Australian Broker Call

Bell Potter rates 4DX as Speculative Buy (1) -

4DMedical continues to make steady progress toward commercialisation of the XV LVAS scan, Bell Potter notes. The company generated a loss of -$31.4m relative to a loss of -$24.6m in FY22 and slightly greater than the broker's forecast.

Closing cash was $69.6m and Bell Potter anticipates the cash runway extends some two years inclusive of anticipated grant revenues. The company provided an extensive commercialisation update for its business in the US where it appears to be gaining the highest level of engagement.

The next ten months should bring some clarity on important issues regarding key revenue drivers – most particularly within the Department of Defence. No guidance provided. Speculative Buy and $1.10 target retained.

Target price is $1.10 Current Price is $0.63 Difference: $0.47
If 4DX meets the Bell Potter target it will return approximately 75% (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 ABC as Sell (5) -

While the first half result from Adbri was largely in line with expectations the softer volumes were the negative surprise and, on further analysis, Citi assesses the traditionally stronger second half seasonality is being offset by softer residential and lime demand.

Sell rating is maintained as volumes, and potentially price, begin to moderate. Going forward EBIT forecasts are increased by 4-7% for 2023-25 while net profit forecasts edge up more modestly as higher interest is expected to offset. Target is raised to $2.25 from $1.50.

Target price is $2.25 Current Price is $2.34 Difference: minus $0.09 (current price is over target).
If ABC meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.17, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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

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

First half results were weaker than expected and volume was the main concern for Macquarie, with Adbri flagging emerging softness in residential activity, expected to worsen as the pipeline of work thins out.

Modest sequential earnings growth is expected in the second half yet the outlook beyond this is unclear, the broker asserts. Rating is downgraded to Underperform from Neutral. Target is reduced to $2.00 from $2.45.

Target price is $2.00 Current Price is $2.34 Difference: minus $0.34 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.17, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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

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

Adbri's June first-half result outpaced consensus by 3% and was in line with Morgan Stanley's forecasts. FY24 earnings guidance met the broker's forecast.

The broker says the company's leverage is looking toppy, hence no first-half dividend was declared.

Management guided to continued strong trading in the December-half, and a small rise in earnings (EBITDA), but the capital expenditure forecast of -$330m to -$350m proved a miss on the broker's -$323m forecast.

Equal-weight rating and $2.30 target price retained. Industry view: In Line. 

Target price is $2.30 Current Price is $2.34 Difference: minus $0.04 (current price is over target).
If ABC meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.17, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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

Bell Potter rates AHL as Buy (1) -

Adrad reported FY23 revenue ahead of Bell Potter's forecast and guidance, with earnings ahead of forecast but in line with the guidance.

Adrad did not provide any specific guidance for FY24 but did make some outlook comments including “the business is well positioned for growth due to the non-discretionary aftermarket offering and strong order book”, and “revenue growth expected to continue in line with recent trend”.

Buy and $1.45 target retained.

Target price is $1.45 Current Price is $0.90 Difference: $0.55
If AHL meets the Bell Potter target it will return approximately 61% (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

Morgans rates AHL as Add (1) -

Higher costs weighed on Adrad's FY23 underlying earnings (EBITDA), explains Morgans, while revenue growth was above management's guidance range.

Costs related to IT, insurance, freight, and leases as well as investment in staff and facilities, combined to lower the underlying earnings margin by -150bps to 11.1%, explains the analyst.

Management anticipates FY24 revenue will continue in line with the recent trend of around 8% growth with upside for margins.

Morgans sticks with its Add rating, anticipating a brighter FY24 as benefits from the recent investments in facilities and rationalisation of the manufacturing footprint will start flowing. The target falls to $1.50 from $1.85 on around -10% lower forecasts across FY24-26.

Target price is $1.50 Current Price is $0.90 Difference: $0.6
If AHL meets the Morgans target it will return approximately 67% (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

Ord Minnett rates AOF as Hold (3) -

Australian Unity Office Fund posted a FY23 result that was slightly ahead of Ord Minnett's forecast. The focus now shifts to delivering refurbishments to 2-10 Valentine Ave, Parramatta, and 150 Charlotte St, Brisbane.

The broker notes gearing has been eliminated as a result of asset sales while available cash and undrawn debt facilities are enough to fund future capital expenditure.

Completion of the upgrades is expected by December although the broker assumes most of 2-10 Valentine Avenue will not be leased until June 30, 2024. Hold retained. Target edges down to $1.48 from $1.52.

Target price is $1.48 Current Price is $1.29 Difference: $0.195
If AOF meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

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

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

APM Human Services International posted a good set of results, Bell Potter suggests, showing strong revenue growth, strength
in underlying earnings and an improvement in cash generation.

Profit was down -13% in A&NZ due to investment, and down -13% in rest-of-world, but up 275% in the US due to the acquisition of Equus. Earnings margins reduced to 19.2% in FY23 from 23.1% in FY22 and deteriorated further in the second half.

This is attributed to inflation, costs of staff retention/recruitment, build out into new areas, and acquisitions, the broker notes.

Bell Potter continues to see an attractive medium to long term investment case from rising unemployment, new contracts, growth in the health business and opportunities within NDIS, all of which should drive profit growth and a gradual re-rating.

Rating is upgraded to Buy from Hold and target rises to $2.21 from $2.04.

Target price is $2.21 Current Price is $1.80 Difference: $0.415
If APM meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 50.3% (ex-dividends)

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

Ord Minnett rates APM as Buy (1) -

APM Human Services International earnings in FY23 were in line with forecasts and Ord Minnett considers the shares oversold. Revenue increased 43%, mostly because of acquisitions. A decrease in margin largely reflected increased interest and tax costs.

The broker asserts the business has a strong track record of superior service levels and this has allowed it to build substantial market share, forecasting a five-year revenue growth rate of 9% as recent acquisitions annualise and new contracts are serviced. Buy rating and $2.90 target.

Target price is $2.90 Current Price is $1.80 Difference: $1.105
If APM meets the Ord Minnett target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 50.3% (ex-dividends)

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

Macquarie rates APX as Underperform (5) -

In the first half results Macquarie observes a loss of volume at one of Appen's key customers could reflect both structural and cyclical changes in the global services business.

