Australian Broker Call

Citi rates 29M as Neutral (3) -

While debt covenants have been waived and 29Metals expects an interim insurance payout, Citi suggests it will be "touch and go" for the balance sheet and the next 12 months will be critical. The timing of and size of the insurance payout is considered key.

The June quarter showed cash of $127m with net debt now $124m after drawing down the US$40m revolver loan. The broker considers the performance at Golden Grove was weak particularly on costs.

The analysts asssume a $75m insurance payout and that 2024 debt can be refinanced and don't include an equity raise in the base case forecast

Golden Grove is tracking at lower end of copper and zinc production guidance, while guidance for gold and silver has been trimmed, notes the broker.

Management is pursuing ongoing site cost reductions across the board.

The Neutral (High Risk) rating and 85c target are unchanged.

Target price is $0.85 Current Price is $0.71 Difference: $0.14
If 29M meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.81, suggesting upside of 17.0% (ex-dividends)

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

Macquarie rates 29M as Neutral (3) -

June quarter production from 29Metals was ahead of Macquarie's estimates for both copper and zinc.  Gold production guidance has been lowered to 15-17,000 ounces and silver to 750-850,000 ounces.

Incorporating the production outcomes and changing assumed funding delivers -2-9% reductions to the broker's EPS calculations for 2023-27. Target is reduced to $0.78 from  $0.80. Neutral maintained.

Target price is $0.78 Current Price is $0.71 Difference: $0.07
If 29M meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $0.81, suggesting upside of 17.0% (ex-dividends)

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

Morgan Stanley rates 29M as Equal-weight (3) -

Second quarter production of copper and zinc for 29Metals was in line with Morgan Stanley's forecast, while gold was a -44% miss. All-in sustaining costs (AISC) also missed by -45% and there was negative cash flow over the period.

2023 gold production guidance at Golden Grove was lowered to 15-17koz from 20-23koz, while silver guidance was also lowered to 750-850koz from 950-1,050koz.

The analysts remain cautious on the stock given debt facilities are now fully drawn and any improvement to liquidity must come from either a 2H lift for Golden Grove or success on an insurance claim. The latter is for loss of equipment and business interruption losses.

The broker lowers its target to 75c from 80c. and retains its Equal-weight rating. Industry view: Attractive.

Target price is $0.75 Current Price is $0.71 Difference: $0.04
If 29M meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.81, suggesting upside of 17.0% (ex-dividends)

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

Ord Minnett rates 29M as Hold (3) -

The June quarter result from 29Metals revealed improved production from Golden Grove amid higher throughput and zinc grades. Recovery efforts at Capricorn are ongoing with the partial re-start due in August.

Ord Minnett makes minor changes to its production and cost profile for Golden Grove and assumes a notional amount of production for Capricorn copper in the September quarter. Hold rating and $0.85 target maintained.

Target price is $0.85 Current Price is $0.71 Difference: $0.14
If 29M meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.81, suggesting upside of 17.0% (ex-dividends)

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

Citi rates ACL as Buy (1) -

Heading into the reporting season, Citi envisages the most risks to FY24 guidance will be with the healthcare service providers.

This is based on expectations about a protracted volume recovery combined with elevated wage inflation that continues to weigh on margins.

Given a greater exposure to the GP channel, the broker envisages potential downside risk for Australian Clinical Labs and reduces the target to $4.20 from $4.40. Buy rating maintained.

Target price is $4.20 Current Price is $3.09 Difference: $1.11
If ACL meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates ARB as Sell (5) -

Citi reviews stocks in the Auto Parts and Equipment sector on the ASX under its coverage.

While new car sales in June jumped by 25% on the previous corresponding period, with deliveries the highest since 2018, the broker questions the sustainability of the recovery, as it seems more due to easing of supply chain pressures.

The analysts believe the risk for FY24 demand is to the downside.

The broker remains Sell-rated on ARB Corp due to elevated uncertainty in the US and downside risks building to demand for the company's products. The $24 target is unchanged.

Target price is $24.00 Current Price is $30.09 Difference: minus $6.09 (current price is over target).
If ARB meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.75, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

While trends in July suggest to Morgan Stanley interest rate futures are gradually recovering back towards FY20 levels, there are near-term risks for overall activity in the cash market and the listings market.

Morgan Stanley's Equal-weight rating and $62.40 target are unchanged. Industry view: In-Line.

