Australian Broker Call

Morgan Stanley rates ABC as Overweight (1) -

Adbri's FY21 result outpaced Morgan Stanley's forecasts by 4%, thanks to lower corporate costs and a 1% beat in Cement Lime and Concrete, despite several non-recurring costs items, including covid.

The broker notes the company's position as a domestic supplier gives it a natural advantage in a supply challenged environment. Earnings (EBIT) forecasts rise 14% across FY22 to FY24.

Overweight rating retained, Morgan Stanley expecting Adbri's ability to compete against imports and supply-chain challenged products will continue to benefit it, and the broker expects further upside in the cement and lime business.

Target price rises to $3.60 from $3.20. Industry view: In line.

Target price is $3.60 Current Price is $3.30 Difference: $0.3
If ABC meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates AKE as Outperform (1) -

Allkem delivered US$57m in net profit in the first half, which included a 4 month benefit from the Mt Cattlin acquisition. Credit Suisse notes pricing should support 15% and 23% free cash yield in FY23 and FY24; earnings forecasts lift 15% and 5% for the same years.

Allkem upgraded second half pricing at Olaroz 25% to US$25,000 per tonne. The company should benefit from a third of legacy contracts completing in the March quarter, allowing two thirds of volumes to be linked to index pricing and a third to spot pricing. 

The company flagged potential upside to spodumene pricing which remains at $US$2,500 per tonne for now.

The Outperform rating is retained and the target price increases to $14.70 from $13.70.

Target price is $14.70 Current Price is $9.07 Difference: $5.63
If AKE meets the Credit Suisse target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $12.86, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates AKE as Outperform (1) -

Allkem's first half results disappointed Macquarie's expectations given the company only included four months of earnings from the Mt Cattlin project, which drove a -13% miss to forecast. The broker reduces full year forecasts -27%. 

The Olaroz project was an update feature, with first half results in line and price guidance for the coming half upgraded to US$25,000 per tonne. Stage 2 construction is 68% complete, on track for completion later this year, but project costs increased 10-15% to US$365-380m.

The Outperform rating and target price of $14.00 are retained.

Target price is $14.00 Current Price is $9.07 Difference: $4.93
If AKE meets the Macquarie target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $12.86, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Allkem's H1 performance showed operationally a good result, broadly in-line, but with pricing weaker-than-expected, comments Morgan Stanley. Average price received missed the broker's forecast by no less than -19%.

Also, expenses post Galaxy merger proved higher-than-forecast as well. Cash flow turned out better-than-projected.

Equal-weight rating retained. Price target falls to $10.35 from to $10.40. Industry view is Attractive.

Target price is $10.35 Current Price is $9.07 Difference: $1.28
If AKE meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.86, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates AKE as Upgrade to Buy from Accumulate (1) -

Following an interim profit for Allkem that was 32% ahead of Ord Minnett's forecast, the rating is increased to Buy from Accumulate. Guidance for key lithium chemicals was raised, driving the broker's near-term earnings forecasts higher.

The company is the analyst's key preference in the sector for its growing production into rising lithium markets and the valuation screens as the cheapest within Ord Minnett's lithium coverage.

Target price is $12.50 Current Price is $9.07 Difference: $3.43
If AKE meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $12.86, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates ANZ as Buy (1) -

Against a backdrop of geopolitical uncertainty, UBS expects the banks to outperform given their defensive qualities and relative safe-haven status. It's also felt the market has not fully incorporated the impact of net interest margin (NIM) expansion from interest rate increases.

ANZ Bank's disappointing 1Q result now has the bank ranked second last on the list of the broker's preferences for the big four banks. Westpac Bank ((WBC)) is the preferred exposure. The Buy rating and $30 target are retained.

Target price is $30.00 Current Price is $26.01 Difference: $3.99
If ANZ meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.68, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates AOF as Hold (3) -

Australian Unity Office Fund's interim results exceeded Ord Minnett's expectations, driven by leasing success. Management reaffirmed FY22 funds from operations (FFO) guidance of between 18.0cpu and 18.5cpu.

The broker expects further clarity within the next six months on management initiatives to maximise value for unitholders. These initiatives include refurbishment and repositioning, asset sales and portfolio sales via corporate transactions.

The Hold rating is retained, while the target rises to $2.42 from $2.38.

Target price is $2.42 Current Price is $2.50 Difference: minus $0.08 (current price is over target).
If AOF meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

UBS rates APM as Buy (1) -

Given 1H results were mostly in-line with expectations, UBS leaves forecasts unchanged for APM Human Services International and retains its Buy rating and $3.30 target price.

