Australian Broker Call

Bell Potter rates 5GG as Downgrade to Hold from Buy (3) -

Pentanet reported a 7% year-on-year revenue increase over the first half to $10.4m, comprised of a 3% increase in network revenue and a 91% increase in cloud gaming revenue. An earnings loss of -$0.2m was a modest beat to Bell Potter's forecasts. 

The company reported 190 on-net adds during the half, with network capacity constraints restricting the company to 345 on-net subscribers since the start of FY23. The broker's forecast requires an acceleration of monthly adds to 105, from a current 30, in the second half.

The rating is downgraded to Hold from Buy and the target price decreases to 7 cents from 8 cents.

Target price is $0.07 Current Price is $0.06 Difference: $0.015
If 5GG meets the Bell Potter target it will return approximately 27% (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

Shaw and Partners rates 5GG as Buy (1) -

Pentanet's H1 report didn't quite meet expectations and Shaw and Partners has reduced forecasts which have decreased the broker's price target to 16c from 20c.

But the broker keeps a positive view, maintaining Pentanet is on track to becoming EBITDA-positive in FY25, with NPAT-positive to follow down the track.

The broker maintains the shares will re-rate once the company becomes cash flow positive and demonstrates acceleration in growth in subscribers.

The broker's confidence remains intact, which is why the rating remains Buy.

Target price is $0.16 Current Price is $0.06 Difference: $0.105
If 5GG meets the Shaw and Partners target it will return approximately 191% (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

Ord Minnett rates ACL as Accumulate (2) -

Australian Clinical Labs has reported a first half revenue decline of -6% to $337m, and an earnings decline of -33% to $23m. Ord Minnett explains the result was largely within its expectations, with benefits of higher-margin covid revenue declining -76%.

The company has downgraded full year earnings guidance by -7% at the midpoint, now anticipating a result of $60-65m. Ord Minnett does, however, feel the market is underestimating the speed and extent of doctor visits recovering. 

The Accumulate rating and target price of $3.50 are retained.

Target price is $3.50 Current Price is $2.39 Difference: $1.11
If ACL meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 30.0% (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 AFG as Upgrade to Neutral from Sell (3) -

Australian Finance Group reported earnings -17% below Citi's forecasts. While the broker had feared higher costs heading into the result, the miss was more of a function of difficult manufacturing profitability.

While management had flagged higher costs, Citi expects the -$20m investment in 1H24 and further -$20-30m surprised the market.

Given the intensity of current market competition, the broker believes it remains early days to judge whether the company will get a sufficient return on this spend.

At the least it should shore up its distribution business, which is the key enabler of growing its manufacturing business long-term. Given the significant share price pull back, Citi upgrades to Neutral from Sell. Target unchanged at $1.50.

Target price is $1.50 Current Price is $1.49 Difference: $0.01
If AFG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Macquarie rates AFG as Neutral (3) -

First half net profit was below Macquarie's estimates. Australian Finance Group's residential upfront payout ratio increased to 96%. The non-bank market share improved in the second quarter and is at the highest level since the first quarter of FY23.

Macquarie assesses the home loan product share and margins remain key to stabilising the company's earnings as it continues to work through the technical investment program and diversify. Broker numbers have increased and market share of active brokers is now at 21%.

The broker retains a Neutral rating and reduces the target to $1.47 from $1.54.

Target price is $1.47 Current Price is $1.49 Difference: minus $0.02 (current price is over target).
If AFG meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 AGI as Outperform (1) -

Ainsworth Game Technology's 2023 result was consistent with recent guidance, Macquarie observes. A step up in product development is showing signs of early success and the broker was pleased with the performance, albeit early days.

For the first time in some years the company has launched new product that is performing well in the key North American market.

The main disappointment was the ongoing anticipation of the conclusion of a strategic review. An update is expected in late 2024 but the broker finds it unclear just what is being assessed, although understands a US listing is under consideration.

Outperform rating and target raised to $1.45 from $1.35.

Target price is $1.45 Current Price is $1.14 Difference: $0.31
If AGI meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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) -

Morgans has issued a correction to its earnings forecasts for Adrad to allow for the impact of the AASB16 accounting standard on underlying earnings (EBITDA). Base assumptions for FY24 are unchanged.

The Add rating is maintained and the target rises to $1.45 from $1.30.

Target price is $1.45 Current Price is $0.82 Difference: $0.635
If AHL meets the Morgans target it will return approximately 78% (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 ALX as Neutral (3) -

Macquarie found the 2023 performance by Atlas Arteria sound although earnings were lower than expected. The distribution guidance for 2024 of $0.40 is in line.

The broker finds the cash flow outlook of $0.32-33 conservative, noting the cash balance remains healthy.

At Greenway, the broker notes clarity will be provided in coming weeks on whether the bill to negotiate becoming a traditional concession holder has been progressed. This creates an option for future value. Neutral. Target is lowered to $5.44 from $5.80.

Target price is $5.44 Current Price is $5.40 Difference: $0.04
If ALX meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.90, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

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 ALX as Hold (3) -

Morgans makes no material changes to its forecasts for Atlas Arteria following broadly in-line 2H results.

The broker feels surplus cash and another capital release over time can make up the potentail shortfall if cashflow remains below FY24 DPS guidance in coming years. 

While the FY24 dividend guidance for 40cps shouldn't surprise followers of the stock, the analyst believes the broader market may be disappointed 7-8cps of cash on hand will be required to support the payout.

Morgans predicts a 40cps dividend could be sustained for the rest of the decade, based on the broker's underlying free cashflow forecasts.

The Hold rating is unchanged and the target rises to $5.63 from $5.61.

Target price is $5.63 Current Price is $5.40 Difference: $0.23
If ALX meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.90, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

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 APM as No Rating (-1) -

It is a challenging operating environment, UBS notes, with stubbornly low levels of unemployment impacting APM Human Services International's pool of candidates in both Australia and the UK, driving a -12% year on year decline in first half earnings, in line with guidance.

UBS is on research restriction.

Current Price is $1.64. Target price not assessed.

Current consensus price target is $1.57, suggesting downside of -6.9% (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 ART as Add (1) -

While Airtasker's 1H result was largely pre-released, Morgans describes a solid performace in light of the challenging environment for the consumer.

