Australian Broker Call

Bell Potter rates 5GG as Speculative Buy (1) -

Following a 4Q update by Pentanet, Bell Potter upgrades its target to 14c from 12c on an improving cost performance. Flat quarter-on-quarter revenue was in line with the broker's forecast.

The broker's unchanged Speculative Buy rating is based on a successfully scaled rollout of the company’s next-gen network and cloud gaming services.

In the wake of three consecutive quarters of flat revenue, management has now deployed 5G equipment on four towers, where it is targeting capacity for an extra 20,000 subscribers via 24 towers. The latter are to be upgraded over the next few years.

The analyst awaits further clarity on subscriber numbers and capacity following the 5G deployments.

Target price is $0.14 Current Price is $0.10 Difference: $0.042
If 5GG meets the Bell Potter target it will return approximately 43% (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

Shaw and Partners rates 5GG as Buy (1) -

Pentanet has highlighted breakeven was reached in both its telecommunications and cloud gaming divisions at the exit of FY23. Shaw and Partners considers this a major milestone and reiterates a Buy rating with a $0.20 target.

The highlights of the quarter included full year revenue of $19.7m, up 17%. The full year results will be published on August 28 and the broker will review its forecasts upon the release of additional information.

Target price is $0.20 Current Price is $0.10 Difference: $0.102
If 5GG meets the Shaw and Partners target it will return approximately 104% (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

Ord Minnett rates A1M as Buy (1) -

AIC Mines released a good production result for the June quarter, beating guidance and Ord Minnett's expectations by 5% as an increased contribution from Macy North improved the total amount of material processed.

Production and cost guidance for FY24 met expectations and the broker's confidence in FY24 delivery is significantly higher versus FY23 given the obvious improvements at Eloise.

AIC Mines should re-rate higher as this delivery unfolds and couples with exploration/expansion news flow, the broker suggests. Buy retained, target falls to 73c from 75c on slightly higher spending.

Target price is $0.73 Current Price is $0.38 Difference: $0.35
If A1M 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 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

Shaw and Partners rates A1M as Buy (1) -

Shaw and Partners notes AIC Mines produced its best quarterly result in June and has provided further guidance for the FY24 outlook.

June quarter production was 2,890t of copper, ahead of guidance and the broker's estimates. A production target in FY24 of 12,500t was provided.

Sustaining capital expenditure at Eloise in FY24 will comprise -$9m for underground equipment, -$25m opening new levels in the deeps and -$5-6m on resource definition drilling.

Buy rating and $0.60 target retained.

Target price is $0.60 Current Price is $0.38 Difference: $0.22
If A1M meets the Shaw and Partners target it will return approximately 58% (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 AIA as Sell (5) -

UBS has witnessed a surprisingly fast recovery for major listed tourism operators in New Zealand with FY23 forecast total earnings (EBITDA) in line with pre-covid levels. It's thought the recovery largely reflects record pricing power aided by capacity constraints.

The broker expects underlying demand will moderate over the next few years, while rising capacity will cancel out the pricing stimulus. However, the timing of new routes suggests the resulting pressure on airfares is more likely to be skewed into 2024.

UBS believes Auckland International Airport is overvalued albeit there is improving short-term earnings momentum heading into the reporting season. The Sell rating is retained, with earnings not expected to be significantly above pre-covid levels until FY25.

The target rises to NZ$7.20 from NZ$7.00.

Current Price is $7.51. Target price not assessed.

Current consensus price target is $7.05, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.2

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

Macquarie rates ALL as Outperform (1) -

Aristocrat Leisure's North American iGaming revenue is on track to reach US$8bn in 2023 with 13% penetration in the US population. The acquisition of NeoGames should provide the company with both technology and material growth options.

Macquarie retains a high conviction on Aristocrat Leisure, envisaging completion of the acquisition, slated for May 2024, and further legislative progress in North American iGaming will provide material upside to earnings and valuation.

Outperform maintained. Target is $46.50.

Target price is $46.50 Current Price is $38.56 Difference: $7.94
If ALL meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $44.06, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in September.

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 AMI as Outperform (1) -

Aurelia Metals delivered gold production of 16,000 ounces in the June quarter, -10% below Macquarie's forecast. Nevertheless, FY23 production guidance was achieved at 83,300 ounces.

The development of Federation is expected to restart in early August now that funding has been secured, and the company has been appointed project director.

