Australian Broker Call

UBS rates A2M as Buy (1) -

UBS' Buy rating for a2 Milk Co is underpinned by a 136% rise in profit by FY26, driven from strong infant formula sales growth across both English-label and China-label, plus margin expansion from lower ingredient costs and marketing efficiency.

The broker believes the the majority of profit growth is not priced in on an FY23 PE of 18x, and sits 25% above consensus by FY26.

Buy and NZ$8.90 target retained.

Current Price is $5.05. Target price not assessed.

Current consensus price target is $5.84, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.1

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

UBS rates AKE as No Rating (-1) -

Allkem achieved a strong operational quarter, with record production at Olaroz beating UBS' forecast. Improved concentrator performance and better mineralisation in the main ore body supported higher recoveries at Mt Cattlin.

The decision to hold back lithium carbonate sales from market in the March Q has been justified, the broker suggests, as Chinese domestic prices have lifted and Allkem is planning to ramp sales out of inventory into the market through the first half FY24.

There are several catalysts ahead, including the merger with Livent. On that basis, the broker is restricted from providing a recommendation or target.

Current Price is $15.20. Target price not assessed.

Current consensus price target is $17.93, suggesting upside of 21.3% (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

Bell Potter rates ALC as Buy (1) -

Following a 4Q activities report, Bell Potter raises its Alcidion Group revenue forecasts for FY23-25 by 2%, 4% and 6%, respectively.

FY23 revenue of $40m reflects organic growth of 16%, points out the analyst, while a FY24 moderation in staff expenses is expected, along with growing revenue from the company's modular sales strategy, particularly in the UK.

The target rises to 15c from 12c. Add. Bell Potter expects electronic patient record (EPR) contract wins from mid-FY24 onwards from the UK’s Frontline Digitisation Program run by the NHS.

Target price is $0.15 Current Price is $0.13 Difference: $0.025
If ALC meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates ART as Add (1) -

Airtasker's 4Q trading update highlights to Morgans the resilience of the company's platform given the tough macroeconomic backdrop. The Add rating is retained due to the strong growth outlook.

Gross marketplace volume (GMV) rose by  5.6% on the previous corresponding period to $57.3m, while revenue was up 20.6% to $10.8m, a fall of -6% quarter-on-quarter.

Management is aiming for positive free cash flow in FY24 and there is $17m cash on the balance sheet, enabling the growth strategy to be implemented, in the analyst's view.

The target falls to 52c from 60c on lower revenue assumptions and ongoing tough macroeconomic conditions. 

Target price is $0.52 Current Price is $0.21 Difference: $0.315
If ART meets the Morgans target it will return approximately 154% (excluding dividends, fees and charges).

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

Morgan Stanley rates BRG as Overweight (1) -

The result from Breville Group's competitor DeLonghi provides increasing conviction for Morgan Stanley of resilient and improving demand as well as supply normalisation.

Overweight rating reiterated for Breville. Target is steady at $25. Industry view: In-Line.

Target price is $25.00 Current Price is $22.72 Difference: $2.28
If BRG meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $23.18, suggesting upside of 2.8% (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

Ord Minnett rates BRG as Buy (1) -

Breville Group's US peer, DeLonghi, revealed a significantly improved June quarter result. Importantly, Ord Minnett assesses there was a return to growth in both the coffee and food preparation segments after a decline in the first quarter.

The broker notes notes Breville expects EBIT growth of 5-10% FY23 and has built a platform to achieve significant growth in future years. Buy rating and $23.50 target maintained.

Target price is $23.50 Current Price is $22.72 Difference: $0.78
If BRG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.18, suggesting upside of 2.8% (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 CBA as Sell (5) -

With CommBank set to kick off the bank reporting season in a fortnight, Citi believes the sharemarket may have been premature in positively re-rating the bank over the past few months.

The bank has a strong retail franchise, yet the broker suggests a tightening liquidity environment lends itself to outperformance in institutional banking. As a result, Buy-rated ANZ Bank ((ANZ)) is preferred for its institutional tilt, low housing exposure and cheaper valuation.

For CommBank, the analyst retains its Sell rating and $82.50 target.