Revenue grew by 7% on the previous corresponding period, on an improved take-rate, and positive free cash flow was achieved. The analyst was pleased by a 34% rise in Australian marketplace earnings to $15.9m.

The Add rating and 54c target are unchanged.

Target price is $0.54 Current Price is $0.27 Difference: $0.275
If ART meets the Morgans target it will return approximately 104% (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

Citi rates ASG as Buy (1) -

Autosports Group's 1H results, back on February 22, were 2% ahead of forecasts by Citi and consensus.

The broker raises earnings estimates to reflect increased used vehicle revenue growth as trade-in ratios improve and improved gross margins, with new car margins holding above the analyst's prior expectations.

Gross margins lifted by 20bps half-on-half due to a mix shift towards back-end revenues, which are higher margin, explains the broker. 

Management believes new vehicle margins normalised in the June quarter of 2023.

The target rises to $3.15 from $3.10  and the Buy rating is maintained.

Target price is $3.15 Current Price is $2.33 Difference: $0.82
If ASG meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 35.5% (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 CAJ as Buy (1) -

Capitol Health has reported a 20% year-on-year revenue increase over the first half to $118m, while adjusted earnings increased 22% to $24m and adjusted net profits increased 6% to $5m.

According to Ord Minnett, operating trends are improving and profitability jaws widening for the company. The broker points out the company continues to invest in higher end modalities, and believes this makes Capitol Health a more attractive target within the sector.

The Buy rating is retained and the target price increases to 31 cents from 30 cents.

Target price is $0.31 Current Price is $0.28 Difference: $0.035
If CAJ meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $0.30, suggesting upside of 9.9% (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

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

After having reviewed City Chic Collective's first half result on Thursday, Morgan Stanley has today increased its target to 50c from 40c.

Equal-weight retained. Industry view: In-Line.

Target price is $0.50 Current Price is $0.44 Difference: $0.06
If CCX meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.59, suggesting upside of 33.2% (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 CKF as Downgrade to Sell from Neutral (5) -

As Citi believes there is a greater risk that same store sales (SSS) growth in Australia slows for Collins Foods over the remainder of the 2H, the rating is downgraded to Sell from Neutral and the target reduced to $10.60 from $11.93.

The broker points out Inghams Group ((ING)), which is one of Collins Foods' four chicken suppliers, recently revealed a decline in poultry volumes sold in the quick service (QSR) channel in Australia.

Other data points suggest to the analysts softer trading in Australia driven by higher cost-of-living pressures, while other cost pressures also remain elevated.

Target price is $10.60 Current Price is $11.00 Difference: minus $0.4 (current price is over target).
If CKF 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 $12.28, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in May.

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

Bell Potter rates CLU as Buy (1) -

A largely in line first half result from Cluey, says Bell Potter, with the company delivering an -18% year-on-year revenue decline to $17.0m and 47% year-on-year earnings growth to -$3.9m, the latter a slight miss to the broker's forecast.

The broker points revenue was impacted by reduced customer acquisition spend in a bid to preserve cash and the wider macro environment, while earnings reflected ongoing strategy to reduce cash burn and decrease costs. 

Cluey suggested additional cost savings and efficiencies to be implemented in the third quarter should drive annualised savings of $3.6m. 

The Buy rating and target price of 20 cents are retained.

Target price is $0.20 Current Price is $0.09 Difference: $0.109
If CLU meets the Bell Potter target it will return approximately 120% (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 CMW as Downgrade to Hold from Accumulate (3) -

The potential buyer of Cromwell Property's Polish assets has reduced its offer by -8% following due diligence, but has laid out a significant deposit. This latter point encourages Ord Minnett to consider it likely that the sale will proceed.

The company has suggested look-through gearing could reduce to 41.9% if the sale of its Polish assets, alongside some Australian assets contracted for sale, goes ahead.

The rating is downgraded to Hold from Accumulate and the target price of 70 cents is retained.

Target price is $0.70 Current Price is $0.40 Difference: $0.3
If CMW meets the Ord Minnett 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: 0.0

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

Bell Potter rates DOC as Buy (1) -

Doctor Care Anywhere reported full year year-on-year revenue growth of 31% to GBP38.5m, with an improved earnings loss of -GBP8.4m. Bell Potter explains the result was a combination of revenue growth, improved margins and lower operating costs. 

The company is anticipating 5-10% revenue growth over the first half, noting clear improvement in trading conditions and the increased availability of general practitioners to the platform.

The Buy rating is retained and the target price increases to 12 cents from 7 cents.

Target price is $0.12 Current Price is $0.07 Difference: $0.05
If DOC meets the Bell Potter target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in GBP. 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 DYL as Speculative Buy (1) -

Morgans revisits the investment case for Deep Yellow. The broker's Speculative Buy rating is based on capital upside potential from the Tumas (Namibia) and Mulga Rock (Australia; WA) uranium deposits.

Management's aspirational goal is to produce 10mlb per year of U3O8.

The Tumas project is the more advanced of the two, explains the broker, and a final investment decision (FID) is expected in the 3Q of 2024. 

The resource at the fully-permitted Mulga Rock operations has now been increased and upgraded ahead of a revised definitive feasibility study (DFS), notes the analyst.

The target is increased to $1.64 from $1.47.

Target price is $1.64 Current Price is $1.36 Difference: $0.28
If DYL meets the Morgans target it will return approximately 21% (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 EML as Hold (3) -

Ord Minnett considers EML Payments' first half results a 'pivotal turning point' for the company, after suffering through regulatory compliance issues for nearly three years.

The company reported earnings of $29m in the period, more than doubling the result achieved in the year prior. Earnings margins lifted to 19.4% from 11.5%, underpinned by recurring revenue growth across all segments.

The Hold rating and target price of $1.00 are retained.

Target price is $1.00 Current Price is $0.99 Difference: $0.01
If EML meets the Ord Minnett target it will return approximately 1% (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 EOS as Buy (1) -

Bell Potter has described an impressive full year result from Electro Optic Systems, with the company reporting an earlier than anticipated return to positive earnings.

While Bell Potter had not anticipated a positive earnings result from Electro Optic Systems until FY25. The company reported underlying earnings of $5.7m, driven by substantial gross margin expansion.

 The broker makes minor revenue downgrades across its forecast period, but more significant margin upgrades. The Buy rating is retained and the target price increases to $2.30 from $1.60.