Outperform retained. Target is reduced to $0.21 from $0.24.

Target price is $0.21 Current Price is $0.09 Difference: $0.117
If AMI meets the Macquarie target it will return approximately 126% (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

Ord Minnett rates AMI as Buy (1) -

Aurelia Metals' June quarter production was stronger but offset by higher costs to provide for a softer performance, albeit meeting guidance.

Ord Minnett awaits the FY24 outlook due with FY23 result which presents an opportunity to provide investors with confidence on delivering the growth pipeline and operational stability.

A key milestone in the near term is the recommencement of Federation development due early August. Buy retained, target falls to 18c from 20c.

Target price is $0.18 Current Price is $0.09 Difference: $0.087
If AMI meets the Ord Minnett target it will return approximately 94% (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

Macquarie rates AWC as Underperform (5) -

Alumina Ltd has made no change to 2023 production guidance 10.3mt, reporting AWAC output that was -5% below Macquarie's forecasts with bauxite production 1% higher.

The broker maintains its cautious outlook amid concerns about the timing of mining approvals and potential impact on production and suspects there will not be a dividend payment in 2023, making the stock less attractive for dividend-focused investors.

Underperform. Target lowered to $1.00 from $1.10.

Target price is $1.00 Current Price is $1.38 Difference: minus $0.375 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.36, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in December.

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: -0.3

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

Ord Minnett rates AWC as Hold (3) -

Ord Minnett notes a -8% decline in June quarter alumina production while unit cash costs increased 6% because of lower production and Alumar maintenance.

The broker still envisages bauxite access issues and refinery curve payments will be temporary problems and retains its midcycle estimates.

Ord Minnett notes the shares are down -20% since January highs and now trade only a little above its fair value estimate. Hold maintained. Target is $1.30.

Target price is $1.30 Current Price is $1.38 Difference: minus $0.075 (current price is over target).
If AWC meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.36, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in December.

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: -0.3

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

Morgans rates AZJ as Hold (3) -

In-line earnings projections for FY23 and FY24 were revealed at the investor day held by Aurizon Holdings and Morgans key takeaway were plans to commence a land-bridging operation from Darwin.

FY24 guidance of $600-660m needs to be adjusted for -$40m of transformation project-related spend, points out the analyst.

The broker raises its sustaining and growth capex estimates to align with management's guidance, which offsets earnings forecast upgrades. The Hold rating and $3.84 target are maintained.

Target price is $3.84 Current Price is $3.70 Difference: $0.14
If AZJ meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates AZJ as Accumulate (2) -

Investors appeared not to be impressed by Aurizon Holdings' plan to take containers to Darwin via rail but Ord Minnett believes it to be a good idea, as it won't cost too much to begin with and the company needs to diversify away from coal.

If it does prove successful, then Aurizon can step up the capex investment. Otherwise, the quarterly update slightly missed the broker on weather issues.

Accumulate and $4.70 target retained.

Target price is $4.70 Current Price is $3.70 Difference: $1
If AZJ meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates BHP as Neutral (3) -

On further analysis of BHP Group's June quarter production report, Citi notes Western Australian iron ore achieved a record 253mt with South Flank on track to ramp up to full production by the end of FY24.

Energy coal also surprised the broker in the quarter, with additional capacity deployed to a new mining area. Meanwhile, Nickel West continues to struggle with more third-party higher-cost concentrate purchased in the second half to offset supply issues.

Neutral rating retained. Target is $45.

Target price is $45.00 Current Price is $44.62 Difference: $0.38
If BHP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

Macquarie rates BHP as Outperform (1) -

Macquarie assesses BHP Group's June quarter result was weak, as record iron ore shipments were below its estimates and realised prices were in line.

FY24 production guidance is mixed, with copper the main weakness because of lower-than-expected guidance at Escondida and Spence.

Macquarie's forecast for Escondida is at the lower end of the guidance range amid continued geotechnical challenges in a high-grade section of the pit. The broker retains an Outperform rating and lowers the target to $47 from $49.

Target price is $47.00 Current Price is $44.62 Difference: $2.38
If BHP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

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

Morgan Stanley saw a strong quarterly performance, with all of BHP Group's operations outperforming expectations from both the broker and market consensus.