Target price is $82.50 Current Price is $105.50 Difference: minus $23 (current price is over target).
If CBA meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.68, suggesting downside of -14.9% (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

Citi rates CIA as Buy (1) -

Despite forest fires in Quebec impacting sales, Citi notes Champion Iron achieved record June quarter production and is on track to achieve 15mtpa nameplate capacity by the end of 2023.

While C1 cash costs rose (as expected), earnings beat the analyst's forecast on lower sea freight costs. Sales were a 2% beat, but down -17% quarter-on-quarter.

The broker's target rises to $9 from $8.70. Buy.

Target price is $9.00 Current Price is $5.84 Difference: $3.16
If CIA meets the Citi target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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 CIA as Outperform (1) -

Macquarie observes production from Champion Iron was a record in the June quarter as Bloom Lake phase 2 ramped up, although forest fires affected shipments which were -17% lower quarter on quarter. Cash and receivables were -25% weaker than expected.

Still, the ramp up is expected to be a tailwind into FY24 albeit with elevated costs. Outperform maintained. Target is reduced to $7.20 from $7.80.

Target price is $7.20 Current Price is $5.84 Difference: $1.36
If CIA meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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

Bell Potter rates CMM as Buy (1) -

The fourth quarter production result for Capricorn Metals was slightly below Bell Potter's expectations, while all-in sustaining costs (AISC) were in-line.

Operating cash flows for FY23 were around $130m, an excellent outcome according to the analyst, due to strong 2H cash generation.

Management is guiding for FY24 production of 115-125koz at an AISC of $1,270-$1,370/oz.

Bell Potter maintains its Buy rating and raises its target to $5.19 from $4.95.

Target price is $5.19 Current Price is $4.43 Difference: $0.76
If CMM meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CMM as Outperform (1) -

Capricorn Metals has set FY24 guidance at 115-125,000 ounces at an AISC of $1270-1370/oz. This is in line with Macquarie's previous expectations. Both production and costs in FY23 comfortably met guidance.

Further metrics from the company are expected later. Outperform rating. Target is reduced $4.80 from $4.90.

Target price is $4.80 Current Price is $4.43 Difference: $0.37
If CMM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CNB as Outperform (1) -

Carnaby Resources has focused on exploration at Mount Hope and the drilling update is encouraging, Macquarie asserts, with copper mineralisation that continues to expand with each additional hole drilled.

The maiden resource for Greater Duchess is expected before the end of the September quarter which presents a near-term catalyst.

Macquarie estimates a mineralised inventory of 24mt at 1.54% copper for 370,000t of copper. Outperform rating and $1.70 target retained.

Target price is $1.70 Current Price is $1.08 Difference: $0.62
If CNB meets the Macquarie target it will return approximately 57% (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 COG as Buy (1) -

COG Financial Services reported unaudited net profit of $27.6m in FY23, up 13%, excluding corporate costs and contribution from the stake in earlypay ((EPY)). Including its estimates for these line items, Ord Minnett expects FY23 net profit of $23.6m.

The broker notes buoyant activity in several customer segments and estimates the company maintained its share of around 20% of the asset finance brokerage market in commercial equipment.

Buy rating retained. Target edges down to $1.89 from $1.90.

Target price is $1.89 Current Price is $1.33 Difference: $0.565
If COG meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CSL as Outperform (1) -

Macquarie envisages growth for CSL will be supported by a recovery in the base business amid potential contributions from products such as garadacimab and CSL112 as well as operational efficiencies.

The broker takes a further look at the Adhere trial by Argenx, in particular the potential use of Vyvgart Hytrulo in CIDP patients that did not meet requirements for stage A of the Adhere trial. Feedback suggests a target uptake of around 60% over 3-5 years instead of the 40% previously estimated.

For CSL, the broker estimates a -10% reduction in immunoglobulin volumes in the treatment of CIDP would equate to a gross profit impact on CSL Behring of -1.7%. Outperform rating and $326 target maintained.

Target price is $326.00 Current Price is $266.76 Difference: $59.24
If CSL meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $328.17, suggesting upside of 22.2% (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

Macquarie rates FCL as Neutral (3) -

Fineos Corp reported cash receipts were down -11.2% in the fourth quarter, with second-half cash receipts up 7.0% that reflected continued growth in subscription fees.

Revenue guidance for FY24 is nearer the lower end of the EUR124-128m range and management is focused on delivering cash flow during the second half.