Target price is $62.40 Current Price is $61.46 Difference: $0.94
If ASX meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $65.02, suggesting upside of 6.1% (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 BAP as Neutral (3) -

Citi reviews stocks in the Auto Parts and Equipment sector on the ASX under its coverage.

While new car sales in June jumped by 25% on the previous corresponding period, with deliveries the highest since 2018, the broker questions the sustainability of the recovery, as it seems more due to easing of supply chain pressures.

The analysts believe the risk for FY24 demand is to the downside.

Given 50% of Bapcor's retail consists of discretionary sales, Citi notes the increasingly adverse consumer environment will weigh.

The broker forecasts FY23 profit of $126m, compared to the consensus estimate for $127m.

The Neutral rating and $6.49 target are unchanged.

Target price is $6.49 Current Price is $6.13 Difference: $0.36
If BAP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.28, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates BOE as Outperform (1) -

Boss Energy has indicated the restart of the Honeymoon uranium project is 79% complete. In the June quarter the main achievement was completion of well fields and work is now underway to flush the start-up well fields.

Macquarie notes there is upside to both life of mine and production on exploration success with contracting the next catalyst. Outperform rating and $3.50 target maintained.

Target price is $3.50 Current Price is $2.98 Difference: $0.52
If BOE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Citi rates BPT as Buy (1) -

At first glance, Citi observes Beach Energy's production in the June quarter was below estimates due to weaker volumes from the Cooper Basin and Otway Basin. Sales were also below estimates.

Waitsia guidance is yet to be reinstated which the broker suspects implies the slow progress in hiring the technicians that initially led to the guidance being withdrawn.

Citi remains cautiously optimistic that guidance can be reinstated at the August result. Buy rating and $1.65 target retained.

Target price is $1.65 Current Price is $1.53 Difference: $0.125
If BPT meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 13.9% (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

Citi rates BWP as Sell (5) -

Prior to the reporting season, Citi updates its forecasts for BWP Trust for higher interest rates and lowers its target to $3.50 from $3.60.

The analysts note the REIT is relatively protected from higher interest costs due to relatively low gearing levels of 15.3% along with 53.3% hedging cover as at December 2022.

The Sell rating is retained.

Target price is $3.50 Current Price is $3.70 Difference: minus $0.2 (current price is over target).
If BWP meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.60, suggesting downside of -1.6% (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

UBS rates CAR as Buy (1) -

UBS considers the Australian used car market will be resilient over the next 12 months, as inventory levels are still constrained relative to demand and dealer profit margins are robust. Carsales is also taking share of inventory versus its competitors.

The broker adjusts its FY23-25 estimates for EBITDA up by 9%, to reflect the acquisition of a majority stake in Webmotors. Buy rating retained. Target is raised to $27.20 from $26.00.

Target price is $27.20 Current Price is $23.98 Difference: $3.22
If CAR meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $25.28, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates DMP as Sell (5) -

In a first view of the US-domiciled Domino's Pizza June quarter result, UBS was surprised at the same store sales growth for the international division.

The broker describes Domino's Pizza Enterprises as a "key international territory" for the parent and assesses menu innovation, removal of the delivery service fee and undemanding comparables could support growth into FY24. Sell rating and $40 target maintained.

Target price is $40.00 Current Price is $47.29 Difference: minus $7.29 (current price is over target).
If DMP meets the UBS target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $53.17, suggesting upside of 10.8% (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

Macquarie rates DOW as Neutral (3) -

Macquarie points out there has been no news on FY23 guidance and the results are due in two weeks, which signals that Downer EDI is on track to deliver on guidance.

The broker factors in 26% growth in EPS in FY24, driven by the non-recurrence of problems with projects in the first half as well as expectations of "normal" weather amid solid demand.

The broker assesses the stock has had a "good run" over the last few months but with a strong outlook, increases the target to $4.40 from $3.30 and maintains a Neutral rating.

Target price is $4.40 Current Price is $4.50 Difference: minus $0.1 (current price is over target).
If DOW 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 $4.88, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates GUD as Buy (1) -

Citi reviews stocks in the Auto Parts and Equipment sector on the ASX under its coverage.

While new car sales in June jumped by 25% on the previous corresponding period, with deliveries the highest since 2018, the broker questions the sustainability of the recovery, as it seems more due to easing of supply chain pressures.

The analysts believe the risk for FY24 demand is to the downside.

G.U.D. Holdings is Citi's preferred exposure in the sector given the resilience of the legacy auto business and a belief the APG business should continue to improve over FY24.

