Australian Broker Call

Bell Potter rates A2M as Hold (3) -

First half results from a2 Milk Co were slightly ahead of Bell Potter's expectations. The timing of the transition to the new PRC label is ahead of expectations as well, having accelerated in December.

In infant formula, distribution points in China were unchanged relative to the second half of FY23. FY24 revenue guidance has been increased and EBITDA margins are expected to be broadly consistent. Hold rating unchanged. Target rises to $5.70 from $5.15.

Target price is $5.70 Current Price is $5.68 Difference: $0.02
If A2M meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Citi rates A2M as Downgrade to Neutral from Buy (3) -

Citi considers a2 Milk Co to be doing a commendable job executing in a challenging market.

The broker expects the medium to long-term outlook to remain challenging, primarily a result of birth rate pressures that have seen the company push out medium-term revenue targets.

This, coupled with recent strong share price performance, underpins a lowered rating on the stock from Citi. 

More positively, new English label product development could drive market share gains, and the supply chain partnership with Yashili could see broader collaboration down the track.

The rating is downgraded to Neutral from Buy and the target price increases to $5.75 from $4.81.

Target price is $5.75 Current Price is $5.68 Difference: $0.07
If A2M meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Macquarie rates A2M as Neutral (3) -

a2 Milk Co's December-half result outpaced consensus forecasts by 8% thanks to beats in both sales and costs. Management upgraded June-half guidance, in line with consensus forecasts, but postponed its $2bn revenue target to FY27 from FY26.

Birth-rate data for 2023 were better than expected and the company advised its was launching a range of new products, including those targeting adult and senior segments.

EPS forecasts rise 3.9% in FY24; 4.5% in FY25; and 3.1% in FY26. Neutral rating retained. Target price rises to $5.50 from $4.40.

Target price is $5.50 Current Price is $5.68 Difference: minus $0.18 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Morgans rates A2M as Downgrade to Hold from Add (3) -

Morgans believes interest income tailwinds on a2 Milk Co's large cash balance in the 1H will result in material upgrades to consensus forecasts. It's felt the transition to the new GB standards for a2's China label has vastly outperformed expectations held a year ago.

Management upgraded FY24 guidance slightly and made some upbeat outlook commentary, according to the broker.

The analyst anticipates earnings will accelerate in FY25 and FY26.

The broker lifts its target to $6.05 from $5.40 and lowers its rating to Hold from Add after a 33% year-to-date share price rally.

Target price is $6.05 Current Price is $5.68 Difference: $0.37
If A2M meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Ord Minnett rates A2M as Accumulate (2) -

a2 Milk Co is outperforming in a declining market, Ord Minnett suggests. Total infant formula sales rose 2% in the first half despite double-digit declines in both value and volumes in China.

The new registration process in China is proving highly disruptive, the broker notes, and births continue to decline. But Ord Minnett forecasts 5% FY24 revenue growth as the company captures more market share.

The broker expects near term pricing pressure to prove short-lived. Despite conditions in China, a2 continued to raise prices, indicative of strong brand equity. Target rises to $7.40 from $7.20, Accumulate retained.

Target price is $7.40 Current Price is $5.68 Difference: $1.72
If A2M meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

UBS rates A2M as Buy (1) -

UBS believes the key message from a2 Milk Co's interim report release is that management has increased FY24 sales guidance against a backdrop of ongoing difficult conditions for infant formula products in China.

This, the broker argues, should give investors sufficient confidence that better times lay ahead. What is clear is that UBS's confidence has received a boost, hence why the broker reiterates its Buy rating.

The price target falls to NZ$7.05 from NZ$7.30 as forecasts beyond FY24 have still been reduced in reflection of less supportive conditions and retailer margin pressures.

Current Price is $5.68. Target price not assessed.

Current consensus price target is $6.08, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Ord Minnett rates AIZ as Accumulate (2) -

The good times didn't last long for Air New Zealand, Ord Minnett notes. After the company posted a near-record profit in FY23 of NZ$585m, conditions have deteriorated much more rapidly then the broker anticipated.

While the airline expects a first half FY24 profit of NZ$180m, updated guidance for the full year is only NZ$200-240m, implying an -80% fall half-on-half.

Ahead of the official result release this week, Ord Minnett has cut both its FY24 and FY25 profit forecasts by -30%, expecting tough conditions to linger. The broker's fair value estimate falls to 74c from 90c, Accumulate retained.

Target price is $0.74 Current Price is $0.58 Difference: $0.16
If AIZ meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates ALD as Outperform (1) -

Ampol's FY23 earnings (EBIT) outpaced Macquarie's forecasts by 1% thanks to a solid field led by Convenience and Retail.

The broker observes sharply higher than forecast fuel margins in the December half may have been due to a stronger fuels sales mix, competition dynamics combined with easing prices in the December quarter and higher premium fuels penetration.

International, while a slight miss, was strong and management plans to invest more resources in the business. Capital expenditure proved a miss, kicking up.

EPS forecasts rise 2% in FY24; and 3% in FY25; and the broker assumes a rise in the company's special dividend.

Outperform rating retained. Target price rises 11% to 42.50 from $38.15.

Target price is $42.50 Current Price is $37.88 Difference: $4.62
If ALD meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.85, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Ampol's FY23 group replacement cost operating profit (RCOP) earnings (EBITDA) were in line with forecasts by both Morgan Stanley and consensus.

Earnings (EBIT) for the Lytton refinery missed the broker's forecast by -2% due to an outage and higher labour and electricity costs, while Convenience Retail earnings rose by 2% on the previous corresponding period.

The final dividend was 180cps inclusive of a 60cps special fully franked dividend.

Target $35.48. Equal-weight rating. Industry view is Attractive.

Target price is $35.48 Current Price is $37.88 Difference: minus $2.4 (current price is over target).
If ALD meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.85, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates ALD as Hold (3) -

Ampol reported a 2023 underlying profit -3% below Ord Minnett, but the broker reads in no longer term implications. A better than expected performance from convenience retail was more than offset by a weak outcome for fuels and infrastructure, with lower margins.