Macquarie considers the stock undervalued, although more new contracts and upgrades by existing clients should better reflect it is value. Target is raised to $2.11 from $1.67 and a Neutral rating is maintained.

Target price is $2.11 Current Price is $2.25 Difference: minus $0.14 (current price is over target).
If FCL meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Shaw and Partners rates FCL as Buy (1) -

Shaw and Partners reiterates its Buy rating and $3.30 target for Fineos Corp following a 4Q cash flow and operating update. Cash flow was better than expected, supporting recent revenue guidance and cost reduction targets.

The broker highlights improving new business momentum in the 2H via two new cloud migrations. These included a strategic partnership with a Tier-1 group carrier in the US and a material full-suite sale to Guardian Life.

Management reiterated guidance to be free cash flow positive in the 2H of FY24.

Target price is $3.30 Current Price is $2.25 Difference: $1.05
If FCL meets the Shaw and Partners target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

UBS rates FMG as Sell (5) -

Fortescue Metals' strong operational performance continued in the June quarter, and the first shipment was made from Iron Bridge last week. However, UBS is cautious on iron ore, expecting prices to ease from US$114/t spot to average US$100/t in the fist half FY24.

The broker has cut earnings forecasts on higher capex and Iron Bridge costs during ramp-up, and awaits detail on the Future Fund project economics.

Sell retained. Target falls to $16.10 from $17.10.

Target price is $16.10 Current Price is $21.68 Difference: minus $5.58 (current price is over target).
If FMG meets the UBS target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.85, suggesting downside of -22.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -1.0

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

Macquarie rates FPR as Outperform (1) -

Industry feedback signals to Macquarie the level of electric vehicle demand has not found a peak. FleetPartners Group disclosed that 45% of novated lease new business were EVs in June, versus 36% for the quarter as a whole and 17% in the March quarter.

Assuming flat internal combustion engine (ICE) activity the broker calculates a 45% EV mix implies more than 80% total growth. Outperform retained. Target rises to $2.84 from $2.41.

Target price is $2.84 Current Price is $2.56 Difference: $0.28
If FPR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates GDG as Add (1) -

While 4Q sales flows remained elevated, Morgans highlights a solid increase in sales inflows in recent quarters and ongoing solid business momentum.

The broker's FY23 and FY24 EPS forecasts for Generation Development fall by -3% and -5%, respectively, on higher investment bond (IB) outflow forecasts, but a valuation roll-forward of the financial model results in an unchanged $1.42 target.

The analyst likes the compound earnings growth story and retains an Add rating.

Target price is $1.42 Current Price is $1.29 Difference: $0.13
If GDG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates GL1 as Outperform (1) -

Global Lithium Resources has started its 2023 drilling program at Marble Bar lithium project. Plans are for up to 20,000m of drilling to explore both lithium and gold across the company's tenements.

The recent upgrade to Manna has enhanced the economics of Macquarie's development scenario and resource upside is expected through exploration success. Outperform rating and $3 target retained.

Target price is $3.00 Current Price is $1.89 Difference: $1.11
If GL1 meets the Macquarie target it will return approximately 59% (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 HLI as Hold (3) -

Helia Group expects net claims written back to be in the range of $30-45m in the first half of 2023. Ord Minnett points out this means the release of claim reserves has exceeded claims paid in the period.

Low levels of delinquencies also are a key driver. The broker expects claims to rise modestly in the second half of 2023 and into 2024, reaching around 48% of insurance revenue.

The stress on homeowners from higher rates is yet to flow through to borrower arrears and delinquency. Hold rating retained. Target is steady at $3.40.

Target price is $3.40 Current Price is $3.82 Difference: minus $0.42 (current price is over target).
If HLI meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

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

UBS rates IEL as Buy (1) -

Recent visa data suggests ongoing strength and acceleration in the student placement business, UBS notes, with an accelerating Australian recovery more than offsetting softening in the UK.

The broker is marginally cautious on extrapolating positive data from the Canadian visas into IDP Education's operations, given the
inability to see if the recovery is coming from onshore or offshore visas.

UBS thus remains incrementally positive on student placement ex-Canada, and cautiously optimistic on the implied Canadian trends. Buy and $30.25 target retained.