The broker forecasts FY23 profit of $115m compared to the consensus estimate of $105m.

The Buy rating is maintained and the target rises to $12.69 from $11.70.

Target price is $12.69 Current Price is $9.51 Difference: $3.18
If GUD meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $11.70, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Citi rates HLS as Neutral (3) -

Heading into the reporting season, Citi envisages the most risk to FY24 guidance will be with the healthcare service providers.

This is based on expectations about a protracted volume recovery combined with elevated wage inflation that continues to weigh on margins.

The broker makes minor modelling changes for Healius and retains a Neutral rating with a $3.20 target.

Target price is $3.20 Current Price is $2.90 Difference: $0.3
If HLS meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.27, suggesting upside of 13.3% (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

Morgan Stanley rates IPH as Overweight (1) -

IPH is added to the list of key small/mid cap ideas where Morgan Stanley has high conviction on earnings heading into reporting season along with outperformance into FY24.

The broker highlights patent filings are largely resilient through economic cycles and notes the company's competitive advantage is supported by scale (dominant in key markets), low customer churn and strong brands.

The broker's Overweight rating is retained due to an attractive valuation and yield. Target $10.50. Industry view: In-Line.

Target price is $10.50 Current Price is $7.90 Difference: $2.6
If IPH meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $10.74, suggesting upside of 33.4% (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 LM8 as Outperform (1) -

Lunnon Metals has advanced the Baker project during the June quarter, delivering on the prefeasibility study and commencing offtake discussions. The focus has now shifted to Foster for a PFS which includes geotechnical studies, mine design and capital cost estimates.

Macquarie observes the company has a busy year ahead, noting it is well funded to continue exploration, and maintains a target price of $1.40 and Outperform rating.

Target price is $1.40 Current Price is $0.90 Difference: $0.5
If LM8 meets the Macquarie target it will return approximately 56% (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

Bell Potter rates MAD as Hold (3) -

Mader Group's preliminary FY23 result has beaten guidance and met Bell Potter's forecasts, the company experiencing a seasonally strong quarter and two full-year guidance upgrades.

Bell Potter observes the June quarter represented the company's 12th consecutive quarter of growth, demand for Mader's core mechanical services and vertical offering proving popular in North America.

The company grew market penetration in the US and continued its build in Canada.

Net debt at the end of June 30 sat at $42.7m, steady on the March quarter. Bell Potter now awaits management guidance, but observes the company's exit-rate for FY23 and momentum are strong.

EPS forecasts rise 3% in FY23; 7% for FY24; and 15% for FY25. Hold rating retained on valuation. Target price rises to $6.10 from $5.10.

Target price is $6.10 Current Price is $6.02 Difference: $0.08
If MAD meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Shaw and Partners rates MMI as Buy (1) -

Metro Mining's June-quarter activities report pleased Shaw and Partners as improved operations, higher pricing, improved weather and lower freight costs all flowed through to earnings (EBITDA).

The broker says the performance is just a taste of the company's potential earnings once production is expanded and is expecting quarterly EBITDA to nearly double to $20m from $11.4m during the December half.

Mine expansion is one track and fully funded, advises Shaw.

Cash sat at $20.2m at the end of the June quarter, and debt at $80m and the broker expects the company will be seeking to refinance its fairly expensive debt facility.

Buy, High Risk, recommendation and 6c target price retained.

Target price is $0.06 Current Price is $0.03 Difference: $0.035
If MMI meets the Shaw and Partners target it will return approximately 140% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 NCM as Neutral (3) -

June quarter gold production was below Macquarie's estimates while AISC was 20% higher. Nevertheless, Newcrest Mining met FY23 production and cost guidance.

Despite a strong lift in quarterly production, Lihir was below plan because of extreme rainfall and costs were higher because of capital expenditure at Lihir as well as Cadia and Red Chris.

No guidance was provided for FY24. Macquarie retains a Neutral rating and $27 target.

Target price is $27.00 Current Price is $26.50 Difference: $0.5
If NCM meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $27.78, suggesting upside of 3.7% (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: 0.1

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

Morgans rates NCM as Hold (3) -

Morgans assesses a strong 4Q for Newcrest Mining, due to easing challenges at Cadia, Lihir and Brucejack (Canada) though cost increases reduced all-in sustaining cost (AISC) margins by -15% quarter-on-quarter.

Gold production for the quarter of 556koz missed the consensus expectation for 579.6koz, while copper production of 35kt was a slight beat.

