrastructure, given it is a cloud-native bank.

FY22 prospectus targets should be exceeded, suggests Morgan Stanley, and further upside should occur from a favourable margin environment and strong loan growth. Risks are thought to include higher cost growth and weaker operating leverage.

Target price is $1.75 Current Price is $1.36 Difference: $0.39
If JDO meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Macquarie's investment thesis is based on Liberty Financial’s ability to deliver a more defensive result in the elevated rate environment, with structurally lower credit growth aspirations.

With a lower churn rate, the broker sees Liberty as well placed to manage margins, and with a lower exposure to the non-prime mortgage segment, sees Liberty as a lower risk exposure and higher quality book than Pepper Money.

With a more defensive bent than Pepper Money in the non-bank lender segment, Liberty is Macquarie's preferred exposure in the sector, given stronger defensive quality and stability in pricing strategy, which should engender improved customer loyalty in the longer term.

Upgrade to Outperform. Target unchanged at $4.25.

Target price is $4.25 Current Price is $3.89 Difference: $0.36
If LFG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates MME as Hold (3) -

MoneyMe posted a better-than-expected December-quarter, which Ord Minnett attributes to operational synergies from the S1 acquisitions, higher interest rates, and more stable loan book settings.

Loan book losses rose to 6.6% in the quarter due to provisioning.

The company has fully drawn its $75m corporate debt facility and held unrestricted cash of $16m as at December. MoneyMe is scheduled to make a strategic capital transaction by April and the broker believes this may drag on the share price in the near term, while proving a medium to longer term opportunity.

Hold rating retained. Target price falls to 62c from 77c to reflect broad market sentiment.

Target price is $0.62 Current Price is $0.43 Difference: $0.19
If MME meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates MP1 as Buy (1) -

Megaport's December-quarter update disappointed many in the market, but not Ord Minnett, the broker considering much of the market's reaction to be unwarranted, given the company's metrics often gyrate from quarter to quarter.

More importantly, posits the broker, the company's trajectory of rapid sales and improving profits is intact.

Megaport is outpacing the broker's full-year revenue and earnings (EBITDA) forecasts, thanks to improved pricing, larger customers and lower costs, with capital spending needs also reducing after the company's port upgrade.

Buy rating retained. Target price steady at $15.

Target price is $15.00 Current Price is $5.58 Difference: $9.42
If MP1 meets the Ord Minnett target it will return approximately 169% (excluding dividends, fees and charges).

Current consensus price target is $10.14, suggesting upside of 63.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

UBS rates MQG as Buy (1) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $190.00 Current Price is $187.00 Difference: $3
If MQG meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $190.38, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Morgan Stanley has a neutral stance on the major banks for 2023. On the one hand, the start of the year suggests credit quality and margin expansion will underpin earnings.

On the other hand, the analysts feel the 2H will bring declining margins, higher costs and rising impairments for the loan book due to the size and speed of interest rate tightening.

The broker's order of preference is Westpac Bank, ANZ Bank, National Australia Bank and CommBank.

The Equal-weight rating and $30 target are unchanged for National Australia Bank. Industry View: In-Line.

Target price is $30.00 Current Price is $31.73 Difference: minus $1.73 (current price is over target).
If NAB 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 $31.94, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates NAB as Neutral (3) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $33.00 Current Price is $31.73 Difference: $1.27
If NAB meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $31.94, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Macquarie rates NUF as Outperform (1) -

At its AGM, Nufarm reiterated FY23 guidance to modest underlying earnings growth in constant currency. The company continues to see positive momentum in the first quarter, with favourable ag conditions underpinning demand for crop protection and seed products, Macquarie notes.

Nufarm is tracking to expectations and progressing nicely towards achievement of its long term aspirations. Long term Seeds potential is not fully captured in the share price in the broker's view.

Outperform and $7.75 target retained.

Target price is $7.75 Current Price is $5.81 Difference: $1.94
If NUF meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $6.95, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgan Stanley rates ORG as Overweight (1) -

Origin Energy reports 1H results on February 16 and Morgan Stanley will be focusing on coal compensation, contracting and delivery positions, in view of coal market intervention.

Management commentary on domestic gas and LNG market conditions will also be scrutinised by the broker.

The Overweight rating and $8.88 target are retained. Industry View: Cautious.

Target price is $8.88 Current Price is $7.41 Difference: $1.47
If ORG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.48, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates PNI as Outperform (1) -

Pinnacle Investment Management reported first half underlying earnings -8% below Macquarie's expectations. Ongoing funds under management mix changes nevertheless are driving a higher average base fee margin.

The underlying trends evident in the first half -- ongoing higher bases fee margin and increased share of Affiliates net profit -- have the
potential to drive earnings ahead of the broker's expectations.

Macquarie estimates market performance in January has boosted funds under management by some 4.3%. Outperform retained, target falls to $11.05 from $11.20.

Target price is $11.05 Current Price is $9.65 Difference: $1.4
If PNI meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.50, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

After listing in 2021, Pepper Money has delivered better than expected cash earnings, driven by higher margins and accelerating credit growth in a low-rate environment. However, Macquarie sees increasing headwinds in the medium term as rates rise.

Pepper Money is unable to offset this through deposit margins on current accounts, and now unable to compete with major banks as they utilise deposit margin benefits to compete aggressively in the prime mortgage segment, the broker notes.