However, lower prices offset and the overall outcome will be rather neutral for FY23, the analysts believe. BHP's EBITDA guidance for FY24, on the other hand, proved weaker-than-expected.

The broker estimates FY24 forecasts will need a reset in the order of -6%. Equal-weight. Sector rating is Attractive. Target $45.

Target price is $45.00 Current Price is $44.62 Difference: $0.38
If BHP meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

Morgans rates BHP as Add (1) -

Morgans assesses a strong 4Q operational result for BHP Group, which achieved FY23 production and unit cost guidance, apart from a slight miss against the broker's expectation on coal at the BHP Mitsubishi Alliance (BMA).

The longer the company continues to operationally outperform peers the more the analyst expects a premium to develop for the share  price. Add.

WA iron ore production of 65.3mt beat the consensus estimate of 64.5mt, with shipments diverging from sales volumes owing to 4mt of ore stockpiled in China, explains the broker. Management's FY24 guidance of  250-260mt undershot the consensus forecast of 261mt.

Morgans lowers its target to $51.30 from $51.70.

Target price is $51.30 Current Price is $44.62 Difference: $6.68
If BHP meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

Ord Minnett rates BHP as Hold (3) -

BHP Group's June quarter production was slightly below Ord Minnett's expectations. After incorporating the latest guidance the broker now expects Western Australian iron ore sales of around 255m metric tonnes in FY24, a modest increase on FY23.

The shares trade at around 13% premium to fair value, which the broker believes stems from high near-term iron ore prices and optimism over the potential additional stimulus from the Chinese government.

The $39.50 target and Hold rating are unchanged.

Target price is $39.50 Current Price is $44.62 Difference: minus $5.12 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

UBS rates BHP as Sell (5) -

UBS assesses a strong finish to FY23 at BHP Group with a consensus-beating Q4 for nearly all the assets and record production at WA iron ore (on an improved infrastructure performance), Spence and Olympic Dam.

Higher copper grades at Escondida offset geotechnical issues, explains the analyst, while the ramp-up at South flank and Oak Dam are on track.

The broker is cautious on the iron ore price outlook and still sees downside risk to the FY23 consensus earnings (EBITDA) forecast of $28.7bn and retains its Sell rating.The $37 target is maintained.

Target price is $37.00 Current Price is $44.62 Difference: minus $7.62 (current price is over target).
If BHP meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.13, suggesting downside of -2.0% (ex-dividends)

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: 0.2

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

Morgans rates CHL as Add (1) -

A broadly strong performance by Camplify Holdings in the 4Q, and a better-than-forecast growth trajectory, causes Morgans to raise its target to $2.90 from $2.65 (which also allows for a valuation roll forward).

Most key metrics grew when compared to the previous corresponding period, with gross transaction volumes (GTV) and revenue rising by 155% and 123%, respectively. Add.

New Zealand continues to be a standout in terms of growth with GTV up 362% on the previous corresponding period, while a second consecutive quarter of positive growth in the UK pleased Morgans.

Target price is $2.90 Current Price is $2.42 Difference: $0.48
If CHL meets the Morgans target it will return approximately 20% (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

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

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. Macquarie upgrades Centuria Industrial REIT to Outperform from Neutral, believing the business can benefit from strong leasing conditions in industrial, while reducing the target to $3.32 from $3.40.

Target price is $3.32 Current Price is $3.12 Difference: $0.2
If CIP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.40, suggesting upside of 7.6% (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 CLW as Downgrade to Underperform from Neutral (5) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least.

The broker downgrades Charter Hall Long WALE REIT to Underperform from Neutral and lowers the target to $3.77 from $4.65. Macquarie is cautious about the headwinds to earnings from higher debt costs.

Target price is $3.77 Current Price is $4.12 Difference: minus $0.35 (current price is over target).
If CLW meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.34, suggesting upside of 8.2% (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

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

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least.

The broker downgrades Centuria Capital to Neutral from Outperform, mainly because of a lower funds management EV/EBITDA multiple amid challenging operating conditions and incremental devaluations. Target is lowered to $1.60 from $1.79.

Target price is $1.60 Current Price is $1.66 Difference: minus $0.055 (current price is over target).
If CNI meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.93, suggesting upside of 17.2% (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 CQR as Downgrade to Neutral from Outperform (3) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. Macquarie downgrades Charter Hall Retail REIT to Neutral from Outperform. Target is lowered to $3.71 from $4.33.

