Australian Broker Call

Citi rates ABC as Neutral (3) -

September quarter saw better volumes driven by pent up demand and a government stimulus-led boost. Concrete, concrete products and cement were down circa -5%, aggregate volumes grew by 18%. Citi considers this a solid result given the restrictions in Victoria. 

Citi notes Home Builder is proving to be effective in Adbri’s key states but the impact on housing demand from lower net migration remains uncertain. Mitigation of the Alcoa contract loss remains the key issue. 

Neutral rating retained with a target price of $2.70.

Target price is $2.70 Current Price is $3.18 Difference: minus $0.48 (current price is over target).
If ABC meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.61, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates ABC as Underperform (5) -

Volumes in the September quarter were largely in line with expectations. Price changes were in line with the first half. Despite the stimulus programs, Credit Suisse still does not expect much volume growth in 2021.

The company has indicated demand in Queensland and Western Australia has improved since the first half results while NSW, South Australia and Northern Territory are subdued and Victorian volumes have fallen.

Credit Suisse retains an Underperform rating and raises the target to $2.10 from $1.90.

Target price is $2.10 Current Price is $3.18 Difference: minus $1.08 (current price is over target).
If ABC meets the Credit Suisse target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.61, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates ABC as Underperform (5) -

Having responded to Adbri's trading update a day ago, Macquarie has decided to increase its target to $2.45 from $2.20 while retaining Underperform on a stock price not sufficiently reflecting uncertainties.

While detached housing is performing well, multi-residential continues to drag and it is unclear whether Adbri can capture enough of the infrastructure spending pie to offset, the broker suggests.

Target price is $2.45 Current Price is $3.18 Difference: minus $0.73 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.61, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Morgan Stanley rates ABC as Overweight (1) -

Adbri has indicated demand in Victoria in August and September is at 80% of pre-lockdown levels while aggregate sales are strong. The company expects to be well-placed to benefit from government stimulus measures.

Meanwhile, residential customers are reporting robust demand. The update confirms for Morgan Stanley that the domestic building materials exposure and skew to small-medium infrastructure projects is providing resilient demand and an improving outlook.

Overweight rating and $3.20 target maintained. Industry view: Cautious.

Target price is $3.20 Current Price is $3.18 Difference: $0.02
If ABC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.61, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates AFG as Outperform (1) -

Australian Finance Group reported September quarter lodgements of $18.2bn, to mark a record going back to 2013, with lodgements up 8% from the June quarter and 16% from last September. Home Loan lodgements were up 9% year on year and 43% quarter on quarter.

Customers on loan deferral fell to 0.87% from 4.34% in June. "Conditions remain attractive for AFG," the broker unsurprisingly suggests. Outperform retained, target rises to $2.41 from $2.34.

Target price is $2.41 Current Price is $2.25 Difference: $0.16
If AFG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.40, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates AGI as Sell (5) -

Even as casinos opened stronger than initially expected, UBS expects a material reduction in capex budgets and replacements to be down circa -50% over the next 12 months.

Purchases could be skewed towards high performing products which the broker believes could be an issue for Ainsworth Game Technology. UBS assumes no dividends until FY24.

While the cyclical nature of the product cycle means Ainsworth Game's sales performance could recover, the broker does not expect a meaningful recovery in the near term.

Sell rating is maintained. Target is reduced to $0.30 from $0.37.

Target price is $0.30 Current Price is $0.32 Difference: minus $0.02 (current price is over target).
If AGI meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Morgans rates AZJ as Add (1) -

First quarter coal haulage volumes declined for Aurizon Holdings. However, the company reaffirmed coal haulage and earnings (EBIT) guidance for FY21.

Morgans makes immaterial changes to forecasts. However, the broker reduces the 12 month target price due to a more conservative valuation for the Above Rail business.

The company offers a 12 month potential return of around 23% and a mid-6% cash yield, highlights the broker.

The Add rating is unchanged and the target price is decreased to $4.76 from $5.14.

Target price is $4.76 Current Price is $4.07 Difference: $0.69
If AZJ meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates AZJ as Buy (1) -

September quarter volumes were down -2% led by coal (down by -5%). Volumes during this period were supported by Aurizon's customers and additional volumes from Peabody, notes UBS. 

Aurizon expects the second half to be better and has stuck to its FY21 coal volume guidance of 210-220mt.

UBS reiterates its Buy rating with a target price of $5.55.