The broker expects the latter to normalise over the next couple of years. Cash flow was nevertheless very strong, allowing for a special dividend of 60c on top of the $1.20 final, representing a healthy 7.2% (ff) yield.

Ampol's dividend policy remains a key appeal, Ord Minnett suggests. Hold and $35 target retained.

Target price is $35.00 Current Price is $37.88 Difference: minus $2.88 (current price is over target).
If ALD meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.85, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates ALD as Neutral (3) -

The 2023 results from Ampol were slightly ahead of expectations. UBS believes investors will be focused on the sustainability of the capital return as the company has returned $1.3bn in distributions to shareholders at an 89% payout over both 2022 and 2023.

The broker also believes the company has the capacity to absorb higher costs with leverage forecast to remain below target of 2-2.5,x net debt/EBITDA despite a step change up in capital expenditure.

UBS reduces 2024 estimates for earnings per share by -8% to reflect the impact of the 7-week turnaround plan for Lytton. Neutral maintained. Target is $34.40.

Target price is $34.40 Current Price is $37.88 Difference: minus $3.48 (current price is over target).
If ALD meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.85, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates ANN as Neutral (3) -

Citi, in an initial assessment of the first half result, notes destocking in healthcare has largely been completed and Ansell expects a much reduced impact in the second half.

Revenue and margins were lower than forecast and the company has narrowed FY24 basic EPS guidance to US94-110c. Ansell will exit the chemical hand protection business and that will reduce revenue by -$30m in FY25.

The broker expects the stock will trade lower in the wake of the results, given the earnings mix and larger than usual skew to the second half. Neutral rating and $26 target.

Target price is $26.00 Current Price is $24.13 Difference: $1.87
If ANN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Bell Potter rates APM as Upgrade to Buy from Hold (1) -

APM Human Services International has confirmed discussions regarding a proposal from CVC Asia-Pacific of $1.60 cash. The offer has been rejected as too cheap.

Bell Potter points out new contracts and traction in the health business should drive growth in revenue into FY25 even if FY24 is difficult, and as private equity usually has a 3-5 year turnaround plan this may prompt a higher offer or other interest.

First half results will be reported in February 28 and there was no mention in the company's statement regarding dividends or fundraising. Rating is upgraded to Buy from Hold and the $1.50 target is unchanged.

Target price is $1.50 Current Price is $1.23 Difference: $0.275
If APM meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates APM as Buy (1) -

APM Human Services International has received a takeover offer from private equity at $1.60, which is a 93% premium to the last close. Ord Minnett nevertheless considers the bid undervalues the company, being a -33% discount to the broker's fair value estimate.

Ord Minnett concurs with the board's decision to reject the proposal, but assumes the market has now woken up to APM's long-term fundamental value, and is waiting for further developments.

Buy and $2.40 target retained.

Target price is $2.40 Current Price is $1.23 Difference: $1.175
If APM meets the Ord Minnett target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgan Stanley rates ASX as Underweight (5) -

After perusing 1H results for the ASX, Morgan Stanley observes management is still maintaining total FY24 costs will worsen by no more than -15%, though this requires a -5% fall in 2H costs from the 1H.

The analysts point out the last time the ASX managed to reduce costs was in the 2H of FY15, when they fell by -1.5% half-on-half.

The 1H results show opex grew by 29% year-on-year, while total costs with D&A grew by 27%. Morgan Stanley concludes the company is in a downgrade cycle on costs.

The broker lowers its target to $53.50 from $54 on higher expense growth and lower interest income forecasts. Industry view: In-Line.

Target price is $53.50 Current Price is $63.97 Difference: minus $10.47 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $62.68, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

UBS rates ASX as Sell (5) -

UBS notes the first half results revealed the challenges facing ASX and the weak earnings reflect the current focus on addressing regulatory concerns and upgrading legacy IT. This is expected to be the case for at least another 12 months.

The broker continues to envisage earnings and free cash flow risks are to the downside and reduces forecasts by -2-3%. Sell rating retained. Target is $56.

Target price is $56.00 Current Price is $63.97 Difference: minus $7.97 (current price is over target).
If ASX 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 $62.68, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Citi rates BBN as Buy (1) -

As the first half result was pre-reported in January, Citi suspects the focus will be on the trading update which, at first glance, is weaker than previously expected.

Current trading suggests a turnaround may also take longer than expected with Baby Bunting assessing the second half will be a transition period. Since Boxing Day, like-for-like sales are down -3.2% and total sales down -1.4%.

The company suspects cost-of-living pressures are unlikely to abate in the short term and provided no earnings guidance for FY24. Buy rating and $2.15 target.

Target price is $2.15 Current Price is $1.88 Difference: $0.275
If BBN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 17.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates BEN as Sell (5) -

A difficult first half result for Bendigo & Adelaide Bank, says Citi, and a difficult outlook remains. First half troubles were most evident in the -15 basis point net interest margin contraction over the first quarter, according to Citi. 

Looking ahead, the broker warns the bank will have to contend with the scale inefficiencies of being a regional bank, while being a pricetaker in mortgages and deposits during a period of unpalatable pricing.

Citi expects core earnings decline -10% in FY23 and a further -4% in FY25, unlikely to stabilise until FY26.

The Sell rating is retained and the target price decreases to $8.60 from $8.85.

Target price is $8.60 Current Price is $9.72 Difference: minus $1.12 (current price is over target).
If BEN meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.16, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Macquarie rates BEN as Underperform (5) -

Bendigo & Adelaide Bank's December-half result outpaced Macquarie's forecasts by 5% thanks to higher Homesafe income and lower impairments.

But take these out and the broker observes a deterioration in the underlying business, revenue and margins sliding.

Macquarie expects margins will stabilise in the June half but estimates continuing declines in market share and rising costs will result in a -8% slide in profit in FY24 and -1% in FY25. Homesafe revenues should protect the bank's dividend but not margins, says the broker.

