Australian Broker Call

UBS rates A2M as Buy (1) -

UBS believes tracking Australasian infant formula sales has become more challenging amid a disconnection from Australian exports.

The broker is pleased there are some signs of stable activity in retail daigou while a2 Milk's peers report a sequential improvement in corporate daigou demand.

Feedback also suggests to the broker that elimination of coronavirus in Australia and the removal of associated health concerns around indirect purchases of infant formula remains critical to a substantial recovery in daigou. Buy rating and target of NZ$16.00.

Current Price is $7.73. Target price not assessed.

Current consensus price target is $9.20, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates AIZ as Underperform (5) -

Quarantine-free travel between Australia and New Zealand will commence on April 19. Prior to the pandemic, trans-Tasman travel made up around 20% of Air New Zealand's average seat kilometres with 71% of this departing from Auckland.

Macquarie envisages initial pent-up demand to visit friends and family, which will be positive, although business travel may be slower to resume and some leisure customers may also be reluctant over concerns about being stranded should borders suddenly snap shut.

The broker considers the competitive aspect will be interesting as Qantas ((QAN)) has announced up to 122 return flights per week. Target is steady at NZ$1.20. Underperform retained.

Current Price is $1.71. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Morgan Stanley rates APT as Overweight (1) -

Afterpay's platform in the US may be expanding more rapidly than Morgan Stanley expected, as US app downloads in March were three times the amount in March 2020.

Coupled with the recent entry into the EU, the company appears to the broker to be on track to build a global BNPL platform. Overweight rating and $159 target are retained. Industry view: In-Line.

Target price is $159.00 Current Price is $116.04 Difference: $42.96
If APT meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $122.87, suggesting upside 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

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

In a preview of 1H results, Morgan Stanley thinks the turnaround continues and there's upside risk to the FY21 outlook. The bank's multiples are considered undemanding though outperformance requires profitable growth and progress on ME Bank synergies in FY22.

Other swing factors for future earnings the broker will be monitoring include ongoing momentum in housing loan growth, as well as deposit pricing, mortgage competition and margin management. 

Morgan Stanley retains the Equal-Weight rating and $9.60 target for Bank of Queensland. Industry view: In-line.

Target price is $9.60 Current Price is $8.66 Difference: $0.94
If BOQ meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.15, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in August.

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

Citi rates BSL as Downgrade to Neutral from Buy (3) -

Steel prices across the US and Asia have pushed higher and Citi suspects BlueScope Steel will perform better than guidance in the second half. The broker believes FY22 will shape up as a stellar year for the company.

North Star spreads are now at US$860/t compared with a long-term average of US$317/t.

The short-term outlook for China's steel demand and pricing is also robust and for BlueScope Steel's export pricing the broker estimates a current spot spread on hot rolled coil of $580/t.

Citi increases earnings (EBIT) estimates by 38% for FY22. Rating is downgraded to Neutral from Buy and the target is raised to $21.00 from $19.50.

Target price is $21.00 Current Price is $20.31 Difference: $0.69
If BSL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $20.53, suggesting upside of 1.3% (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 CNU as Neutral (3) -

Chorus has advised its preliminary assessment of maximum allowable revenue is now reduced to NZ$680-710m. Macquarie expects some remediation of the current outcomes as the regulatory process continues.

Nevertheless, investor sentiment is likely to be affected and the broker suspects investors could question the free cash flow and dividend trajectory. Target is steady at NZ$8.01. Neutral rating retained.

Current Price is $6.16. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

UBS rates CNU as Sell (5) -

UBS notes Chorus has underperformed the NZX50 over the last month and also lowered its allowable fibre revenue estimates by -5-6%.

A lower regulated asset base and increasing wireless broadband competition may make it more difficult for the company to increase prices over the longer term, in the broker's view. This in turn could pose a threat to dividends.

UBS retains a Sell rating and NZ$7 target.

Current Price is $6.16. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 COE as Equal-weight (3) -

After a financial and operational update, Morgan Stanley Stanley feels increased capital costs for Sole, combined with abandonment expenditure for Basker, continues to create medium term balance sheet uncertainty.

Management maintained full year FY21guidance. The broker highlights Sole remains the key catalyst for earnings momentum. Equal-weight retained. Target is 38c. Industry view: Attractive.

Target price is $0.38 Current Price is $0.28 Difference: $0.1
If COE meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $0.36, suggesting upside of 32.6% (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

Morgans rates COE as Hold (3) -

Morgans has some concerns after the company provided an operational update pointing to a slower path to nameplate for its flagship Sole gas operation and the APA Group ((APA))-operated Orbost gas plant.