The performance of the Australian division was considered a standout by the broker, in light of omicron challenges, while the APAC region  was the key area of softness. However, omicron/lockdown impacts are expected to be temporary in nature for the region.

Target price is $3.30 Current Price is $2.90 Difference: $0.4
If APM meets the UBS target it will return approximately 14% (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 ASB as Hold (3) -

Austal's 1H earnings (EBIT) of $71.1m was well ahead of the $53.4m estimate by Ord Minnett, while FY22 earnings guidance was well ahead of the consensus forecast.

However, earnings guidance was largely driven by provision releases relating to the US littoral combat ship shipbuilding program.

The broker maintains a Hold rating reflecting uncertainty regarding the company’s transition to steel manufacturing. The target falls to $2.10 from $2.20.

Target price is $2.10 Current Price is $1.92 Difference: $0.18
If ASB meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.39, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates AUA as Add (1) -

Audeara's first half earnings loss was well flagged through updates and reflects accelerating key growth hires and positioning ahead of the large US opportunity, Morgans notes.

The key highlight was growth in the company's lead indicator of clinic numbers of 65% year on year, which now sees Audeara's products stocked in all major audiology clinics in Australia.

The company also achieved its first sales in the US through its distribution partnership, and continues to progress its US expansion with a significant opportunity in its leading products, the broker notes. Speculative Buy and 33c targe retained.

Target price is $0.33 Current Price is $0.12 Difference: $0.21
If AUA meets the Morgans target it will return approximately 175% (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 AVG as Hold (3) -

Australian Vintage posted an interim profit ahead of Morgans but earnings were impacted by elevated shipping costs and temporary cellar door closures. FY earnings guidance provided in November is unchanged.

A greater level of elevated logistics costs are now expected to carry into the second half before a partial recovery in FY23, and the FY23 impact could be further mitigated through greater operational savings, the broker notes.

The result has reinforced the clear sustainable gains the company has made over the past 2-3 years, which has mitigated the impact of covid cost pressures. The broker nevertheless retains Hold for now, looking for greater visibility on the extent of the FY23 recovery.

Target falls to 82c from 90c.

Target price is $0.82 Current Price is $0.76 Difference: $0.06
If AVG meets the Morgans target it will return approximately 8% (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 BPT as Upgrade to Neutral from Underperform (3) -

Since the release of Beach Energy's first half results, and an immediate rally, the company's share price has now declined -7.5% and appears more fairly valued according to Macquarie. 

The broker likes that the company has delivered a strong performance in early 2022, but notes better options on the market for investors. Macquarie also suggests caution on expensive energy stocks given high oil prices are unlikely to last in the second half of the year. 

The rating is upgraded to Neutral from Underperform and the target price of $1.50 is retained.

Target price is $1.50 Current Price is $1.53 Difference: minus $0.03 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.71, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates CAR as Overweight (1) -

Morgan Stanley has resumed coverage with an Overweight rating. Target price is $25. Industry view: Attractive. The broker believes Carsales' Australian operations will continue to deliver "good" growth in the years ahead.

In Australia, suggests the broker, Carsales can fall back upon its strong market position with related strong pricing power. As far as the international operations are concerned, the broker seems to have taken a positive view, pointing out management's own expectations have been bettered in both Korea and Brazil, over time.

Target price is $25.00 Current Price is $20.50 Difference: $4.5
If CAR meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.00, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates CBA as Neutral (3) -

Against a backdrop of geopolitical uncertainty, UBS expects the banks to outperform given their defensive qualities and relative safe-haven status. It's also felt the market has not fully incorporated the impact of net interest margin (NIM) expansion from interest rate increases.

While Commonwealth Bank of Australia is seen as a clear leader among the majors with its premium retail banking franchise, upside is already priced in, according to the broker. The Neutral rating and $100 target are unchanged.

Westpac Bank ((WBC)) is the analyst's preferred exposure of the major banks.

Target price is $100.00 Current Price is $93.46 Difference: $6.54
If CBA meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $91.48, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

Credit Suisse rates DBI as Outperform (1) -

Credit Suisse notes Dalrymple Bay Infrastructure delivered a soft full year result, with terminal infrastructure charge revenue of $203m a -1% miss on the broker's forecast and earnings of $187m marginally lower than an expected $190m. 

The company is negotiating price with customers collectively, increasing customer bargaining power and limiting opportunity for differentiated pricing. Should negotiations fail, arbitration by the QCA would take around 30 weeks and drag price uncertainty into 2023. 

