Australian Broker Call

Shaw and Partners rates A1M as Buy, High Risk (1) -

AIC Mines recently appeared in Shaw and Partners' list of top 10 research ideas for 2024. It's felt 2024 shapes up to be a strong year for small and emerging companies.

Positive results from exploration drilling at the Sandy Creek and Artemis prospects helps support the broker's view on AIC Mines. Drilling programs in late-2023 intersected mineralisation at both deposits.

The Buy, High Risk rating and target price of 80 cents are retained.

Target price is $0.80 Current Price is $0.30 Difference: $0.5
If A1M meets the Shaw and Partners target it will return approximately 167% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates AGY as Neutral (3) -

Argosy Minerals has issued a 180% resource estimate update for its Ritcon asset to 687,000 tonnes. The newly updated estimate is also higher grade than previous updates, a key positive for Macquarie.

Despite multiple delays in the commissioning process, production ramp up at the stage 1 plant is underway, with the company aiming to increase production rates over the first quarter of 2024.

The Neutral rating and target price of 14 cents are retained.

Target price is $0.14 Current Price is $0.12 Difference: $0.02
If AGY meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates AHC as No Rating (-1) -

Morgans has released a research update on healthcare communication provider Austco Healthcare. The company derives 80% of revenue from hardware and 20% from software, including software management agreements for system maintenance which provide recurring revenue.

Long-term, the company is aiming for an even revenue split between its hardware and software sales, in a bid to improve margins.

The hardware portfolio consist of nurse call systems, pulse mobile alarms, workflow management systems and reporting products. 

The broker explains Austco Healthcare retains rights to wires and supporting hardware, making it costly to change provider and increasing customer retention.

Morgans' update does not include a rating or target price.

Current Price is $0.19. Target price not assessed.

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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

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

The quarterly activities report released by Alkane Resources undershot Ord Minnett's expectations due to lower-than-forecast grades and recoveries at the Tomingley Expansion Project. Production, sales and costs (AISC) all missed the broker's forecasts.

Management maintained FY24 guidance, implying to the broker a 2H skew.

Ord Minnett downgrades the rating to Accumulate from Buy and lowers the target to 70c from 75c on the weaker result and
a higher capital expenditure forecast.

Target price is $0.70 Current Price is $0.64 Difference: $0.065
If ALK meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates AZY as Buy, High Risk (1) -

Shaw and Partners recommends an Overweight exposure to the gold sector with Ramelius Resources as the core holding from among its research coverage.

Interest rate movements will be the most significant catalyst for gold prices in 2024 and 2025, suggests the broker. The long-term relationship between gold and rates indicates that for every -100bps drop in US 10-year real rates, gold rallies by 11%.

The Buy, High Risk rating and 6c target for Antipa Minerals are maintained.

Target price is $0.06 Current Price is $0.02 Difference: $0.042
If AZY meets the Shaw and Partners target it will return approximately 233% (excluding dividends, fees and charges).

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 BC8 as Buy, High Risk (1) -

Shaw and Partners recommends an Overweight exposure to the gold sector with Ramelius Resources as the core holding from among its research coverage.

Interest rate movements will be the most significant catalyst for gold prices in 2024 and 2025, suggests the broker. The long-term relationship between gold and rates indicates that for every -100bps drop in US 10-year real rates, gold rallies by 11%.

The Buy, High Risk rating and 74c target for Black Cat Syndicate are maintained.

Target price is $0.74 Current Price is $0.25 Difference: $0.495
If BC8 meets the Shaw and Partners target it will return approximately 202% (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

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

With operational results looming this month, Morgans expects reporting of strong December quarter iron ore volumes from BHP Group, Rio Tinto and Fortescue.

Rather than potential catalysts, it's thought such an outcome would only confirm already positive market expectations, suggest the analysts. The broker upgrades iron ore volume forecasts for the three companies.

On January 18, Morgans expects BHP Group will deliver 2Q FY24 iron ore volume of 72.3mt compared to the consensus estimate for 72.2mt. Following recent share price strength the rating is downgraded to Hold from Add and the target reduced to $49 from $50.