The company achieved FY23 gold production and AISC guidance, with copper production -1% below the guidance range.

The shareholder vote on the Newmont acquisition will be held during October.

Hold. The target falls to $25.60 from $25.80.

Target price is $25.60 Current Price is $26.50 Difference: minus $0.9 (current price is over target).
If NCM meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.78, suggesting upside of 3.7% (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: 0.1

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

UBS rates NCM as Neutral (3) -

June quarter production from Newcrest Mining was -4% below UBS estimates while costs were ahead of estimates by 11%.

The broker points out, with the Newmont deal on track for completion by the end of the year, the outlook is more about the fortunes of that company, which has retained its 2023 guidance.

UBS raises the target to $27.30 from $26.70, based on the binding offer from Newmont, and retains a Neutral rating.

Target price is $27.30 Current Price is $26.50 Difference: $0.8
If NCM meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $27.78, suggesting upside of 3.7% (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: 0.1

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

Morgan Stanley rates PLS as Underweight (5) -

Valuation and pricing risks keep Morgan Stanley Underweight on Pilbara Minerals. Results for the 4Q showed realised prices were a miss against the forecasts of the broker and consensus of -18% and -13%, respectively.

While 4Q costs were in line with guidance they were a -7% miss against the analyst's forecast.

The commissioning of the new company-owned crushing/ore sorting facility has been delayed by two quarters, with the ramp-up now sheduled for Q1 of FY25.

Valuation and project risks keep Morgan Stanley Underweight. Target $4.15. Industry View: Attractive.

Target price is $4.15 Current Price is $4.83 Difference: minus $0.68 (current price is over target).
If PLS meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.35, suggesting upside of 5.9% (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 PLS as Downgrade to Hold from Add (3) -

Fourth quarter realised spodumene concentrate prices for Pilbara Minerals declined faster than Morgans anticipated, while production beat the forecasts of the broker and consensus by 9% and 7%, respectively.

Management expects to pay a fully franked dividend in FY23 and the analyst sees strong potential for a buyback despite the planned production expansion at Pilgangoora.

Following a strong share price performance, Morgans downgrades its rating to Hold from Add, while the $5 target is unchanged.

Target price is $5.00 Current Price is $4.83 Difference: $0.17
If PLS meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 5.9% (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

Citi rates RIO as Buy (1) -

Rio Tinto has announced the purchase of a 50% share in a business producing slabs and billets from recycled aluminium, which Citi considers is a strategic move given some customers are increasingly looking to improve their green credentials.

The broker considers the acquisition as a "margin uplift" business and suspects the company envisages an opportunity to increase capacity utilisation, although at this early stage is unable to quantify potential upside.

Citi continues to be bullish on aluminium, as a key decarbonisation metal despite near-term pressures brought about by rising China exports.

Buy rating retained. Target is $123.

Target price is $123.00 Current Price is $119.18 Difference: $3.82
If RIO meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $113.17, suggesting downside of -6.3% (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

Ord Minnett rates RMD as Accumulate (2) -

Ord Minnett believes the market is under appreciating the significant delay that the pandemic caused for new sleep apnoea diagnoses because of the temporary closure of sleep study clinics.

The broker suspects the backlog of new patients, when catching up with the prior underlying trend, will contribute to elevated sales growth for a time.

Moreover, the issues with competitor Philips appear set to drag into 2024, allowing ResMed to structurally gain market share. Accumulate rating and $39 target retained.

Target price is $39.00 Current Price is $32.47 Difference: $6.53
If RMD meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $38.00, suggesting upside of 16.2% (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: 0.8

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

Morgans rates S32 as Add (1) -

Morgans assesses a mostly in-line result for South32 in the 4Q, and a significant operational improvement compared to the previous quarter.

The IIlawarra, Sierra Gorda and Cerro Matoso operations were in-line, while the analyst notes manganese was the standout, with both GEMCO and South African manganese beating guidance.

Management announced a -US$1.3bn impairment against the Taylor deposit at the Harmosa development project in the US, for several reasons including delays in the project timeline and dewatering required to access the ore body.

The Add rating is maintained while the broker’s target falls to $5.15 from $5.60.

Target price is $5.15 Current Price is $3.85 Difference: $1.3
If S32 meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting upside of 14.7% (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: 0.7

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

Citi rates SHL as Buy (1) -

Heading into the reporting season, Citi envisages the most risk to FY24 guidance will be with the healthcare service providers.