Target price is $5.55 Current Price is $4.07 Difference: $1.48
If AZJ meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates BOQ as Buy (1) -

Better revenue and cost control in the second half led to a better than expected FY20 result, beating Citi's forecast by circa 3%. A final dividend of 12c was announced, more than expected by the broker.

Citi is pleased with the net interest margin expansion seen in the second half and notes the bank's FY21 outlook indicates only modest declines in the net interest margin. 

Despite the better than expected outlook, the share price has risen more than 30% since the first half result and is considered to be fair value by the broker.

Buy rating retained with the target price rising to $7.25 from $7.

Target price is $7.25 Current Price is $6.73 Difference: $0.52
If BOQ meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates BOQ as Upgrade to Outperform from Neutral (1) -

Following the FY20 result Credit Suisse upgrades cash earnings estimates by 3-4% for FY21 and FY22.

The broker now envisages the downside is limited, amid a conservatively set provision for the pandemic and good execution of the bank's strategy, which is delivering underlying profit growth.

Nevertheless, the broker acknowledges Bank of Queensland is still likely to struggle to achieve double-digit returns on equity in the near term. Target increases to $7.60 from $5.50 and given the limited downside risk the rating is upgraded to Outperform from Neutral.

Target price is $7.60 Current Price is $6.73 Difference: $0.87
If BOQ meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Bank of Queensland delivered an "adequate" result, Macquarie suggests, thanks to positive margin trends, although volume growth required to meet guidance appears unlikely to be achieved. Revenue growth will remain subdued given the ongoing impact of low interest rates.

The bank's recent re-rating, including yesterday, has taken its PE premium to 25% above its five-year average relative to peers. Target rises to $6.00 from $5.50 but the broker downgrades to Underperform from Neutral on valuation.

Target price is $6.00 Current Price is $6.73 Difference: minus $0.73 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Operating trends, the final dividend and guidance for FY21 were ahead of Morgan Stanley's expectations. The bank expects above-system loan growth in FY21 along with a margin decline of -2-4 basis points.

The sale of St Andrews Insurance has also been announced which Morgan Stanley expects will make a minimal contribution to profit.

Equal-weight rating retained. Target is $5.70. Industry view: In-line.

Target price is $5.70 Current Price is $6.73 Difference: minus $1.03 (current price is over target).
If BOQ meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates BOQ as Upgrade to Add from Hold (1) -

Bank of Queensland has reported FY20 cash earnings of $225m, which is 4% better than Morgans expected. The beat is largely the result of net interest income being stronger than the broker expected.

The bank will pay a 12cps fully franked dividend.

Despite Morgans forecasts being above consensus, they are starting to look conservative in light of this new data, explains the broker.

Morgans adjusts EPS forecasts up by 3.5% for FY21 and reduces FY22 by -1.25%.

The rating is increased to Add from Hold and the target price is increased to $7.20 from $5.50.

Target price is $7.20 Current Price is $6.73 Difference: $0.47
If BOQ meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates BOQ as Hold (3) -

FY20 cash earnings were ahead of Ord Minnett's forecast. The broker suggests Bank of Queensland is a candidate for a turnaround, with an investment program underway to address the issues of disadvantage in the deposit franchise, the poor digital offering and the challenges in distribution.

However, despite management expecting a return to revenue growth in FY21, the broker is not yet convinced a recovery is gaining traction. More sustained evidence will be sought further down the track and Ord Minnett retains a Hold rating, raising the target to $6.70 from $6.15.

Target price is $6.70 Current Price is $6.73 Difference: minus $0.03 (current price is over target).
If BOQ meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates BOQ as Neutral (3) -

Having pre-announced its FY20 credit impairment charges, Bank of Queensland's FY20 result was mostly in-line, observes UBS. The broker highlights the bank's "liberal use" of non-cash/below the line adjustments with -$110m in post-tax losses not recognised.

The bank expects 2% cost growth in FY21 which is broadly in-line with UBS's estimate, but its target of 2% revenue growth appears much more challenging to the broker.

UBS retains its Neutral rating with the target price rising to $7 from $6.

Target price is $7.00 Current Price is $6.73 Difference: $0.27
If BOQ meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates BSL as Accumulate (2) -

Spot steel spreads continue to recover, with North Star and Australian Steel Products spreads rising 21% and 9%, respectively, in October to date. Ord Minnett notes this has driven the share price up 14%.

Target is raised to $16.70 from $15.30. An Accumulate rating is maintained based on the expectation that the company's free cash flow yield will improve materially in coming years.