Target price is $49.00 Current Price is $47.18 Difference: $1.82
If BHP meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $46.25, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Citi rates BPT as Neutral (3) -

Oil markets face a balancing act, warns Citi, despite several OPEC-Plus countries having agreed to voluntary cuts to support market balance. The broker warns non-OPEC-Plus supply growth coupled with declining year-on-year demand could see a significant surplus in FY25.

The broker anticipates oil equities will underperform in a surplus market, based on historical precedent.

For Beach Energy, the Neutral rating is retained and the target price increases to $1.60 from $1.55.

Target price is $1.60 Current Price is $1.61 Difference: minus $0.005 (current price is over target).
If BPT meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.81, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Morgan Stanley rates CHC as Upgrade to Overweight from Equal-weight (1) -

Within the Australian Real Estate sector, Charter Hall has historically been one of the best ways for investors to capitalise on falling bond yields, according to Morgan Stanley.

As the broker forecasts 10-year bond yields (US Treasuries) will fall to 3.95% by December 31 (after peaking at around 5% in the 2H of 2023), and the macro environment has stabilised, the rating for Charter Hall is upgraded to Overweight from Equal-weight.

The analysts also anticipate a more active transactions market, and a nadir for the REIT's EPS. The target is increased to $13.25 from $11.10. Equal-weight. Industry view: In-Line. 

Target price is $13.25 Current Price is $11.60 Difference: $1.65
If CHC meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.61, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates FMG as Sell (5) -

Having outperformed Australian peers on a one, three, six and twelve-month basis, Fortescue is now trading at a 9% premium according to Citi's valuation, but the broker questions whether this premium can be justified.

With its iron ore leverage, the company stands to benefit short-term from iron ore prices, but carbon presents a longer-term challenge. At this stage, says the broker, it remains unclear if Fortescue's H2 strategy will be a sufficient offset.

The Sell rating is retained and the target price increases to $23.00 from $18.90.

Target price is $23.00 Current Price is $27.24 Difference: minus $4.24 (current price is over target).
If FMG meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.35, suggesting downside of -23.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Morgans rates FMG as Hold (3) -

With operational results looming this month, Morgans expects reporting of strong December quarter iron ore volumes from BHP Group, Rio Tinto and Fortescue.

Rather than potential catalysts, it's thought such an outcome would only confirm already positive market expectations, suggest the analysts. The broker upgrades iron ore volume forecasts for the three companies.

Fortescue reports volumes on January 25 and Morgans believes the company will continue to "shoot the lights out" in terms of shipments and price realisations.

The Hold rating is kept and the target increases to $25.10 from $19.40.

Target price is $25.10 Current Price is $27.24 Difference: minus $2.14 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.35, suggesting downside of -23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 HUB as Neutral (3) -

With markets rallying towards the end of the second quarter and stronger net flow forecasts, Citi has issued upgrades to both Hub24 and Netwealth Group ((NWL))

The broker lifts its funds under asset forecast for Hub24 3-6%, and its earnings forecast 3-4%. Hub24 additionally benefited from a large $1.75bn institutional transition in December. 

It expects the company to deliver second quarter net flows of $2.9bn, down -1% quarter-on-quarter.

The Neutral rating is retained and the target price increases to $42.20 from $35.60. Hub24 remains the broker's preferred sector choice.

Target price is $42.20 Current Price is $36.72 Difference: $5.48
If HUB meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $37.36, suggesting upside of 4.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates KAR as Buy (1) -

Oil markets face a balancing act, warns Citi, despite several OPEC-Plus countries having agreed to voluntary cuts to support market balance. The broker warns non-OPEC-Plus supply growth coupled with declining year-on-year demand could see a significant surplus in FY25.

The broker anticipates oil equities will underperform in a surplus market, based on historical precedent.

For Karoon Energy, the Buy rating is retained and the target price decreases to $3.25 from $3.50. Karoon Energy remains Citi's sector pick.