While attracted to the resilience of convenience retail income, the broker assesses there is limited earnings growth because of a material rolling off of the hedge profile.

Target price is $3.71 Current Price is $3.75 Difference: minus $0.04 (current price is over target).
If CQR meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.97, suggesting upside of 7.3% (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 DRR as Outperform (1) -

Deterra Royalties reported production from Mining Area C in the fourth quarter was 33.9mt, in line with Macquarie's expectations. The broker forecasts a fourth quarter royalty payment of $61.5m and capacity payment of $12.9m.

Macquarie expects a fully franked final dividend of $0.17 taking the full year to $0.29. Outperform maintained. Target is $4.80.

Target price is $4.80 Current Price is $4.69 Difference: $0.11
If DRR meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting downside of -3.5% (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

Macquarie rates DXS as Outperform (1) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. While remaining cautious on the outlook, Macquarie considers office market pricing is overly pessimistic and discounts upside from the ability to integrate achieved margin expansion.

Hence, the broker retains an Outperform rating for Dexus and reduces the target to $9.32 from $9.68.

Target price is $9.32 Current Price is $8.11 Difference: $1.21
If DXS meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.04, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

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

Shaw and Partners rates EM2 as Buy (1) -

Eagle Mountain Mining has produced high-grade drilling and channel sampling results from Oracle Ridge copper project in Arizona. Shaw and Partners notes there is significant infrastructure in place and it all bodes well for an upgraded mineral resource by the end of the year.

Underground access, when refurbishment has been completed, will also better enable metallurgical and geotechnical test work that should feed into the scoping study expected in the first half of 2024.

The Buy rating and 47c target are unchanged.

Target price is $0.47 Current Price is $0.13 Difference: $0.345
If EM2 meets the Shaw and Partners target it will return approximately 276% (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

Macquarie rates EVN as Underperform (5) -

June quarter production from Evolution Mining was -5% below Macquarie's expectations while AISC was 19% higher. The performance was heavily affected by the weather over the second half at Ernest Henry with the asset now back at full production.

Importantly, the broker notes there is no change to FY24 guidance of 770,000 ounces at AISC of $1302-1439/oz. Growth capital guidance of $450-490m is also unchanged. Underperform maintained. Target is steady at $3.10.

Target price is $3.10 Current Price is $3.72 Difference: minus $0.62 (current price is over target).
If EVN meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.38, suggesting downside of -6.5% (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

Ord Minnett rates EVN as Lighten (4) -

Evolution Mining's June quarter missed Ord Minnett by -6% on production and -18% on costs, driven by slight underperformance across the asset base and costs at Ernest Henry materially higher as that asset continues to recover from the significant weather event in March. 

The outlook remains unchanged from the Investor Day held at the beginning of June. Production is expected to be second half-weighted.

Lighten and $3.15 target retained.

Target price is $3.15 Current Price is $3.72 Difference: minus $0.57 (current price is over target).
If EVN meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.38, suggesting downside of -6.5% (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

UBS rates EVN as Neutral (3) -

UBS retains its $3.40 target and Neutral rating for Evolution Mining following a slightly soft June quarter which produced 160koz of gold at an all-in sustaining cost (AISC) of $1,912/oz, versus the expected 169koz at $1,750.

Management guidance for FY24 gold and copper production and costs was unchanged.

The broker still prefers Buy-rated Sandfire Resources ((SFR)) for copper exposure. However, Evolution Mining does offer another alternative via its Ernest Henry copper exposure, which will account for around 30% of the broker's FY24 forecast for group earnings.

Target price is $3.40 Current Price is $3.72 Difference: minus $0.32 (current price is over target).
If EVN 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 $3.38, suggesting downside of -6.5% (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

Morgans rates FLT as Add (1) -

For the second time in the last few months, Flight Centre Travel upgraded FY23 earnings (EBITDA) guidance, beating the consensus forecast by 7% in the process. New guidance implies to Morgans a massive $483m earnings turnaround from FY22.

The broker feels Corporate and Leisure had strong FY23 finishes, with Leisure likely to beat expectations. It's believed the earnings upgrade cycle may continue for some time, supported by an ongoing travel recovery and the company's transformed business model. 

Management continues to think holidays and experiences will trump other areas of discretionary spending in the minds of leisure travellers.