EPS forecasts rise 5% in FY24; remain steady in FY25 and fall -1% in FY26 to account for the Homesafe run-off.

Underperform rating and $8.50 target price retained.

Target price is $8.50 Current Price is $9.72 Difference: minus $1.22 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.16, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Morgan Stanley rates BEN as Overweight (1) -

Morgan Stanley assesses a "mixed" 1H result for Bendigo & Adelaide Bank against a challenging industry back drop. Higher expenses were offset by stronger non-interest income and lower loan losses.

While the headline margin was -3bps worse than the broker forecast, this was largely due to liquidity, while the 'exit' margin was higher. The analysts see potential for more stable margins and a clearer cost outlook over the next 12-18 months.

'Bendelaide' remains the broker's preferred smaller bank and the Overweight rating is retained. Industry View: In-Line.

The target price falls to $10.20 from $10.40 on a lower FY26 forecast, despite lower estimated loan losses in FY24.

Target price is $10.20 Current Price is $9.72 Difference: $0.48
If BEN meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.16, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Ord Minnett rates BEN as Hold (3) -

Bendigo & Adelaide Bank's first half cash profit fell -5% from the prior half, with net intereat margins dropping -15 basis point -- more than Ord Minnett expected. Deposit and loan pricing are ongoing headwinds.

Yet the broker considers the result self-inflicated, as the bank is holding more capital in lower-returning liquid assets than in loans, ready to repay its RBA term funding facility. This should unwind over the next 12 months.

The balance sheet is more than adequate, and the dividend payout was 63%, which Ord Minnett believes can be increased to 70% in the face of lower earnings. Hold and $10.50 target retained.

Target price is $10.50 Current Price is $9.72 Difference: $0.78
If BEN meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.16, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

UBS rates BEN as Sell (5) -

Bendigo & Adelaide Bank's H1 result proved weaker-than-expected and UBS foresees downgrades to consensus forecasts. With an explicit focus on the (disappointing) Net Interest Margin, the analysts do not hide their overall disappointment.

A positive surprise came through asset quality. EPS estimates have been downgraded, yet the broker's target lifts to $8 from $7.50 on a lower cost of equity forecast.

Sell rating remains in place. UBS has reduced both EPS and DPS forecasts.

Target price is $8.00 Current Price is $9.72 Difference: minus $1.72 (current price is over target).
If BEN meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.16, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Citi rates BHP as Neutral (3) -

BHP Group has maintained FY24 guidance in its first half result and, in an initial take, Citi observes underlying EBITDA was ahead of expectations and the interim dividend better than forecast.

The company has highlighted cost pressures yet looks for improvement in commodity demand globally off a low base. Citi retains a Neutral rating with a $49 target.

Target price is $49.00 Current Price is $46.04 Difference: $2.96
If BHP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $46.63, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Bell Potter rates BLD as Hold (3) -

Seven Group ((SVW)) intends to acquire the shares in Boral it does not currently own. The aggregate value of the proposal is $6.05 per Boral share.

If the 90.6% compulsory acquisition threshold is me, then the cash component of the offer will increase by a further $0.10 per Boral share for a maximum of 0.1116 Seven shares and $1.70 cash for Boral share.

The latter is in line with Bell Potter's valuation, assessed to appropriately recognise the company's sector-leading growth outlook. Hold rating retained. Target is reduced to $6.24 from $6.30.

Target price is $6.24 Current Price is $6.12 Difference: $0.12
If BLD meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Citi rates BSL as Neutral (3) -

Despite the first half earnings beat delivered by BlueScope Steel, Citi believes the market remains focused on the softer outlook provided by the company. 

BlueScope Steel reported underlying earnings of $718m for the half, an 8% beat to consensus, and at the top end of guidance.

As per Citi, guidance for slightly lower earnings in the second half is driven by unprecedented softness in Asian steel spreads, with the company anticipating a result in the range of $620-690m.

The Neutral rating is retained and the target price decreases to $22.30 from $22.50.

Target price is $22.30 Current Price is $22.33 Difference: minus $0.03 (current price is over target).
If BSL meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.06, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates BSL as Outperform (1) -

BlueScope Steel's December-half result outpaced Macquarie's forecasts thanks to a strong performance from North America and a respectable contribution from Coated Products Asia. Australian volumes were solid.

Management's June-half guidance appears to have met the broker's forecasts.

EPS forecast rise 2.4% in FY24; and fall -12% in FY25 and -12.7% in FY26, the declines reflecting higher-than-forecast conversion costs in North Star and ASP.

Outperform rating retained on valuation. Target price rises to $25 from $24.

Target price is $25.00 Current Price is $22.33 Difference: $2.67
If BSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $22.06, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates BSL as Underweight (5) -

Morgan Stanley assesses a "strong" 1H result for BlueScope Steel, which beat management guidance. Earnings (EBIT) exceeded by 8% forecasts made by the broker and consensus, while the 25cps dividend fell -9% short of the consensus estimate.

Reflecting low Asian spreads and the recent rapid decline in US spreads, the midpoint of management's 2H underlying earnings guidance range was -7% below the consensus forecast.

The buyback was increased to allow for $400m of shares to be repurchased over next 12 months, explain the analysts.

The Underweight rating and $21 target are retained. Industry view: In-Line.

Target price is $21.00 Current Price is $22.33 Difference: minus $1.33 (current price is over target).
If BSL meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.06, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates BSL as Buy (1) -

First half results from BlueScope Steel beat UBS expectations. Second half EBIT guidance has been reduced although the broker still retains a positive view, noting end markets are holding up.

In the US, guidance assumes a significant erosion into the fourth quarter but appears conservative to the broker.

UBS assesses the new capital expenditure on a range of projects is sensible and ensures future growth yet obviously comes at a cost, while the significant land portfolio is key to lessening the burden. Buy rating, and $25.50 target reduced from $25.80.

