Australian Broker Call

Bell Potter rates AMA as Buy (1) -

Bell Potter has reviewed the earnings forecasts for AMA Group and the valuation ascribed to the stock in light of the recent share price performance.

The analyst retains FY25 and FY26 earnings estimates, which are consistent with management's upgraded guidance range of earnings (EBITDA) of $58m-$62m in FY26 and highlights that the guidance for FY25 appears "conservative".

The valuation ascribed to the stock based on EV/EBITDA has risen to 7.5x from 6x, with an accompanying reduction in the assumed cost of capital for the discounted cash flow model.

The broker explains the changes lift medium-term earnings forecasts, with an accompanying rise in the target price of 20% to 12c from 10c. Buy rating retained.

Target price is $0.12 Current Price is $0.11 Difference: $0.015
If AMA meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

UBS lowers its target price for Beach Energy to $1.35 from $1.40 and downgrades the rating to Neutral from Buy due to softer domestic gas price forecasts and limited near-term catalysts.

The broker feels recent share price gains have priced in a timely ramp-up at Waitsia. Balance is also now seen between upside from rising East coast gas prices and downside from potential delays and softer domestic demand.

Over 40% of Beach’s East coast gas is uncontracted from FY26, creating leverage to future price rises, note the analysts. However, the broker's FY26-27 East coast gas price assumptions are lowered by -5-6% due to delays in LNG import terminal commissioning.

UBS also flags commissioning risks for the Waitsia Gas Plant despite fuel gas being introduced in May, and sees no further discount priced into shares for delays.

Cost guidance remains unchanged, and production expectations for FY26-27 are steady, notes UBS.

Target price is $1.35 Current Price is $1.34 Difference: $0.015
If BPT meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.38, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Macquarie rates BRG as Outperform (1) -

Macquarie's kitchen benchmark for 1Q 2025 showed revenue growth of 0.1% on a year earlier, and DeLonghi, Breville Group's closest comparable revenue benchmark, was up 14.4%, the analyst explains.

From 2018-2024, Breville's revenue growth of 11% per annum has exceeded the benchmark and been underpinned by coffee, new product development, and new market expansion, Macquarie recalls.

DeLonghi has noted the weakness year-to-date in the US has been limited to food preparation, with coffee continuing to perform well.

The broker has increased the cost of sales and cost of doing business assumptions in FY25-FY26, resulting in a slight decline in EPS estimates by -2.5%. No changes beyond FY26.

Target price moves to $40.20 from $41.10. No change to Outperform rating.

Target price is $40.20 Current Price is $29.39 Difference: $10.81
If BRG meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $35.63, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Bell Potter rates CAT as Hold (3) -

Catapult International announced the acquisition of Perch for -US$18m, which is detailed by the company as a "next-generation leader in athlete monitoring in the gym for elite teams".

Management highlighted Perch will be able to deliver the "most comprehensive and versatile performance tracking solutions in the market", with scope for cross-selling to Catapult's existing 3,600 pro teams.

Bell Potter notes the acquisition will be funded by US$3m in cash from reserves and a US$15m scrip issue. The analyst lifts earnings (EBITDA) forecasts by 2%, 7%, and 9% for FY26-FY28, with a rise in the target price to $6 from $5.

No change to Hold rating, as the broker suggests the stock appears fairly valued at current levels.

Target price is $6.00 Current Price is $6.25 Difference: minus $0.25 (current price is over target).
If CAT meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.90, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

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

Macquarie rates CRN as Neutral (3) -

Coronado Global Resources has reached an agreement with Stanwell Corp for up to US$150m in liquidity support in return for a five-year coal offtake of up to 0.8mtpa.

The interest rate is 13% per annum to be settled in coal shipments, half of which will be at spot prices and the remaining at a fixed forward curve.

Additionally, the company recently refinanced its existing asset-based lending facility with Oaktree Capital for US$150m, with US$75m to be drawn at financial close and the remaining in US$25m increments over 12 months.

Macquarie has factored in the two agreements into the forecasts, resulting in a 23% lift to FY27 EPS but cuts thereafter through to FY30.

Neutral. Target cut to 19c from 25c.

Target price is $0.19 Current Price is $0.17 Difference: $0.02
If CRN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $0.19, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

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

Bell Potter rates CU6 as Speculative Buy (1) -

Bell Potter outlines the headline data from Disco for Clarity Pharmaceuticals, with the study being a phase 2 trial investigating the diagnostic capabilities of CuSartate for the detection of neuroendocrine tumours (NETs).