The company has indicated customers are evaluating their AI strategy and shifting expenditure away from deep learning to generative AI, so the broker suspects revenues will remain under pressure.

Macquarie asserts generative AI will take time, as rapid change increases inertia in enterprise adoption. Underperform maintained. Target is reduced to $1.02 from $1.35.

Target price is $1.02 Current Price is $1.52 Difference: minus $0.5 (current price is over target).
If APX meets the Macquarie target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.77, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.8

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

Shaw and Partners rates BCB as Buy (1) -

Bowen Coking Coal has announced a strategic review of operations and has issued a shipping update, observes Shaw and Partners.

The company advised shipping rates have risen this quarter, most likely taking the mine to a cash-flow positive position by September 30. But the broker observes cash is tight and the company is seeking an extension to its debt facilities.

Shaw and Partners examines the company's cash-flow position out to 12 months and says that, provided coal markets remain supported and the company ships on schedule, then it will be able to meet its obligation. Currently, shipments are on track, the broker advises. 

The broker expects coking coal prices will be steady and that thermal coal will strengthen to US$200/t from US$150/t by December 30.

The broker expects the company will finish FY24 with $34m in cash, down from $47m at the end of FY23. Should the coal price fall, the downside scenario is that Bowen will be operating cash positive but will need to refinanace debt.

Buy, High Risk rating retained. Target price falls to 32c from 49c. EPS forecasts fall.

Target price is $0.32 Current Price is $0.10 Difference: $0.22
If BCB meets the Shaw and Partners target it will return approximately 220% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates BML as Buy (1) -

Boab Metals has published its drilling results for its Sorby Hills' lead-silver project in Western Australia.

Shaw and Partners describes news of an intersection with a 15m interval of masive sphalerite at 242m down from its first drill hole as a fantastic result. Assay results are yet to come.

The broker says that it is a misconception that demand for lead is falling due to the green transition's demand for lithium-ion batteries and in industry due to toxicity. The broker notes the reliability of lead-acid batteries means they will continue to be used in starter/lighter/ignition batteries for both EVs and ICE cars.

Shaw and Partners advises global lead useage is expected to increase from 11.7Mt in 2020 to 14.6Mt in 2030.

Buy rating and 52c target price retained.

Target price is $0.52 Current Price is $0.18 Difference: $0.34
If BML meets the Shaw and Partners target it will return approximately 189% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates BOQ as Underweight (5) -

Morgan Stanley cuts Bank of Queensland's target price to $5.60 from $6, expecting weak mortgage growth, margin erosion and transformation costs, and intensifying competition.

The broker expects management will retain its CTI and return on equity targets but considers them to be ambitious.

EPS forecasts rise in FY24 to reflect lower forecast loan losses but fall in FY25 to reflect expectations of softer growth and margins. The broker's EPS forecasts sit sharply below consensus, Morgan Stanley observing multi-year challenges.

Underweight rating retained. Industry view: In-line.

Target price is $5.60 Current Price is $5.93 Difference: minus $0.33 (current price is over target).
If BOQ 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 $6.37, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Citi rates BXB as Buy (1) -

Citi, upon initial response to today's FY23 release by Brambles, is foremost surprised by the FY24 outlook provided. This early into the fresh financial year, the broker had expected management to be a lot more cautious.

Needless to say, the broker thinks this optimism will be well-received. Management's forward-looking guidance opens up the door for capital management, on the broker's calculations.

Buy. Target $15.65.

Target price is $15.65 Current Price is $14.15 Difference: $1.5
If BXB meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.64, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Macquarie rates BXB as Neutral (3) -

Plenty to like in Brambles' FY23 release is Macquarie's initial response to today's market update.

The result itself came out high into management's guidance range and guidance for FY24 will lead to upgrades in market forecasts.

The result includes a material rollback in pooling capex to sales, the broker highlights.

Target price is $13.70 Current Price is $14.15 Difference: minus $0.45 (current price is over target).
If BXB 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 $14.64, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Citi rates CCX as Neutral (3) -

Judging from Citi's initial response to City Chic Collective's FY23 financials, released earlier today, the statutory loss of -$100m was significantly worse-than-forecast while momentum for the first eight weeks into FY24 also proved weaker-than-forecast.

Management at the troubled clothing retailer has guided for a loss in H1 with a turnaround into profit for the subsequent H2. The retailer is targeting -$15m in cost reductions, but Citi comments inflation will partially offset.

The broker does suggest it is likely the market starts focusing on what this company's financials might look like when dynamics normalise, but also questions the validity of such assumptions.

As far as the broker is concerned, City Chic remains high risk turnaround potential. Neutral/High Risk. Target 49c.

Target price is $0.49 Current Price is $0.52 Difference: minus $0.03 (current price is over target).
If CCX meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.52, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Bell Potter rates CLU as Speculative Buy (1) -

Cluey delivered a soft FY23 result in line with its quarterly update, Bell Potter notes. Group revenue was up 15% to $39.4m driven by key metrics with new students up 24%, student sessions up 11% and annual recurring revenue up 3%.

Gross profit and margins were strong driven by pricing increases and optimisation, however earnings missed the broker's estimates. Despite the softer result, initiatives to cut costs and drive profitability look to remain on track.

Target falls to 25c from 30c, Speculative Buy retained.

Target price is $0.25 Current Price is $0.10 Difference: $0.15
If CLU meets the Bell Potter target it will return approximately 150% (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

Bell Potter rates COE as Buy (1) -

Cooper Energy reported earnings in line with Bell Potter. No dividend was declared as expected. FY24 production guidance points to only a modest uplift on FY23.

A leap in FY24 capex is mostly relating to previously flagged abandonment works to be completed during the period, the broker notes.

No earnings guidance was provided. Bell Potter expects Orbost output to continue to improve amid favourable re-pricing outcomes in FY24.

The company should become free cash flow generative in FY25 as capex normalises and prices improve, ahead of its next major capital program. The stock is trading at a deep discount to valuation, the broker believes.

Target falls to 17c from 20c, Buy retained.

Target price is $0.17 Current Price is $0.12 Difference: $0.05
If COE meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 50.0% (ex-dividends)

The company's fiscal year ends in June.

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 COE as Neutral (3) -

FY23 earnings were in line with guidance. Following two downgrades to FY23, Cooper Energy has decided not to provide earnings guidance for FY24.