The Outperform rating is retained and the target price decreases to $2.70 from $2.90.

Target price is $2.70 Current Price is $2.03 Difference: $0.67
If DBI meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 23.3% (ex-dividends)

The company's fiscal year ends in December.

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 DBI as Add (1) -

Dalrymple Bay Infrastructure's 2021 earnings were flat on 2020 as expected by Morgans, and 2022 dividend guidance is within the target growth range.

Cost savings came through new interest rate swaps delivering a decline on principal hedged. The broker expects this saving to reverse
over coming years as average credit margins expand with ESG/anti-coal sentiment impacting cost and availability of new debt.

For investors comfortable with the company's coal exposure, and noting the terminal processes more than 80% met coal to thermal coal, its appeal is in its strong cash yield and potentially strong terminal charge-driven earnings growth over coming years, the broker suggests.

Target falls to $2.30 from $2.36, Add retained.

Target price is $2.30 Current Price is $2.03 Difference: $0.27
If DBI meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 23.3% (ex-dividends)

The company's fiscal year ends in December.

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 DCN as Outperform (1) -

Higher operating and exploration costs drove a disappointing result for Dacian Gold in the first half, with loss after tax of -$43m more than double that expected by Macquarie. 

Despite the first half loss, the company continues to guide to a strong end to FY22 given exposure to higher grade and thicker portions of the pit moving forward. Loss per share more than doubles for FY22, and earnings per share estimates have been reduced -4%m -1% and -1% through to FY25.

The Outperform rating and target price of $0.25 are retained. 

Target price is $0.25 Current Price is $0.21 Difference: $0.04
If DCN meets the Macquarie target it will return approximately 19% (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 DTC as Equal-weight (3) -

Damstra Holdings had pre-guided H1 so no surprises in the key numbers of revenues and recurring sales (ARR), but while management reiterated FY22 revenue guidance of $30-34m it also lowered target EBITDA margin to 2-5% from 15-20%. Yes, that's a big downgrade by anyone's account.

The result itself still surprised to the downside because of a Newmont loss, covid headwinds and reinvestments, reports the broker, who has taken the view that risks seem balanced at the current share price.

Equal-weight rating retained while the target price shifts to $0.25 from $0.44. Industry view: In-Line. Estimates have been lowered, which translates into deeper losses for longer.

Target price is $0.25 Current Price is $0.25 Difference: $0
If DTC meets the Morgan Stanley target it will return approximately 0% (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

Ord Minnett rates EQT as Buy (1) -

Ord Minnett notes operating leverage was important within EQT Holdings 1H results release. Earnings (EBITDA) was a 9% beat over the broker's forecast. 

While the analyst upgrades EPS forecasts by 6-7% over the forecast period the $38 target price is unchanged. Buy. It's felt the company is well placed for any M&A activity with a strong capital base.

Target price is $38.00 Current Price is $27.29 Difference: $10.71
If EQT meets the Ord Minnett target it will return approximately 39% (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 GPT as Upgrade to Outperform from Neutral (1) -

Macquarie notes GPT Group's stock has underperformed the market by 4 percentage points since the release of the company's full year results in mid-February. 

Factoring in headwinds in retail and office, the broker notes its $5.47 target is conservative and improvement in logistics could offer upside. The broker finds the valuation is attractive given the stock's cheap price comparative to peers.

The rating is upgraded to Outperform from Neutral and the target price increases to $5.47 from $5.37.

Target price is $5.47 Current Price is $4.94 Difference: $0.53
If GPT meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.44, suggesting upside of 9.9% (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

Morgans rates HMC as Add (1) -

Home Consortium is the entity that has emerged following the merger of HomeCo Daily Needs REIT (HDN) and Aventus Group (AVN), net of the spin-off of Healthco Healthcare & Wellness REIT ((HCW)).

Home Consortium delivered first half funds under management up materially year on year given higher funds management revenue, profits on asset sales and income from co-investments, Morgans notes. The broker does not qualify the result (bit messy, presumably).

FY guidance has been upgraded, driven by transactional fees and trading profits from property sales. The consortium is net cash, allowing for further opportunities. Add retained, target rises to $7.38 from $6.71.

Target price is $7.38 Current Price is $6.35 Difference: $1.03
If HMC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.73, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

Despite impacts on near-term activity, Macquarie continues to see potential in Integral Diagnostics' medium-term outlook. A -7% first half earnings decline was driven by restrictions on elective surgery and in-clinic attendance, as well as labour availability and cost. 

