Australian Broker Call

Citi rates AMC as Buy (1) -

Amcor's 2Q earnings were broadly in line with Citi's forecast. The broker remains confident in management's reiterated FY25 EPS guidance, supported by underlying volume trends.

Rigids delivered a long-awaited volume lift, highlight the analysts, as specialty containers more than offset ongoing weakness in North America Beverages.

The Buy rating is maintained, with the target set at US$12 ($19 in Aussie).

Target price is $19.00 Current Price is $16.04 Difference: $2.96
If AMC meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $16.88, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

UBS rates ASX as Sell (5) -

UBS views January trading activity for ASX as mixed with futures volumes and collateral balances responding positively to the prospect of interest rate cuts, though cash equity turnover growth was weak.

The Sell rating and $65 target are unchanged.

Target price is $65.00 Current Price is $62.26 Difference: $2.74
If ASX meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $63.38, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

Bell Potter rates BPT as Buy (1) -

Bell Potter notes Beach Energy reported 1H25 net profit after tax of $237m, slightly below the analyst's estimate of $242m, with a 3c dividend that met the broker's expectations.

Waitsia Stage 2 is progressing to initial gas sales in the June quarter, the analyst details, and management adjusted FY25 production to a narrower range.

LND swap cargos assisted the results, highlighted by Bell Potter as "strong," including field opex costs that came in below the FY25 target. The broker observes a robust balance sheet with net debt at $387m and net gearing of 10%.

Bell Potter lifts EPS estimates by 6% in FY25 and 13% in FY26. Target price lifts to $1.70 from $1.65. Buy rating retained.

Target price is $1.70 Current Price is $1.44 Difference: $0.26
If BPT meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates BPT as Sell (5) -

Commenting on Beach Energy’s first-half results, Citi believes consensus is overstating balance sheet headroom, suggesting that required M&A to drive growth will likely need to utilise scrip.

Put another way, the broker views paying out half of free cash flow (FCF) as dividends as unsustainable.

The target falls to $1.15 from $1.30 as forecasts are lowered due to lower production, higher tolling costs, and increased asset-based expenditure (ABex)/capex. Sell rating retained.

Target price is $1.15 Current Price is $1.44 Difference: minus $0.29 (current price is over target).
If BPT meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Macquarie rates BPT as Neutral (3) -

Macquarie notes Beach Energy's 1H25 net profit of $237m was solid but the interim dividend disappointed. The company narrowed FY25 guidance to 18.5-20.5 MMboe from 17.5-21.5MMboe, implying a Waitsia downgrade, given the late first gas into the plant.

The broker highlights growing evidence of the new leadership team delivering improved commercial results including Waitsia LNG timeswap cargos and retaining optionality with the expiring 50TJ/d Cooper Basin volumes.

The broker lowered FY25 and FY26 EPS forecasts by -4% and -9% on lower Waitsia LNG production. Target price drops to $1.40 from $1.45.

Neutral rating maintained. 

Target price is $1.40 Current Price is $1.44 Difference: minus $0.04 (current price is over target).
If BPT 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 $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgan Stanley rates BPT as Underweight (5) -

Morgan Stanley expects a modest positive reaction to Beach Energy’s first-half result after earnings (EBITDA) broadly met expectations, while underlying profit exceeded the broker’s and consensus forecasts by 2% and 3%, respectively.

A fully franked interim dividend of 3c was declared, below the 4c consensus forecast.

Management raised FY25 production guidance to 18.5-20.5mmboe from 17.5-21.5mmboe, incorporating minimal first gas from Waitsia.

Target price $1.46. Underweight. Sector call: In-Line.

Target price is $1.46 Current Price is $1.44 Difference: $0.02
If BPT meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

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

Morgans believes Beach Energy reported "disappointing" 1H25 earnings, with the dividend announced lower than expected and ongoing travails with Waitsia. The broker believes the narrowing of FY25 production guidance could result in consensus downgrades.

The dividend came in at 11% of pre-tax free cash flow, well below management's 40%-50% payout target, the analyst states. With increased spending expected in 2H25, Morgans believes the company will face pressure to increase the dividend over the period into softer free cash flow.

Morgans highlights concerns over the reserve life at just over seven years.

The broker downgrades Beach to Hold from Add and lowers the target price to $1.55 from $1.75.

Target price is $1.55 Current Price is $1.44 Difference: $0.11
If BPT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Ord Minnett rates BPT as Downgrade to Hold from Buy (3) -

Ord Minnett downgrades Beach Energy to Hold from Buy, with the target price falling to $1.75 from $1.85 due to concerns over dividend policy and expansion plans.