Target price is $2.30 Current Price is $1.83 Difference: $0.475
If EOS meets the Bell Potter target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 GDG as Add (1) -

Generation Development's 1H underlying profit exceeded the forecasts of Morgans and consensus by 2% due to a stand-out performance by Lonsec, which covered for a slight miss for the Investment Bond (IB) business.

The IB division's performance was impacted by a lower Life Management Fund Benefit, explains the broker.

The Lonsec earnings margin rose to 38% from 32% in the previous corresponding period, notes the analyst, thanks to recent productivity/efficiency programs and growth for the Lonsec Investment solutions business

The Add rating is unchanged and the target rises to $2.30 from $2.01.

Target price is $2.30 Current Price is $1.91 Difference: $0.395
If GDG meets the Morgans target it will return approximately 21% (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 HCL as Buy (1) -

A disappointing first half result from HighCom, particularly when compared to the record first half of the previous year, but Bell Potter points out this was flagged.

Revenue declined -69% year-on-year to $14.9m, 7% ahead of the broker's forecast. A gross margin tumble was steeper than the broker had anticipated, dropping to 21.6% compared to the 50.7% reported in the first half of the previous year.

Earnings came in at -$12.3m, with a net loss of -$13.5m. The Buy rating and target price of 35 cents are retained.

Target price is $0.35 Current Price is $0.14 Difference: $0.205
If HCL meets the Bell Potter target it will return approximately 141% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 HVN as Buy (1) -

Harvey Norman reported profit 1% ahead of Citi. The broker continues to expect a strong recovery in FY25 earnings, underpinned by the Franchise segment.

Citi sees Harvey Norman as highly leveraged to rising house prices and its target market will most benefit from the stage three tax cuts. Earnings forecasts are largely unchanged.

Target rises to $5.50 from $4.60, Buy retained.

Target price is $5.50 Current Price is $4.95 Difference: $0.55
If HVN meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting downside of -5.2% (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 HVN as Neutral (3) -

Harvey Norman's first half result was ahead of expectations despite sales being down -10%. Macquarie observes January trading was positive in all markets except New Zealand and consumer behaviour is showing signs of improvement globally.

The company is aiming for significant growth in Malaysia with 80 stores by the end of 2028 and a new store in England will open by the end of 2024.

Macquarie continues to look for exposure to the consumer discretionary sector and believes the strong balance sheet and offshore growth options position Harvey Norman well.

The main issue is the rapid rise in the share price over recent weeks. The broker looks to accumulate on any weakness. Neutral retained. Target rises to $5.10 from $4.40.

Target price is $5.10 Current Price is $4.95 Difference: $0.15
If HVN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting downside of -5.2% (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 HVN as Underweight (5) -

Harvey Norman's earnings beat Morgan Stanley driven by improved margins, with sales as expected. Same-store sales fell -10.2% over the period but improved from -13.9% in the Sep Q to -6.5% in the Dec Q.

Australian sales were up 0.6% in January but down -7.0% in New Zealand. Other offshore markets returned to growth, the broker notes.

Lower inventory funding requirements, as franchisee focused on maintaining "efficient inventory levels amid the subdued discretionary retail environment" resulted in improvements in operating cashflow and cash conversion.

Underweight and $3.50 target retained. Industry view: In-Line.

Target price is $3.50 Current Price is $4.95 Difference: minus $1.45 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.72, suggesting downside of -5.2% (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

Ord Minnett rates HVN as Downgrade to Lighten from Hold (4) -

A -7% first half sales decline from Harvey Norman over the first half tracks with Ord Minnett's expectations for the retailer. The company reported a profits after tax decline of -29% year-on-year to $214m. 

The broker retains its expectations of a rebound in sales and earnings from FY25, anticipating a strengthening in global consumer demand.

The rating is downgraded to Lighten from Hold and the target price increases to $4.00 from $3.90.

Target price is $4.00 Current Price is $4.95 Difference: minus $0.95 (current price is over target).
If HVN meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.72, suggesting downside of -5.2% (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 HVN as Buy (1) -

Harvey Norman's H1 revenue made a big plunge but as it was reported interim numbers proved better than what UBS had penciled in.

Earnings forecasts have thus been upgraded with Singapore and Malaysia key drivers, while Slovenia and Croatia offer negative offset.

After a tough period, UBS believes the future is looking brighter for franchisees in Australia. As sales improve, margins should follow suit.

Valuation/price target jumps to $5.50 from $4.75. Buy.

Target price is $5.50 Current Price is $4.95 Difference: $0.55
If HVN meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting downside of -5.2% (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

Morgans rates IME as Speculative Buy (1) -

Revenue for ImExHS in FY23 was in line with Morgans forecast, but earnings (EBITDA) fell short of the broker's estimate as the services division created a margin drag across the business due to higher software development costs.

The key forward metric, according to the broker, is annual recurring revenue (ARR), which rose by 27% on the previous corresponding period to $25m (Radiology services $14.5m, Software $10.5m).

Management guided to FY24 revenue growth of 22-37%, underlying earnings in the range of $1.5-3.5m and further operating cash flow (OCF) improvement over FY24.

Speculative Buy. The target falls to $1.50 from $1.80.

Target price is $1.50 Current Price is $0.62 Difference: $0.88
If IME meets the Morgans target it will return approximately 142% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 JMS as Outperform (1) -

First half results from Jupiter Mines were in line with Macquarie's expectations albeit materially softer because of weak manganese prices. The broker welcomes the $1 dividend which translates to an annualised 12% yield.

The company is intent on becoming the largest manganese producer globally and the broker assesses detailed planning outcomes for efficiency programs and the downstream EV option remain the catalysts over 2024.

Outperform and 25c target retained.

Target price is $0.25 Current Price is $0.18 Difference: $0.07
If JMS meets the Macquarie target it will return approximately 39% (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 KAR as Buy (1) -

Karoon Energy's FY23 result was largely in line with consensus expectations. Citi believes a strong cash result highlights potential for free cash flow (FCF) generation to positively surprise.

When the broker plugs a US$60/bbl oil price into its financial model for 2025, Karoon could earn around 40% of its market capitalisation in free cash flow (FCF) over the next 24 months.