Although covid related pressures are expected to continue, the company has noted patient volume improvement in the early first half. The broker expects growth initiatives to benefit in FY23. 

The rating is upgraded to Outperform from Neutral and the target price of $4.30 is retained.

Target price is $4.30 Current Price is $3.52 Difference: $0.78
If IDX meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 20.8% (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

Citi rates IVC as Upgrade to Neutral from Sell (3) -

Folowing 2021 results for InvoCare, Citi increases its rating to Neutral from Sell on valuation, and raises its target to 13.25 from $11 on higher expected earnings and a roll forward of the valuation period.

2021 operating EPS of 31.5cps was 15% above the consensus estimate of 27.1cps on a lower interest expense, explains the broker.

With a post-covid normal looming, the analyst expects the death rate and volumes to normalise and earnings should be driven by operational leverage to these higher volumes. M&A also is considered to present additional upside.

Target price is $13.25 Current Price is $12.93 Difference: $0.32
If IVC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting downside of -2.3% (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

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

Morgan Stanley finds InvoCare's 2021 financial performance broadly in-line with a strong cash conversion one of the stand-out features.

The broker does note the absence of any guidance for the year ahead. Management has called out the normalisation of the death rate towards the long-term average.

Equal-weight rating retained. Target rises to $12.40. Industry view: In-Line.

Target price is $12.40 Current Price is $12.93 Difference: minus $0.53 (current price is over target).
If IVC meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.53, suggesting downside of -2.3% (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

Morgans rates IVC as Downgrade to Hold from Add (3) -

InvoCare's 2021 result slightly beat on profit but slightly missed Morgans on earnings. It was a solid result nonetheless, with funeral averages returning to pre-covid levels in A&NZ. Singapore restrictions remain a drag.

No guidance has been provided, with management noting the impact covid continues to have on its workforce, supply chain, operations, and client families is difficult to predict and presents an ongoing risk through 2022.

The broker continues to have a positive view on the stock over the long term with the fundamentals of the business remaining sound amidst a growing and ageing population.

But with the share price trading close to the broker's target price, now $13.60 up from $13.20, rating is downgraded to Hold from Add.

Target price is $13.60 Current Price is $12.93 Difference: $0.67
If IVC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting downside of -2.3% (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

Ord Minnett rates IVC as Hold (3) -

InvoCare's 2021 earnings (EBITDA) and underlying profit were beats versus Ord Minnett's estimates. The full year dividend payout of 21cps also topped the expected 16cps forecast. The target rises to $13 from $12 and the Hold rating remains.

The trend of returning operating leverage continued from the 1H, and was complemented by a rebound in case average growth, explains the analyst.

The broker points out revenue growth resulted from an increase in funeral case average in Australia and New Zealand. In addition, growth was experienced in memorialisation sales and a strong contribution from the pet cremations businesses.

Target price is $13.00 Current Price is $12.93 Difference: $0.07
If IVC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting downside of -2.3% (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 IVC as Neutral (3) -

After reviewing 2021 results, UBS believes that after two years of subdued covid-impacted volume headwinds, a period of tailwinds may follow for InvoCare.

Upon rolling forward earnings forecasts and updating market multiples, the broker's target rises to $13 from $12.10. Neutral.

However, the analyst does warn of potential cost-of-goods-sold inflation, and whether the ability exists to offset this through pricing increases in 2022.

Target price is $13.00 Current Price is $12.93 Difference: $0.07
If IVC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting downside of -2.3% (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

Morgans rates KSL as Add (1) -

A 27% year on year profit increase for Kina Securities met Morgans' forecast and guidance. The result actually beat forecasts in all areas, but was dragged down by higher operating expenses.

The strong performance is reflected in Kina producing a 2021 return on equity of 17% despite an extremely robust 23% total capital
ratio, which is broadly double the PNG regulatory minimum.

The firm continues to possess a favourable long-growth pathway, the broker suggests, with only some 15% PNG lending market
share versus a 10% level two years ago. At 6x forecast 2022 earnings and a better than 10% dividend yield, Morgans sees the stock as too cheap.

Target price is $1.20 Current Price is $0.90 Difference: $0.3
If KSL meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

This company reports in PGK. 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

Citi rates LFG as Buy (1) -

Despite consensus-beating 1H results from Liberty Financial Group, Citi expects intense competion will prevent rising funding costs being passed-through to borrowers. This competition stems from both non-bank financial insitutions, as well as deposit-laden lenders.