Downgrade to Neutral from Outperform. Target unchanged at $1.70.

Target price is $1.70 Current Price is $1.58 Difference: $0.125
If PPM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

UBS rates QAN as Buy (1) -

Ahead of Qantas Airways' first half result release, UBS anticipates profits before tax of $1.37bn and net debt of $2.47bn, both within the given guidance range. The broker expects Qantas Airways will provide full year guidance alongside its first half results. 

UBS already expects the company has had a positive start to the March quarter, but notes a lack of visibility beyond this quarter. The broker feels share price reaction will be driven by Qantas Airways' ability to build confidence in the next fiscal year, rather than current year upgrades. 

The Buy rating is retained and the target price decreases to $7.50 from $7.60.

Target price is $7.50 Current Price is $6.40 Difference: $1.1
If QAN meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.69, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Macquarie rates RMC as Neutral (3) -

Macquarie's investment thesis for Resimac Group is based on an expectation that current funding markets and price competition will put pressure on net interest margins and book growth.

Resimac may increase exposure in specialist and near prime residential mortgages and asset finance products, but the broker doesn't expect this to offset pressure across the book.

Neutral and 98c target retained.

Target price is $0.98 Current Price is $1.33 Difference: minus $0.35 (current price is over target).
If RMC meets the Macquarie target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Credit Suisse rates SDR as Outperform (1) -

Given the current capital environment, SiteMinder's management has flagged a cost-cutting program aimed at reducing costs by -$10-15m. Credit Suisse highlights cost savings will help the company move towards its free cash flow neutral target. 

The company reported accelerated revenue growth over the second quarter, with year-on-year revenue growth of 32% in-line with pre-covid growth rates. SiteMinder also anticipates property growth momentum into the second quarter, after a more subdued first quarter. 

The Outperform rating is retained and the target price increases to $4.30 from $4.00.

Target price is $4.30 Current Price is $4.06 Difference: $0.24
If SDR meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 26.1% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates TRS as Overweight (1) -

Morgan Stanley is surprised by the resignation of CEO Phil Bishop given his short tenure.

Separately, after the release of the 2Q activities report, the broker assesses a strong 1H and start to trading in the 2H.

Sales for the 1H rose 3.5% year-on-year and there was a balance of $84m for net cash, with the analyst expecting a further working capital release in the 2H.

The Overweight weighting and $5.70 target price are retained. Industry view is In-Line.

Target price is $5.70 Current Price is $4.17 Difference: $1.53
If TRS meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates TRS as Hold (3) -

The Reject Shop’s December-half trading appears to have missed Ord Minnett's sales forecasts, albeit the broker describing the result as solid and expecting the company will meet the broker's earnings (EBIT) forecast thanks to insurance income gains.

But the broker observes near-term cost headwinds. While these are expected to be partly offset by better sales, the broker is not yet ready to bite the bullet.

Hold rating and $4.30 target price retained.

Target price is $4.30 Current Price is $4.17 Difference: $0.13
If TRS meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates TSK as Buy (1) -

TASK Group's December-quarter result appears to have met Ord Minnett's forecasts, management reiterating earnigns (EBITDA) and revenue guidance.

The broker considers the company's US investment to be a lower-risk, capital-manageable prospect, and believes its restructure has substantially reduced risk and raise earnings potential.

Buy rating and 58c target price retained, the broker believing the company's steep discount to peers to be unwarranted. 

Target price is $0.58 Current Price is $0.34 Difference: $0.24
If TSK meets the Ord Minnett target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Virgin Money UK's underlying performance improved in the Dec quarter, Macquarie notes, underpinned by stable margins and improved growth in key segments.

Virgin Money remains fundamentally cheap relative to the theoretical valuation, the broker suggests, but with a challenging economic backdrop its multiple is no longer materially different to larger UK peers.

Following a 30% share price rally, the stock no longer looks overly cheap versus peers. Downgrade to Neutral from Outperform, target falls to $3.60 from $4.20.

Target price is $3.60 Current Price is $3.35 Difference: $0.25
If VUK meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.0

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

Morgan Stanley rates WBC as Overweight (1) -

Morgan Stanley has a neutral stance on the major banks for 2023. On the one hand, the start of the year suggests credit quality and margin expansion will underpin earnings.

On the other hand, the analysts feel the 2H will bring declining margins, higher costs and rising impairments for the loan book due to the size and speed of interest rate tightening.

The broker's order of preference is Westpac, ANZ Bank, National Australia Bank and CommBank.

The Overweight rating and $24 target are unchanged for Westpac. Industry View: In-Line.

Target price is $24.00 Current Price is $23.60 Difference: $0.4
If WBC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $26.24, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates WBC as Buy (1) -

UBS' team of banking analysts has used a general sector update to update and fine tune views and projections for the local banking sector.

Credit growth in December slowed noticeably as higher interest rates start to bite and UBS observes businesses might be dipping into their bank deposits while household deposits remain firm.

Industry laggard Westpac continues to underperform in most product categories while ANZ Bank continues growing above system and peers in mortgages and business lending.

Macquarie continues to grab market share in deposits, while Bank of Queensland's market-leading 4.75% at call offering continues to look attractive as well, the report highlights.

Target price is $27.00 Current Price is $23.60 Difference: $3.4
If WBC meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $26.24, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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