Macquarie observes offshore oil and gas is a challenging sector for small companies with limited capacity on balance sheets. The company has guided to peak gearing of 2.5x net debt/EBITDA at the end of 2023, yet the broker envisages scenarios where this could be as high as 3.0-3.5x.

While recognising the upside potential in the existing assets, Macquarie remains concerned about negative free cash flow and debt. Neutral maintained. Target is reduced to $0.14 from $0.16.

Target price is $0.14 Current Price is $0.12 Difference: $0.02
If COE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 50.0% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates CSS as Speculative Buy (1) -

Clean Seas Seafood reported a weaker than expected FY23 operating result. An earnings loss of -$3.7m compares to a loss of -$4.8m in FY22, Bell Potter notes, and principally reflects the benefit of higher selling prices with lower volumes and higher costs being the offsetting drivers.

Pricing and demand are expected to remain strong, management expects to maintain harvest volumes in a range of 10-15% and expects to drive further efficiencies to offset input cost pressures.

The broker has reassessed assumptions around long-term target margins, which reflect persistently elevated feed costs, resulting in a fall in target to 60c from 71c.

A return to volume growth in FY24 and the benefit of investment in automation are expected to continue to deliver improved earnings. Speculative Buy retained.

Target price is $0.60 Current Price is $0.48 Difference: $0.12
If CSS meets the Bell Potter target it will return approximately 25% (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

Bell Potter rates DDH as Hold (3) -

DDH1 reported revenue up 8.6% year on year, with second half softness in exploration activity impacting fleet utilisation, Bell Potter notes. As a result, rig utilisation averaged 74.4% during the year, down from 77.4% in FY22.

Earnings margins fell -30bps to 21.7% as cost inflation outpaced revenue per shift growth. A fully franked final dividend of 1.96cps was declared, taking the total FY23 dividend to 5.29cps, in line with the company’s historical 30-50% profit payout ratio.

Shareholders will vote next month on the takeover bid from Perenti ((PRN)). Target of 86c, down from 94c, is in line with the bid. Hold retained.

Target price is $0.86 Current Price is $0.85 Difference: $0.015
If DDH meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).

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 DDH as Neutral (3) -

The DDH1 FY23 results were in line with guidance and Macquarie believes it was a solid result given the tough industry conditions.

 Adjusting for the flagged -$7m unwinding of other income signals to Macquarie underlying growth in FY24 EBITDA guidance of $123-130m is around 9-15%. Capital expenditure is expected to reduce to around $60m in FY24.

The next catalyst is the Perenti ((PRN)) "merger", expected to complete in October. Neutral maintained. Target is reduced to $0.90 from $1.01, to be closer to the implied bid price.

Target price is $0.90 Current Price is $0.85 Difference: $0.055
If DDH meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

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

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

While FY23 results for DGL Group were broadly in line with guidance and consensus expectations, Morgans upgrades its rating to Add from Hold after management flagged better times in FY24.

The broker considers the 2H of FY23 sets a reasonable baseline for FY24 earnings and management can grow these earnings at around 10-15% per year over the medium term.

Morgans target rises to $1.10 from $1.00.

Target price is $1.10 Current Price is $0.79 Difference: $0.31
If DGL meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.01, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

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 DGL as Neutral (3) -

DGL Group's pre-guided, downgraded FY23 result landed at the bottom range of guidance, which UBS observes implies a slightly weaker than forecast exit run-rate. Interest expense and depreciation and amortisation also disappointed.

On the beat front, the company logged operating cash conversion of 118% and $92m in net debt ex-leases and UBS advises working capital appears to have normalised.

UBS says earnings visibility remains opaque and that further (but less) M&A may be on the cards. While the company's share price is trading at just 10% above net tangible asset backing, the broker prefers to wait until confidence is cemented.

Neutral rating retained. Target price falls to 92c from $1.15 to reflect a costs-related -9% downgrade to EPS forecasts across FY24 and FY25.

Target price is $0.92 Current Price is $0.79 Difference: $0.13
If DGL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.01, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates DRO as Buy (1) -

DroneShield posted a strong first half result, but a miss to Bell Potter's estimates. The miss is not a concern as it largely reflects a timing issue driven by recognition of revenue from a contract announced in January.

The broker anticipates DroneShield will achieve profitability in second half and this is supported by company comments the second half is typically the stronger of the two.

Bell Potter remains bullish on the outlook due to a record $62m contracted backlog and pipeline of over $200m, the roll out of technology across US military bases anticipated to commence this year, and exposure to macroeconomic tailwinds in the defence sector.

Buy and 45c target retained.

Target price is $0.45 Current Price is $0.29 Difference: $0.16
If DRO meets the Bell Potter target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates EBR as Speculative Buy (1) -

First half results for EBR Systems were in line with Morgans forecasts. A net loss of -US$15.6m was delivered and the cash balance was US$45.4m at June 30.

The broker updates its forecasts following the recent successful $35m capital raise and additional debt drawdown in June, and its target falls to $1.49 from $1.55.

The analysts also mention the recent positive clinical results for its Wireless Stimulation Endocardially (WiSE) system for Cardiac Resynchronisation Therapy (CRT). The Speculative Buy rating is unchanged.

Target price is $1.49 Current Price is $0.86 Difference: $0.635
If EBR meets the Morgans target it will return approximately 74% (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

Morgans rates EPY as Add (1) -

While EarlyPay reported a FY23 loss of -$7.7m, once the large impaired exposure for RevRoof (a client) and an intangible write-off are excluded, the underlying profit was $5.2m.

The analysts believe EarlyPay's core offering and balance sheet remain sound, and with improved risk management, the company can return to solid profitability.

Capital management plans will be considered once refinancing has been achieved (around the end of September), and the broker suggests a repayment of corporate debt and a buyback are on the cards.

The Add rating and 28c target are unchanged.

Target price is $0.28 Current Price is $0.19 Difference: $0.095
If EPY meets the Morgans target it will return approximately 51% (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

Macquarie rates FLT as Neutral (3) -

According to Macquarie's initial response, Flight Centre Travel's FY23 release revealed a performance just above the middle of management's guided EBITDA range.

Underlying the profit pre-tax missed the broker's estimate but is apparently above market consensus. While trading is strong and in line with management's expectations, no guidance for FY24 has been provided.