The target rises to $26.40 from $26.25. Add.

Target price is $26.40 Current Price is $21.65 Difference: $4.75
If FLT meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 10.4% (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

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

Ord Minnett is now more confident of the buying opportunity that is emerging in Flight Centre Travel with the latest update providing another input regarding future revenue margins for both the corporate and leisure divisions.

The company expects transaction value in leisure in FY23 of around $10bn, underpinned by the strong demand for outbound travel from Australian consumers.

The broker still believes legacy systems in travel are under attack but, while revenue margins will settle well below pandemic levels, its prior revenue margin assumptions in FY25 and beyond are too conservative.

Hence, the rating is upgraded to Buy from Hold and the target lifted to $26.75 from $19.71.

Target price is $26.75 Current Price is $21.65 Difference: $5.1
If FLT meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 10.4% (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 FLT as Neutral (3) -

Following another underlying earnings (EBITDA) guidance upgrade, UBS retains its Neutral rating for Flight Centre Travel while still coming to grips with the extent of the business changes within Leisure, which materially increases complexity.

The target is increased to $22.50 from $20.80 largely due to a 20% increase in the broker's FY23 forecast. There are 1% increases made in the remaining years of the forecast period.

The analyst notes an ongoing strong recovery across both the leisure and corporate business, while global airline capacity continues to improve.

Target price is $22.50 Current Price is $21.65 Difference: $0.85
If FLT meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 10.4% (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 GMG as Outperform (1) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. The broker retains an Outperform rating for Goodman Group while lowering the target to $22.66 from $23.18.

As poorly capitalised developers exit the market, the company could increase its share which would result in robust commencements despite the downside risk to demand, the broker concludes.

Target price is $22.66 Current Price is $20.41 Difference: $2.25
If GMG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $22.78, suggesting upside of 11.1% (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

Macquarie rates GPT as Outperform (1) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. Although the office exposure remains an overhang, Macquarie believes GPT Group is attractively valued and retains an Outperform rating while reducing the target to $4.62 from $5.00.

Target price is $4.62 Current Price is $4.23 Difference: $0.39
If GPT meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in December.

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

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

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least.

Macquarie downgrades HMC Capital to Neutral from Outperform on valuation grounds, and lowers the target to $4.99 from $5.20. A modestly lower funds management EV/EBITDA multiple is incorporated in the assessment to reflect the challenging macro environment.

Target price is $4.99 Current Price is $5.14 Difference: minus $0.15 (current price is over target).
If HMC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.86, suggesting downside of -4.2% (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

Citi rates MIN as Neutral (3) -

Citi observes the market "liked" the news regarding the mothballing of the US$660m acquisition of hydroxide capacity in China.

The broker believes the news reduces jurisdictional risks and balance sheet concerns, providing Mineral Resources with time to decide if constructing/operating a downstream plant is necessarily the best plan.

The disposal of Kemerton also simplifies the business, in the broker's view, with ownership expected to move to 0% from 40% in the December quarter. Wodgina is now expected to move to 50% from 40%.

Neutral rating maintained. Target is reduced to $76.00 from $76.50.

Target price is $76.00 Current Price is $75.78 Difference: $0.22
If MIN meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $81.50, suggesting upside of 15.8% (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

Macquarie rates MIN as Outperform (1) -

Mineral Resources will sell its 15% interest in Kemerton to Albemarle for US$380-400m, ahead of Macquarie's prior value of the interest in the project and alleviating any funding concerns for the balance sheet.

The company will also no longer participate in the lithium hydroxide plants in China with Albemarle, intending to advance studies for a conversion plant in Australia.

Macquarie now assumes Wodgina spodumene will be toll treated to the end of FY26 before an Australian hydroxide plant is ramped up from FY27.

The target is lowered to $100 from $103. Outperform maintained.

Target price is $100.00 Current Price is $75.78 Difference: $24.22
If MIN meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $81.50, suggesting upside of 15.8% (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

Citi rates MND as Upgrade to Buy from Neutral (1) -

Citi notes Monadelphous Group shares are 10% higher since the beginning of July, reflecting improving sentiment towards engineering and contracting.

The broker believes the Christmas Creek contract has set a positive tone leading into the full year result and upgrades to Buy from Neutral.