No final dividend was declared. The Buy rating and target price of $3.00 are retained.

Target price is $3.00 Current Price is $1.94 Difference: $1.065
If KAR meets the Citi target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Macquarie rates KAR as Outperform (1) -

Karoon Energy delivered a strong result that was ahead of Macquarie's expectations. Cash flow was a record US$303m. The main focus is now on Who Dat exploration and appraisal drilling.

The broker observes, amid a relatively fixed cost base, production and oil prices remain the drivers for the business. The share price is also yet to reflect the "high probability" US Gulf of Mexico drilling campaign along with the Neon opportunity, in the broker's view.

Outperform retained. Target rises to $2.65 from $2.60.

Target price is $2.65 Current Price is $1.94 Difference: $0.715
If KAR meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Morgan Stanley rates KAR as Overweight (1) -

Karoon Energy's underlying proft was up 128% half on half, in line with Morgan Stanley, owing to higher production, higher prices and lower costs. 2024 guidance remains unchanged.

Unit production costs decreased by -35%, -3% more than Morgan Stanley's forecast, owing largely to a fixed cost base in Brazil, and low production costs in the Gulf of Mexico.

 Overweight and $2.49 target retained. Industry View: Attractive.

Target price is $2.49 Current Price is $1.94 Difference: $0.555
If KAR meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

Ord Minnett rates KAR as Accumulate (2) -

Karoon Energy reported a first half profit after tax increase of 76% to US$145m, the result proving slighlty better than Ord Minnett had anticipated which the broker explains by better than expected operating costs.

Following the first half result, Ord Minnett has lifted its full year earnings per share forecast by 12% to 64 cents, although the company retains the guidance provided in January for production of 11.2.-13.5m barrels of oil equivalent over 2024.

The Accumulate rating and target price of $2.65 are retained.

Target price is $2.65 Current Price is $1.94 Difference: $0.715
If KAR meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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 interim performance met UBS's expectations on the operational side but higher depreciation and higher interest expenses caused the reported numbers to disappoint.

The broker is quick in pointing out its longer term investment thesis has not been impacted. Bus earnings in Australia should prove much better in H2, alongside other supportive items.

UBS has taken the opportunity to scale back growth expectations, which has pulled back the valuation/price target to $7.70 from $7.90. Buy.

Target price is $7.70 Current Price is $6.04 Difference: $1.66
If KLS meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $7.10, suggesting upside of 16.3% (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

Citi rates LIC as Buy (1) -

First half operating EPS for Lifestyle Communities missed forecasts by consensus and Citi by -40% and -38% respectively, driven by lower settlements.

Management noted settlement time frames have extended by around 90 days given low consumer confidence in building, and customers wanting to see their completed homes before they list their existing homes for sale.

Importantly, suggests the broker, the company has retained three-year volume guidance of 1,400-1,700 homes, implying the shortfall this year will likely be made up over the next couple of years.

Management also announced a 1:6.08 accelerated non-renounceable entitlement offer to raise around $275m at an issue price of $16/share, which has the potential to drive medium-term earnings growth upside, according to Citi.

The target falls to $20 from $20.78 and the Buy rating is unchanged.

Target price is $20.00 Current Price is $15.35 Difference: $4.65
If LIC meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $18.00, suggesting upside of 16.0% (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

Morgans rates M7T as Add (1) -

Morgans leaves forecasts unchanged for Mach7 Technologies following 1H results, as there were no major surprises given a recent trading update. Financials demonstrated the accelerating transition toward subscription deals, notes the broker.

Contracted annual recurring revenue (CARR) rose by 30% over the period, while 87% of sales orders were due to recurring-style subscription and maintenance contracts, explain the analysts.

The Add rating and $1.56 target are unchanged. Morgans points out the primary indicator of future contract growth continues to rise, with the sales order book increasing by 92% to $49.5m.

Target price is $1.56 Current Price is $0.67 Difference: $0.895
If M7T meets the Morgans target it will return approximately 135% (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 MAP as Buy (1) -

Microba Life Sciences has reported first half revenue of $3.3m, relfecting a 52% year-on-year increase but a flat half-on-half result. Operating expenditure increased 74% year-on-year to $15.7m, driving a -$10.9m earnings loss.

Bell Potter was left disappointed by the earnings result, but still retains its full year expectations, explaining the skew in research and development expense appears likely to be to the first half, rather than the second as originally assumed

Elsewhere, the company's strategic partner, Sonic Healthcare ((SHL)) prepares to launch its MetaPanel product.

The Buy rating is retained and the target price decreases to 35 cents from 44 cents.

Target price is $0.35 Current Price is $0.18 Difference: $0.17
If MAP meets the Bell Potter target it will return approximately 94% (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 MDR as No Rating (-1) -

Morgans offers no 12-month target or rating for MedAdvisor, but is keeping tabs on the company's progress, including a review of yesterday's 1H result, which proved in line with forecasts as numbers had been pre-released.

The gross margin fell by -240bps on the previous corresponding period to 57.6% due to a higher share of lower-margin revenue in traditional health communications programs in the US, explains the analyst.

Investment into the UK has completed, as has the transition to the SaaS platform, notes the broker.

Management is aiming to optimise a cloud-native platform by investing in a shared service structure, which should reduce operating costs over time, observes Morgans.

Management is guiding to profitability in FY24.

Current Price is $0.32. Target price not assessed.

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 MMI as Buy (1) -

Metro Mining's 2023 market release was indicative of a mining company that has undergone a significant turnaround, suggest analysts at Shaw and Partners.

Sales guidance for 6.3 to 6.8mt by the end of 2024 is higher than the broker's 6mt forecast. As per the broker, such volumes with a margin of $17/t implies EBITDA of $107-115m.

Metro Mining is one of Shaw and Partners’ top ten small cap picks for 2024. The miner is a bauxite producer from its Bauxite Hills operation in far north Queensland.

Buy. Target price has gained 1c to 7c.

Target price is $0.07 Current Price is $0.03 Difference: $0.04
If MMI meets the Shaw and Partners target it will return approximately 133% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MYS as Buy (1) -

Ord Minnett has taken over coverage of Mystate after previously white labelling from Morningstar. The broker assesses the first half as a cyclical earnings trough for retail banks and forecasts FY24 earnings to fall -9%.