Target price is $25.50 Current Price is $22.33 Difference: $3.17
If BSL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $22.06, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates COH as Sell (5) -

As pre-announced, Cochlear delivered a strong first half result, underpinned by elevated cochlear implant unit growth and ASP growth. Citi points out, however, that elevated levels are not expected to continue.

Medium-term, the company continues to guide to cochlear implant unit growth in the high single digits and flat ASP growth. As per Citi, the company's dominant market share position does mean top-line and earnings growth are restricted by market growth. 

The Sell rating is retained and the target price increases to $265 from $255.

Target price is $265.00 Current Price is $327.82 Difference: minus $62.82 (current price is over target).
If COH meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Macquarie rates COH as Underperform (5) -

Cochlear's December-half result missed Macquarie's forecasts despite revenue and net profit after tax being pre-reported due to an inventory writedown.

Operating expenditure proved a beat.

Management reiterated sales guidance (in line with Macquarie's forecasts).

EPS forecasts fall -1% in FY24; -1% in FY; and -3% in FY26.

Underperform rating retained, the broker believing the share price is outpacing projected sales. Target price eases to $255 from $260.00.

Target price is $255.00 Current Price is $327.82 Difference: minus $72.82 (current price is over target).
If COH meets the Macquarie target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgan Stanley rates COH as Underweight (5) -

Cochlear's 1H sales revenue and underlying profit were in line with guidance released on February 8. These metrics were supported by stronger Cochlear Implant conditions and market share gains, explains Morgan Stanley.

Management reiterated FY24 guidance for underlying net profit growth and Cochlear unit growth. There was guidance that services and upgrades would perform strongly with robust demand for upgrades to N8, notes the broker.

The Underweight rating and target price of $258.00 are retained. Industry view: In-Line.

Target price is $258.00 Current Price is $327.82 Difference: minus $69.82 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgans rates COH as Hold (3) -

First half results for Cochlear held few surprises given they had been pre-released. Morgans notes Cochlear implants (CI) and Services drove greater than 10% top and bottom line growth and strong operating cash flow (OCF).

The gross profit margin (GPM) fell by -100bps partly because of a -$15.6m write-down of older inventory, explain the analysts.

The dividend increased by 29% to $2.00/share and management reaffirmed FY24 guidance.

The Hold rating and $290.5 target are maintained.

Target price is $290.50 Current Price is $327.82 Difference: minus $37.32 (current price is over target).
If COH meets the Morgans target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Ord Minnett rates COH as Sell (5) -

Cochlear's first half profit grew by 21%, Ord Minnett notes, driven by revenue growth of 20% on strong demand for cochlear implants and sound processor upgrades. Reaffirmed FY24 guidance implies 26-31% profit growth on FY23.

Ord Minnett continues to believe the shares are overvalued, expecting sales growth to moderate over the longer term. But the balance sheet is in good shape, featuring sufficient cash to fund a 70% dividend payout out to FY33.

That translates to 11% compound annual growth. Sell and $220 target retained.

Target price is $220.00 Current Price is $327.82 Difference: minus $107.82 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

UBS rates COH as Sell (5) -

Given Cochlear had pre-guided, UBS was in particular interested into the details on costs. Post the release of interim financials, the broker has increased its cost assumptions.

Extra effort has gone into better penetration of the older population, and the broker thinks this makes sense for the company.

Price target lifts to $260 from $240 on higher sales projections, but UBS has not yet forgotten about the potential risk from Moderna potentially developing a vaccine against CMV later this year, and thus retains a Sell rating.

UBS has increased DPS forecasts, as well as EPS estimates.

Target price is $260.00 Current Price is $327.82 Difference: minus $67.82 (current price is over target).
If COH meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $258.08, suggesting downside of -21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Bell Potter rates CRD as Speculative Buy (1) -

Conrad Asia Energy has completed the Mako gas FEED and updated on cost capital estimates. Mako is expected to deliver up to 120mmscfd via existing infrastructure to the Singapore market over an initial seven-year period.

A $13m equity placement was recently completed and Bell Potter updates modelling to take this into account. The broker envisages multiple value catalysts as the company de-risks the project. Target is reduced to $1.85 from $2.30 and a Speculative A Buy rating is maintained.

Target price is $1.85 Current Price is $0.95 Difference: $0.9
If CRD meets the Bell Potter target it will return approximately 95% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Bell Potter rates GDI as Buy (1) -

Bell Potter was disappointed with the first half results from GDI Property, stemming from a combination of lower property and management earnings.

Distribution guidance has been reaffirmed at 5c. No asset sales were realised during the half with gearing increasing to 32%.

The broker suspects the business is close to its low point in terms of income and, trading at an almost -50% discount to NTA, value is seen emerging. Buy rating and $0.75 target unchanged.

Target price is $0.75 Current Price is $0.63 Difference: $0.125
If GDI meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates GPT as Buy (1) -

High finance costs, which rose 38% over FY23, saw GPT Group's funds from operations decline -3.2% over the same year.

Segmentally, both retail and logistics performed well and delivered funds from operations growth of 9.6% and 5.1% respectively, while office funds from operations declined on lower average occupancy.

Despite the stock currently trading at a -23% discount to net tangible assets, Citi sees reasonable value given the company's exposure to retail and logistics.

The Buy rating and target price of $4.90 are retained.

Target price is $4.90 Current Price is $4.34 Difference: $0.56
If GPT meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates GPT as Outperform (1) -

GPT Group's FY23 result broadly met Macquarie's forecasts save for the dividend, which proved a -6% miss due to higher-than-expected tenant incentives in the office portfolio (leading to lower free cash flow) and a decline in the payout ratio in GWOF from 90% to 60% of funds from operations.

The broker expects the latter will prove an earnings headwind in the near term.

On the upside, retail reported positively despite slowing retail sales growth, which the broker observes kicked up in January. Similarly logistics proved a boon and Macquarie expects strong releasing spreads should support the share price over the medium term.