The broker feels this is likely to further test market patience and it's also difficult to determine how the company’s syndicate of lenders views the ongoing setbacks. Given the short-term risks a Hold rating and target of $0.30 are maintained.

Meanwhile, the company has maintained guidance for FY21 production (2.7-2.9mmboe) and sales (2.9-3.1mmboe). On a longer term basis Morgans expects the company to recover as issues at Orbost are overcome.

Target price is $0.30 Current Price is $0.28 Difference: $0.02
If COE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.36, suggesting upside of 32.6% (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

Ord Minnett rates COL as Hold (3) -

Ord Minnett believes Woolworths ((WOW)) is likely to sustain market share gains at the expense of Coles, largely a result of online shopping and tailwinds from the trend to local.

As well as the competitive advantage, the broker believes Woolworths enjoys other support stemming from a turnaround at Big W and the proposed separation of Endeavour Group.

The launch of the Ocado platform in FY23 remains key for Coles, yet Ord Minnett suggests the company needs to invest in remedial action to improve its offering. Hold rating maintained. Target is reduced to $16.50 from $18.00.

Target price is $16.50 Current Price is $15.89 Difference: $0.61
If COL meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $18.43, suggesting upside of 17.0% (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 CSL as Equal-weight (3) -

Once the US has "reopened", Morgan Stanley expects collections will then be easy to grow and Ig availability will rise markedly from low levels. There's even a potential risk of oversupply (particularly if shortages shape physician behavior), explains the broker.

Despite continued collection centre rollouts, plasma donations remain a near-term risk, cautions the analyst. The next expected important data point to assess the recovery will be the NYSE-listed Haemonetics Corporation results due in late April/early May.

Given these uncertainties and a rich valuation, the analyst maintains the Equal-weight rating and $276 target. Industry view: In-Line.

Target price is $276.00 Current Price is $263.60 Difference: $12.4
If CSL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $297.30, suggesting upside of 13.1% (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: 0.6

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

Morgans rates CWY as Hold (3) -

Morgans believes the potential transaction with Suez Groupe is in-line with the company’s Footprint 2025 strategy and is significant in terms of size, complementary assets, growth options and potential synergies.

The transaction is a conditional agreement to acquire Suez Groupe’s Australian recycling and recovery business or a portfolio of its Sydney post-collection assets. The broker estimates a capital raising of circa $1.95bn to part-fund the business acquisition is possible.

While making no changes to the Hold rating and target of $2.37, Morgans preliminary thoughts are the Suez recycling and recovery transaction is NPV per share accretive by 18 cents, while the Sydney asset portfolio acquisition is neutral.

Target price is $2.37 Current Price is $2.55 Difference: minus $0.18 (current price is over target).
If CWY meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.45, suggesting upside of 0.9% (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

Ord Minnett rates CWY as Accumulate (2) -

Cleanaway Waste intends to acquire the Australian waste management assets of Suez Groupe for $2.52bn. Ord Minnett considers the transaction compelling as these are priced infrastructure assets, particularly the Sydney metro post collection, and they fill a hole in the Cleanaway national footprint.

Cleanaway has also entered into a separate transaction to acquire two landfill sites and five transfer stations in Sydney from Suez for $501m should the takeover bid for Suez from Veolia Environment proceed. Accumulate retained. Target is $2.60.

Target price is $2.60 Current Price is $2.55 Difference: $0.05
If CWY meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 0.9% (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

Macquarie rates DXS as Outperform (1) -

Dexus has divested 10 Eagle Street Brisbane for $285m. Proceeds to Dexus will be $142.5m. Gross sale proceeds represent a 1.8% premium to book value and implies a 5.4% capitalisation rate. The transaction also reduces the company's exposure to Brisbane.

Macquarie assesses near-term opportunities for capital management include the buyback and, in the funds management platform, the Blackstone Milestone logistics portfolio along with the AMP Diversified Wholesale Fund. Outperform rating and $10.05 target maintained.

Target price is $10.05 Current Price is $9.60 Difference: $0.45
If DXS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting downside of -5.6% (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

Macquarie rates FCL as Outperform (1) -

Macquarie expects the new contract with American Public Life Insurance will underpin the company's performance.

FY21 guidance already incorporates the additional revenue but confirmation of the contract helps close the gap to Macquarie's revenue growth expectations from software in FY22.

Outperform rating and $4.63 target retained.

Target price is $4.63 Current Price is $4.16 Difference: $0.47
If FCL meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Netwealth Group has advised the rate it was receiving on cash will be terminated in 12 months. Credit Suisse estimates current market rates to be about -40-45bps lower leading to a -20% earnings headwind for Hub24.