The analyst explains that the current diagnosis is by conventional MRI and PET/CT imaging, with Ga Dotatate as the PET agent.

Disco's CuSartate versus the incumbent points to Clarity Pharmaceuticals' agent being better.

Bell Potter believes the data is sufficient to launch a future approved trial.

The price target is lowered to $4.90 from $5.20, with an unchanged Speculative Buy rating.

Target price is $4.90 Current Price is $2.39 Difference: $2.51
If CU6 meets the Bell Potter target it will return approximately 105% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 CY5 as Buy (1) -

Cygnus Metals' latest drilling results at its Golden Eye prospect not only revealed multiple parallel gold zones but also extended beyond the current 10.8kt measured, indicated and inferred resource.

Shaw and Partners notes the results will be used to complete an initial mineral resource for the project. The broker also points to the project's ideal location near infrastructure and within 3km of the company's 900ktpa processing plant.

More importantly, the broker reminds investors of the potential upside opportunity for the stock signalled by recent copper takeovers on the ASX.

Buy. Target unchanged at 25c.

Target price is $0.25 Current Price is $0.10 Difference: $0.15
If CY5 meets the Shaw and Partners target it will return approximately 150% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates DGL as Neutral (3) -

DGL Group's trading update pointed to a slightly higher y/y FY25 revenue, which, UBS points out, is effectively a downgrade, given 2H25 is traditionally strong, but is now expected to be in line.

In the case of EBITDA, the guidance is -10% below UBS' forecast and net profit is -37% below.

The broker reckons the key reasons for the downgrades are costs and the tough operating conditions in the used lead acid batteries business, along with margin normalisation in the AdBlue business. The core chemical formulation unit is a bright spot.

The company is incurring additional costs to simplify and consolidate the business units, which is expected to generate benefit in FY26.

The broker is forecasting EBITDA margin expansion of 180bps through to FY27 from 11% in FY25. FY25-26 EPS forecasts cut sharply. Neutral. Target lowered to 47c from 53c.

Target price is $0.47 Current Price is $0.40 Difference: $0.07
If DGL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Macquarie rates FFM as Outperform (1) -

FireFly Metals raised $95m equity via flow-through shares, Canadian offering and institutional placement, and is raising an additional $5m via share purchase plan. The funds will be used for drilling at the Green Bay copper project.

Macquarie is looking ahead to 2H2025 for the release of drilling results from Green Bay, a resource update likely in 3Q/4Q and a pre-feasibility study expected in 4Q or early 2026.

Outperform. Target price cut to $1.55 from $1.60.

Target price is $1.55 Current Price is $1.00 Difference: $0.555
If FFM meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $1.68, suggesting upside of 60.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Morgans rates IMR as Speculative Buy (1) -

Imricor Medical Systems received European approval for its NorthStar mapping system earlier than expected. 

Morgans notes the approval follows recent approvals for other products, lifting confidence about higher sales over the next quarters. No change to forecasts.

The company is one of the broker's key picks in the emerging healthcare sector.

Speculative Buy. Target unchanged at $2.28.

Target price is $2.28 Current Price is $1.70 Difference: $0.58
If IMR meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

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 MTS as Buy (1) -

Citi believes Metcash's decision to merge its Independent Hardware Group (IHG) and Total Tools units is a sensible one given subdued market conditions. 

The broker reckons the preference for IHG's CEO Scott Marshall over Total Tools' CEO Richard Murray is understandable as he has vast experience across the company's businesses.

The company also provided FY25 EBIT guidance, which was in line with consensus but slightly below the broker's forecast. Net profit guidance was slightly above consensus.

Buy. Target unchanged at $3.70.

Target price is $3.70 Current Price is $3.51 Difference: $0.19
If MTS meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

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

Macquarie raises its target for Metcash by 40 cents to $3.70 and upgrades to Outperform from Neutral after FY25 hardware earnings (EBIT) guidance (via a trading update) came in around 4% ahead of expectations.

This outcome alleviates concerns for the analyst around segment de-leverage and marks a likely trough in earnings.

The broker expects the merger of IHG and Total Tools to deliver medium-to long-term upside through improved cost control, stronger supplier terms, and cross-brand integration. For the short-term, the earnings impact is expected to be limited.