Management is expected to reaffirm the FY24 ramp up in E&C revenue. The broker's FY24 and FY25 EBITDA forecasts are raised by 2-2.5% and the target is lifted to $14.45 from $12.80.

Target price is $14.45 Current Price is $12.79 Difference: $1.66
If MND meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $13.93, suggesting upside of 6.3% (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 PDN as Outperform (1) -

Paladin Energy is on track to restart Langer Heinrich and first production is expected in the March quarter of 2024.

Repair and refurbishment work is progressing on the processing plant and the company will provide guidance for FY24 ahead of first production and FY25 guidance with the fourth quarter results in July 2024.

Macquarie observes offtake agreements are in place with key customers and the business retains upside risk to strengthening uranium prices.

Outperform rating and $1.10 target maintained.

Target price is $1.10 Current Price is $0.76 Difference: $0.34
If PDN meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 45.9% (ex-dividends)

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

Shaw and Partners rates PDN as Buy (1) -

Shaw and Partners observes Paladin Energy is progressing with the restart of Langer Heinrich, which is now 60% completed and on time and on budget.

The company has executed five uranium offtake agreements in relation to a prior tender award for the supply of uranium to US and European utilities.

It will also supply CNNC with additional uranium under the terms of the existing offtake agreement.

Shaw and Partners observes the uranium market continues to "return to life" after a decade of lost production post Fukushima. Buy rating and $1.15 target maintained.

Target price is $1.15 Current Price is $0.76 Difference: $0.39
If PDN meets the Shaw and Partners target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 45.9% (ex-dividends)

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

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

Macquarie observes margin gains from the pandemic are poised to unwind while a weak macro environment is producing downside risk. As a result the rating for Premier Investments is downgraded to Neutral from Outperform.

While rents and wages are driving the unwinding of the margin gains, a greater online mix should mean margins stay ahead of pre-pandemic levels.

The business is likely to cycle tough comparables over the next 6-9 months and the broker reduces the target to $21.00 from $30.50.

Target price is $21.00 Current Price is $21.44 Difference: minus $0.44 (current price is over target).
If PMV 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 $24.34, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates QBE as Outperform (1) -

QBE Insurance has updated on 2023 guidance, reiterating its COR outlook of 94.5%, although now including higher catastrophe allowance and reserve strengthening for the North American crop.

Compared with Macquarie's forecasts the first half reported COR and investment income were worse than expected, although the underlying business appears better. 

The focus is now on second half North American growing conditions and continuation of the premium rate cycle.

Outperform maintained. Target is $16.90.

Target price is $16.90 Current Price is $15.60 Difference: $1.3
If QBE meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.55, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Morgan Stanley rates QBE as Overweight (1) -

Morgan Stanley describes QBE Insurance's pre-report negative messaging as a "modest negative" as the warning was accompanied by plenty of positives, such as better-than-expected premiums and investments.

The insurer also repeated its FY23 COR guidance for circa 94.5%.

The end result, the broker believes, consists of net earnings upgrades. Morgan Stanley remains confident the stock is cum re-rating to close the valuation gap with peers.

On our observation, 2023 estimates have been slightly lowered, while 2024 forecasts have lifted slightly. The broker maintains its Overweight rating and $17.50 target. Industry View: In-Line.

Target price is $17.50 Current Price is $15.60 Difference: $1.9
If QBE meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $16.55, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Ord Minnett rates QBE as Lighten (4) -

Ord Minnett believes the market is over estimating the long-term profitability of QBE Insurance on the back of rising investment income and rate increases. While continuing to expect industry margins will strengthen the broker suspects competition will limit returns over time.

Moreover, after the first half trading update the broker is cautious that increased exposure to North American crop insurance could result in periods of extreme earnings weakness for the company.

Helping offset this headwind, the broker acknowledges momentum and premium growth remains positive with premium rate increases in the 10% range across the group. Lighten rating maintained. Target is $13.

Target price is $13.00 Current Price is $15.60 Difference: minus $2.6 (current price is over target).
If QBE meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.55, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

UBS rates QBE as Buy (1) -

UBS considers the preliminary 1H update provided by QBE Insurance is a net positive for mid-term earnings. However, in the shorter-term, underwriting margins have been impacted by excess catatstophe claims and additional reserving for events last year.

Gross written premiums (GWP) rose by 13% in the 1H on a constant currency basis.