The competion, along with rising rates and funding spreads prompts the analyst to lower the target to $6 from $8.10. The Buy rating is kept as the stock is not only seen as cheap but also possibly defensive in a falling equity market.

Target price is $6.00 Current Price is $4.76 Difference: $1.24
If LFG meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.57, suggesting upside of 30.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates LFG as Outperform (1) -

Liberty Financial Group's 1H profit was 3% to the good compared to the consensus forecast, due to higher margins and lower bad debts.

While the broker finds the valuation is attractive at current levels, and maintains an Outperform rating, the impacts from both competition and higher interest rates weigh.

The target price falls to $6.25 from $6.75 after the analyst adopts a new valuation method and incorporates lower relative multiples.

Target price is $6.25 Current Price is $4.76 Difference: $1.49
If LFG meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $6.57, suggesting upside of 30.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates LRK as Buy (1) -

Lark Distilling's 1H results were in-line with Ord Minnett's expectations and pre-guidance by management. Sales growth and margin expansion is expected in the 2H, led by a new product suite and a return to higher margin sales (on premise) post lockdowns.

Net sales guidance was reduced by -12% implying to the analyst a 2H guidance of $10-14m. The target falls to $6.45 from $6.59. Buy. Recruitment of a new CEO seems to have been accelerated and should be finalised in coming months, according to the broker.

Target price is $6.45 Current Price is $3.36 Difference: $3.09
If LRK meets the Ord Minnett target it will return approximately 92% (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 LVH as Add (1) -

Livehire had recently released its December quarter trading update so the majority of key first half operating metrics were largely known, Morgans notes. Domestic SaaS revenue was up 26% year on while Direct Sourcing saw a 254% increase, off a low base.

The strong early growth seen in the DS business highlights the attractiveness of the opportunity, the broker suggests, driven by structural tailwinds and a growing contingent workforce. Management remains confident of achieving its 36 client target by FY22 end.

Add retained, target rises to 54c from 53c.

Target price is $0.54 Current Price is $0.39 Difference: $0.15
If LVH meets the Morgans target it will return approximately 38% (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 MCR as Neutral (3) -

One-off charges weighed on 1H results for Mincor Resources with an earnings loss -23% wider than Macquarie had forecast.

While the $1.70 target is unchanged, the analyst notes spot nickel prices continue to offer upside risk to forecasts.

The broker reminds investors of a return to producer status for the company in the latter part of FY22.

Target price is $1.70 Current Price is $2.00 Difference: minus $0.3 (current price is over target).
If MCR meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in 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 MFG as Sell (5) -

UBS notes a sharp -$10bn decline in funds under management (FUM) for Magellan Financial Group between the 11-23 of February. At the same time, Morningstar downgraded the group's flagship Global Fund.

Despite all previous and potential woes, the analyst believes risks are still skewed to the downside and retains the Sell rating. The target price falls to $15.40 from $17 reflecting a mark-to-market of FUM and allowing for quicker-than-expected outflows. 

Target price is $15.40 Current Price is $18.40 Difference: minus $3 (current price is over target).
If MFG meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.75, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

UBS rates MPL as Neutral (3) -

Following interim results for Medibank Private, UBS notes private health insurance continues to see greater policyholder engagement and participation as a result of the pandemic. It's felt rate deferrals will further boost participation.

The broker considers 1H results were solid and exceeded peers on the metrics of both customer acquisition and profit margin. Meanwhile, guidance was lifted slightly for FY22 insurance volumes and margins.

The analyst estimates covid-related tailwinds to persist into the 2H though therafter expects a reversal. The target slips to $3.25 from $3.50 and the Neutral rating is unchanged.

Target price is $3.25 Current Price is $3.18 Difference: $0.07
If MPL meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates MTO as Add (1) -

Motorcycle Holdings' numbers were pre-released. It was a strong result, Morgans suggests, cycling an elevated base from a year ago, and in the face of locked-down dealerships and supply chain disruptions.

Management has pointed to a normalising of trade through February after significant January disruption, on increasing demand momentum, tempered by ongoing supply constraints.

The broker expects an abating of lockdown impacts and incremental acquisition contributions will improve the seasonally lower second half skew. Target rises to $4.21 from $4.18, Add retained.

Target price is $4.21 Current Price is $2.93 Difference: $1.28
If MTO meets the Morgans target it will return approximately 44% (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 MWY as Downgrade to Hold from Buy (3) -

Ord Minnett downgrades its forecasts for Midway to account for disappointing 1H results and a soft outlook for volumes. The rating is lowered to Hold from Buy.