Long-term value in the stock is envisaged, with a 12-month total return of 32%. A FY24 gross dividend yield of 10.3% is considered attractive for income investors.

The broker believes the business is well managed, with leverage to the improving retail banking and housing cycles over the next 2-3 years. Buy rating and $3.95 target.

Target price is $3.95 Current Price is $3.18 Difference: $0.77
If MYS meets the Ord Minnett target it will return approximately 24% (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 NIC as Buy (1) -

Nickel Industries' FY23 result was 4% better than Citi at the earnings line. A key difference was the inclusion of the company's 10% share of ENC HPAL through the P&L. The broker has trimmed its FY24 earnings forecast by -11% on a lower nickel price forecast.

While Citi is bearish near-term on nickel, the broker notes Nickel Industries is positioned in the first quartile of the cost curve (low cost), has higher-margin production ramping up and is slowly moving left on the carbon intensity cost curve (reducing).

Buy and 80c target retained.

Target price is $0.80 Current Price is $0.71 Difference: $0.095
If NIC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 48.5% (ex-dividends)

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 NIC as Outperform (1) -

Nickel Industries posted 2023 earnings that were ahead of expectations. The business has remained profitable throughout a period of severe weakness in the nickel price, Macquarie observes, with nickel prices down -45% over the last 12 months.

Nickel Industries remains well capitalised to fund the ENC HPAL project development, the broker adds, with net debt of US$66m and the US$210m of undrawn bank facility at its disposal.

The company is awaiting Australia's FIRB approval of its US$100m share buyback, which should then support the share price. Macquarie retains an Outperform rating and $1.10 target.

Target price is $1.10 Current Price is $0.71 Difference: $0.395
If NIC meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 48.5% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates NTD as No Rating (-1) -

While Morgans will continue to monitor the progress of National Tyre & Wheel, forecasts, target price and a rating will no longer be provided.

Despite improving margins in the 1H of FY24, a lower revenue outcome resulted in lower underlying earnings  and profit (NPATA). Revenues were impacted due to the discontinuation of certain low-margin Tyres4U brands.

The analyst notes short-term earnings volatility as the company transitions to refocus the business for the long-term.

Current Price is $0.62. Target price not assessed.

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

Macquarie rates NXT as Outperform (1) -

Further to the first half result from NextDC, Macquarie notes contracted utilisation from hyper-scale customers provides the visibility on revenue and EBITDA. There is also the medium term potential for AI and transition to the cloud.

A record contracted capacity is expected in FY24, which implies a minimum 15MW in the second half, driven by hyper-scale.

The broker also notes the AI opportunity has been quantified as 3-5x the current hyper-scale demand per availability zone of 150-300 MW. All new projects are on track with the exception of AK1 because of discussions with the NZ government regarding additional floors.

Target is raised to $20 from $17 and an Outperform rating is maintained.

Target price is $20.00 Current Price is $17.65 Difference: $2.35
If NXT meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $18.77, suggesting upside of 12.2% (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

Ord Minnett rates NXT as Lighten (4) -

First half results suggest to Ord Minnett a "huge wall of customer demand" with larger opportunities now being discussed. NextDC has guided to unchanged revenue of $400-415m, which the broker expects could be beaten.

A forward order book of 68.8 MW should begin to convert to revenue by the end of FY24 and ramp up over FY25-29.

Ord Minnett notes the strong liquidity yet points out, with such robust demand, earnings and cash flow in the short to medium term could be negatively affected because of the length of time it takes to plan, build and fit out centres. Lighten rating and $14 target.

Target price is $14.00 Current Price is $17.65 Difference: minus $3.65 (current price is over target).
If NXT meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.77, suggesting upside of 12.2% (ex-dividends)

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 ORI as Downgrade to Neutral from Buy (3) -

Following the earnings accretive -US$640m Cyanco acquisition, to be funded from Orica's existing cash and debt facilities alongside a now completed $400m institutional placement, Citi raises its target to $18.50 from $17.00.

Retail investors can also participate via a share purchase plan capped at $65m.

As the Orica share price has rallied by 15% since the end of last-October, the broker's rating is downgraded to Neutral from Buy.

Target price is $18.50 Current Price is $17.11 Difference: $1.39
If ORI meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.19, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in September.

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 PER as Speculative Buy (1) -

There were no surprises for Morgans contained within 1H results for Percheron Therapeutics (formerly Antisense Therapeutics) due to the recent quarterly update.

The net loss in the period improved by 10% on the previous corresponding period due to the completion of higher R&D eligibility works. The cash balance of $17.2m is considered strong and there is zero debt.

The broker considers Percheron has one of the best risk/return profiles in the sector, along with a strong board and management team.

The Speculative Buy rating and 23c target are maintained.

Target price is $0.23 Current Price is $0.09 Difference: $0.143
If PER meets the Morgans target it will return approximately 164% (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 PPM as Neutral (3) -

Citi increases its target for Pepper Money to $1.55 from $1.40 and retains a Neutral rating following yesterday's initial research on the FY23 result, summarised below.

In an early assessment of today's FY23 result released by Pepper Money, Citi noted an underlying profit beat of between 8-12% against consensus forecasts, largely due to lower bad and doubtful debts (BDD). The 2% net interest margin (NIM) met expectations.

Overall, the broker assessed a largely in-line result.

The -$40m BDD charge, compared to the consensus expectation for -$55m, related to a whole of loan sale in asset finance releasing a provision model overlay, explains the broker. Adjusting out this difference, revenue ex-BDDs was in line.

While lending assets under management (AUM) beat expectations, slowing mortgage churn was responsible, rather than better originations, notes Citi.

A 10% buyback and higher dividend payout ratio in future periods was announced, which suggests to the broker slower growth and a smaller balance sheet going forward.

The analyst believes near-term return on equity (ROE) improvement is being prioritised over long term-value creation.

Target price is $1.55 Current Price is $1.50 Difference: $0.05
If PPM meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 PPM as Upgrade to Outperform from Neutral (1) -

Pepper Money has experienced significant funding cost headwinds, Macquarie observes, and as this normalises the revenue outlook should improve.

Results in the second half were weighed down by margin headwinds, front-to-back book competition, and the mix shift in the asset finance book.

The broker assesses, while mortgage volumes continue to shrink and banks face deposit competition, this may open up the opportunity for non-banks to return to growth.