FFOps estimates rise 0.5% in FY24; fall -1.9% in FY25; and fall -3.4% in FY25, the latter declines reflecting weaker management and co-investment income, says the broker.

Outperform rating retained. Target price falls -3% to $4.61.

Target price is $4.61 Current Price is $4.34 Difference: $0.27
If GPT meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

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

GPT Group's FY23 funds from operations (FFO) were in line with Morgan Stanley's forecast, while FY24 guidance for 32cpu beat the 31.4cpu expected by consensus.

The higher FFO guidance is driven by trading profits at Sydney Olympic Park, explain the analysts, while the lower dividend of 24cpu (consensus 25.1cpu) is due to incentives in office and a lower distribution from the GPT Wholesale Office Fund (GWOF).

While partly due to incentives, the broker highlights office occupancy increased to 92.3% from 88.5%.

Morgan Stanley suggests office cash flows will be challenged due to incentives and capex, and maintains an Equal-weight rating. Target $4.60. Industry view: In-Line.

Target price is $4.60 Current Price is $4.34 Difference: $0.26
If GPT meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

UBS rates GPT as Buy (1) -

After a long hiatus, UBS has returned with a research update on GPT Group. The broker found FY23 financials in line, but sees FY24 guidance as rather "mixed" as better trading profits were offset by increased debt costs.

Office remains the weakest link inside the portfolio of assets, the broker highlights. The broker found DPS guidance underwhelming and sheets this back to the drag from Office.

Buy. Target falls to $4.97 from $5.10.

Target price is $4.97 Current Price is $4.34 Difference: $0.63
If GPT meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates GWA as Outperform (1) -

GWA Group's December-half result outpaced consensus' and Macquarie's forecasts, reporting a good operational result, cash-flow proving the star.

Macquarie believes the company's strategic execution is starting to kick in, the company regaining strength with plumbers, and is upbeat while acknowledging mixed outlooks for the company's markets.

EPS forecasts rise 7% in FY24; 4.6% in FY24; and 0.7% in FY26.

Outperfrom rating retained. Target price rises to $2.70 from $2.50.

Target price is $2.70 Current Price is $2.55 Difference: $0.15
If GWA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates HUB as Buy (1) -

Citi envisages potential for Hub24 to outperform in the wake of a first half result that, at first glance, implied strong net flows. EBITDA slightly beat expectations and the revenue margin was better than anticipated.

The broker expects the earnings briefing will focus on implied flows in the third quarter to date and whether there were any large transitions.  Buy rating and $42.20 target.

Target price is $42.20 Current Price is $37.53 Difference: $4.67
If HUB meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $38.50, suggesting downside of -2.4% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates IMD as Upgrade to Hold from Sell (3) -

First half results beat Bell Potter's expectations. Imdex expects product demand in the second half will remain steady and completion of an organisation redesign should drive a reduction in the cost base for the second half.

The broker upgrades to Hold from Sell as near-term earnings margins are proving resilient and the mix towards higher-margin sensor and SaaS sales is materialising faster than previously expected. Target is raised to $1.75 from $1.50.

Target price is $1.75 Current Price is $1.89 Difference: minus $0.135 (current price is over target).
If IMD meets the Bell Potter target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.16, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates IMD as Outperform (1) -

Imdex's December-half result outpaced consensus forecasts by 10% and Macquarie's forecasts by 7% thanks to a 30.2% earnings (EBITDA) margin beat.

The strong performance in challenging conditions augurs well says the broker, with Devico and sensors on hire outpacing despited weaker drilling activity. Sensor and fludis margins expanded sharply and even core-business margins pushed ahead. The broker spies further upside to margins in FY24 and FY25.

Canadian and Australian volumes fell sharply but the company outpaced its industry.

EPS forecasts rise 6% in FY24; 10% in FY25 and 11% in FY26.

Outperform rating retained. Target price rises 18% to $2.45.

Target price is $2.45 Current Price is $1.89 Difference: $0.565
If IMD meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $2.16, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates IMD as Buy (1) -

UBS observes the sharp share price reaction to a strong first half result from Imdex was underpinned by an 11% beat on EBITDA, but also that rally occurred after the shares had declined -15% in the year to date.

The company has had the opportunity to demonstrate some of the attractions in its core business, notably its global diversity and structural growth in average revenue per unit, the broker adds.

UBS expects 2024 EBITDA of $138m and Devico EBITDA of $34m, driven by synergies, sensor cross selling and further market penetration. Buy rating retained. Target rises to $2.25 from $2.10.

Target price is $2.25 Current Price is $1.89 Difference: $0.365
If IMD meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.16, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

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

Citi downgrades its rating for Lendlease Group to Neutral from Buy following yesterday's release of 1H results.

While management expects an earnings recovery, the broker is concerned by ongoing pressure on core earnings and execution risk. The target is reduced to $6.90 from $9.40.

A potential key catalyst for the stock price may occur at the company's investor day in May, suggests the broker.

A summary of Citi's research released yesterday follows.

At a glance, Lendlease Group's December-half result proved a massive miss, core earnings falling -70% short of consensus forecasts and -67% below Citi's forecast, the company experiencing weakness across the business, particularly in the development segment.

Management cut guidance-12%, suggesting a -23% discount to consensus' EPS forecasts, reflecting lower shareholder's equity and return on equity.

Funds under management were steady. Gearing breached the company's 10% to 20% target range, hitting 22.9%.

Target price is $6.90 Current Price is $6.46 Difference: $0.44
If LLC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.60, suggesting upside of 54.8% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates LLC as No Rating (-1) -

Lendlease Group's December-half result sharply missed consensus' and Macquarie's forecasts and management cut return-on-equity guidance -10% from the lower end of its target range.

Weakness was recorded across the board.

Gearing rose sharply to 22.9% from 14.8% but management retained FY24 gearing guidance to the midpoint of its 10% to 20% target range.