Macquarie argues since the dividend has been reinstated, management must be feeling confident about the future.

Target price is $23.00 Current Price is $22.08 Difference: $0.92
If FLT meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.83, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates FMG as Lighten (4) -

FY23 results largely met forecasts. Ord Minnett believes the Fortescue Metals shares are trading at levels that reflects optimism around the green energy ambitions and elevated near-term iron ore prices. 

The broker is more cautious, noting the business has a large exposure to China's troubled real estate sector and most of its iron ore is sold to Chinese customers.

The company's iron ore is generally lower grade so it is at a competitive disadvantage to its peers as well. While Iron Bridge is a higher grade product, and will improve average grade, it only accounts for 7% of forecast sales in FY28. Lighten rating and $15 target price retained.

Target price is $15.00 Current Price is $20.50 Difference: minus $5.5 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.14, suggesting downside of -24.4% (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: -1.0

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

UBS rates FMG as Sell (5) -

Fortescue Metals' FY23 earnings (EBITDA) met consensus' and UBS's forecasts but the company reported a slight miss at the net profit after tax line. The dividend fell shy of consensus but outpaced the broker.

UBS observes a few eyebrows were raised over the departure of new CEO Fiona Hick after less than six months in the role and the appointment of former chief operating officer Dino Otranto.

The result included a -US$726m writedown to -US$3.5bn due to inflation and higher discount rates - which proved the major disappointment to the broker.

UBS spies headwinds for the iron-ore price with steel production caps in China forecast to land in September or October, and continuing weakness in the Chinese economy.

Sell rating retained. Target price falls to $15.20 from $16.10.

Target price is $15.20 Current Price is $20.50 Difference: minus $5.3 (current price is over target).
If FMG meets the UBS target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.14, suggesting downside of -24.4% (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: -1.0

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

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

Fisher & Paykel Healthcare's September first-half guidance missed both consensus and Morgan Stanley's forecasts, but the broker observes full-year revenue guidance of $1.7bn has been retained.

The company also announced it had received FDA approval for Airvo 3 and for its F&P 950 humidification system in the US, which Morgan Stanley expects will support top-line growth in the March second half.

Equal-weight rating and NZ$24.12 target price retained. Industry view: In-line.

Current Price is $20.23. Target price not assessed.

Current consensus price target is $20.50, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Macquarie rates HLS as Outperform (1) -

Healius earlier this morning released FY23 financials and Macquarie, upon first glance, spotted a net profit that marks a big miss versus market expectations due to underestimation of interest costs.

Operational earnings (EBITDA) proved better-than-expected, while margin expansion is also considered a positive. Adding it all up, the broker thinks this seems like a "decent outcome".

No guidance was quantified for FY24.

Target price is $3.45 Current Price is $2.71 Difference: $0.74
If HLS meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates IFM as Buy (1) -

Infomedia's FY23 cash earnings (EBITDA) outpaced consensus' and UBS forecast due to tight cost control, which resulted in a rise in its recurring EBITDA margin to 21% from 17%. FY24 revenue guidance was in line with slight softness indicated at the midpoint.

The broker appreciates the company's positive jaws, observing a rising sales pipeline, a strong conversion rate, price increases and an exit annual recurring revenue of $132m.

The broker forecasts an EPS annual compound growth rate of 19%. EPS forecasts rise up to 1% over FY24 to FY27.

Buy rating retained. Target price rises to $2 from $1.85.

Target price is $2.00 Current Price is $1.67 Difference: $0.335
If IFM meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

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 IMD as Upgrade to Buy from Neutral (1) -

UBS upgrades Imdex to Buy from Neutral, believing the recent sell-off has been overdone, spying an inflection point in global mineral exploration activity. The broker notes the share price retreat was driven by the tapering off of exploration activity this year.

The broker appreciates the company's strong balance sheet exposure to critical metals withh a proven track record.

On the downside, the company's June half result missed consensus forecasts by -7%, observes UBS, due to higher employee costs related to digital and IMT growth spend.

EPS forecasts fall -10% in FY24 and -7% in FY25, which UBS says are offset by mark-to-market target multiples, resulting in a steady target price of $2.10.

Target price is $2.10 Current Price is $1.61 Difference: $0.49
If IMD meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 24.2% (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 IVC as Hold (3) -

In the wake of the first half results, Ord Minnett reduces 2023 operating EBITDA forecast by -12%. Much of this reduction is because of the updated accounting treatment of pre-paid funerals. Improved profitability is expected in the second half as price increases flow through.

Ord Minnett considers the change to forecasts academic, continuing to expect the proposed takeover by TPG Global will proceed at $12.70 a share, its fair value estimate. Hold.

Target price is $12.70 Current Price is $12.59 Difference: $0.11
If IVC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.95, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Bell Potter rates JLG as Hold (3) -

Johns Lyng’s FY23 result was robust, Bell Potter suggests, headlined by earnings ahead of the broker and revenue up 43% year on year. Strong underlying business-as-usual (BAU) growth was driven by work rate acceleration and higher margin strata acquisitions in the second half.

Management expects a continued ramp-up from recent contract wins, no change in margins with insurers during contract extensions, a headcount in the US increased by a third, and at least two years visibility on a strong domestic catastrophe pipeline.

Johns Lyng’s expectations for 12% organic growth as a baseline in FY24 is a strong starting point, Bell Potter suggests. But the broker retains a cautious view on the outlook for domestic BAU volumes due to the current weather cycle.

Target rises to $6.50 from $6.00, Hold retained.

Target price is $6.50 Current Price is $6.05 Difference: $0.45
If JLG meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 11.2% (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 JLG as Buy (1) -

While earnings in FY23 were in line with expectations, on further analysis Citi highlights margin compression in the second half in the US, despite revenue being higher than what Johns Lyng had previously indicated.

Attention is on the business as usual (BAU) growth in FY24 and, while the company takes a conservative approach when providing first earnings guidance, the broker notes it still implies 48% growth at the EBITDA level.

The broker believes the results and outlook should be well received and retains a Buy rating and $6.50 target.

Target price is $6.50 Current Price is $6.05 Difference: $0.45
If JLG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 11.2% (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 JLG as Outperform (1) -

FY23 results from Johns Lyng beat Macquarie's estimates. Guidance for 18.5% revenue growth in FY24 appears firm with the potential for new work being supportive.