Target price is $16.70 Current Price is $14.52 Difference: $2.18
If BSL meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates CAR as Neutral (3) -

Weighing the upside from the auto industry's positive commentary against the downside from mobility restrictions in Melbourne, the broker decides it best to keep its FY21 expectations unchanged for now. Earnings are expected to be skewed towards the second half.

The broker expects the first-half group operating income growth to be driven by Encar.

Neutral retained. Target is unchanged at $19.50.

Carsales' AGM is on October 30.

Target price is $19.50 Current Price is $22.27 Difference: minus $2.77 (current price is over target).
If CAR meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.34, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates CGF as Neutral (3) -

Challenger's September quarter saw better than expected life asset growth, faster reinvestment of liquid funds, and strong funds management flows. Citi has upgraded its earnings growth forecasts for FY21-23. 

While believing there is considerable value in Challenger, Citi does not anticipate any near term realisation looking at the market and the questions over the company's domestic sales. Management should look for other ways to realise value, suggests the broker, which may include asset disposals.

Challenger stands by its FY21 profit before tax guidance with Citi moving its forecast closer to the top end of the guidance. 

Citi retains its Neutral rating with the target price rising to $4.55 from $4.00.

Target price is $4.55 Current Price is $4.29 Difference: $0.26
If CGF meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates CGF as Outperform (1) -

Elevated maturities prevented record quarterly annuity sales in the first quarter from producing strong book growth, which was up just 0.8%.

Credit Suisse notes retail maturities were particularly high in the quarter but expects the rate of maturity should effectively reduce by a third for the remainder of the year.

The broker upgrades estimates by 3-4% for FY21-23 to allow for higher net book growth and stronger funds management earnings. Outperform rating reiterated. Target is raised to $4.90 from $4.25.

Target price is $4.90 Current Price is $4.29 Difference: $0.61
If CGF meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates CGF as Outperform (1) -

A positive September quarter funds-flow update from Challenger revealed a strong beat of sales forecasts, excess capital deployment ahead of management's schedule and reaffirmed FY21 profit guidance. Japanese sales reached 60% of target in the one quarter.

Japanese and institutional sales should provide short-term strength, the broker suggests, while the longer term thematic of an ageing population underpins value, which the broker currently sees as attractive. Outperform retained, target rises to $4.60 from $4.50.

Target price is $4.60 Current Price is $4.29 Difference: $0.31
If CGF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

The September quarter update was ahead of estimates. Normalised pre-tax profit guidance of $390-440m for FY21 was maintained.

The broker also notes solid progress deploying excess "Life" cash while capital is above target.

Equal-weight. Target is $4.25. Industry view: In-line.

Target price is $4.25 Current Price is $4.29 Difference: minus $0.04 (current price is over target).
If CGF meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates CGF as Hold (3) -

Challenger provided a first quarter market update showing a decline of -11% in total annuity sales versus the previous corresponding period, on lower institutional volumes. However, Morgans did see an encouraging recovery in retail annuity sales.

The broker notes funds management also had a strong quarter of inflows and funds under management (FUM) increased 5% sequentially.

Management highlighted disruption in the 'bank aligned' and 'independent advice' market might be starting to subside. According to the analyst, this has been a major headwind for domestic annuity sales.

The Hold rating is unchanged and the target price is increased to $4.63 from $4.58.

Target price is $4.63 Current Price is $4.29 Difference: $0.34
If CGF meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates CGF as Hold (3) -

Challenger has reaffirmed guidance for pre-tax profit of $390-440m in FY21. Ord Minnett remains below the mid point of guidance, noting no assumptions in the update around rental abatements in the second half, which may be optimistic.

The broker also observes a slightly more aggressive deployment into risk assets than previously expected. Hold rating and $4 target retained.

Target price is $4.00 Current Price is $4.29 Difference: minus $0.29 (current price is over target).
If CGF 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 $4.55, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates CSL as Neutral (3) -

Macquarie has tempered its FY22 forecasts for CSL post AGM given foot traffic at a hundred of the company's US collection centres has remained relatively flat in recent weeks and little changed since August. This presents downside risk to December quarter collections which, given the nine month lag to production, will impact in FY22.

Outside of collection risk, the broker has, for a long time, warned of several catalysts for competitor pipeline products in 2020-21. Neutral and $295 target retained.

Target price is $295.00 Current Price is $302.29 Difference: minus $7.29 (current price is over target).
If CSL 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 $311.11, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in USD. 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

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

CSL expects revenue growth of 6-10% in FY21. The lower end of the forecast net profit range has been lifted by 3%, now at US$2.17-2.27bn.