Target price is $30.25 Current Price is $24.65 Difference: $5.6
If IEL meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $26.83, suggesting upside of 7.8% (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

Morgans rates KAR as Add (1) -

Karoon Energy's 4Q production and sales volumes were in line with Morgans expectations while revenue was a -4% miss against the consensus forecast. A small miss on realised price is considered more timing driven on cargoes.

Note: Management's guidance for production of 9-11mmbb was for the next 12 months as apposed to FY24, given the company's reporting period is transitioning to December year end.

The analysts note a wide guidance range, which is understandable given production at Bauna is not yet steady following its recent restart. Cost guidance for FY24 was marginally higher than expected.

The target falls to $3.25 from $3.55. Add.

Target price is $3.25 Current Price is $2.21 Difference: $1.04
If KAR meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting upside of 28.7% (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: 0.8

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

Ord Minnett rates KAR as Hold (3) -

Karoon Energy reported fourth quarter production was down -15% while the average net realised oil price was steady at US$73.10 per barrel. Sales revenue fell along with volumes and was a touch below Ord Minnett's expectations.

The broker lowers FY23 EPS forecasts by -4% although finds no longer-term implications from the quarterly. Guidance for other fiscal metrics are unchanged. Hold rating maintained. Target is raised to $2.40 from $2.30.

Target price is $2.40 Current Price is $2.21 Difference: $0.19
If KAR meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting upside of 28.7% (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: 0.8

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

Citi rates LTR as Sell (5) -

Following the 4Q activities and cash flow report for Liontown Resources, Citi notes first production remains on track for mid-2024, while a decision on direct shipping ore sales prior to concentrate production is due in the September quarter.

Cash at 30 June of $305.4m was in line with the broker's forecast.

While Citi lowers its earnings (EBITDA) forecasts for FY24 onwards on its latest lithium price forecasts, the $2.80 target is unchanged in the expectation of an increased bid from Albemarle. Sell.

Target price is $2.80 Current Price is $2.75 Difference: $0.05
If LTR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting upside of 7.0% (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 LTR as Outperform (1) -

Liontown Resources has continued developing Kathleen Valley and Macquarie notes open cut mining at Mount Mann pit is scheduled to be completed in August ahead of the transition to underground mining in the December quarter.

A decision on DSO sales is targeted for September quarter which would bring in early revenue at present upside risk to the broker's base case. Outperform rating and $3 target are maintained.

Target price is $3.00 Current Price is $2.75 Difference: $0.25
If LTR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting upside of 7.0% (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 MEI as Initiation of coverage with Outperform (1) -

Macquarie expands its coverage of Australian lithium and rare earths miners, noting Meteoric Resources is developing the high-grade Caldeira ionic play rare earth deposit in Brazil.

The broker expects initial development will focus on the "super-high-grade core" of the deposit.

Macquarie has initiated coverage with an Outperform rating and $0.45 target. Movements in rare earths pricing that vary compared to forecasts present the main risk to earnings estimates as well as valuation.

Target price is $0.45 Current Price is $0.21 Difference: $0.24
If MEI meets the Macquarie target it will return approximately 114% (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

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

Morgan Stanley updates its modelling for Mineral Resources following the fourth quarter production result. Production was -15% softer than the broker expected and shipments also missed forecasts.

Despite the restructure of the MARBL JV, the broker still believes the company's leverage position in FY24 is a key concern, with gearing at 39%. 

Lower production is forecast for FY24 as well as higher costs at Mount Marion. Production forecasts for FY24 at Wodgina are also lowered as the plant remains mine-constrained through to mid FY24.

Target is raised to $70.50 from $70.00. The Equal-weight rating is maintained. Industry view: Attractive.

Target price is $70.50 Current Price is $71.87 Difference: minus $1.37 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.57, suggesting upside of 10.1% (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

Ord Minnett rates MIN as Hold (3) -

Ord Minnett reduces its expectations for the iron ore benchmark price by around -4% for FY24 and FY25. Mineral Resources announced June quarter mining service production volumes of 58mt, bringing total FY23 volumes to 248mt. This was within recent guidance.

The company has announced its lithium asset joint venture arrangements with Albemarle have been simplified and Ord Minnett considers the ownership changes effectively neutral to valuation.

The broker retains a Hold rating and reduces the target to $67 from $75. 