Macquarie retains an Outperform rating, expecting delivery of ongoing BAU (business as usual) earnings growth, along with progress on the US expansion, to provide upside risks to investor forecasts.

The broker's forecasts imply $87m in additional catastrophe and BAU work will be won in FY24 to achieve its forecasts. Target is raised to $7.80 from $7.70.

Target price is $7.80 Current Price is $6.05 Difference: $1.75
If JLG meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 11.2% (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 JLG as Add (1) -

Following a June update, Johns Lyng's FY23 result was broadly in line with Morgans forecasts and management guidance.

The broker suggests positive momentum across the group should flow through to FY24, with guidance implying around 20% business-as-usual (BAU) year-on-year growth.

The analyst expects market share gains across the five key growth pillars in Australia, the US and New Zealand, elevated levels of insurance claims activity and ongoing market consolidation via M&A.

A final dividend of 4.5cps was declared. The Add rating is maintained while the target eases to $7.40 from $7.80.

Target price is $7.40 Current Price is $6.05 Difference: $1.35
If JLG meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 11.2% (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 KLS as Outperform (1) -

Judging from Macquarie's initial assessment, Kelsian Group's FY23 release has missed forecasts at the EBITDA level by some -4% due to lower margins.

Management has guided towards higher capex, -$130m versus Macquarie's estimate of -$102m, for the year ahead. This includes ongoing decarbonisation investment in buses, the broker explains.

Overhead costs equally surprised negatively.

Target price is $8.80 Current Price is $6.63 Difference: $2.17
If KLS meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates KLS as Buy (1) -

Kelsian Group's FY23 performance proved a modest "miss" on higher costs, UBS reports upon initial glance over today's release.

The 17c in dividend is below the forecast 19.5c while capex guidance seems to have surprised negatively too (higher than anticipated).

The broker notes the absence of concrete guidance for FY24 while only minimal insights are provided regarding recent trading conditions.

On the positive side, the broker observes the run-rate of the recently acquired AAHI US business is strong.

Buy. Target $8.10.

Target price is $8.10 Current Price is $6.63 Difference: $1.47
If KLS meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates LGI as Hold (3) -

LGI reported an FY23 result largely in line with Bell Potter's estimates and within the guidance range.

The one slightly disappointing aspect of the result was operating cash flow, which was down -10% year on year. This, along with slightly higher capex, contributed to a cash result which is "concerningly" low despite access to undrawn debt facilities.

The company utilised a significant portion of the IPO funds to pay down its debt facility. The broker has updated commodity pricing and made downward revisions to forecast biogas volume growth in line with management comments.

Target falls to $2.32 from $2.77. Hold retained.

Target price is $2.32 Current Price is $2.05 Difference: $0.27
If LGI meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

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

Bell Potter rates LOV as Buy (1) -

Lovisa Holdings missed Bell Potter's estimates on revenue and earnings, although the result featured a strong gross profit margin beat. The run-rate of new stores missed estimates due to closures in owned stores and due to a shift from franchise to owned stores.

However the broker views the 210 new stores opened in FY23 as strong execution.

Bell Potter's expected comparable sales trends for FY24 see modest changes in the trajectory as the broker continues to estimate -0.5% for FY24. Margins see some uplift to factor in the beat to estimates but on a marginally higher cost of doing business as percentage of sales.

Buy retained on the company's ability to execute its global rollout while remaining more immune to consumer spending pressures given accessible price points, once comparables normalise. Target falls to $29.00 from $30.50.

Target price is $29.00 Current Price is $21.44 Difference: $7.56
If LOV meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 9.3% (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

Bell Potter rates LYC as Buy (1) -

Lynas Rare Earths FY23 results saw profit ahead of Bell Potter on revenue below and a higher cost of goods sold. FY23, by all intents and purposes was a successful year, the broker suggests.

This is despite production issues and weaker NdPr prices. Production of NdPr increased 4% year on year to an all-time record, beating Bell Potter's numbers.

The immediate future is a little murkier as costs are likely to remain at current levels or higher as operations transition to Kalgoorlie
from Malaysia. Finished product stockpiling will continue over the first half which should smooth the sales profile over FY24.

Lynas is a high-quality business, Bell Potter suggests, and a key supplier of separated rare earths to Western economies. The broker  sees the business as being well placed to weather any issues as it transitions operations over the next six months.

Target rises to $8.50 from $7.80, Buy retained.

Target price is $8.50 Current Price is $7.17 Difference: $1.33
If LYC meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 4.7% (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 LYC as Neutral (3) -

FY23 EBITDA beat Citi's estimates. On further analysis of the results the broker upgrades earnings estimates by 17% for FY24 and by 3% for FY25 because of lower operating costs and higher financial income.

This is slightly offset by downward adjustments to rare earths prices and sales volumes. The broker points out prices remain relatively depressed, with current spot prices implying FY24 earnings down -70%. Neutral retained. Target is reduced to $7.35 from $7.60.

Target price is $7.35 Current Price is $7.17 Difference: $0.18
If LYC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 4.7% (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

Macquarie rates LYC as Outperform (1) -

FY23 earnings from Lynas Rare Earths were broadly in line with Macquarie's estimates. The broker increases expenditure estimates for Kalgoorlie to match the company's revised project guidance of -$730m as costs escalated.

The major de-risking event will be achieving first production at Kalgoorlie, expected in the September quarter. Macquarie also lifts estimates for Mount Weld capital expenditure by 20% to -$600m. Outperform retained. Target is steady at $7.70.

Target price is $7.70 Current Price is $7.17 Difference: $0.53
If LYC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 4.7% (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

UBS rates LYC as Neutral (3) -

Lynas Rare Earths' pre-reported FY23 result was in line, save for a capital guidance increase at Kalgoorlie, and UBS is awaiting further FY24 guidance.

Capital expenditure for Kalgoorlie forecasts rose -30% observes the broker in order to meet deadlines, but the project is on track to hit first production in September. FY24 EPS forecasts fall -25%.

The broker says it is unsure a much-anticipated V-shaped recovery in the lithium price will occure and holds a NDPR forecasts of US$65kg for FY24, compared with consensus forecasts of US$85.