Operating EPS forecasts fall -43% in FY24; -16% in FY25; and -14% in FY26.

Macquarie is on research restriction.

Current Price is $6.46. Target price not assessed.

Current consensus price target is $9.60, suggesting upside of 54.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

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

Lendlease Group's 1H profit of $61m missed estimates by Morgan Stanley and consensus for $195m and $210m, respectively.

Management also lowered FY24 return on equity (ROE) guidance to 7%, despite flagging in December the "lower end" of the 8-10% target, point out the analysts.

In the Developments segment, the broker expects commencements will total around $2.8bn in FY24, down from $4bn, which could signify good discipline by management.

Morgan Stanley notes Lendlease is ultimately a company that builds assets and sells them for a profit, and believes earnings will improve when the transaction market recovers.

The target falls to $7.30 from $8.25 and the Equal-weight rating is unchanged. Industry View: In-Line.

Target price is $7.30 Current Price is $6.46 Difference: $0.84
If LLC meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.60, suggesting upside of 54.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates LTR as Downgrade to Sell from Neutral (5) -

While Citi maintains a positive view on Liontown Resources, the broker has lowered its rating to Sell following a share price rally over the last month.

The stock is trading above the broker's target price, and Citi expects this valuation is factoring in a price of US$1,650 per tonne of SC6 spodeumene concentrate, compared to spot pricing of US$850 per tonne and the broker's long-term price of US$1,600 per tonne. 

A funding update is expected from the company in the March quarter, following the termination of the company's eight lender debt facility.

The rating is downgraded to Sell from Neutral and the target price of $1.00 is retained.

Target price is $1.00 Current Price is $1.26 Difference: minus $0.26 (current price is over target).
If LTR meets the Citi target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.17, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates MMS as Buy (1) -

At first glance, the first half result from McMillan Shakespeare was ahead of Citi's estimates.

Demand for novated leasing continues to build as "carry-over" revenue increased 8%, while volumes grew 25.7%. Electric vehicles continue to drive the demand, representing 41.5% of new novated orders.

The broker expects the share price to respond positively to the result and observes potential for upward revisions to consensus estimates for GRS, given the strong growth in management's expectations for similar conditions in the second half.

Buy rating and $19.50 target.

Target price is $19.50 Current Price is $17.45 Difference: $2.05
If MMS meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $19.91, suggesting upside of 2.0% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates MND as Buy (1) -

Monadelphous Group has guided to 10% revenue growth for FY24 which, at first glance, Citi assesses is a slight upgrade to guidance handed down at the AGM.

A 30% increase in head count also should have bolstered the company's ability to pursue opportunities and further deliver upside. First half revenue was largely in line with forecasts.

The company envisages significant opportunities relating to resources and energy although continues to cite a shortage of skilled labour. Buy rating and $16.20 target.

Target price is $16.20 Current Price is $13.95 Difference: $2.25
If MND meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans rates MQG as Downgrade to Hold from Add (3) -

Morgans lowers its FY24 and FY25 EPS forecasts by -7% and -2%, respectively, following Macquarie Group's 2024 investor day, which tempered outlook expectations largely because of lower transaction activity.

The divisions impacted by lower activity are Macquarie Capital and Macquarie Asset Management, where management noted year-to-date earnings were "substantially down" on the previous corresponding period.

The analyst feels shares of Macquarie Group are trading at fair value and downgrades the rating to Hold from Add. The target rises to $189.40 from $182.80 due to a valuation roll-forward.

Target price is $189.40 Current Price is $192.01 Difference: minus $2.61 (current price is over target).
If MQG meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $182.48, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates NHC as Neutral (3) -

New Hope reported first half underlying earnings of $424.8m, reflecting not only a -59.1% decline year-on-year but a -4% miss to Citi's expectations. The company achieved saleable coal production of 2.0m tonnes at an average realised price of $180.64 per tonne.

The company has announced its intention to take up to $105m in equity in Malabar, bringing its interest in the project to 19.9% from 15.0%, and with a potential to further increase this to 23%, subject to shareholder approval.

The Neutral rating is retained and the target price decreases to $4.85 from $5.30.

Target price is $4.85 Current Price is $4.66 Difference: $0.19
If NHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Morgans rates NHC as Hold (3) -

New Hope's 2Q production missed Morgans forecast due to softening NEWC Index prices and lower average price realisations. The latter outcome is because management is aiming to maximise revenue by arbitraging the NEWC and API-5 (lower energy) coal markets.

The analyst suggests investors moderate expectations for dividends when 1H results are released on March 19, given the company's increased investment in Malabar, via the recent capital raise. Growth capex spending is also required for Acland and Bengalla.

The target falls to $4.80 from $5.30 and the Hold rating is maintained.

Target price is $4.80 Current Price is $4.66 Difference: $0.14
If NHC meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Citi rates NWL as Neutral (3) -

Netwealth Group posted an increase of 28% in first half net profit, ahead of Citi's estimates.

The broker observes, in a first assessment, stronger-than-expected revenue was driven by higher transaction revenue while EBITDA margins were up 270 basis points despite an increase in head count.

Citi envisages potential for minor earnings upgrades given the apparent strong start to the third quarter. Neutral rating and $16.10 target.

Target price is $16.10 Current Price is $17.61 Difference: minus $1.51 (current price is over target).
If NWL meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.23, suggesting downside of -12.6% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates OML as Outperform (1) -

oOh!media's FY23 full-year result outpaced consensus' forecasts by 8% and Macquarie's by 10% thanks to a big beat on gross margins (which fell less than expected).

The broker sheets this back to management's determination to pursue profitable deals over market share.

FY24 guidance appears to have pleased the broker, management expecting a weak first-half followed by an improved second half.

EPS forecasts rise 4% in 2024; 12% in 2025; and 11% in 2026.

Ooutperform rating retained. Target price rises 6% to $2.31 from $2.17.