Management reaffirmed FY23 guidance and the broker highlights the share price remains cheap relative to global peer multiples and based on a consensus return on equity (ROE) outlook of 16-17%.

The Buy rating and $18.50 target are unchanged.

Target price is $18.50 Current Price is $15.60 Difference: $2.9
If QBE meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $16.55, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

UBS rates RDX as Initiation of coverage with Buy (1) -

UBS likes the degree of defensiveness provided by the diversified business model of Redox, the leading supplier and distributor of chemicals, ingredients and raw materials, and begins coverage with a Buy rating. A $2.90 target is set.

Moreover, the broker believes the Australian market looks more resilient than Europe, and the market share in Australia is less than 3% despite the company being the largest chemical distributor. Redox's US expansion is also growing at a double-digit pace.

Many of the company's end-markets are structural growth markets, and over the five year period pre-covid, UBS points out, Redox generated at least twice the growth of the underlying market.

Target price is $2.90 Current Price is $2.29 Difference: $0.61
If RDX meets the UBS target it will return approximately 27% (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

Ord Minnett rates S32 as Hold (3) -

Ord Minnett has used a broad sector update to reduce it's fair value estimate for South32 by -7% to $4.10.

The reduction is not simply a result from updated commodity price forecasts, but also because of incorporating lower production volumes for metallurgical coal and nickel.

Hold rating retained.

Target price is $4.10 Current Price is $3.81 Difference: $0.29
If S32 meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.63, suggesting upside of 21.3% (ex-dividends)

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: 0.8

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

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

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least. In the case of Scentre Group, softer retailer updates are expected to weigh, along with gearing, and the rating is downgraded to Underperform from Neutral. Target is lowered to $2.48 from $2.89.

Target price is $2.48 Current Price is $2.76 Difference: minus $0.28 (current price is over target).
If SCG meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.04, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates SDR as Initiation of coverage with Hold (3) -

Morgans initiates coverage on SaaS company SiteMinder, the operator of the largest hotel commerce platform globally, with a Hold rating. The company aims to improve the profits of hotel and accommodation providers with its range of products and solutions.

The analyst highlights earnings (EBITDA) and free cash flow breakeven is near and sees FY24 as a transition year though notes revenue and annual recurring revenue (ARR) growth has slowed in the 2H due to cycling strong comparatives in Transactions.

The company generates revenue via Subscription and Transaction streams. Subscription revenues derive from fees paid by customers for access to either of its platforms.

Transaction revenues are either generated as a percentage of the transaction made using the company’s products or as a fixed fee charge.

A $3.80 target is set.

Target price is $3.80 Current Price is $3.68 Difference: $0.12
If SDR meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 31.6% (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 SGP as Neutral (3) -

Macquarie continues to prefer the defensive stocks among A-REITs, forecasting the US to enter recession in the second half of 2023 and noting A-REITs typically underperform in the early stages of a contraction.

The sector is expected to be hit by weaker economic growth, widening credit spreads, falling asset values and downside risk to FY24 consensus expectations.

Industrial stocks are the most preferred and office the least.

Macquarie retains a Neutral rating for Stockland and, while cautious about downside for the near term, particularly from a delayed residential recovery, believes fundamentals should underpin a strong outlook. Target is reduced to $4.18 from $4.49.

Target price is $4.18 Current Price is $4.11 Difference: $0.07
If SGP meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 5.0% (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

Bell Potter rates SHV as Buy (1) -

Select Harvests' rising costs for fertiliser and ag-chem are showing signs of peaking, notes Bell Potter, which expects flow on benefits in FY24 and FY25.

Moreover, acreage signals in California suggest to the analyst a slowing in global supply growth in outer years of the forecast period, which traditionally means almond prices will rise.

The broker highlights the company's shares are trading well below valuation and retains its Buy rating. The $5.50 target is unchanged.

Target price is $5.50 Current Price is $4.20 Difference: $1.3
If SHV meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 SKC as Buy (1) -

UBS has witnessed a surprisingly fast recovery for major listed tourism operators in New Zealand with FY23 forecast total earnings (EBITDA) in line with pre-covid levels. It's thought the recovery largely reflects record pricing power aided by capacity constraints.

The broker expects underlying demand will moderate over the next few years, while rising capacity will cancel out the pricing stimulus. 

UBS believes the tourism recovery and stable domestic casino expenditure should result in SkyCity Entertainment achieving pre-covid earnings levels in FY24.