Even while lowering its earnings forecast to reflect the current deposit and interest rate markets, the broker believes Hub24 will earn well over the current market rates in the long run on its cash administration fees.

Believing significant value remains for Hub24, Credit Suisse retains its Outperform rating with the target rising to $27.70 from $27.

Target price is $27.70 Current Price is $22.55 Difference: $5.15
If HUB meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $25.51, suggesting upside of 11.8% (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

Credit Suisse rates IPL as Neutral (3) -

Even with more issues identified with Waggaman post-completion of the plant’s first planned turnaround in March, Credit Suisse is of the view a mark-to-market of fertiliser price assumptions for the first half more than offsets the expected impact on FY21 earnings.

As a result, Incitec Pivot has guided to an adverse impact of circa -$36m on FY21's operating income. Repairs are underway and the plant is expected to recommence production in mid-April. 

Neutral rating with the target dropping to $2.70 from $2.73.

Target price is $2.70 Current Price is $2.68 Difference: $0.02
If IPL meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates IPL as Outperform (1) -

The turnaround at the Waggaman ammonia plant has been delayed and production is now expected to recommence mid April. The adverse impact on earnings in FY21 is expected to be -$36m.

Macquarie has reduced estimates accordingly and now assumes utilisation for the plant of 90% compared with 95% previously.

The broker believes the impact is cushioned somewhat by strong fertiliser pricing but the turnaround of the plant is important, in terms of faith in management and the ability to take advantage of attractive ammonia prices.

Outperform retained. Target is reduced to $3.08 from $3.25.

Target price is $3.08 Current Price is $2.68 Difference: $0.4
If IPL meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates IPL as Overweight (1) -

Morgan Stanley continues to see upside from higher fertiliser prices, despite further disappointing delays at the Waggaman ammonia plant, which has been offline since mid-March as a result of mechanical failures.

Unplanned downtime at Lomo and Cheyenne has been resolved and operations have resumed, notes the broker. Overweight reiterated with a target of $3.25. Industry view: In-Line.

Target price is $3.25 Current Price is $2.68 Difference: $0.57
If IPL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates IPL as Add (1) -

Rising soft commodity prices and improved seasonal conditions are incentivising farmers to use more fertiliser. However, the company has foregone -$36m in earnings (EBIT) due to further issues with its Waggaman ammonia plant, highlights Morgans.

Despite this, the broker makes minor upgrades to forecasts as the rest of the business is on track and the fertiliser business is benefiting from favourable seasonal conditions and rising prices.

The Add rating and price target of $3.25 are unchanged and the company expects to resume Waggaman production at full rates by mid-April.

Target price is $3.25 Current Price is $2.68 Difference: $0.57
If IPL meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates IPL as Buy (1) -

Incitec Pivot has signalled its Waggaman plant will remain out of action until mid April. Equipment failed at the plant upon ramping up production and repairs are now underway.

Ord Minnett was disappointed with the update but believes the slump in the share price is an overreaction.

Management had always suspected the turnaround at the plant would be challenging and the broker expects the market may remain sceptical until the issues are dealt with completely. Buy retained. Target is reduced to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.68 Difference: $0.42
If IPL meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Buy (1) -

Incitec Pivot's manufacturing update disappointed UBS. The company expects FY21 EBIT will be down -$36m because of additional repairs required at the Waggaman ammonia plant.

The plant is set to start up again in mid April as opposed to previous expectations of mid-March. UBS notes this is a key turnaround year as the Moranbah ammonium nitrate plant is also coming off line in the second half.

Turning around these plants will be a key step in the strategy, the broker believes, to achieve 95% manufacturing reliability.

Buy rating retained as the stock has strong leverage to the recovery in global agriculture and fertiliser prices. Target is raised to $3.05 from $2.85.

Target price is $3.05 Current Price is $2.68 Difference: $0.37
If IPL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates NWL as Neutral (3) -

Netwealth Group has advised the rate it was receiving on cash will be terminated in 12 months. Credit Suisse estimates current market rates to be about -40-45bps lower leading to a -15% earnings headwind for the group.

Even while lowering its earnings forecast to reflect the current deposit and interest rate markets, the broker believes Netwealth Group will earn well over the current market rates in the long run on its cash administration fees.

Credit Suisse retains its Neutral rating with the target falling to $14.40 from $17.50.

Target price is $14.40 Current Price is $14.01 Difference: $0.39
If NWL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.39, suggesting upside of 12.6% (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

Macquarie rates PAN as Outperform (1) -

Panoramic Resources has formally approved the re-start of Savannah. A five-year offtake and US$45m funding agreement has been obtained.