Target price is $2.31 Current Price is $1.65 Difference: $0.66
If OML meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates OML as Hold (3) -

Ord Minnett describes oOh!media's 2023 report as featuring "unmissable result quality and margin integrity". Revenue growth of 7% slightly exceeded the broker's forecast, but it was driven by accelerating road ad growth, the largest and likely higest-margin unit.

A return to revenue growth for the second-largest unit, street & rail, is also notable, the analyst suggests, up 4% compared to a decline of -3% in the first half.

Success in concession renewals and pending contributions from new contracts support Ord Minnett's confidence in sustainable earnings power, though the stock is trading in line with the broker's fair value estimate.

Hold retained, target rises to $1.65 from $1.60.

Target price is $1.65 Current Price is $1.65 Difference: $0
If OML meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates ORA as Buy (1) -

Despite a challenging environment, Citi believes Orora executed strongly in the first half, and the broker believes this bodes well for earnings growth and operating leverage looking forward.

The company reported a -16% decrease in sales in North America, with volumes down -8% and price down -3%, but despite these challenges the company managed 4% earnings growth for the region. .

The broker expects FY24 will prove a low point in earnings, and that Orora can deliver a strong compound annual growth rate over the medium term. 

The Buy rating is retained and the target price decreases to $3.16 from $3.28.

Target price is $3.16 Current Price is $2.71 Difference: $0.45
If ORA meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Macquarie rates ORA as Outperform (1) -

Orora's December-half result met Macquarie's forecasts but management guided to substantially higher June half interest costs of $71m, well above consensus forecasts of $51m, reflecting higher leasing costs.

For the December half, highlights included strong margins in North America where cost-efficiencies and low-margin business churn offset sliding volumes; and a strong domestic performance in cans earnings and cost recovery in the face of weaker glass markets. Higher interest costs proved a negative surprise.

EPS forecasts slide -10% in FY24; -9% in FY25; and -9% in FY26.

Outperform rating retained. Target price falls to $3.17 from $3.30.

Target price is $3.17 Current Price is $2.71 Difference: $0.46
If ORA meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgan Stanley rates ORA as Overweight (1) -

Despite a tough operating environment, Morgan Stanley notes Orora released a "solid" 1H result which aligned with the consensus forecast for earnings (EBIT).

Apart from higher guidance for interest expense, management's outlook commentary and FY24 guidance also met consensus expectations, according to the analysts. 

The broker's target falls to $3.20 from $3.30 and the Overweight rating is maintained as Orora's currently discounted multiple is considered an attractive opportunity for investors.

The analysts believe the share price will re-rate higher once the market becomes comfortable with the Saverglass acquisition, where the outlook is unchanged and in line with Morgan Stanley's forecast. Industry view: In Line.

Target price is $3.20 Current Price is $2.71 Difference: $0.49
If ORA meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgans rates ORA as Hold (3) -

Orora's 1H results were broadly in line with consensus forecasts. Higher margins in both Australasia and North America resulted in the group earnings (EBIT) margin rising by 130bps to 8.6%.

Cash conversion jumped to 92.7% from 75.25 in the previous corresponding period due to both increased earnings and better management of working capital, explains the analyst.

Management maintained FY24 guidance for higher earnings, excluding the contribution from the Saverglass acquisition.

The broker's Hold rating and $2.70 target are unchanged.

Target price is $2.70 Current Price is $2.71 Difference: minus $0.01 (current price is over target).
If ORA meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.03, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

UBS rates ORA as Neutral (3) -

First half earnings growth of 11% from Orora was in line with expectations, as Saverglass performed better than anticipated. The company has reiterated FY24 guidance for improved earnings in Australasia and North America.

UBS expects Australasian EBIT growth of 4% while Australian glass volumes will continue to drag on segment earnings because of a challenged backdrop in wine exports.

North American EBIT growth is forecast at 8% and longer term the broker suspects investors are focused on the potential for Saverglass to add a third growth platform. Neutral maintained. Target is raised to $2.90 from $2.84.

Target price is $2.90 Current Price is $2.71 Difference: $0.19
If ORA meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Citi rates PRN as Buy (1) -

At first glance, Citi assesses Perenti has provided a solid first half. No change to revenue and earnings guidance implies the company is taking a cautious approach, and the broker suspects there is scope for progressive upgrades to guidance throughout the course of the second half.

Perenti expects to improve cash conversion to above 90% and the main issue for Citi is whether this will be sufficient to turn sentiment around. The stock is considered undervalued and a Buy rating and $1.25 target are maintained.

Target price is $1.25 Current Price is $0.85 Difference: $0.4
If PRN meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates RWC as Upgrade to Buy from Neutral (1) -

A solid first half result from Reliance Worldwide has left Citi optimistic on US operations looking ahead. The company reported adjusted earnings of $125m, noting a 17% tax rate was a material driver. 

As per the broker, sales from US and the APAC region were largely in line, while earnings were ahead, but EMEA proved a drag, delivering a -3% miss at the earnings line.

Citi extrapolates that the US segment demonstarted strong margin expansion, and with the environment improving the broker is optimistic about where margins could land as volume growth returns. 

The rating is upgraded to Buy from Neutral and the target price increases to $5.45 from $3.90.

Target price is $5.45 Current Price is $4.70 Difference: $0.75
If RWC meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 RWC as Outperform (1) -

Reliance Worldwide's December-half result broadly met Macquarie's forecasts, the star performer being America where cost cutting and the Sharkbite max roll-out yielded attractive margins. Cash conversion of 121% also pleased the broker as inventories normalised.

Management expects FY24 revenue will continue to ease (EMEA and Australian volumes weakened in the December half) and plans to keep a tight hold on cost and pricing reins.

EPS forecasts rise 6% in FY24; 11% in FY25; and 15% in FY26 after buybacks and cutting tax rates.

Outperform rating retained, the broker spying a potential re-rate. Target price rises to $5.10 from $4.70.