Neutral rating retained. Target price falls -4% to $8 from $8.30.

Target price is $8.00 Current Price is $7.17 Difference: $0.83
If LYC meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 4.7% (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

Macquarie rates MHJ as Outperform (1) -

Michael Hill reported record revenue in FY23, driven by a particularly strong first half, Macquarie observes. This was followed by a more challenging second half as macro economic conditions deteriorated.

The broker assesses FY24 shaping up as another challenging year, with the business having to absorb higher labour and rental costs.

The magnitude of the prevailing discount to fair value and the relative defensive nature of the company's gross profit margins still support an Outperform rating, in Macquarie's view. Target is $1.40.

Target price is $1.40 Current Price is $0.92 Difference: $0.485
If MHJ meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

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 MIN as Upgrade to Buy from Neutral (1) -

Further to the FY23 results, which were in line, Citi upgrades to Buy from Neutral, believing expectations for the lithium business are likely to reset and the consensus downgrade cycle is close to its end.

The broker acknowledges the heavy capital expenditure in the current year, but expects the stock to outperform as a less-leveraged lithium exposure.

Mineral Resources has indicated it has no plans for a capital raising, reiterating its assertion the market should not be concerned about the balance sheet. Citi raises the target to $79.00 from $75.50.

Target price is $79.00 Current Price is $69.48 Difference: $9.52
If MIN meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $78.00, suggesting upside of 10.5% (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 MIN as Outperform (1) -

FY23 results from Mineral Resources were better than Macquarie expected in terms of underlying earnings and stronger cash flow.

FY24 guidance indicates lower costs and capital expenditure, compared with prior estimates, although mining services and volumes guidance are weaker.

The major catalyst in the near term are the updates on the ramp up of Wodgina and progress on the Onslow iron ore project.

The key change from incorporating guidance are lower lithium volumes in addition to higher depreciation, and this drives downgrades of -8-9% to the broker's earnings forecasts for FY24 and FY25. Outperform retained. Target is reduced -5% to $92.

Target price is $92.00 Current Price is $69.48 Difference: $22.52
If MIN meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $78.00, suggesting upside of 10.5% (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 MIN as Equal-weight (3) -

Zooming in on Mineral Resources' sustaining capital expenditure for iron-ore, Morgan Stanley observes the company's high reliance on the iron ore price makes it vulnerable to commodity price movements, particularly given its tight balance sheet.

Given the broker's forecast iron ore price is less than the company's, the broker remains circumspect.

While the company highlights its past balance-sheet track record and plans to examine alternative avenues of cash generation, including monetisaton of assets, and that the majority of expenditure is oriented to growth, the broker is prepared to wait.

FY24 EPS and DPS fall sharply.

Equal-weight rating retained. Target price eases to $70 from $70.50. Industry view: Attractive.

Target price is $70.00 Current Price is $69.48 Difference: $0.52
If MIN meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $78.00, suggesting upside of 10.5% (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

Morgans rates MIN as Add (1) -

Mineral Resources delivered FY23 beats versus Morgans expectations for underlying profit, cash flow and the 70cps dividend, which exceeded the 43cps forecast by consensus. Net debt also finished well below expectations at -$1.9bn.

The broker anticipates a significant earnings rise and lower costs once pre-strips at Mt Marion and Wodgina are completed and Onslow comes online. Management commentary confirmed to the analysts a strong overall outlook.

Morgans' $84 target is maintained. It's thought the impact of a slowing China and volatile lithium prices have been overly incorporated into the current share price. Add.

Target price is $84.00 Current Price is $69.48 Difference: $14.52
If MIN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $78.00, suggesting upside of 10.5% (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 MIN as Sell (5) -

Mineral Resources's FY23 result nosed out UBS forecasts, with the dividend outpacing both consensus and the broker.

FY24 guidance was largely as expected (with some softness) save for a -50% worsening (increase) in capital expenditure.

The broker says the balance sheet is tight but is keeping its eye on the prize: a rise in free cash flow in FY25/FY25 as Onslow and Lithium ramp up.

FY24 EPS and DPS forecasts rise sharply. The broker spies possible mark-to-market downgrades in the wings and is waiting for a better entry point.

Sell rating and $64 target price retained.

Target price is $64.00 Current Price is $69.48 Difference: minus $5.48 (current price is over target).
If MIN meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.00, suggesting upside of 10.5% (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 NXT as Overweight (1) -

NextDC's FY23 result met guidance but FY24 guidance disappointed Morgan Stanley due to anticipation of higher spending to fund contract wins and international expansion (bigger and bolder says the broker) - not a bad position to be in.

The broker downgrades earnings (EBITDA) forecasts -6% to -15% for FY24 and FY25. Morgan Stanley expects the investment, if well executed, could result in sharply higher cash flows.

The broker spies a bottoming in US/global cloud demand based on hyperscalers commentary that the market has reached an inflection point. On the flipside, Morgan Stanley suspects more equity may be required to fund growth in the medium to long term, and adds the international expansion strategy involves higher risk.

Morgan Stanley observes the company is trading at a 50% earnings (EBITDA) premium to US peers, which appears to be fair given it is forecast to grow much faster, and the broker's analysis suggests multiples could reach parity by FY28 as contract wins and international cash flows fill the coffers.

FY24 and FY25 EPS forecasts fall to reflect the spend. Overweight rating retained. Target price rises to $14.50 from $12.88. Industry view: Attractive.

Target price is $14.50 Current Price is $13.09 Difference: $1.41
If NXT meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.72, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates NXT as Lighten (4) -

The strong growth in data centres featured in the NextDC FY23 results and the company intends to build a further 47.9 MW of capacity in FY24 that would imply additions of around 60% capacity to its data centres over the two years.

Ord Minnett asserts costs associated with catering for the surge in demand means the anticipated earnings recovery has been pushed back. Management has indicated most of the increased demand is driven by enterprises looking to transfer IT to the cloud.

Ord Minnett reduces near-term earnings forecasts because of the extra costs of rapid expansion and considers the shares slightly overvalued. Lighten. Target rises to $12 from $11.

Target price is $12.00 Current Price is $13.09 Difference: minus $1.09 (current price is over target).
If NXT 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 $14.72, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates PDN as Speculative Buy (1) -

Paladin Energy reported what is likely to be the last set of full year “care and maintenance” results. The FY23 loss was less than Bell Potter's forecast.