Target price is $3.25 Current Price is $1.91 Difference: $1.345
If KAR meets the Citi target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 51.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 KAR as Outperform (1) -

Macquarie expects Karoon Energy can reach the upper end of its fourth quarter production guidance, despite Bauna declines, with the inclusion of ten days of production from its newly acquired US operations partly offsetting.

Following the acquisition, the broker expects to see Karoon Energy resume its role as oil proxy, and notes potential for share price recovery.

The Outperfom rating is retained and the target price increases to $2.60 from $2.50.

Target price is $2.60 Current Price is $1.91 Difference: $0.695
If KAR meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 51.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 LOV as Downgrade to Neutral from Buy (3) -

UBS feels the risk/reward profile for Lovisa Holdings is less compelling after recent share price outperformance versus the ASX200, and recent data showing a slowing in store growth. Net new store growth is declining compared to the first and second halves of FY23.

The change in net new stores is broadly in line with consensus estimates, but higher in A&NZ and lower in the high-potential Americas market, explains the analyst.

The broker also highlights moderating like-for-like sales growth, which reduces UBS revenue estimates.

The rating is downgraded to Neutral from Buy though the target rises to $24 from $23 due to the analyst's higher assumed multiple.

Target price is $24.00 Current Price is $23.97 Difference: $0.03
If LOV meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $23.14, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

UBS rates MQG as Neutral (3) -

UBS believes the valuation benchmark provided by BlackRock's acquisition of Global Infrastructure Partners is incrementally positive for the valuation of Macquarie's Private Markets Asset Manager (MAM) business.

In the broker's view, the transaction highlights the underlying attractiveness of these types of longer-duration assets, and demonstrates what trade buyers are willing to pay for a control premium in a structural growth story.

The analyst raises the assumed exit multiple for Macquarie's MAM division, resulting in a group target price of $185, up from $180. The Neutral rating is unchanged.

Target price is $185.00 Current Price is $184.43 Difference: $0.57
If MQG meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $181.16, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Shaw and Partners rates MZZ as Buy, High Risk (1) -

Shaw and Partners recommends an Overweight exposure to the gold sector with Ramelius Resources as the core holding from among its research coverage.

Interest rate movements will be the most significant catalyst for gold prices in 2024 and 2025, suggests the broker. The long-term relationship between gold and rates indicates that for every -100bps drop in US 10-year real rates, gold rallies by 11%.

The Buy, High Risk rating and 19c target for Matador Mining are maintained.

Target price is $0.19 Current Price is $0.03 Difference: $0.157
If MZZ meets the Shaw and Partners target it will return approximately 476% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

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

With markets rallying towards the end of the second quarter and stronger net flow forecasts, Citi has issued upgrades to both Netwealth Group and HUB24 ((HUB)). 

The broker lifts its funds under asset forecast for Netwealth Group 5%, and its earnings forecast 4-8%.

It expects the company to deliver second quarter net flows of $2.6bn, up 11% quarter-on-quarter.

The rating is upgraded to Neutral from Sell and the target price increases 19% to $16.10 from $13.45.

Target price is $16.10 Current Price is $16.14 Difference: minus $0.04 (current price is over target).
If NWL meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.47, suggesting downside of -4.5% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates RIO as Buy (1) -

With December quarter production from Rio Tinto as expected, the company has met guidance for 2023. The company's Pilbara iron ore operations delivered a 2% year-on-year production increase, while aluminium production was up 9% and copper production was up 2%.

Ther copper result was bolstered by Rio Tinto's first full year of increased ownership of the Oyu Tolgoi mine, and ramp up of the site continues to progress well. The company maintained 2024 guidance.

The Buy rating is retained and the target price increases to $139.00 from $124.00.

Target price is $139.00 Current Price is $128.32 Difference: $10.68
If RIO meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $128.83, suggesting upside of 1.9% (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: 0.2

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

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

With operational results looming this month, Morgans expects reporting of strong December quarter iron ore volumes from BHP Group, Rio Tinto and Fortescue.