Target price is $67.00 Current Price is $71.87 Difference: minus $4.87 (current price is over target).
If MIN meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.57, suggesting upside of 10.1% (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 MMS as Upgrade to Outperform from Neutral (1) -

Industry feedback signals to Macquarie the level of EV demand has not found a peak yet. McMillan Shakespeare has indicated the EV FBT exemption is driving demand, with orders up 331% in the first half.

The broker upgrades the stock to Outperform from Neutral and the target is lifted to $20.47 from $14.78. As vehicle supply is improving the broker expects material earnings upgrades will be forthcoming.

Target price is $20.47 Current Price is $19.04 Difference: $1.43
If MMS meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.92, suggesting downside of -8.8% (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

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

Morgan Stanley notes nib Holdings will implement AASB-17, the new insurance contract accounting standard, which could impact the timing for recognition of covid-related adjustments.

In the case of price increase deferral accrual, the company estimates a pre-tax underlying operating profit impact of $35.5m.

Morgan Stanley expects underlying operating profit in FY23 will be $244m and $257m in FY24.

Equal-weight rating. Target is $8.50. Industry view: In-Line.

Target price is $8.50 Current Price is $8.35 Difference: $0.15
If NHF meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.26, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Bell Potter rates PBH as Buy (1) -

The 4Q activities report for PointsBet Holdings and key metrics released by management were either broadly in line or slightly better than Bell Potter's expectations.

The group net win of $391.1m for FY23 beat the broker's forecast of $387.2m due to a better net win in Australia than forecast while both the US and Canada were broadly in line.

Management noted the sale process for the US business is on track, as is the first tranche distribution of $1.00/share due in mid-September.

The target falls to $2.20 from $2.25. Buy.

Target price is $2.20 Current Price is $1.69 Difference: $0.515
If PBH meets the Bell Potter target it will return approximately 31% (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 PBH as Buy (1) -

PointsBet Holdings reported strong net win margins in its Australian and Canadian businesses. EBITDA is expected to be near or breaking even from April 2024.

As the company moves towards this milestone, Ord Minnett expects revenue growth will be more modest, with the option for growth to pick up in FY25 after breakeven is achieved.

The company expects net wins to grow 10-20% in FY24 with marketing expenses down -15-20%. Ord Minnett envisages significant upside ahead and maintains a Buy rating. Target rises to $1.95 from $1.70.

Target price is $1.95 Current Price is $1.69 Difference: $0.265
If PBH meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates PLY as Buy (1) -

Key highlights from Playside Studios' 4Q cashflow and pre-announced FY23 revenue were ongoing growth for the Dumb Ways to Die franchise and a switch of focus to larger Original IP projects, according to Shaw and Partners.

The Dumb Ways TikTok account now has 4.5m followers, making it one of the largest gaming accounts on the platform globally, observes the analyst. The company is now developing a new VR title with Meta Platforms based on its Dumb Ways Original IP.

The Buy rating and 80c target are maintained.

Target price is $0.80 Current Price is $0.53 Difference: $0.27
If PLY meets the Shaw and Partners target it will return approximately 51% (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 PPT as Buy (1) -

Bell Potter lowers its target for Perpetual by -3% to $31.11 in reaction to its 4Q funds under management (FUM) statement and suggests last Friday's -7% share price sell-off was overdone.

Asset management FUM was $212.1bn, up $1.7bn for the quarter, but slightly below the analyst's estimate of $213.1bn, while investment returns were considered strong. There was an uptick for outflows and expense guidance.

Bell Potter retains its Buy rating. FY23 results are due on August 24.

Target price is $31.11 Current Price is $24.06 Difference: $7.05
If PPT meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $30.17, suggesting upside of 22.4% (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

UBS rates QUB as Neutral (3) -

For the June quarter, Qube Holdings' total container volume was down -5% and for the June half, down -7%. This is consistent with UBS'
Patrick container volume assumption in the second half of -8%, which includes some market share loss.

With negative volumes experienced repeatedly since November, UBS suggests there's about four months more of challenging comparables to cycle before we see the rebased run-rate return to growth.

Recent stock weakness has seen some valuation upside emerge for Qube, but the broker remains cautious on falling volumes and cost inflation. Neutral and $3.35 target retained.