Revenue fell -39%, while underlying earnings (EBITDA) fell by -89% due to lower volumes out of the higher margin Geelong port. Low shipments in the half were considered largely due to the Chinese energy crisis. 

However, elevated freight costs are now leading Chinese customers to switch to cheaper products out of Asia, explains Ord Minnett.

The target falls to $1.22 from $1.78 after the analyst adopts a new valuation model due to account for uncertainty surrounding current trading conditions and outcomes of the new CEO's strategic review.

Target price is $1.22 Current Price is $0.93 Difference: $0.29
If MWY meets the Ord Minnett target it will return approximately 31% (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

UBS rates NAB as Buy (1) -

Against a backdrop of geopolitical uncertainty, UBS expects the banks to outperform given their defensive qualities and relative safe-haven status. It's also felt the market has not fully incorporated the impact of net interest margin (NIM) expansion from interest rate increases.

The broker likes National Australia with its potential for strong volume growth. The target rises to $33 from $30.50 and the Buy rating is unchanged. Meanwhile, Westpac Bank ((WBC)) is the analyst's preferred exposure of the major banks.

Target price is $33.00 Current Price is $28.94 Difference: $4.06
If NAB meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $31.21, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates NHC as Outperform (1) -

New Hope Corp delivered a solid second half. Credit Suisse notes 2.8m tonnes in coal sales and in line earnings of $552m suggest a slight price discount, likely due to a timing lag given the rapid growth of spot pricing year-to-date. 

Looking ahead, the broker notes New Hope Corp could accumulate around 90% free cash flow yield between FY22 and FY24, while likely net cash growth could support further dividends, construction and merger and acquisition opportunity. 

The Outperform rating is retained and the target price increases to $3.00 from $2.70. 

Target price is $3.00 Current Price is $2.54 Difference: $0.46
If NHC meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.65, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in July.

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 NHC as Outperform (1) -

While New Hope Corp's production was weaker in the 2Q, sales and earnings (EBITDA) were in-line to stronger than expected. Weaker production was offset by inventory sales at the Bengalla mine in the Hunter Valley.

Despite -2% lower EPS estimates (for FY22 onwards), the analyst explains a 17% lift in the target to $2.80 is due to an increased earnings multiple to reflect material upside at spot prices for thermal coal. Outperform.

Target price is $2.80 Current Price is $2.54 Difference: $0.26
If NHC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.65, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates PRU as Buy (1) -

Citi believes the scrip funded -C$215m acquisition of the remaining 85% stake in the Canadian-listed Orca Gold by Perseus Mining makes sense from a risk-reward perspective. The open pit gold project in Sudan is considered large-scale and highly prospective.

The broker notes that management is accustomed to constructing new mines in West Africa though acknowledges the country risk may not be to all investors' taste. The Buy rating and $2 target are maintained.

Target price is $2.00 Current Price is $1.83 Difference: $0.17
If PRU meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 17.1% (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 PRU as Outperform (1) -

Perseus Mining is set to become the 100% owner of Canadian Orca Gold for C$215m. Credit Suisse note the company will acquire the 85% of Orca Gold it does not currently hold, offering 0.56 Perseus Mining shares per Orca Gold share. 

The company looks set to focus on Orca Gold's Block 14 project, offering a potential 228,000 ounces annually for seven years and 167,000 ounces annually for a further seven years. The company aims to deliver an updated final investment decision around June 2023.

The Outperform rating and target price of $2.00 are retained.

Target price is $2.00 Current Price is $1.83 Difference: $0.17
If PRU meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates RMS as Outperform (1) -

Ramelius Resources has informed the market that the Galaxy underground (Mt Magnet) pre-feasability study is complete and the project has received approval to commence in March 2022. This brings forward the project from the previous FY24 commencement plan.

A maiden reserve was also reported for Galaxy underground at Mt Magnet.

Meanwhile, management continues work on the Edna May Stage 3 cut back feasabilty study. The Outperform rating and $1.90 target are maintained.

Target price is $1.90 Current Price is $1.52 Difference: $0.38
If RMS meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 33.8% (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 SFR as Neutral (3) -

While higher costs saw Sandfire Resources deliver a -16% first half earnings miss to Credit Suisse's forecasts, with reported earnings of US$162m, a first guidance for the Matsa acquisition was of most interest to the broker. 

Production guidance was largely in line, but unit costs were more than double those outlined in September. The discrepancy was attributed to a 20-25% increase in mining and processing costs since mid-2021, largely related to increased costs of power and labour. 