Target price is $5.10 Current Price is $4.70 Difference: $0.4
If RWC meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 RWC as Equal-weight (3) -

Morgan Stanley describes a "solid" 1H result for Reliance Worldwide, which was in line with the broker's forecast and beat the consensus estimate by 5% at the earnings (EBIT) level. Profit was a larger beat due to a lower-than-expected tax charge.

The company will shift its capital management to a mix of lower dividend and buyback due to lower Australian earnings resulting from the shifting of manufacturing assets to the US from Australia, explains the broker.

The interim dividend was US2.25cps, along with a $17.8m buyback, which is equivalent to a further US2.25cps, explain the analysts.

Equal-weight. Target $4.20. Industry view: In-Line.

Target price is $4.20 Current Price is $4.70 Difference: minus $0.5 (current price is over target).
If RWC 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 $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

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

Reliance Worldwide's 1H underlying earnings (EBITDA) beat forecast by Morgans and consensus by 5% and 4%, respectively, while profit was a bigger beat due to a lower-than-expected tax rate.

Despite a subdued trading environment in the Americas, earnings there jumped by 19%, highlights the analyst. Cost reduction initiatives kept the earnings margin decline to a modest -10bps in the EMEA and APAC regions, even though volumes were lower.

Management maintained FY24 guidance.

The broker's target jumps to $5.25 from $4.20 due to earnings forecasts upgrades and an increased valuation multiple. It's felt Reliance is well placed to prosper when trading conditions improve, and the rating is upgraded to Add from Hold.

Target price is $5.25 Current Price is $4.70 Difference: $0.55
If RWC meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 RWC as Upgrade to Accumulate from Hold (2) -

Reliance Worldwide reported a resilient first half result, Ord Minnett suggests, given the volume declines experienced in each of its three key geographies. Given subdued volumes, management aggressively tackled its cost base which has driven strong margin performance in the Americas.

Cost reduction initiatives will continue into second half, with EMEA in focus. With end-markets potentially stabilising later this year, and new product initiatives underway, Reliance is well-placed for an eventual upturn in the cycle, the broker suggests.

Upgrade to Accumulate from Hold. Target rises to $5.10 from $4.10.

Target price is $5.10 Current Price is $4.70 Difference: $0.4
If RWC meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

UBS rates RWC as Buy (1) -

First half results from Reliance Worldwide beat expectations and UBS assesses this de-risks the second half.

As guidance is largely unchanged the broker envisages less risk in bridging to the second half, given the combination of cost controls and the expected top-line and NPD roll-out, as Holman acquisition is now incorporated into the numbers.

The broker acknowledges Holman is not the most "exciting" of end markets but has a strong position in retail which complements the company's existing offering. Buy rating retained. Target is lifted to $5.40 from $4.80.

Target price is $5.40 Current Price is $4.70 Difference: $0.7
If RWC meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 WBC as Outperform (1) -

Westpac's December-quarter result outpaced Macquarie's forecasts by 6%, thanks to a beat on treasury income and lower impairments.

The underlying result was in-line to mildly better which, given recent misses, leaves the broker speculating a turnaound may be on the cards and with it possible consensus upgrades. At the very least, the broker considers downside to be limited.

Margins stabilised and Macquarie expects improvements on this front as the bank's replicating portfolio kicks in.

EPS forecasts rise 3% in FY24; and 1% in FY25 and FY26.

Outperform rating retained (albeit the broker being underweight on the sector). Target price rises to $25 from $24.

Target price is $25.00 Current Price is $25.24 Difference: minus $0.24 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.42, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Morgan Stanley rates WBC as Underweight (5) -

Morgan Stanley believes Westpac achieved a "sound" performance in Q1, with cash profit beating the broker's forecast largely because of higher income from treasury and markets. Operating trends were generally considered in line with expectations.

Revenue increased by 2% compared to the 2H FY23 quarterly average, and was around 1.5% ahead of the analysts' expectation.

Management felt the 'core' margin was "well managed in light of lending and deposit headwinds". This margin fell  by -4bps against the 2H FY23 quarterly average.

The broker's rating for Westpac is Underweight. Target $21.70. Industry View: In-Line.

Target price is $21.70 Current Price is $25.24 Difference: minus $3.54 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.42, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Morgans rates WBC as Hold (3) -

Morgans highlights a moderation in the decline of Westpac's core net interest margin (NIM), after reviewing 1Q results. This outcome results in a material upgrade to the broker's earnings forecast and a 9% higher target price of $23.54.

As the profit ex-notable items metric was flat compared to the 2H FY23 average, an around 7% beat against the consensus forecast is implied, according to the analyst.

Most of the profit outperformance stemmed from growth in net interest income and better-than-expected costs, explains the broker.

The Hold rating is maintained.

Target price is $23.54 Current Price is $25.24 Difference: minus $1.7 (current price is over target).
If WBC 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 $23.42, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Ord Minnett rates WBC as Accumulate (2) -

Westpac's first quarter profit was little changed from the prior quarter, Ord Minnett notes, with margin pressure and higher bad debts well managed. Net interest margin fell just one basis point.

Headwinds from deposit competition persists, as well as switching and home loan discounting, the broker points out, which will lead to further margin pressure. Concerns over Westpac's ability to compete should nevertheless be subsiding.

As margins shrink and bad debts creep higher, earnings growth will be challenging for the banks in the short term, but Ord Minnett believes Westpac's current share price paints too bleak a picture.

Accumulate and $28 target retained.

Target price is $28.00 Current Price is $25.24 Difference: $2.76
If WBC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $23.42, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

UBS rates WBC as Sell (5) -

The first quarter update from Westpac was "noisy", UBS asserts. The numbers were largely in line and the revenue number was "solid". Expected credit losses were also lower than the market expects for the first half.

The main negative remains, in the broker's view, around the capital build during the quarter although pro forma CET1 of 11.99% remains within board targets. Sell rating and $20 target maintained.

Target price is $20.00 Current Price is $25.24 Difference: minus $5.24 (current price is over target).
If WBC meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.42, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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