The broker reiterates its investment thesis that Langer Heinrich is a proven asset in a known uranium mining jurisdiction with a comparatively low restart risk. At full capacity LH will be a top-ten producer, and uranium market fundamentals remain robust.

Paladin is fully contracted for the first year of operations and substantially contracted for the second year. Bell Potter anticipates demand for material will increase over the next 6-12 months, leading to more long-term offtake contracts.

Target rises to $1.12 from $1.11, Speculative Buy retained.

Target price is $1.12 Current Price is $0.84 Difference: $0.285
If PDN meets the Bell Potter target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting upside of 33.7% (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: 1.0

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

Shaw and Partners rates PDN as Buy (1) -

Paladin Energy's FY23 result and annual report appear to have met Shaw and Partners' forecasts, the broker remaining convinced that the company will benefit from the inclusion of nuclear energy in the global transition's decarbonisation arsenal.

 The company's annual report shows the company plans to restart the Langer Heinrich uranium mine in Namibia with first production scheduled for the March quarter and the broker advises that the budget is on track.

Shaw and Partners believes the company is in a league of its own on a risk-reward basis and spies an impending global supply deficit.

Buy rating and $1.15 target price retained.

Target price is $1.15 Current Price is $0.84 Difference: $0.315
If PDN meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting upside of 33.7% (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: 1.0

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

Macquarie rates PMT as Outperform (1) -

Patriot Battery Metals has completed 35 drill holes for 10,100m since the start of its summer drilling program part of the 30,000m planned over 2023.

Macquarie expects Corvette, currently the largest spodumene deposit in the Americas, could grow to more than 150mt after incorporating this drilling campaign, which would make it globally significant.

Drilling results and the technical report are upcoming catalysts with the latter expected to be filed in the first part of September.

Outperform rating and $2.20 target.

Target price is $2.20 Current Price is $1.30 Difference: $0.9
If PMT meets the Macquarie target it will return approximately 69% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Ord Minnett rates PPS as Buy (1) -

Praemium delivered underlying EBITDA for FY23 which was in line with Ord Minnett's forecasts. The platform margins improved to 27 basis points from 25 basis points in the first half mainly because of cash product re-pricing.

The company has flagged "encouraging" platform flows in July although did not quantify this. The broker increases forecasts by 1-4%, given the slightly better revenue margins. Buy rating reiterated. Target is unchanged at $1.00.

Target price is $1.00 Current Price is $0.63 Difference: $0.375
If PPS meets the Ord Minnett target it will return approximately 60% (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

Morgan Stanley rates PXA as Overweight (1) -

Pexa Group's FY23 result met Morgan Stanley's forecasts at the earnings (EBITDA) levels but disappointed (-$20m) on adjusted EBITDA after add backs of $10.7m for professional fees/integration and other costs.

The broker says the result confirms the company's leadership in its core market but advises that its UK start-up reported wider than forecast losses and expects investors will be waiting to see a clear path to profitability before jumping in.

The broker spies evidence of an inflection point in the Australian real estate market, the company reporting a rise in listing in the first months of FY24.

Overweight retained. Target price falls to $14 from $15. Industry view: Attractive.

Target price is $14.00 Current Price is $11.55 Difference: $2.45
If PXA meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $14.81, suggesting upside of 28.2% (ex-dividends)

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

Ord Minnett rates RED as Speculative Buy (1) -

Ord Minnett found the FY23 results from Red 5 solid and in line with expectations, after a "big" second half performance that increased earnings by $100m on the prior corresponding period.

Strong production was derived from KOTH as higher grades were accessed from the open pit and mining progress through the ultramafic/granodiorite contact.

The broker believes the business screens well versus other long-life producers and expects the discount in the stock will unwind as the company delivers and provides further comfort on the longer-term fundamentals.

Speculative Buy retained. Target rises to $0.26 from $0.23.

Target price is $0.26 Current Price is $0.22 Difference: $0.04
If RED meets the Ord Minnett target it will return approximately 18% (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 RMC as Downgrade to Neutral from Buy (3) -

FY23 results slightly beat expectations although Citi expects the reaction in the share price, up 20%, reflected a reversal of the fears regarding exit net interest margins.

Relative to peers, the broker believes management has exhibited strong pricing discipline and Resimac Group remains relatively resilient in terms of margins in the face of volume attrition.

Margins are expected to stabilise in the first half and the business will re-base assets under management in FY24. Amid risks around funding costs and rising arrears, Citi downgrades to Neutral from Buy and lowers the target to $1.10 from $1.20.

Target price is $1.10 Current Price is $1.06 Difference: $0.045
If RMC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 3.8% (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

Macquarie rates SGR as Upgrade to Outperform from Neutral (1) -

Macquarie considers the June quarter of FY23 the low point for Star Entertainment. The company reported a 34% increase in EBITDA for FY23, ahead of guidance and the broker's estimates. The beat was largely stemming from completion of the cost reduction program.

Macquarie now expects $270m in EBITDA in FY24, implying a -15% decline as revenue trends are below what was seen in early FY23.

Completion of debt refinancing is the next hurdle for the business, expected to be done and dusted in the December quarter.

The business is "not out of the woods" the broker points out but there is enough margin of safety to upgrade to an Outperform rating from Neutral. Target is $1.25.

Target price is $1.25 Current Price is $0.97 Difference: $0.285
If SGR meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 39.7% (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 SLC as Overweight (1) -

Superloop's FY23 earnings (EBITA) met pre-guidance and Morgan Stanley says the highlight of the result was strong cash flow conversion, a welcome reversal of previous performances.

Revenue outpaced consensus by 1%, with strong growth logged across all sectors, and operating cash flow conversion was 122%.

Management forecasts strong growth in FY24 and beyond, advises that due diligence on Symbio Holdings ((SYM)) has been extended by two weeks, and that MyRepublic and Vostro have now been integrated.

Overweight rating retained. Target price steady at $1 and Industry view: In-line.

Target price is $1.00 Current Price is $0.70 Difference: $0.3
If SLC meets the Morgan Stanley target it will return approximately 43% (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

Morgans rates SLC as Add (1) -

Morgans assesses a high quality FY23 result for Superloop which not only beat guidance but also showed positive free cash flow and profit (NPATA) in the 2H. Net debt decreased half-on-half with high operating cashflow conversion and capex held steady.