Credit Suisse warns of further cost pressure ahead for Matsa, with the company guiding to annual capital expenditure of -$100m per annum to develop and sustain the mine. 

The Neutral rating is retained and the target price decreases to $6.40 from $7.00. 

Target price is $6.40 Current Price is $6.70 Difference: minus $0.3 (current price is over target).
If SFR 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 $7.37, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Macquarie rates SFR as Outperform (1) -

Interim results for Sandfire Resources were weaker than Macquarie expected as a result of hedging losses and higher expenses incurred in exploration.

For the short and medium term, the analyst factors in higher power costs at the Matsa mining complex in Spain, which results in a -5% fall in target to $9.

The completion of the Matsa acquisition is expected to see the project dominate earnings over the next few years, suggests the broker. The Outperform rating is unchanged.

Target price is $9.00 Current Price is $6.70 Difference: $2.3
If SFR meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Morgan Stanley rates SFR as Overweight (1) -

Sandfire Resources released weaker H1 earnings and cash flows -missing both market consensus and Morgan Stanley forecasts- with a weaker production guidance for Matsa on top. Plus higher cost guidance.

Dividend declared of 3c fell short of expectations. Morgan Stanley believes some of the risks have already been priced-in. Target remains $7.65.

Overweight rating retained. Industry view: Attractive.

Target price is $7.65 Current Price is $6.70 Difference: $0.95
If SFR meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates SFR as Sell (5) -

Interim operating earnings and underlying profits for Sandfire Resources were a -9% and -26% miss versus Ord Minnett's estimates. This outcome was mainly attributable to lower revenue resulting from a hedging loss of -$16m.

The interim dividend of 3cps was also a miss versus the analyst's 5cps estimate. There was no change to guidance for the DeGrussa copper mine, while guidance for the Matsa Mining Complex in Spain was as expected.

The target price falls to $5 from $5.60 and the Sell rating is unchanged.

Target price is $5.00 Current Price is $6.70 Difference: minus $1.7 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.37, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Morgans rates SHJ as Add (1) -

Shine Justice posted 15% earnings growth in line with expectations. The 2.5c dividend is up 25% year on year. Cash flow was weak, the broker notes, on a combination of receipts timing, and investment in significant fee-earning headcount growth.

FY guidance has been retained as "low double-digit" growth.

Resolution of the Mesh class action case has been an important milestone, the broker notes Cash timing is still unknown, be it upfront or over some five years, however, certainty on the balance sheet should allow Shine to look at acquisition opportunities.

On lower assumed gross operating cash flow in the second half, target falls to $1.47 from $1.55, Add retained.

Target price is $1.47 Current Price is $1.31 Difference: $0.16
If SHJ meets the Morgans target it will return approximately 12% (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 SQ2 as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on Block Inc with a $230 target price and an Outperform rating. Average revenue per user (ARPU) growth is expected from management's vision of leveraging a range of offerings like Afterpay and Cash Card.

First quarter guidance settled some nerves, explains the analyst, as it didn’t imply a structural re-basing of growth, as has happened with some peers. Fourth quarter results were assessed as either in-line or slightly ahead of estimates.

The broker raises its gross profit forecast slightly to US$1.49bn from US$1.47bn for 2022.

Target price is $230.00 Current Price is $155.30 Difference: $74.7
If SQ2 meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $230.00, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates SRL as Neutral (3) -

Following 1H results for Sunrise Energy Metals, Macquarie maintains its Neutral rating and $1.80 target, despite a wider-than-expected earnings (EBITDA) loss resulting from higher-than-expected exploration costs.

The broker notes the Sunrise nickel-cobalt project remains development ready. This comes as the recent finance support from Export Finance Australia (EFA) is thought to help de-risk funding issues.

Target price is $1.80 Current Price is $1.82 Difference: minus $0.02 (current price is over target).
If SRL 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

Morgans rates STA as Add (1) -

With a published pre-production capital budget of $260m and -$140m spent to date, Strandline Resources’s available cash and finance facilities look to comfortably cover the capital commitment during the ramp-up of Coburn mineral sands, the broker notes.

Coburn construction was 50% complete at the end of the half. The next six months are the most critical period for the company as construction activities transition from earthworks to the process plant, requiring a lot more staff. 

Managing these activities with a tight labour market in WA, with cost inflation impacting both mine operators and developers, will
be critical to the miner’s success, the broker suggests. Add retained, target rises to 52c from 50c.