The Buy rating is retained, and the price target falls to NZ$3.55 from NZ$3.90.

Current Price is $2.10. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates SMR as Buy (1) -

Stanmore Resources released a quarterly production result which significantly exceeded Ord Minnett's forecasts, supported by outperformance at all sites. Sales also exceeded but not by as much given lower processing yields.

The broker has increased its short-term production outlook but lowered its dividend expectations due to weaker commodity prices.

Buy retained, target rises to $4.00 from $3.70. On the broker's estimates, the stock is trading at a -15% discount to net asset value.

Target price is $4.00 Current Price is $2.52 Difference: $1.48
If SMR meets the Ord Minnett target it will return approximately 59% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Citi rates STO as Buy (1) -

Now the Barossa environmental plan has been submitted, Citi expects a two-month expedited review process prior to approval, assessing Santos has been diligent and expressing confidence the scope of works is broader than the scope directed by the regulator.

The broker also notes CO2 storage momentum appears to be setting the company apart on the transition with four MoUs for storage at Bayu-Undan.

Citi updates its model to allow for depreciation guidance of -US$1.9bn, which is higher than previously expected. Net profit estimates for 2023 and 2024 are downgraded by -18% and -12%, respectively.

Buy rating maintained. Target rises to $8.50 from $8.00.

Target price is $8.50 Current Price is $7.64 Difference: $0.86
If STO meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Macquarie rates STO as Outperform (1) -

The Santos June quarter production was ahead of Macquarie's estimates amid firm LNG volumes across all three plants. Production guidance for 2023 has been narrowed to 89-93 mmboe.

Macquarie expects approval for the Barossa environmental plan in the September quarter and a resumption of drilling & pipe laying in the December quarter.

The broker assesses the stock has superior cash flow growth and continues to trade on a discounted valuation. Gearing of 22% is higher than expected, signalling the importance of the sell down in PNG to any new buyback.

Outperform maintained. Target is reduced to $9.70 from $10.00.

Target price is $9.70 Current Price is $7.64 Difference: $2.06
If STO meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Morgan Stanley rates STO as Overweight (1) -

Morgan Stanley sees a rather neutral impact overall from Santos' quarterly production update.

Overweight rating. Target is $8.66. Industry view: Attractive.

Target price is $8.66 Current Price is $7.64 Difference: $1.02
If STO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Ord Minnett rates STO as Accumulate (2) -

Santos delivered another robust quarter of production and cash flow, Ord Minnett notes, despite weaker energy prices. The broker lifts its target to $12.30 from $12.00 to reflect the time value of money and a steepening of the Brent forward curve.

Santos informs the Barossa project is now 66% complete, but for the pipeline, and remains on track for first gas in 2025. Effective delivery of Barossa is a key catalyst, the broker suggests.

Accumulate retained.

Target price is $12.30 Current Price is $7.64 Difference: $4.66
If STO meets the Ord Minnett target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

UBS rates STO as Buy (1) -

Production for Santos in the 2Q was in line with the forecasts by UBS and consensus though sales were a -9% miss against consensus on slightly softer realised LNG pricing.

Due to unplanned outages in WA over the 1Q and a planned turn down in PNG LNG over 2Q, management lowered the top end of FY23 production guidance to 89-93mmboe from 91.7mmboe.

The broker is positive on the outlook within (the 30%-owned) GLNG after management guided to total LNG production of around 6Mtpa, compared to the prior forecast by UBS for 5.7Mtpa.

Buy. The target rises to $8.70 from $8.20.

Target price is $8.70 Current Price is $7.64 Difference: $1.06
If STO meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Citi rates VUK as Buy/High Risk (1) -

Citi notes media reports which indicate Virgin Money UK will close a third of its remaining branch network, or 39 of 91 stores. This is part of a strategy to become a more digital bank.

The impact is included in the company's second half restructuring cost guidance with costs likely to be stable in FY23 and the FY24 cost/income ratio expected to decline to less than 50%.

The broker observes the business has a poor track record on cost reductions so the announcement at the very least provides additional transparency on how it will manage the cost/income ratio.

Buy/High Risk retained. Target is GBP2.30.

Current Price is $3.44. Target price not assessed.

Current consensus price target is $3.60, suggesting upside of 5.3% (ex-dividends)

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: 0.5

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