Target price is $3.35 Current Price is $2.94 Difference: $0.41
If QUB meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates RMS as Outperform (1) -

Ramelius Resources produced 68,800 ounces in the June quarter, a 27% quarter on quarter uplift and driven by the ramp up of the high-grade Penny mine at Mount Magnet.

FY24 guidance is broadly in line with prior expectations and the company expects a stronger second half in FY24.

Macquarie assesses the increasing contribution from Penny will drive a 9% increase year-on-year in production and a 13% improvement in costs compared with FY23 metrics. Outperform maintained. Target is steady at $1.60.

Target price is $1.60 Current Price is $1.26 Difference: $0.335
If RMS meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 29.9% (ex-dividends)

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

Citi rates RRL as Sell (5) -

While 4Q production for Regis Resources was higher than Citi expected, there were -$86m of offsets from non-cash inventory charges.

Duketon North will now cease production at the end of FY24 versus the analyst's forecast for the 1Q of FY25, while the McPhillamys final investment decision (FID) has been delayed (again) to the June quarter of FY24

FY23 production of 458koz was pre-released, while all-in sustaining costs (AISC) were a miss versus forecasts by the analyst and consensus.

The broker's Sell rating is unchanged and the target falls to $1.50 from $1.75 on a higher capex forecast and after assuming higher costs persist.

Target price is $1.50 Current Price is $1.71 Difference: minus $0.21 (current price is over target).
If RRL meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.07, suggesting upside of 23.4% (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 RSG as Outperform (1) -

Resolute Mining produced 84,400 ounces in the June quarter, -4% below Macquarie's estimates and -8% lower than the prior quarter. Still, the company is on track for 2023 guidance, expecting a stronger cost performance in the second half.

The Syama expansion has been approved which Macquarie considers is a promising step, building on recent operating momentum. The oxide plant will be modified to switch between sulphide and oxide and lift sulphide throughput.

Outperform rating retained. Target is $0.55.

Target price is $0.55 Current Price is $0.38 Difference: $0.17
If RSG meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Citi rates SDR as Buy (1) -

Following a trading and guidance update, Citi increases its target for SiteMinder to $5.30 from $4.75 due to stronger-than-expected  average revenue per user (ARPU) growth. The company is a key pick in the broker's Tech coverage. Buy.

The analysts see potential upside from the revamp in the go-to-market strategy for the core SitemMnder channel manager product over the next two months, and stronger uptake of premium tiers.

Moreover, Citi notes price increases were put through for new customers from July 1.

Target price is $5.30 Current Price is $4.29 Difference: $1.01
If SDR meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 22.5% (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

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

Morgan Stanley was surprised by SiteMinder's accelerated timeframe to free cash flow, as it has guided to positive in the second half of FY24. As a result the broker lifts revenue estimates and expects improved operating leverage in FY24-25.

Morgan Stanley believes the announcement de-risks the bear case, in terms of balance sheet risks. This results in an increase in the target to $4.00 from $2.90.

Traction on further product expansion is required to sustain top-line growth, in the broker's view, and an Equal-weight rating is maintained. Industry view is In-Line.

Target price is $4.00 Current Price is $4.29 Difference: minus $0.29 (current price is over target).
If SDR meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.16, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates SDR as Buy (1) -

SiteMinder is exposed to one of the few non-discretionary expenditure segments yet, as often happens in the market, Ord Minnett notes technology stocks are put in the same basket regardless of investment merits.

The company has indicated FY23 revenue should grow 31% to $151.4m and has highlighted an acceleration in the number of property subscribers during the second half. Underlying EBITDA and free cash flow are expected to be positive across the whole of the second half of FY24.

Buy rating maintained and the target rises to $5.88 from $5.42.

Target price is $5.88 Current Price is $4.29 Difference: $1.59
If SDR meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates SDR as Buy (1) -

SiteMinder's June quarter increase in revenue (27%) and annual recurring revenue growth (24%) beat UBS' expectations. Strong
acceleration in subs momentum was a key positive in the broker's view.

Incorporating the stronger ARR momentum into FY24, and a slight uplift in subs growth, partially offset by marginally softer transaction growth, UBS increases forecast earnings by 4% in FY24 and 22% in FY25.

Target rises to $6.80 from $6.55, Buy retained.