Morgan Stanley notes the commentary that plasma collections are "still some way from the volume collected this time last year" although improving.

Despite depressed collection rates, the broker envisages low risk to guidance. Equal-weight rating with a target price of $282. Industry view: In-line.

Target price is $282.00 Current Price is $302.29 Difference: minus $20.29 (current price is over target).
If CSL 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 $311.11, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in USD. 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 CSL as Buy (1) -

While CSL is still some way with respect to plasma collection volumes seen last year, UBS believes there are a range of mitigation measures and positive drivers to underpin growth in FY21.

These drivers include normalisation of albumin sales in China, focusing on cost efficiencies and strong demand for the flu vaccine

UBS believes immunoglobulin (IG) and albumin volumes are likely to decline, -20% in the second half of FY21 and -7% during the first half of FY22 before normalising in the second half of FY22.  

UBS makes no changes to the Buy rating or $346 price target.

Target price is $346.00 Current Price is $302.29 Difference: $43.71
If CSL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $311.11, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in USD. 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

Macquarie rates CWY as Outperform (1) -

Cleanaway Waste Management's AGM update was consistent with the  brokers' forecast. Management suggests "moderate" FY21 earnings growth. The broker is forecasting 5.4%.

The outlook depends on when restrictions ease and the economy stabilises but a resilient portfolio, and further development in alternative waste management infrastructure, stand the company in good stead, the broker believes. Target falls to $2.55 from $2.75 as the Victorian lockodwn lingers but Outperform retained.

Target price is $2.55 Current Price is $2.20 Difference: $0.35
If CWY meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates GXY as Neutral (3) -

Spodumene production in the September quarter was 30kt implying a circa 60% plant utilisation at Mt Cattlin. Sales at Mt Cattlin were down -36% on a quarterly basis and below Citi's expectations of 35kt.

Adjusting its Galaxy Resources model for lower September quarter shipments leads Citi to reduce its 2020 operating income forecast. Citi awaits more information on other operational metrics like cost and pricing performance. 

Neutral/High-Risk rating retained with a target price of $1.25.

Target price is $1.25 Current Price is $1.27 Difference: minus $0.02 (current price is over target).
If GXY meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.97, suggesting downside of -25.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.5

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

Morgan Stanley rates GXY as Underweight (5) -

Morgan Stanley continues to envisage weakness in the lithium market amid elevated inventory and mothballed capacity.

The company's shipments are significantly below expectations while recoveries & production grades are also lower, and below 2020 guidance.

First production at Sal de Vida remains on track for late 2022. Underweight. Target is $1.25. Industry view: Attractive.

Target price is $1.25 Current Price is $1.27 Difference: minus $0.02 (current price is over target).
If GXY 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 $0.97, suggesting downside of -25.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.5

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

Citi rates ILU as Neutral (3) -

Year to date zircon, rutile and synthetic rutile sales were down -22% while production was flat. September quarter revenue was weaker versus the June quarter although revenue per tonne was higher for the September quarter.  

Citi assumes sales will be -8% lower in 2020 while costs and realised prices are expected to be up 5% and 3% respectively.

Deterra EGM vote will be held on October 16. The broker retains its Neutral rating with a target price of $10.50.

Target price is $10.50 Current Price is $9.57 Difference: $0.93
If ILU meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates ILU as Outperform (1) -

Credit Suisse observes some lingering softness in the zircon market affected the September quarter, along with the contract dispute with Chemours.

Despite the continued absence of guidance, the broker reduces production estimates for zircon in 2022 to 180,000t from 197,000t.

While the zircon market appears finely balanced, Credit Suisse notes titanium dioxide is "ticking along" and iron ore remains strong.

The immediate issue is the demerger of Deterra, which (assuming shareholder approval) will be listed on October 23, and how both entities proceed once this occurs. Outperform rating retained. Target rises to $10.15 from $10.00.

Target price is $10.15 Current Price is $9.57 Difference: $0.58
If ILU meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates ILU as No Rating (-1) -

Iluka Resources' September quarter production and sales were weaker than expected as strength in zircon was offset by weakness in rutile. The mix meant a higher net realised sales price, the broker notes, but lower volumes drove an -18% revenue miss.

The Deterra demerger EGM will be held tomorrow. The broker is currently on research restriction.

Current Price is $9.57. Target price not assessed.

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates ILU as Overweight (1) -

Production and sales of zircon and rutile were weaker in the September quarter. Weakness had been expected in synthetic rutile as a result of a contractual dispute, however the magnitude was greater than Morgan Stanley anticipated.