Target price is $0.52 Current Price is $0.35 Difference: $0.17
If STA meets the Morgans target it will return approximately 49% (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 SZL as Buy (1) -

Ord Minnett welcomes the proposed merger between Sezzle and Zip Co ((Z1P)) due to many perceived strategic benefits. This includes attaining number 4 status in the US, with the combined active customer base.

Also, the merchant network for users should see greater network effects and the potential for more merchant wins, explains the analyst.

Separately, the company announced a 2021 result which bettered the broker's forecasts. A Buy rating is retained while the target falls to $4 from $5.40.

Target price is $4.00 Current Price is $1.78 Difference: $2.22
If SZL meets the Ord Minnett target it will return approximately 125% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates WBC as Buy (1) -

Against a backdrop of geopolitical uncertainty, UBS expects the banks to outperform given their defensive qualities and relative safe-haven status. It's also felt the market has not fully incorporated the impact of net interest margin (NIM) expansion from interest rate increases.

WestpacBank is the broker's top pick among the majors, with 18% potential upside to the new target price of $27, up from $25.The Buy rating is unchanged.

Target price is $27.00 Current Price is $22.81 Difference: $4.19
If WBC meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $24.93, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates WPR as Underweight (5) -

Waypoint REIT's 2021 financials proved in-line with a slightly above forecasts guidance for the year ahead. Management has guided 2022 EPS to 16.44c with the broker explaining this assumes $150m of asset sales and $100m of capital management.

The REIT is of the intent to diversify away from the current tenant concentration, also to boost ESG credentials, suggests the broker.

Morgan Stanley suggests the diversification strategy will be a long and slow process. Underweight rating retained. Price target moves to $2.70. Industry view is In-Line.

Target price is $2.70 Current Price is $2.73 Difference: minus $0.03 (current price is over target).
If WPR meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.90, suggesting upside of 6.2% (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

Ord Minnett rates WPR as Downgrade to Accumulate from Buy (2) -

Following 2021 results for Waypoint REIT, Ord Minnett assesses net tangible asset growth will slow from strong levels over the last two years and downgrades its rating to Accumulate from Buy. 

Results showed distributable earnings of 15.8cps, which was in-line with the broker's estimate, while FY22 guidance of 16.4cps compared to 16.6cps forecast. The target falls to $3 from $3.08.

Proceeds from a further $150m of intended asset sales in 2022 may be deployed via a buyback and/or capital return and security consolidation, suggests Ord Minnett.

Target price is $3.00 Current Price is $2.73 Difference: $0.27
If WPR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 6.2% (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

Citi rates Z1P as Neutral (3) -

While Citi sees the Sezzle ((SZL)) merger as an expensive customer acquisition strategy, there's a high probability on the mooted cost synergies being delivered.

The broker points out little detail was provided on the use of proceeds from the capital raise and the growth trajectory in the 2H. The Neutral rating and $3.65 target remain.

Target price is $3.65 Current Price is $2.21 Difference: $1.44
If Z1P meets the Citi target it will return approximately 65% (excluding dividends, fees and charges).

Current consensus price target is $4.13, suggesting upside of 99.4% (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 Z1P as Underperform (5) -

Zip Co has entered a definitive merger agreement with Sezzle ((SZL)) and implemented a capital raise of around $200m to bridge the gap until synergies are achieved, explains Macquarie.

The broker questions the 22% premium paid for Sezzle and feels it is a merger based upon necessity. 

After a 1H result impacted by elevated bad and doubtful debts and expenses, the analyst slashes cash earnings (EBTDA) estimates by around -35-40% across the forecast period. As a result, the target falls to $1.85 from $3.40. Underperform.

Target price is $1.85 Current Price is $2.21 Difference: minus $0.36 (current price is over target).
If Z1P 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 $4.13, suggesting upside of 99.4% (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 Z1P as Add (1) -

Following a disappointing 1H result, Morgans makes significant downgrades to FY22 and FY23 EPS estimates of more than -50% and lowers its target price to $3.94 from $7.54. The merger with Sezzle ((SZL)) and capital raise are also factored-in.

The broker sees the logic for revenue synergies in the merger. However, its thought the market may be low on trust after the 1H result and now that the date for becoming earnings (EBTDA) positive has been pushed out by the merger until FY24. 

In conjuction with the scrip deal (valuing Sezzle at $491m), a $149m institutional placement and $50m share purchase plan at $1.90 per share has been launched.

Target price is $3.94 Current Price is $2.21 Difference: $1.73
If Z1P meets the Morgans target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $4.13, suggesting upside of 99.4% (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