Hardware recovery is anticipated, supported by improving housing approvals, commencements, and home sales, alongside expectations of three further RBA rate cuts in 2025.

Target price is $3.70 Current Price is $3.51 Difference: $0.19
If MTS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

UBS rates MTS as Buy (1) -

Metcash's FY25 underlying net profit guidance of $273-277m was slightly above UBS' estimate. In the case of EBIT, food & liquor was below the broker's forecast, while the upper end of hardware was in line.

Despite challenging market conditions, the broker believes the company is well-placed for recovery, especially given the decision to merge its Independent Hardware Group (IHG) and Total Tools businesses.

The broker reckons the departure of Total Tools' CEO is a loss, but IHG CEO Scott Marshall's wider experience would help.

FY25 underlying EPS forecast cut by -0.3% while FY26 lifted by 1.2%, and FY27 by 3.4% on higher hardware EBIT estimates.

Buy. Target rises to $4.00 from $3.50.

Target price is $4.00 Current Price is $3.51 Difference: $0.49
If MTS meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates MVF as Outperform (1) -

Macquarie believes a second embryo identification incident for Monash IVF is already reflected in the May downgrade and will not have further financial impact.

The broker sees the recent share price fall as an overreaction, with the stock trading at a -53% discount to its five-year average P/E and a -65% discount to the ASX Small Ordinaries. No changes have been made to financial forecasts.

Despite reputational challenges and expected share losses in VIC and QLD, key leading indicators such as new and returning patient registrations remain steady, and structural tailwinds in IVF persist, highlights the broker.

Macquarie views the Medicare-funded genetic testing rebate and the company's broader panel offering as a significant future growth driver for IVF cycles, which is not yet reflected in forecasts.

Macquarie retains an Outperform rating and a $1.30 target price.

Target price is $1.30 Current Price is $0.55 Difference: $0.755
If MVF meets the Macquarie target it will return approximately 139% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 84.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates NSR as Buy (1) -

National Storage REIT boosted its JV with Singapore's sovereign fund GIC with the release of six development sites for $228m and will get $140m in return. The REIT will have a 25% stake in the fund with the remaining belonging to GIC.

Citi notes the REIT will use the proceeds to repay debt and will continue to act as the fund's manager, including earning fees for services. The deal is subject to regulatory approvals but is expected to be completed soon.

The broker is positive on the medium-term outlook for the self-storage sector, given interest from global investors.

Following a later meeting with management, Citi determined management remains optimistic on the short- and medium-term outlook, expecting ongoing operational momentum and strong potential improvements in occupancy.

The company also anticipates finance cost tailwinds from lower interest costs, as well as cap rate compression.

Expecting positive FY25 results in August, Citi opens an upside 90-day catalyst watch. Buy. Target unchanged at $2.70.

Target price is $2.70 Current Price is $2.34 Difference: $0.36
If NSR meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgans rates NXT as Buy (1) -

Morgans highlights NextDC has announced its first international cornerstone customer for the Malaysian Kuala Lumpur (KL1) site, a 10MW deal.

KL1 is due to go live in 2026 and the analyst believes this is a notable deal with a hyperscaler validating the company's offshore expansion plans.

In the last month, NextDC has contracted 19MW, including 6MW in Australia (mostly Melbourne), and the KL1 contract, with expectations of stronger sales momentum in 2H25 than originally forecast.

The analyst lifts FY27 underlying earnings (EBITDA) by 4% to $292m, with a rise in expected capex of around 30% to circa -$2bn in FY26.

Buy rating and $18.80 target unchanged.

Target price is $18.80 Current Price is $13.86 Difference: $4.94
If NXT meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $19.57, suggesting upside of 39.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates NXT as Buy (1) -

NextDC announced a further 16MW of contracts, bringing total contracted utilization to 244MW, Ord Minnett explains, with the largest increase in the update for its upcoming Kuala Lumpur (KL1) data center at 10MW for a hyperscaler.

The other 6MW of capacity is most likely related to the data centers at Tullamarine and West Footscray, which is viewed by the analyst as a good sign of increased momentum in billing for these centers.

No change to Buy rating, with an $18 target price.