The analysts highlights 46% year-on-year organic underlying earnings (EBITDA) growth.

Management noted a strong start to FY24 in the consumer segment with a record 10,000 subscribers added in the first two months.

The Add rating is unchanged and the target edges up to $1.07 from $1.06 on largely unchanged broker forecasts.

Target price is $1.07 Current Price is $0.70 Difference: $0.37
If SLC meets the Morgans target it will return approximately 53% (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

Shaw and Partners rates SRV as Buy (1) -

Servcorp's FY23 result met Shaw and Partners forecasts with underlying net profit after tax rising 37% and management guiding to net profit of $41 to $43m in FY24. The company's final 12c dividend outpaced the broker's forecast of 10c, taking the full-year dividend to 22c.

On the downside, non-recurring costs, including impairments and floor closure costs, came in at -$21.4m and capital expenditure missed the broker's forecast of -$14.9m by a decent clip, coming in at -$19.4m.

Cash generation of $61.7m was the star of the show, constituting 20% of the company's $290m market cap, observes the broker, and the company expects this to rise to $65m in FY24.

Shaw and Partners observes the company is trading at half the multiple of UK-listed competitor IWG PLC and that its financial metrices compare very well will US-listed WeWork (which recently filed for bankruptcy - a development the broker considers will be positive for Servcorp).

Buy rating and $5.60 target price retained.

Target price is $5.60 Current Price is $2.99 Difference: $2.61
If SRV meets the Shaw and Partners target it will return approximately 87% (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

Macquarie rates SYA as Outperform (1) -

Sayona Mining's production ramp up and first shipments in August have de-risked the North American lithium operation, Macquarie asserts.

The company's current share price implies spodumene prices of less than US$1600/t, while the broker's valuation more than doubles at spot prices.

The company has recently appointed James Brown as interim CEO who will oversee operations and the board restructure during the transition period. Macquarie reiterates an Outperform rating and $0.20 target.

Target price is $0.20 Current Price is $0.12 Difference: $0.085
If SYA meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Symbio Holdings's FY23 earnings (EBITDA) outpaced guidance and its gross profit met Morgan Stanley's forecasts. FY24 guidance was upbeat and met the broker, thanks in part to a forecast cut in operating expenditure and flat capital expenditure.

The company announced a two-week extension to bidder Superloop's ((SLC)) exclusivity period.

Equal-weight rating and $2.85 target price retained (the acquisition price). The broker held an Overweight rating on August 10. Industry view: In line.

Should the deal not be finalised, the broker's target price drops to $2.30.

Target price is $2.85 Current Price is $2.35 Difference: $0.5
If SYM meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates THL as Add (1) -

High rental yields, merger synergies and the post-covid travel recovery combined to deliver an FY23 result for Tourism Holdings Rentals that was ahead of Morgans forecasts.

Underlying profit of NZ$47.8m was in line with consensus. Sales margins for vehicles were higher than expected in the UK/EU in the 2H, while rental yields across A&NZ, the US, Canada and the UK/EU were up by between 20-85% compared to pre-covid.

A final 15cps dividend was declared. No FY24 management guidance was provided though the analysts note generally positive outlook commentary.

The target falls to $5.02 from $5.30. Add.

Target price is $5.02 Current Price is $3.59 Difference: $1.43
If THL meets the Morgans target it will return approximately 40% (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: 1.0

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

Ord Minnett rates THL as Buy (1) -

Tourism Holdings Rentals posted FY23 normalised net profit that was ahead of expectations. For Ord Minnett this highlights a business that has emerged from the pandemic as a significant structural winner, positioned to benefit from category growth in the RV segment.

RV prices are now normalising, with motorhomes generally holding value relative to towables. While the North American/Canadian business appears most at risk at this point, Ord Minnett is comfortable this is factored into earnings assumptions.

Buy rating retained. Target rises to NZ$5.62 from NZ$5.46.

Current Price is $3.59. Target price not assessed.

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: 1.0

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

Ord Minnett rates TRJ as Buy (1) -

FY23 results from Trajan Group reflected easing cost pressures and a jump in gross profit margins in the second half to 45.5%. Ord Minnett notes acquisitions contributed $10m to earnings with further synergies to come.

Management expects the recent de-stocking of analytical products will abate by the second half of FY24. Ord Minnett assesses, with modest gearing of 29%, the business is well-placed for further M&A. Buy rating retained. Target is reduced to $2.35 from $2.50.

Target price is $2.35 Current Price is $1.59 Difference: $0.76
If TRJ meets the Ord Minnett target it will return approximately 48% (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

Macquarie rates TYR as Outperform (1) -

Tyro Payments posted FY23 earnings that were in line with guidance, having been upgraded several times during the year. Guidance for FY24 EBITDA of $52-58m has driven upgrades to estimates, particularly for the outer years.

Macquarie observes there appears to be an element of conservatism based on management commentary regarding churn and average turnover per merchant and, given the macro outlook, considers this appropriate. Outperform retained. Target rises to $1.85 from $1.80.

Target price is $1.85 Current Price is $1.29 Difference: $0.56
If TYR meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 38.6% (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

Morgans rates TYR as Add (1) -

Consensus was expecting an FY23 profit of $2m and Tyro Payments delivered $6m, while FY24 earnings (EBITDA) guidance was also a 14% beat.

Morgans highlights the company turned both free cash flow positive and profitable over the period and considers the company's outlook is now significantly de-risked.

The broker raises its FY24 and FY25 EPS forecasts by 12% and 19% respectively, on increasing operating leverage assumptions.

The target rises to $1.85 from $1.75. Add.

Target price is $1.85 Current Price is $1.29 Difference: $0.56
If TYR meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 38.6% (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 WAF as Outperform (1) -

First half underlying earnings were in line with expectations. Net profit of $82m was below Macquarie's forecasts largely because of higher depreciation and tax charges.

West African Resources has retained 2023 guidance and Macquarie expects 224,000 ounces at an AISC of US$1163/oz. The broker assesses the business is well funded to develop Kiaka and retains an Outperform rating with a $1.60 target.

Target price is $1.60 Current Price is $0.85 Difference: $0.755
If WAF meets the Macquarie target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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