This is based on expectations about a protracted volume recovery combined with elevated wage inflation that continues to weigh on margins.

The broker makes minor modelling changes for Sonic Healthcare and retains a Buy rating, raising the target to $40.50 from $40.00.

Target price is $40.50 Current Price is $35.04 Difference: $5.46
If SHL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $35.95, suggesting upside of 2.3% (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 SRL as Neutral (3) -

June quarter activities were focused on advancing the Sunrise project which is now forecast to produce 21,300tpa of nickel and 4,300tpa of cobalt in the first 10 years of operations.

Sunrise Energy Metals is now in the process of looking for a funding solution and offtake partner. Macquarie asserts an offtake partnership with a large European car manufacturer would be ideal to support development of the project.

Target is raised to $1.26 from $1.06. Neutral maintained.

Target price is $1.26 Current Price is $1.33 Difference: minus $0.07 (current price is over target).
If SRL meets the Macquarie 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 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

Shaw and Partners rates STN as Buy (1) -

Saturn Metals has published metallurgical tests from Apollo Hill logging exceptionally high average recoveries of 79.1% (global heap leach recoveries range between 55% and 79%). Shaw and Partners observes roughly half the world's gold is derived from heap leach.

The broker says the company is trading at a massive discount to peers with less favourable prospects.

Buy, High Risk rating and 44c target price retained.

Target price is $0.44 Current Price is $0.19 Difference: $0.255
If STN meets the Shaw and Partners target it will return approximately 138% (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 TAH as Neutral (3) -

UBS finds a lot to like about Tabcorp Holdings as it invests in digital product, although is not ready to give full credit for delivery on targets just yet.

One of the targets is to grow digital share to 30% by FY25, which the broker observes would substantially reverse the negative trend over recent years.

UBS cautions that, based on its wagering survey, no improvement has been observed as yet. It appears the industry shift to greater digital channel share has slowed down, after peaking in 2021 during widespread disruptions from the pandemic.

The broker retains a Neutral rating and $1.09 target.

Target price is $1.09 Current Price is $1.12 Difference: minus $0.025 (current price is over target).
If TAH meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.17, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in August.

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 TCL as Outperform (1) -

Macquarie observes macro statistics are supporting a rebound in traffic and calculates 4-6% growth in the June quarter. Moreover, inflation is progressively coming under control as Transurban Group lifts pricing outcomes for Citylink and some Sydney roads.

The broker believes the stock remains high-quality and defensive, with the road capacity to capture the benefits of population growth. The Outperform rating is retained and the target is raised to $14.82 from $14.72.

Target price is $14.82 Current Price is $14.12 Difference: $0.7
If TCL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.60, suggesting upside of 2.5% (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 TLG as Outperform (1) -

Talga Group has secured the environmental permit for the commercial 19,500tpa battery anode refinery at Lulea. Around 10 ha of land has also been acquired and ground work is targeted for the September quarter.

Macquarie believes the location of the project in Sweden is a key market differentiator, allowing the company to leverage EV demand and battery growth in Europe as offtake negotiations continue.

The $2.00 target and Outperform rating are unchanged.

Target price is $2.00 Current Price is $1.32 Difference: $0.68
If TLG meets the Macquarie target it will return approximately 52% (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 URW as Buy (1) -

Unibail-Rodamco-Westfield has sold the Westfield Mission Valley shopping centres for US$290m. The transaction shows the market is too bearish on this stock, in Ord Minnett's view.

The broker highlights the fact the security is trading at a -55% discount to the group net tangible assets and a -45% discount to its fair value estimate.

Moreover, Ord Minnett believes the market is over-estimating the risk of a dilutive equity raising, which becomes less likely with every asset that is sold for a "decent" price. Buy rating retained. Target is steady at $7.80.

Target price is $7.80 Current Price is $4.30 Difference: $3.5
If URW meets the Ord Minnett target it will return approximately 81% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

This company reports in EUR. 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 WAF as Outperform (1) -

West African Resources produced 56,700 ounces of gold at Sanbrado in the June quarter, slightly ahead of Macquarie's estimates. A strong step up in mined volumes was offset by lower planned grades. The company remains on track for 2023 guidance.

Net cash was lower than Macquarie expected, at $152m, driven by higher expenditure at Kiaka, the timing of which remains important for the outlook. Outperform rating and $1.60 target retained.

Target price is $1.60 Current Price is $0.92 Difference: $0.685
If WAF meets the Macquarie target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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