As the stock is trading at only 7x PE, the broker suggests the downside risks are factored in and upgrades to Outperform from Neutral. Target is raised to $1.70 from $1.35.

Target price is $1.70 Current Price is $1.50 Difference: $0.2
If PPM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 PPT as Buy (1) -

The integration of Pendal into Perpetual is tracking ahead of schedule, and the benefits are reflected in the 46% improvement in adjusted profit and 69% improvement in revenue reported by the company, suggests Bell Potter.

Synergies from the merger are tracking at $57m annualised, a full year head of the synergy target. Bell Potter calculates this is on track for an $80m run rate by January 2025.

The broker awaits the strategic review, with further commentary from the company expected in late April. 

The Buy rating is retained and the target price decreases to $27.33 from $28.17.

Target price is $27.33 Current Price is $24.02 Difference: $3.31
If PPT meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $26.73, suggesting upside of 9.5% (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

Citi rates PTM as Sell (5) -

Platinum Asset Management's first half profit exceeded Citi's forecast. This includes management revenue 3% above, driven by higher margins. Costs were -2% below and the dividend above.

Platinum has announced a 12-month "Reset and Growth" turnaround program, in an attempt to revitalise the company. It appears new CEO, Jeff Peters is eager to lead Platinum through its next phase with a new strategic perspective, Citi suggests.

Current funds performance remains underwhelming nonetheless and net outflows are likely to continue.

The broker expects the announcement is likely to buoy spirits of a return to better times for Platinum. The broker requires further information to determine how effective it will be.

Sell and $1.00 target retained.

Target price is $1.00 Current Price is $1.03 Difference: minus $0.03 (current price is over target).
If PTM meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting upside of 6.5% (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

UBS rates PTM as Neutral (3) -

The new CEO has revealed a two-phase turnaround plan for the troubled investment manager and the interim financial performance beat forecasts by UBS and market consensus by 3-4%.

While many questions remain unanswered, the broker sighs: "at least there is now a strategy to break inertia and improve the status quo".

The drive to reset the general cost level on which operations are conducted could generate material benefits for the margins, suggests the broker.

On the negative side, the flagship International Fund is underperforming and it's gotten worse recently. UBS suspects this might trigger more outflows.

Neutral rating retained, as well as the target price at 1.20. Relatively minor, though positive changes have been made to forecasts.

Target price is $1.20 Current Price is $1.03 Difference: $0.17
If PTM meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.28, suggesting upside of 6.5% (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

Bell Potter rates PWH as Hold (3) -

Bell Potter has reviewed its outlook for PWR Holdings following the company's results release, but made little changes to its revenue and earnings forecasts.

The company increased its expected revenue from the aerospace and defense segment over the coming three years, given strength in the pipeline, but lowered its automotive revenue forecast for the same period on a weaker pipeline, as well as timing of contracts.

The Hold rating is retained and the target price increases to $12.50 from $12.00.

Target price is $12.50 Current Price is $12.36 Difference: $0.14
If PWH meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.78, suggesting downside of -2.5% (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 QRI as Buy (1) -

After reviewing "positive" 1H results, Citi notes a very attractive dividend FY24 yield for the Qualitas Real Estate Income Fund, as earnings are correlated to variable interest rates through underlying commercial real estate loans.

The Fund's interim dividend of 7.17cps met the broker's forecast.

The price target for Qualitas Real Estate Income Fund remains $1.60, despite Citi lowering FY24-26 earnings forecasts in the expectation of lower interest rates over the next two years. Buy.

Target price is $1.60 Current Price is $1.62 Difference: minus $0.015 (current price is over target).
If QRI meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 REP as Buy (1) -

First half results from RAM Essential Services Property Fund were below expectations. Ord Minnett welcomes the reaffirmation of the FY24 distribution guidance and assumes a large skew in the second half because of rent restructuring and increased occupancy.

Distribution guidance was narrowed to 5.6c per unit, reflecting a payout ratio of 95-100%. Otherwise operating metrics appear solid to the broker with 98% occupancy maintained.

Gearing has reduced to 35.7% as a result of asset sales. Ord Minnett retains a Buy rating and the target slips to $0.74 from $0.75.

Target price is $0.74 Current Price is $0.66 Difference: $0.085
If REP meets the Ord Minnett 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: 1.0

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

Citi rates RHC as Neutral (3) -

UK earnings in the 1H for Ramsay Health Care were much better than Citi expected, as was the range of strategies being actively assessed by the board. The target is increased to $56.50 from $51 and the Neutral rating is maintained.

A summary of yesterday's research by the broker follows.

In an initial response, Citi noted Ramsay Health Care's first half earnings were below consensus expectations and expects a negative share price reaction. Adjusted net profit of $140m was 16% ahead, helped by lower minority interests.

The company still expects top-line growth and margin recovery to be slowed down by ongoing cost pressures, combined with an increase in digital and data expenditure. 

Target price is $56.50 Current Price is $54.91 Difference: $1.59
If RHC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $58.10, suggesting upside of 7.6% (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 RHC as Neutral (3) -

Ramsay Health Care's first half results were lower than Macquarie expected as EBIT fell -4%. Excluding one-off items and FX, growth was 4% and reflected improvements in the UK that were partly offset by lower contributions from Europe.

Digital investments are seen constraining Australian margin improvement. Macquarie considers the current valuation fair and raises the target to $53.35 from $52.00. Neutral maintained.

Target price is $53.35 Current Price is $54.91 Difference: minus $1.56 (current price is over target).
If RHC 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 $58.10, suggesting upside of 7.6% (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

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

Ramsay Health Care's revenue result was a low single digit beat to Morgan Stanley, offset by lower margins. Higher interest expense offset by a lower tax rate saw a miss on profit from continuing operations of -7%.

Overall, Australia was a significant detractor, the broker notes, offset by the UK and Sante at the margin line. At the group level, it was a miss before taking account of the minorities from loss-making Sante.

While it was ultimately a decent beat on earnings, the market may take consideration of the poor performance of Australia and loss-making Sante, Morgan Stanley suggests.

Target rises to $55.00 from $49.60, Equal-weight retained. Industry view: In-Line.