Rather than potential catalysts, it's thought such an outcome would only confirm already positive market expectations, suggest the analysts. The broker upgrades iron ore volume forecasts for the three companies.

On January 16, Morgans expects Rio Tinto to reveal Pilbara shipments of 333mt (consensus 332mt) versus guidance 320-335mt.

The broker downgrades its rating to Hold from Add due to recent share price strength though raises the target to $127 from $124. 

Target price is $127.00 Current Price is $128.32 Difference: minus $1.32 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $128.83, suggesting upside of 1.9% (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: 0.2

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

Shaw and Partners rates RMS as Buy, High Risk (1) -

Shaw and Partners recommends an Overweight exposure to the gold sector with Ramelius Resources as the core holding from among its research coverage.

Interest rate movements will be the most significant catalyst for gold prices in 2024 and 2025, suggests the broker. The long-term relationship between gold and rates indicates that for every -100bps drop in US 10-year real rates, gold rallies by 11%.

The Buy, High Risk rating and $2 target for Ramelius Resources are maintained. It's felt the company is on track to deliver record margins.

Target price is $2.00 Current Price is $1.57 Difference: $0.435
If RMS meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Shaw and Partners rates STN as Buy, High Risk (1) -

Shaw and Partners recommends an Overweight exposure to the gold sector with Ramelius Resources as the core holding from among its research coverage.

Interest rate movements will be the most significant catalyst for gold prices in 2024 and 2025, suggests the broker. The long-term relationship between gold and rates indicates that for every -100bps drop in US 10-year real rates, gold rallies by 11%.

The Buy, High Risk rating and 44c target for Saturn Metals are maintained.

Target price is $0.44 Current Price is $0.19 Difference: $0.25
If STN meets the Shaw and Partners target it will return approximately 132% (excluding dividends, fees and charges).

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 No Rating (-1) -

Oil markets face a balancing act, warns Citi, despite several OPEC-Plus countries having agreed to voluntary cuts to support market balance. The broker warns non-OPEC-Plus supply growth coupled with declining year-on-year demand could see a significant surplus in FY25.

The broker anticipates oil equities will underperform in a surplus market, based on historical precedent.

Citi highlighted a number of risks for Santos, remaining cautious on capital expenditure and schedule guidance for the Barossa project which it sees at risk of a downgrade, as well as the final investment decision on Papua LNG being pushed beyond 2025.

Citi is research restricted on Santos and offers no rating or target price.

Current Price is $7.83. Target price not assessed.

Current consensus price target is $9.32, suggesting upside of 20.9% (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: 0.5

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

Citi rates SUL as Buy (1) -

Citi is already anticipating significant earnings upside across discretionary retailing for FY25, as a first half trading update from Super Retail has far exceeded consensus expectations. The broker believes consensus forecasts underestimate the sector's earnings potential.

Citi believes solid income growth and tax cuts will drive spending, and issued 3-4% earnings upgrades across its forecast period.

Super Retail's better than expected gross profit margins reflected resilience in household spending and well-managed discounting practices, according to the broker.

The Buy rating is retained and the target price increases to $19.00 from $18.00.

Target price is $19.00 Current Price is $16.71 Difference: $2.29
If SUL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.95, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

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

First half profit before tax (PBT) for Super Retail of $200-203m, exceeded forecasts by consensus and Morgan Stanley of $172.5m and $174.1m, respectively, supported by gross margin expansion.

Group like-for-like sales growth of 1% was in line with consensus expectations.

However, management noted a "constrained retail trading environment" in Q2 with signs of a weaker consumer emerging. Also, the cost of doing business (CODB) metric is still under pressure from rising wage, rent and utilities costs.

Equal-weight rating. Target $11.50. Industry view is In-Line.

Target price is $11.50 Current Price is $16.71 Difference: minus $5.21 (current price is over target).
If SUL meets the Morgan Stanley target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.95, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

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

Super Retail's trading update for the 1H revealed profit before tax (PBT) around 15% ahead of Morgans forecast and circa 16% above the consensus estimate.