The broker considers end markets are challenging although remains positive on uplift in demand in 2021.

Overweight rating. Target is $10.35. Industry view: Attractive.

Target price is $10.35 Current Price is $9.57 Difference: $0.78
If ILU meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates ILU as Hold (3) -

Ord Minnett was disappointed with third quarter zircon and rutile sales. Pricing is steady as markets continue to recover although the broker notes the fourth and first quarter are typically periods of lower demand.

The broker lowers 2020 estimates for earnings by -20%. There has been no guidance since April and the broker envisages a risk that market weakness extends into 2021 and presents downside risk to the recovery outlook.

Hold maintained. Target is reduced to $9.40 from $9.50.

Target price is $9.40 Current Price is $9.57 Difference: minus $0.17 (current price is over target).
If ILU meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

UBS rates ILU as Neutral (3) -

Iluka Resources’ September quarter production was below UBS's expectations, with zircon, rutile and synthetic rutile production flat on a quarterly basis but down -32% versus last year.

Zircon production was soft with two shipments deferred to October. These shipments are likely to weigh on prices in the fourth quarter of 2020, states UBS. The demerger of Deterra Royalties is considered the next catalyst.

UBS retains its Neutral rating with a target price of $10.

Target price is $10.00 Current Price is $9.57 Difference: $0.43
If ILU meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Citi rates JHX as Neutral (3) -

James Hardie's second-quarter result was seen as strong, driven by an improvement in all markets on account of pent up demand, strong operating leverage and a reduced operating cost base.

The company has upgraded its FY21 net profit guidance range to US$380-$420m, up 11% at the mid-point. Citi's upgraded FY21 net profit forecast is $405m, just above the mid-point.

Moreover, the broker notes improvement in the US housing market with both repair & remodel (R&R) and interiors returning to growth in the second quarter.

Neutral rating retained with the target price rising to $35.45 from $33.10.

Target price is $35.45 Current Price is $35.78 Difference: minus $0.33 (current price is over target).
If JHX meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.21, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates JHX as Outperform (1) -

The company's quarterly update has signalled a strong margin persisted in Asia Pacific of 31-32%, ahead of Credit Suisse estimates. The improved margin arose from the cessation of NZ manufacturing and a positive margin mix from pandemic restrictions in the Philippines.

FY21 operating profit guidance of US$380-420m is up from prior guidance of US$330-390m and ahead of expectations. Credit Suisse retains an Outperform rating and raises the target to $38.50 from $34.90.

Target price is $38.50 Current Price is $35.78 Difference: $2.72
If JHX meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $36.21, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Morgan Stanley rates JHX as Overweight (1) -

James Hardie has raised net profit guidance for FY21 to US$380-420m. Morgan Stanley observes another exceptionally strong quarter and was impressed with the margin performance across Asia and North America.

While the business appears to be on a firm path the broker is cautious about extrapolating margins to the medium-term, given the desire to reinvest in growth initiatives.

Overweight rating. Target is $35.90. Industry view is Cautious.

Target price is $35.90 Current Price is $35.78 Difference: $0.12
If JHX meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $36.21, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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 JHX as Accumulate (2) -

Ord Minnett was encouraged by the trading update and notes the timing of the annual price increase in North America has been brought forward to January 2021 from April.

The company has noted some supply chain constraints in North America but overall the ability to supply the market is solid.

In Europe the business is gaining momentum as UK and French markets open. Ord Minnett estimates net profit of US$407m in FY21, amid potential upside. Accumulate rating and $36 target retained.

Target price is $36.00 Current Price is $35.78 Difference: $0.22
If JHX meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $36.21, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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 NGI as Outperform (1) -

Navigator Global Investments' funds under management increased by 1.9% in the September quarter from June but positive market performance was required to offset net outflows, the broker notes. Management anticipates ongoing redemptions.

The broker nevertheless expects redemptions to trend lower given an improving fund performance over the past six months, and believes the stock offers value at its current PE. Target rises to $2.28 from $2.23, Outperform retained.

Target price is $2.28 Current Price is $1.51 Difference: $0.77
If NGI meets the Macquarie target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 NST as Upgrade to Hold from Lighten (3) -

Ord Minnett now assesses the merger with Saracen Mineral Holdings makes for a compelling gold option for large domestic and global investors.

The portfolio offers a rare combination of well-run mines, production growth, cash flow and lower sovereign risk exposure. As a result the broker upgrades Northern Star to Hold from Lighten and raises the target to $13.90 from $11.50.