Target price is $6.80 Current Price is $4.29 Difference: $2.51
If SDR meets the UBS target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates SGF as Outperform (1) -

SG Fleet has stated "the percentage of customer enquiries for eligible vehicles has increased fourfold", although did not disclose the mix of electric vehicles versus internal combustion engines.

Macquarie observes the impact of the FBT exemption on demand for EVs funded by novated leases has materially exceeded expectations.

The broker allows for 25% volume growth in FY24 and 33% in FY25 and expects the outlook commentary from each of the listed fleet and novated companies will drive consensus upgrades across the sector. Outperform rating retained and the target rises to $2.90 from $2.52.

Target price is $2.90 Current Price is $2.58 Difference: $0.32
If SGF meets the Macquarie target it will return approximately 12% (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

Morgan Stanley rates SHL as Overweight (1) -

Sonic Healthcare's US competitors have signalled to Morgan Stanley there is upside risk to expectations. The US represented around 23% of the company's FY22 revenue.

In assuming 11% growth for the base business, this implies 0.4% increase to FY23 pathology revenue. The broker maintains its Overweight rating and $37.75 target. Industry view is In-Line.

Target price is $37.75 Current Price is $34.92 Difference: $2.83
If SHL meets the Morgan Stanley target it will return approximately 8% (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 SIQ as Upgrade to Outperform from Neutral (1) -

Industry feedback has signalled to Macquarie the level of EV demand has not yet found a peak and ICE activity is flat or slightly higher. EVs represented more than 20% of Smartgroup Corp's quotes in the March quarter.

Moreover, the impact of the FBT exemption on demand as materially exceeded expectations and this is a positive driver of per-unit profitability.

Macquarie considers upside risk to earnings remains and allows for 25% volume growth in the second half of 2023 and 33% in 2024. Rating is upgraded to Outperform from Neutral and the target is lifted to $10.00 from $5.90.

Target price is $10.00 Current Price is $8.81 Difference: $1.19
If SIQ meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in December.

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

Bell Potter rates SMP as Buy (1) -

At SmartPay's AGM, management released a 1Q trading update showing underlying earnings (EBITDA) of NZ$5.3m when normalised for a one-off cyber incident cost of around -NZ$1.0m.

Management is on track to deliver 1H underlying earnings of around NZ$12m, suggests Bell Potter, despite expecting a softer Average Ticket Size (ATS) from small-to-medium sized enterprise merchants due to tightening economic conditions.

Buy. The target slips to $2.11 from $2.16.

Target price is $2.11 Current Price is $1.66 Difference: $0.455
If SMP meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in NZD. 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

Morgans rates SRX as Add (1) -

Morgans assesses weak 2Q rutile production for Sierra Rutile, as previously flagged by management, due to power disruptions at Area 1 operations in Sierra Leone.

2023 rutile production guidance was lowered by -12% and net unit operating cost guidance was increased by -3%.

The broker believes the long-term outlook for both Sierra Rutile and the rutile market is sound and retains its Add rating, while the target falls to 51c from 55c.

Target price is $0.51 Current Price is $0.22 Difference: $0.29
If SRX meets the Morgans target it will return approximately 132% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Ord Minnett rates STG as Speculative Buy (1) -

Straker Translations delivered a first quarter that was below Ord Minnett's expectations, although there were a few positives such as elevated gross margins and a consecutive quarter of positive free cash flow.

Yet the quantum of revenue was underwhelming amid persistent volatility in Asia-Pacific and North America.

The broker highlights continued positive free cash flow will be necessary in the near term, along with a material increase to revenue, before the share price is likely to outperform.

The Speculative Buy rating is retained. Target is raised to $1.51 from $1.46.

Target price is $1.51 Current Price is $0.59 Difference: $0.925
If STG meets the Ord Minnett target it will return approximately 158% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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

Ord Minnett rates URW as Buy (1) -

Unibail-Rodamco-Westfield's first half result was in line with Ord Minnett's expectations. Full year recurring earnings per security have been reaffirmed towards the upper end of the prior guidance range of EUR9.3-9.5.

While substantial asset sales over the last 18 months were a headwind to earnings these were still 6.6% higher, driven by stronger conditions in the shopping centre and office portfolios.

Buy rating retained. Target is steady at $7.80.

Target price is $7.80 Current Price is $4.19 Difference: $3.61
If URW meets the Ord Minnett target it will return approximately 86% (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