Macquarie believes this will provide greater certainty for the earnings outlook, and securing a funding facility without the need for hedging enables the company to retain strong exposure to nickel and copper prices. Outperform rating and $0.18 target unchanged.

Target price is $0.18 Current Price is $0.15 Difference: $0.03
If PAN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates QAN as Buy (1) -

The travel bubble between Australia and New Zealand will kick off from April 19. Ord Minnett suggests timing is ahead of Qantas' previous expectations (July) and, combined with a strong recovery in domestic business, should ensure balance sheet repair can be accelerated.

The broker believes Qantas can emerge from the crisis in a stronger position having taken material costs out of the business. Buy rating and $6 target retained.

Target price is $6.00 Current Price is $5.26 Difference: $0.74
If QAN meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.79, suggesting upside of 7.6% (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

Morgan Stanley rates RRL as Overweight (1) -

A maiden Reserve of 3.5Mt at 1.1g/t for 130koz has been declared at the Ben Hur deposit, which was acquired in September of 2020. The Resource has increased 34% to 10.3Mt at 1.2g/t for 390koz.

Morgan Stanley forecasts this gives decent additional mine life to the Duketon Operations with upside if Resource ounces are converted. Overweight maintained with a target price of $5.05. Industry view: Attractive.

Target price is $5.05 Current Price is $3.07 Difference: $1.98
If RRL meets the Morgan Stanley target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $4.31, suggesting upside of 38.2% (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 S32 as Buy (1) -

South32 has agreed to change the terms of the sale of South Africa Energy Coal to Seriti. No deferred consideration will be received now and the company will provide a -US$200m rehabilitation fund as well as the -US$50m facility to rectify loss-making areas.

UBS still considers the sale of the business a positive as it will make South32 "greener and leaner". The next catalyst is expected to be the March quarter production result on April 27.

Buy rating retained. Target is raised to $3.20 from $3.05.

Target price is $3.20 Current Price is $2.82 Difference: $0.38
If S32 meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 7.6% (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: 0.9

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

Citi rates SGM as Neutral (3) -

Citi notes US scrap prices are now US$580/t compared with Turkish scrap at US$430/t. US scrap may have run up strongly but the broker assesses US EAF mills are incentivised to maintain output and, hence, prices may stay at high levels.

The broker now expects a faster recovery in Sims earnings and raises estimates for FY21 and FY22 net profit by 25% and 4%, respectively. Neutral maintained. Target rises to $15.00 from $13.70.

Target price is $15.00 Current Price is $15.30 Difference: minus $0.3 (current price is over target).
If SGM 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 $14.98, suggesting downside of -2.1% (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

Morgan Stanley rates SGP as Overweight (1) -

Residential development contributes around 35% of Stockland's earnings. As such, dwelling price momentum may be supportive of a potential company re-rating, in both up and down cycles, highlights Morgan Stanley.

The broker makes no adjustments to forecasts. Overweight rating. Target is $4.90. Industry view: In-line.

Target price is $4.90 Current Price is $4.44 Difference: $0.46
If SGP meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.52, suggesting downside of -0.1% (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

Ord Minnett rates TYR as Buy (1) -

Transaction values in March have increased 40% since the prior March as the business starts to cycle easier comparables. Trading in the FY21 year to date has lifted 13% and this is expected to be maintained.

Ord Minnett would like to witness some improvement in the weekly transaction volumes which are around the $500m mark. Buy rating with a target of $4.50.

Target price is $4.50 Current Price is $3.38 Difference: $1.12
If TYR meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 5.6% (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 WBC as Overweight (1) -

Australian housing loans account for greater than 60% of the bank's total loan balance. Thus, new housing loan approvals are a driver of mortgage loan growth, which in turn drives bank revenues and earnings and influences trading multiples, explains Morgan Stanley.

The broker highlights the bank's market share loss is moderating and loan growth has improved to an annualised circa 4% in February. This suggests to the analyst the rebound in Australian housing loan approvals should continue to support a share price recovery.

The Overweight rating and $27.20 target are retained. Industry view: In-line.

Target price is $27.20 Current Price is $24.70 Difference: $2.5
If WBC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $26.11, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WOW as Resume coverage with Accumulate (2) -

Ord Minnett believes Woolworths is likely to sustain market share gains at the expense of Coles ((COL)), largely a result of online shopping and tailwinds from the trend to local.

As well as the competitive advantage, the broker believes Woolworths enjoys other support stemming from a turnaround a Big W and the proposed separation of Endeavour Group.

Following a period of restriction, the broker resumes with an Accumulate rating and $45 target.

Target price is $45.00 Current Price is $41.01 Difference: $3.99
If WOW meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $43.16, suggesting upside of 4.4% (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