Target price is $13.90 Current Price is $16.19 Difference: minus $2.29 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.87, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates PDL as Neutral (3) -

Pendal Group’s September quarter funds under management (FUM) update was relatively sound. After about three years of net outflows, JO Hambro funds saw its first positive quarterly net inflow of more than $1.2bn during the quarter. However, Citi highlights most of the improvements were driven by lumpy institutional mandate wins. 

Earnings growth forecast of the broker rises by 2%-4% due to marking to market and revised fund flows assumptions.

Noting the mixed investment performance and investors’ continuing aversion to EU/UK equities, Citi maintains its Neutral stance with the target price rising to $6.40 from $6.10.

Target price is $6.40 Current Price is $6.26 Difference: $0.14
If PDL meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.74, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates PDL as Neutral (3) -

Funds under management in the September quarter were up 3.4% and ahead of Credit Suisse forecasts. The broker observes this was the best quarter of flows in 3.5 years, although supported by lumpy mandate wins.

JO Hambro reported its first quarter of inflows in three years. However, the broker notes there are a few large strategies with weak performance that could continue to experience outflows.

Credit Suisse reiterates a Neutral rating, remaining cautious about the sustainability of a turnaround in fund flows. Target is raised to $6.10 from $5.80.

Target price is $6.10 Current Price is $6.26 Difference: minus $0.16 (current price is over target).
If PDL meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.74, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates PDL as Overweight (1) -

Net inflows in the September quarter beat Morgan Stanley's estimates, despite around $1bn in Westpac redemptions. Funds under management of $92.4bn were 2% ahead of estimates.

The broker believes this supports a re-rating for the stock, noting the dividend yield of around 6% is also attractive.

Overweight rating. Target is $7.30. Industry view: In-line.

Target price is $7.30 Current Price is $6.26 Difference: $1.04
If PDL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.74, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates PDL as Accumulate (2) -

Ord Minnett was surprised by the strong performance of the business, with positive net inflows in the September quarter, led by JO Hambro. This is the first positive quarter since the December quarter of 2017.

However, the broker asserts one quarter does not make a trend and the outlook is still uncertain.

Nevertheless, the current share price presents an attractive risk/reward offering relative to other listed ASX asset managers and Ord Minnett retains an Accumulate rating, raising the target to $7.50 from $7.30.

Target price is $7.50 Current Price is $6.26 Difference: $1.24
If PDL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.74, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates RHC as Underweight (5) -

Ramsay Health Care has an updated the UK NHS agreement, to December 31, 2020. This sets out the capacity limits available for NHS work in each of its premises.

The company now has the opportunity to retain additional revenue from private patient activity over the course of the agreement. Ramsay Health Care will continue to receive cost recovery for services less a reduction for any private work conducted.

Morgan Stanley believes this agreement implies downside to first half UK earnings. Underweight. Industry view: In-line.

Target price is $61.00 Current Price is $68.92 Difference: minus $7.92 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $68.52, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates S32 as Overweight (1) -

Morgan Stanley expects the company's commodities will perform well over FY21-22. The pending deal on the sale of South African Energy Coal could improve the risk appetite for the business and act as a key catalyst for South32, the broker adds.

A prefeasibility study for Hermosa could also provide the next phase of growth. The broker believes the project is largely ignored by the market because there is limited detail available and the company is yet to release its study.

Overweight rating. Target is raised to $2.75 from $2.65. Industry view: Attractive.

Target price is $2.75 Current Price is $2.09 Difference: $0.66
If S32 meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Ord Minnett rates SAR as Hold (3) -

The proposed merger with Northern Star makes a compelling gold option for large domestic and global investors, Ord Minnett asserts.

The portfolio offers a rare combination of well-run mines, production growth, cash flow and lower sovereign risk exposure.

A Hold rating is maintained and the target is raised to $5.20 from $4.70.

Target price is $5.20 Current Price is $6.11 Difference: minus $0.91 (current price is over target).
If SAR meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.95, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SFR as Neutral (3) -

Sandfire Resource's September quarter production exceeded expectations and the broker believes the top end of FY21 guidance should be achieved.

Revenue-wise, strong copper prices are providing updside momentum. Were the broker to use spot prices instead of forecast prices in its model, FY21 earnings would rise 12% and FY22 by 100%.

The relase of updates on Black Butte, T3 and the A4 dome by the end of this year offer key catalysts, the broker notes. Neutral and $4.50 target retained.

Target price is $4.50 Current Price is $4.36 Difference: $0.14
If SFR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.37, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates SFR as Buy (1) -

Sandfire Resources pre-released its September quarterly production which beat UBS's expectations for both copper and gold.