The analysts note very strong outperformance by BCF, and results above expectations for Supercheap Auto and Macpac, though Rebel missed Morgans forecast.

While the broker raises its FY24 profit forecast by 8%, the rating falls to Hold from Add on valuation following a strong share price performance. It's felt the business is moving in the right direction and has the right portfolio of brands to succeed.

The target is increased to $17.50 from $17.

Target price is $17.50 Current Price is $16.71 Difference: $0.79
If SUL meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.95, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Ord Minnett rates SUL as Sell (5) -

Ord Minnett highlights from Super Retail's 1H trading update cost of living pressures weighed on sales towards the end of the December quarter. Sales growth at Rebel and BCF in the last 10 weeks weakened significantly compared to the first 16 weeks of FY24.

While Supercheap's sales growth held steady, the broker forecasts subdued demand for discretionary auto parts in H2. The Macpac outdoor brand experienced solid improvement in the December, yet quarter pre-tax profit halved, notes the analyst.

The Sell rating and $10.50 target are maintained.

Target price is $10.50 Current Price is $16.71 Difference: minus $6.21 (current price is over target).
If SUL meets the Ord Minnett target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.95, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates SUL as Sell (5) -

Super Retail's 1H profit before tax (PBT) guidance of $200-203m exceeded forecasts by UBS and consensus by 13.4% and 16.8%, respectively, with PBT margins the key beat.

Sales beat forecasts by consensus and UBS by 1.7% and 0.1%, respectively, led by BCF, Super Cheap Auto and Macpac, with Rebel missing expectations.

However, late-1H trading slowed across each brand (excluding Macpac) as the value-focused consumer was behind a constrained retail trading environment, explains the broker.

UBS retains its Sell rating, despite earnings forecast upgrades, due to the slowing sales trends (especially Rebel and BCF) and lack of valuation support. The target rises to $12.60 from $11.50.

Target price is $12.60 Current Price is $16.71 Difference: minus $4.11 (current price is over target).
If SUL meets the UBS target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.95, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Ord Minnett rates SXL as Buy (1) -

Ord Minnett suggests investors ignore the many and varied competing proposals and general maneuvering, and focus on the ARN Media ((A1N)) offer made in conjunction with Anchorage Capital.

The broker still considers the offer too cheap at a -45% discount to the broker's $1.70 target price though notes the consortium may be willing to sweeten the offer by an additional 0.127cps in special dividends.

The Buy rating is unchanged. 

Target price is $1.70 Current Price is $0.91 Difference: $0.79
If SXL meets the Ord Minnett target it will return approximately 87% (excluding dividends, fees and charges).

Current consensus price target is $1.01, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Shaw and Partners rates SYR as Buy, High Risk (1) -

The start of active anode material (AAM) production by Syrah Resources at Vidalia in Louisiana has been deferred to the end of January. Shaw and Partners considers this only a small delay from the original start date at the end of December 2023.

A further update on commissioning and start of AAM production will be provided prior to or with Syrah’s December 2023 quarterly report on January 31, explains the broker.

The Buy, High Risk rating and $1.30 target are retained.

Target price is $1.30 Current Price is $0.50 Difference: $0.8
If SYR meets the Shaw and Partners target it will return approximately 160% (excluding dividends, fees and charges).

Current consensus price target is $0.99, suggesting upside of 101.5% (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: 0.8

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

Citi rates WDS as No Rating (-1) -

Oil markets face a balancing act, warns Citi, despite several OPEC-Plus countries having agreed to voluntary cuts to support market balance. The broker warns non-OPEC-Plus supply growth coupled with declining year-on-year demand could see a significant surplus in FY25.

The broker anticipates oil equities will underperform in a surplus market, based on historical precedent.

According to NOPSEMA, Woodside Energy has received approval for all four of its environmental plans. The broker remains cautious on capital expenditure and schedule risks for Scarborough in 2024.

Citi is research restricted on Woodside Energy and offers no rating or target price.

Current Price is $31.63. Target price not assessed.

Current consensus price target is $35.48, suggesting upside of 13.9% (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: 0.3

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