Target price is $55.00 Current Price is $54.91 Difference: $0.09
If RHC meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $58.10, suggesting upside of 7.6% (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

Morgans rates RHC as Add (1) -

Ramsay Health Care's 1H results beat Morgans expectations and FY24 guidance was maintained. Management noted the margin recovery continues to be "slowed" by ongoing cost pressures and an increase in digital and data opex.

The broker highlights earnings in the UK and domestically improved, but were offset by ongoing inflationary pressures in the EU. Revenue increased in Australia, the UK and the EU by 6%, 29% and 17%, respectively.

Management noted the Elysium business continues to improve.

The target rises by $1.00 to $60.76 and the Add rating is maintained.

Target price is $60.76 Current Price is $54.91 Difference: $5.85
If RHC meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $58.10, suggesting upside of 7.6% (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 RSG as Outperform (1) -

Resolute Mining delivered 2023 underlying earnings that were below Macquarie's estimates while net profit was materially higher, being nearly double estimates.

The large variance stems from gains that included a US$23m deferred contingent consideration, unrealised FX gains and US$8m relating to the value of obsolete consumables.

The company has retained 2024 guidance and Macquarie expects a a tailwind from the Syama expansion and any life extension to Mako, although the latter is not in its base case. Outperform retained. Target is reduced to $0.56 from $0.57.

Target price is $0.56 Current Price is $0.34 Difference: $0.225
If RSG meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Citi rates S32 as Buy (1) -

Citi suggests South32's met coal sale will put paid to market concerns around the balance sheet following a final investment decision on the Taylor project.

The sale price for met coal is marginally ahead of the broker's expectations, noting this is an ageing asset that requires ongoing reinvestment to support the associated infrastructure. 

Buy retained, target rises to $3.50.

Target price is $3.50 Current Price is $2.95 Difference: $0.55
If S32 meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 19.1% (ex-dividends)

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 S32 as Overweight (1) -

South32's sale of its Illawarra met coal operation has achieved a compelling valuation, Morgan Stanley suggests. Given low free cash flow generation at the asset, free cash flow yield for South32 will rise post sale.

The broker expects part of the deal cash generated to resume the company's buyback program, which should be supportive for the stock price.

Overweight and $3.60 target retained. Industry view: Attractive.

Target price is $3.60 Current Price is $2.95 Difference: $0.65
If S32 meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 19.1% (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 S32 as Accumulate (2) -

South32 plans to sell its IIlawarra metallurgical coal business, likely in the first half of FY25, with total sales proceeds up to US$1.65bn and US$1.05bn up front. Around US$250m in rehabilitation and other liabilities are also transferable to the purchaser.

Ord Minnett assesses this is a "modestly better deal for the purchaser", disliking the lengthy period before the deferred consideration, US$$250m in 2030, is paid with contingent consideration of up to US$350m depending on metallurgical coal prices over the five years subsequent to the deal.

BlueScope Steel ((BSL)) which has pre-emptive acquisition rights under its coal supply agreement with the company is considering its position. The broker retains an Accumulate rating and $3.50 target, believing the shares are undervalued.

Target price is $3.50 Current Price is $2.95 Difference: $0.55
If S32 meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 19.1% (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 S32 as Buy (1) -

South32 has announced the sale of its Illawarra met coal asset.

Given the price represents a premium to UBS' net asset valuation, operational complexities, risks and offloading of all liabilities including rehabilitation, the company has achieved a good outcome for shareholders, the broker suggests.

The divestment eases near-term concerns regarding the balance sheet and Taylor capex.

Target rises to $3.95 from $3.75, Buy retained.

Target price is $3.95 Current Price is $2.95 Difference: $1
If S32 meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 19.1% (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 SGR as Outperform (1) -

Star Entertainment delivered a -43% drop in first half operating earnings (EBITDA), below Macquarie's expectations. The broker assesses a monthly EBITDA run rate of $20m, with some first half seasonality and higher remediation costs heading into the second half.

Hence, FY24 estimates are reduced by -12%. Earnings appear to be at a low point, the broker adds, and the AUSTRAC and NSW casino inquiry are the main catalysts.

While the balance sheet is a hot topic Macquarie believes there is room to meet monetary penalties and an equity top up at Queens Wharf, Brisbane. Outperform. Target edges down to $0.70 from $0.75.

Target price is $0.70 Current Price is $0.52 Difference: $0.18
If SGR meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 38.0% (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

Morgans rates SGR as Add (1) -

Star Entertainment's 1H earnings (EBITA) missed forecasts by Morgans and consensus by -8% and -16%, respectively, due to a tough operating environment.

The broker notes the 1H was impacted by higher interest rates and inflationary pressures on the customer, along with the safer gambling measures which were implemented over the period.

While the analyst's earnings forecast drops by -14% in FY24, a 12% rise occurs in FY25 after the inclusion of contributions from Queen's Wharf Brisbane.

The Add rating and 70c target are unchanged.

Target price is $0.70 Current Price is $0.52 Difference: $0.18
If SGR meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 38.0% (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 SGR as Hold (3) -

First half underlying EBITDA fell -43%, with Ord Minnett noting some of the headwinds facing Star Entertainment are regulatory and expected to prove permanent as the operating environment remains more restrictive.

Permanently higher compliance costs are anticipated, amid concerns raised by the second Bell inquiry

The broker now expects VIP earnings to return from FY26 and at a lower base. Lower long-term profitability is also expected as cost reductions have been less effective than previously anticipated.

Ord Minnett still considers the shares are materially undervalued with the market being put off by the significant uncertainty that surrounds the business. Hold maintained. Target is reduced to $0.90 from $1.20.

Target price is $0.90 Current Price is $0.52 Difference: $0.38
If SGR meets the Ord Minnett target it will return approximately 73% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 38.0% (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

UBS rates SGR as Buy (1) -

Ouch! UBS reports Star Entertainment's interim release missed its forecast by no less than -28%. The broker had been optimistic about seasonal strength of summer, on top of the structural return of inbound tourism, and the reintroduction of complimentary beverages.

Reality proved otherwise. The broker does note the Queens Wharf development is potentially a game-changing development, and certainly management at the casino operator believes it will be.

With plenty of additional risks yet to play out, UBS sticks with a Neutral rating. Target has dropped to 57c from 63c. Forecasts have been decimated.