Management expects production to be at the upper end of its FY21 guidance which translates to 67-70kt of copper and 36-40koz of gold.

Currently, there is negative value being ascribed to the Black Butte project in the US and the T3 project in Botswana, highlights UBS. Progress on these two projects is considered key for Sandfire to outperform. 

UBS maintains its Buy rating with a target price of $5.80.

Target price is $5.80 Current Price is $4.36 Difference: $1.44
If SFR meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $5.37, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates SGP as Neutral (3) -

Having reviewed Lendlease's commercial and land lease development pipeline, the broker has decided the near term commercial pipeline is 1% accretive to earnings and net tangible asset value, and while land lease will take time to reach scale, earnings and net asset value upside is meaningful.

In the short term, the broker sees newsflow on residential remaining positive given government stimulus, thus offering upside risk. While total shareholder return is limited on the broker's forecasts, Outperform retained. Target rises to $4.28 from $4.02.

Target price is $4.28 Current Price is $4.09 Difference: $0.19
If SGP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.96, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley expects good news on the residential front when the first quarter update is released on October 20. Industry data for new home sales have impressed, totalling almost 18,000 across the September quarter.

HomeBuilder stimulus continues to provide momentum, although the broker acknowledges there may be an element of pulling forward of demand.

The broker also notes only 10% of the company's retail exposure is in Victoria so the lockdown should not have a large impact on cash flow.

Overweight rating. Target is $4.45. Industry view: In-line.

Target price is $4.45 Current Price is $4.09 Difference: $0.36
If SGP meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.96, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates SHL as Outperform (1) -

September quarter results beat expectations, amid a revenue increase of 29% and an operating earnings margin expansion of around 660 basis points.

Credit Suisse observes the outcome was underpinned by robust pandemic testing rates in all of the company's geographies as well as cost containment.

The broker believes the rise in coronavirus infection rates in both the US and Europe as the northern hemisphere flu season gets underway will underpin testing rates in the short term. Outperform rating retained. Target rises to $38.00 from $37.50.

Target price is $38.00 Current Price is $35.50 Difference: $2.5
If SHL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SHL as Neutral (3) -

Sonic Healthcare's September quarter update implies a run-rate ahead of the broker's first half forecasts, although no guidance was provided. The broker has upgraded its expectations for PCR virus-testing volumes and thus earnings in FY21-22.

While a virus test might seem a winner, the outlook for volumes and government reimbursements remains uncertain, the broker warns, with variations expected across geographies. Neutral retained, target rises to $36.00 from $34.50.

The broker retains a preference in the space for Healius ((HLS)) and Integral Diagnostics ((IDX)).

Target price is $36.00 Current Price is $35.50 Difference: $0.5
If SHL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates SHL as Overweight (1) -

Trading in the September quarter was stronger than Morgan Stanley expected. Revenue growth was 29%.

Base business volumes in the US and UK remain below pre-pandemic levels and Sonic Healthcare expects variability in test volumes will continue. While Morgan Stanley only includes pandemic testing benefits in FY21 there is a risk that this continues into FY22.

Target is $35. Overweight rating. Industry view: In-line.

Target price is $35.00 Current Price is $35.50 Difference: minus $0.5 (current price is over target).
If SHL meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates SHL as Hold (3) -

Sonic Healthcare has confirmed the coronavirus testing has provided a large boost to earnings. In turn, this has supported an even greater increase to margins than Ord Minnett had anticipated.

Despite upgrading earnings forecasts, the broker considers this largely a one-off benefit and reimbursement is likely to normalise in 2022.

The level of coronavirus testing is difficult to predict but is expected to fall as more accurate point-of-care tests become available and less testing is required as vaccines emerge.

Ord Minnett retains a Hold rating and raises the target to $36 from $35.

Target price is $36.00 Current Price is $35.50 Difference: $0.5
If SHL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates SHL as Neutral (3) -

With revenue up 29% and operating income growth at 71%, UBS observes Sonic Healthcare had a strong first quarter. Covid-19 testing appears to have contributed materially to the growth in revenue and earnings, adds the broker.

UBS has upgraded its FY21 earnings growth forecast by 10% while the outer years have been upgraded by 3-4% led by margin expansion. 

Covid-19 testing has more than offset the declines seen in routine testing and the broker considers the company much better placed to deliver operating leverage and margin expansion. The contribution from covid-19 testing is expected to be material till the first half of FY22.