Target price is $18.00 Current Price is $13.86 Difference: $4.14
If NXT meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $19.57, suggesting upside of 39.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates NXT as Buy (1) -

UBS highlights NextDC has signed an additional 16MW against the May update, bringing FY25 to a record further contract wins of 72MW contracted.

Some 10MW in the latest announcement is for Kuala Lumpur, which the analyst emphasizes as a de-risking moment for the international project.

The Kuala Lumpur/KL1 contract is with a hyperscale customer, which represents 15% of the project's capacity and is the first outside of Australia.

With 100% of MW in place for the next three years, UBS believes the latest announcement will underpin consensus earnings upgrades, with the analyst lifting its FY28 EBITDA forecast by 5%.

As per commentary, current contracting announcements imply an additional 72MW in FY25 versus 50MW in FY24, with most of the revenue from new wins expected to accelerate in FY27.

Buy. Target price lifted to $20.20. There are no changes to UBS' earnings forecasts.

Target price is $20.20 Current Price is $13.86 Difference: $6.34
If NXT meets the UBS target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $19.57, suggesting upside of 39.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates PTM as Sell (5) -

Platinum Asset Management's May trading update reveals net fund outflows of -$1.6bn, equating to -16.7% of funds under management (FUM), highlights UBS. FUM has experienced a -13.6% monthly decline to $8.3bn.

The broker notes the loss of -$1.3bn in institutional mandates as the primary driver, with retail redemptions totalling -$293m. These were only partially offset by a $292m uplift from market movements, explain the analysts.

UBS flags persistent outflow risk due to ongoing underperformance, portfolio manager turnover in February, and uncertainty around the L1 Capital transaction. L1 has acquired a 16.85% stake in LIC Platinum Capital Limited (PMC).

The broker feels valuation support remains weak amid structural revenue headwinds.

UBS retains its Sell rating and 50c target price.

Target price is $0.50 Current Price is $0.53 Difference: minus $0.025 (current price is over target).
If PTM meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -1.0

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

Ord Minnett rates RDX as Upgrade to Accumulate from Hold (2) -

Ord Minnett upgrades Redox to Accumulate from Hold on valuation grounds, with a new target price of $2.68 from $2.85.

In response to an ASX query about the share price last week, the company cited "broader macro uncertainty", with a lack of confidence in the Australian economy post the 1Q25 GDP print, the analyst details.

Lower confidence levels and activity levels in the domestic economy have led Ord Minnett to reduce earnings estimates by around -6% for FY25 and -5% for both FY26/F27.

The macroeconomic impacts are viewed by the broker as cyclical rather than structural issues for the company.

Target price is $2.68 Current Price is $2.07 Difference: $0.61
If RDX meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 67.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates RIO as Neutral (3) -

Citi reports Rio Tinto has adjusted the mine plan at Oyu Tolgoi to reflect delays in obtaining mining licence transfers from Entree Resources, pausing some work in Panel 1 and prioritising development of Panel 2S.

Management maintains 2025 copper production guidance of 780-850kt and reaffirms the mine is still on track to deliver circa 500ktpa of copper from 2028-2036.

While copper volumes are unaffected, gold grades in Panel 2S are lower than in Panel 1, which the analysts caution may reduce by-product credits and slightly increase unit costs until Panel 1 production resumes.

Citi retains a Neutral rating and a $130 target price.

Target price is $130.00 Current Price is $109.12 Difference: $20.88
If RIO meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $121.58, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

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 RIO as Buy (1) -

Rio Tinto reiterated its guidance for copper output from the Oyu Tolgoi project in Mongolia as it expects to make up the lost production from the Hugo North Lift Panel (P1) section with increased production from Panel 2 South.

Development of P1 has been suspended due to licensing issues. Ord Minnett believes the impact from the changes will be limited due to similar ore grades and because capex spend at P1 has been minimal so far.

No changes to forecasts. Buy. Target unchanged at $126.

Target price is $126.00 Current Price is $109.12 Difference: $16.88
If RIO meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $121.58, suggesting upside of 11.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.3

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

Macquarie rates SDR as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of SiteMinder with an Outperform rating and $6.09 target price, noting the company offers core management software for hotels with a collection of 'add-on' transaction products.

The analyst highlights the end market is very fragmented, as around 85% of hotels are SMEs, which has resulted in a variety of technology solutions, meaning SiteMinder has few head-on competitors.