Target price is $0.57 Current Price is $0.52 Difference: $0.05
If SGR meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 38.0% (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 SHV as Buy (1) -

Ord Minnett found the AGM update from Select Harvests "mildly positive" amid increased confidence surrounding the global almond market and some additional detail on progress with internal projects.

Global almond prices continue to strengthen, currently ahead of $7.80 per kilogram versus the $6.42 achieved in FY23. The broker increases its estimates for the average FY24 selling price and upgrades the target to $5.41 from $5.09. Buy retained.

Target price is $5.41 Current Price is $4.41 Difference: $1
If SHV meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in September.

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 SNL as Buy (1) -

Ord Minnett highlights the "sector-leading" sales growth in the first half from Supply Network, which translated into a 20% increase in first half EBIITDA to $26.9m. The broker considers the outlook positive with supportive market demand and strong activity in all regions.

Future growth is expected to be driven by a combination of underlying industry growth and further investment in the branch network.

Following the strong first half, Ord Minnett upgrades FY24 and FY25 forecast by 3% and 4%, respectively. Target is raised to $19.20 from $17.00, a Buy rating is retained.

Target price is $19.20 Current Price is $17.85 Difference: $1.35
If SNL meets the Ord Minnett target it will return approximately 8% (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 SSM as Upgrade to Outperform from Neutral (1) -

Service Stream earnings beat Macquarie's estimates in the first half with telco revenue up 30% across both fixed line and wireless operations. Second half underlying EBITDA is expected to be similar to the first half's $63.3m.

Macquarie observes the company has re-focused the business since the Lendlease Services acquisition, reducing the risk exposure to deliver more sustainable growth.

The stock is now trading at a material discount to peers and the broker upgrades to Outperform from Neutral. Target is raised to $1.25 from $0.91.

Target price is $1.25 Current Price is $1.13 Difference: $0.125
If SSM meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 5.2% (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

Macquarie rates STX as Neutral (3) -

First half earnings were stronger than Macquarie expected and Walyering is now an important source of cash flow for Strike Energy.

The broker acknowledges in hindsight the Talon transaction was extremely accretive although points out the reserve life is short. Therefore, the opportunity such as Walyering-7 will have a big impact if successful.

Macquarie considers the stock is trading at fair value and the market is unlikely to factor in any drilled opportunities until further assurances from testing. Neutral maintained. Target dips to 21c from 22c.

Target price is $0.21 Current Price is $0.22 Difference: minus $0.005 (current price is over target).
If STX meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.34, suggesting upside of 63.5% (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

Macquarie rates SXL as Neutral (3) -

Southern Cross Media's first half earnings were -21% below Macquarie's estimates. Cost guidance of $310m was provided for FY24 for the first time and higher than expected, with the benefits of cost reductions to come in FY25.

There was little update on the process of the ARN Media ((A1N)) takeover other than to signal due diligence continues.

The broker finds a recovery in radio market share of advertising budgets is long-dated and retains a Neutral rating. Target moves to $0.94 from $1.00.

Target price is $0.94 Current Price is $0.92 Difference: $0.02
If SXL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.02, suggesting upside of 8.5% (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 SXL as Underweight (5) -

Consistent with Morgan Stanley's cautious view on Media/Radio, Southern Cross Media's result was a miss on earnings due to weak broadcast/linear radio and TV revenues and LiSTNR start-up losses.

TV and Radio ad markets remain challenging at start of 2024, management noted, but in contrast LiSTNR is still seeing strong ad revenues growth. A new cost-out program will realise -$20m of annualised cost savings in FY24, to increase to -$30m from FY25 onwards.

LiSTNR revenue growth rate is accelerating and about to reach the pivotal breakeven point. Talks with strategic bidders for Southern Cross continue. No agreement has been reached.

Underweight and 70c target retained. Industry view: Attractive.

Target price is $0.70 Current Price is $0.92 Difference: minus $0.22 (current price is over target).
If SXL meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.02, suggesting upside of 8.5% (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

Ord Minnett rates SXL as Buy (1) -

Ord Minnett was disappointed with the drop in first half underlying earnings, noting persistent cost growth and the "wider advertising market malaise".

The broker continues to believe the business is under earning relative to its potential, highlighting digital radio is on the verge of turning profitable. That said, the company's "chequered history" of cost reductions introduces conservatism into forecasts.

The stock is assessed to be materially undervalued relative to the broker's unchanged $1.70 fair value estimate, with investors appearing to be unwilling to look through the current earnings trough. Buy retained.

Target price is $1.70 Current Price is $0.92 Difference: $0.78
If SXL meets the Ord Minnett target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $1.02, suggesting upside of 8.5% (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

Morgans rates TRP as No Rating (-1) -

Morgans highlights Tissue Repair finished the 1H with sufficient capital ($19.3m) to fund its clinical program, despite a net loss of -$2.3m. This outcome compares to the -$3.2m loss in the previous corresponding period.

The company's cosmetic gel product TR Pro+ was launched in the period with initially positive feedback, notes the analyst.

Management expects the Phase 3 trial for venous leg ulcers will start recruiting in the 1Q of FY25, a slight delay on the original date within the 4Q of FY24.

Morgans no longer provides a rating, valuation or forecast for Tissue Repair.

Current Price is $0.23. Target price not assessed.

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

Macquarie rates WGX as Outperform (1) -

Westgold Resources posted a "solid" first half result as earnings beat Macquarie's estimates. The dividend of one cent was also a surprise, and already meets the minimum annual payout in the company's policy.

The significant catalyst for the near term is the ramp up of the Fender mine with the development of Great Fingal important over the longer term. The broker retains an Outperform rating with a $2.50 target.

Target price is $2.50 Current Price is $1.96 Difference: $0.54
If WGX meets the Macquarie 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:

Market Sentiment: 1.0

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

UBS rates XRO as Buy (1) -

Buy rating retained with an $139 price target as UBS analysts continue to feel comfortable with their projections and assumptions, post Xero's first ever Investor Day.

The company has expressed the ambition to double its revenues, without attaching an explicit time frame to the target.

Overall, the broker highlights, A&NZ and the UK will remain the core growth drivers over the next five years. It also seems conditions in the USA are improving, UBS reports.

Target price is $139.30 Current Price is $127.31 Difference: $11.99
If XRO meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $110.62, suggesting downside of -18.0% (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: 0.2

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