UBS maintains its Neutral rating and raises the target to $34.75 from $32.70.

Target price is $34.75 Current Price is $35.50 Difference: minus $0.75 (current price is over target).
If SHL 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 $35.20, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates STO as Overweight (1) -

The share price of Santos has come under pressure recently and Morgan Stanley suspects concerns about the balance sheet are a contributing factor.

While there may be delays to expansion projects if commodity prices stay at current levels, the broker believes the concerns are overdone.

Morgan Stanley anticipates further clarity on how the company is positioned in relation to the energy transition, with Cooper Basin carbon capture a pivotal area.

Overweight. Target is $6.20. Industry view: Cautious.

Target price is $6.20 Current Price is $5.04 Difference: $1.16
If STO meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.50, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.9

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

UBS rates TWE as Neutral (3) -

US off-premise wine sales for Treasury Wine Estates sales accelerated in the four weeks ending October 3 by 16% versus 11% in the four weeks to September 5.

The high margin on-premise sales, representing about 25% of Treasury wine sales, remain weak but are improving, notes UBS.

The next catalyst for the company is an update on potential interim tariffs from October 17.  

The broker views the risk/reward to be attractive, but retains its Neutral rating due to the wide range of potential outcomes and low confidence. Target is unchanged at $12.50.

Target price is $12.50 Current Price is $9.28 Difference: $3.22
If TWE meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $11.31, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates VEA as Neutral (3) -

The September quarter update was largely in line with Credit Suisse forecasts. The sustainability of the refinery is a large issue that the broker believes is not sufficiently embedded in investor thinking.

Meanwhile, retail volumes were flat outside of Victoria. In commercial segments, a -76% decline in aviation volume was unchanged. The refining loss of -$30m was marginally better than the broker had expected.

Credit Suisse assesses current refining capacity withdrawals are insufficient to correct the global oversupply. Therefore, there is an increasing likelihood the refining will be negative in terms of cash flow in 2021. Neutral rating retained. Target inches up to $1.78 from $1.77.

Target price is $1.78 Current Price is $1.43 Difference: $0.35
If VEA meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates VEA as Accumulate (2) -

The September quarter update revealed retail and commercial volumes that were lower than Ord Minnett expected. The loss in refining was also worse than anticipated.

A decision on the future of the Geelong refinery beyond the first quarter of 2021 has been pushed out to December. Ord Minnett retains an Accumulate rating and $2.20 target.

Target price is $2.20 Current Price is $1.43 Difference: $0.77
If VEA meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates Z1P as Underperform (5) -

Zip Co's trading update was largely in line with the broker's forecasts, albeit recent web and app activity suggested there might have been some upside. Not to be, with elevated repayments weighing on growth in A&NZ, while in the US, QuadPay continues to gain scale.

Heading into the prime "holiday season" in the US, QuadPay should enjoy acceleration, the broker notes, but not unexpectedly. As PayPal is about to launch its competing product, the potential impact on incumbents' growth rates could lead to a "material de-rating".

Target rises to $4.95 from $4.80. Underperform retained.

Target price is $4.95 Current Price is $7.58 Difference: minus $2.63 (current price is over target).
If Z1P meets the Macquarie target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.72, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Morgans rates Z1P as Add (1) -

Z1P Co released its first quarter update to the market.

Morgans views the update as another solid performance, highlighted by group revenue, merchants and customers all up around 15-20% on the sequential quarter.

A robust performance by QuadPay was the key highlight for the broker, while some softer revenue growth in Australia was an area of weakness.

The analyst continues to think the company's long-term growth profile remains attractive, particularly buoyed by offshore expansion.

Morgans lowers FY21 and FY22 profit (NPAT) estimates by -$10m each, off a low base. Changes reflect mainly a reduction in revenue growth assumptions.

The Add rating is unchanged and the target price is reduced to $9.77 from $10.28.

Target price is $9.77 Current Price is $7.58 Difference: $2.19
If Z1P meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

UBS rates Z1P as Sell (5) -

Increase in active customers in both Australia and New Zealand and the USA beat UBS's expectations in the first quarter but transaction frequency has been lower than expected,  leading the broker to reduce its first half ANZ total transaction volume forecast by -2%.

Even though Zip Co's top-line is expected to grow rapidly, the broker reminds investors Zip remains a relatively early-stage investment with significant execution risks.

UBS retains its Sell rating with a target price of $5.50.

Target price is $5.50 Current Price is $7.58 Difference: minus $2.08 (current price is over target).
If Z1P meets the UBS target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.72, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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