The global hotel industry is estimated to be worth around $57bn, with over one million hotels, and SiteMinder only serves around 47k properties, or a circa 5% market share.

Macquarie forecasts medium-term revenue growth at a compound annual rate of 22% from FY24-FY27.

Target price is $6.09 Current Price is $4.62 Difference: $1.47
If SDR meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $6.33, suggesting upside of 33.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates SSM as Buy (1) -

Having established itself as one of the two contractors delivering under the Field Module for NBN Co, Citi analysts comment it is no surprise Service Stream has locked in an extension to continue its upgrade works.

Given implied annual revenue uplift from the contract is circa 5%, the analysts are not expecting any step change in Telco revenues.

But it does effectively ensure the company's Telco revenue profile remains intact with margin not too dissimilar to the segment margin at circa 9%, commentary highlights.

Target $2. Buy.

Target price is $2.00 Current Price is $1.94 Difference: $0.06
If SSM meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates SUL as Buy (1) -

Super Retail's Auto division remains competitive, in Citi's opinion, with margins protected by targeted loyalty campaigns and multi-buy promotions, helping avoid discount triggers.

The broker sees limited risk from Bunnings’ entry into auto retail, given Super Retail operates in premium segments Bunnings does not compete in.

It's thought British-owned Sports Direct’s arrival is a longer-term threat given challenges in securing retail space. Rebel is not at a disadvantage on price or product range relative to Sports Direct, according to the analyst.

Citi continues to view the outlook favourably for Super Retail amid resilient trading conditions and a high dividend yield.

The broker retains its Buy rating and a $16.50 target price.

Target price is $16.50 Current Price is $14.08 Difference: $2.42
If SUL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $14.99, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Citi rates SUN as Neutral (3) -

Citi believes Suncorp Group remains unlikely to purchase a whole-of-account quota share or volatility cover, despite having previously committed to a full market scan of reinsurance options.

The broker notes any capital release alone is not considered sufficient justification for such deals by Suncorp, and it questions whether quota share capital is cheaper than internal capital.

The relatively benign catastrophe (CAT) year and expectations of a -5% reduction in CAT reinsurance pricing may support the group’s approach, though the analyst cautions the market may be expecting too much.

Citi expects a share buyback to be announced with FY25 results in August, supported by capital from the NZ life sale. It's felt Suncorp is well positioned for further multiple expansion given a low risk of near-term earnings disappointment.

The broker raises its target price to $22.40 from $20.00 and retains a Neutral rating.

Target price is $22.40 Current Price is $21.71 Difference: $0.69
If SUN meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.93, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates TCL as Neutral (3) -

Citi hosted Transurban Group's two investor relations officials for a pre-blackout call, and among the key takeaways was an improving traffic outlook and focus on costs.

Other highlights included headwind from current debt costs, which is currently 200bps above the weighted average cost of debt. Among the positives was an improving pipeline with a partnership with Ferrovial to bid on two US toll roads.

Neutral. Target unchanged at $14.30.

Target price is $14.30 Current Price is $14.27 Difference: $0.03
If TCL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $13.83, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Ord Minnett rates TLS as Accumulate (2) -

After reviewing consensus estimates for Telstra Group, Ord Minnett believes the expectation of a $420m y/y increase for FY26 EBITDA is too optimistic. The dividend forecast of 20c is in line with the broker's.

The broker's EBITDA forecast is for a $320m increase based on the assumption of no pickup in mobile EBITDA growth and negligible redundancy costs so far in FY25, and hence no cost savings.

Additionally, the broker sees a challenging backdrop for the consumer and small business segments. No change to forecasts. Accumulate rating with unchanged target price of $5.

Target price is $5.00 Current Price is $4.85 Difference: $0.15
If TLS meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.76, suggesting downside of -2.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates WHC as Buy (1) -

Following a recent visit to Whitehaven Coal's coal mines in Queensland, Ord Minnett is more confident of 8% production growth forecast to 15.1Mt in FY25, compared with 14.1Mt under BHP Group's ((BHP)) ownership.

The broker is also confident the company's cost-saving program is on track to deliver its above-consensus 27% EBITDA margin forecast. 

The broker expects strong underlying free cash flow of $537m in FY26.

Buy. Target unchanged at $7.70.

Target price is $7.70 Current Price is $5.73 Difference: $1.97
If WHC meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $6.66, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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