The broker believes Beach announced a "disappointing" 1H25 result, with a lower-than-expected dividend at a 16% payout ratio compared to the usual 40%-50% payout ratio of cash flow, ex-capex. This is not viewed positively by the analyst.

Management reduced the upper end of FY25 guidance due to a lower contribution from Otway and nothing from Waitsia, the analyst explains, and also suggests the final dividend would increase the payout ratio to meet its historical policy.

This conflicts with the view by Ord Minnett that management has held back on the 1H25 dividend, sustaining cash on hand of $150m for possible M&A or for Otway.

Target price is $1.75 Current Price is $1.44 Difference: $0.31
If BPT meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

UBS rates BPT as Buy (1) -

While Beach Energy's 1H underlying profit beat the consensus forecast by 2.5%, the 3 cent interim dividend "underwhelmed" UBS. A final 5 cent final dividend is still forecast by the analysts, setting a path from which dividend growth can be sustained.

FY25 production guidance was narrowed, implying to the broker modest cuts to prior expectations. It could also imply a very conservative ramp profile for Waitsia, suggest the analysts, and minimum contract nominations taken up by Origin Energy ((ORG)) in the Otway Basin.

The $1.60 target and Buy rating are unchanged.

Target price is $1.60 Current Price is $1.44 Difference: $0.16
If BPT meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgan Stanley rates BRG as Overweight (1) -

Cutting to the chase, Morgan Stanley's analyst anticipates Breville Group will report 1H25 earnings that are likely to be "topical" with US tariff risks, despite the chance Breville will announce higher-than-expected revenue growth at the 11 February result.

The broker points to positive results from competition recently as supportive of robust consumer demand in the US and A&NZ.

Investors will be seeking more information on how management will adapt to potential tariffs, including inventory growth and transitioning over 80% of production out of China by the end of 2025, the analyst explains.

The $35 target and Overweight rating are retained. Morgan Stanley acknowledges the stock has risen 34% in the last six months and is trading at a 20% premium to its five-year average price-to-earnings ratio.

Industry view: In-Line.

Target price is $35.00 Current Price is $37.60 Difference: minus $2.6 (current price is over target).
If BRG meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.56, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates CLW as Neutral (3) -

On first glance, Citi notes Charter Hall Long WALE REIT reported 1H25 EPS of 12.5c, which is 50% of FY25 guidance (25cps) but above the broker's and consensus forecasts of 12.2c.

The REIT pre-announced the dividend at 12.5c, aligning with management's 100% payout ratio, the broker states.

Citi observes cap rates and asset values remained relatively steady over the period, with a marginal lift in gearing to 39% from 37.8% last June, the broker notes.

Neutral weighting unchanged, with potential upside risks to interest costs, as the average cost of debt stands at 4.1% currently, Citi explains.

Target $3.70.

Target price is $3.70 Current Price is $3.90 Difference: minus $0.2 (current price is over target).
If CLW meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.90, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

UBS rates COF as Sell (5) -

Lower net operating income (NOI) for Centuria Office REIT was the key driver of a -5% miss for 1H funds from operations (FFO), according to UBS, partially offset by lower-than-expected costs associated with debt.

Management left FY25 guidance unchanged.

Given most metrics are trending positively, UBS believes market concerns over elevated gearing will ease. Sell. Target $1.14.

Target price is $1.14 Current Price is $1.15 Difference: minus $0.005 (current price is over target).
If COF meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.23, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

UBS rates COH as Sell (5) -

Prior to 1H results for Cochlear on February 14, UBS is not ruling out a FY25 guidance upgrade due to higher Cochlear implant sales.

Sell. The target rises to $270 from $265.

Target price is $270.00 Current Price is $313.04 Difference: minus $43.04 (current price is over target).
If COH meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $295.90, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.2

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

UBS rates CSL as Buy (1) -

With CSL's 1H results due on February 11, the analysts at UBS are slightly more cautious than consensus on 1H Behring gross margin expectations, given a more conservative stance on costs.

The market will also be focusing on progress for the garadacimab re-submission, and Ferinject's status versus competition in Europe, suggests the broker.

Buy rating and $320 target retained.

Target price is $320.00 Current Price is $272.87 Difference: $47.13
If CSL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $332.13, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 FLT as Overweight (1) -

Morgan Stanley reiterates its view that agentic AI could lift earnings across both Leisure and Corporate travel segments, further supported by recent news AI training and operational costs may decline materially.

For labour-intensive travel agents like Flight Centre Travel, the broker suggests this development could have meaningful implications.

Cost-saving examples include AI handling first-time holidaymaker inquiries on new destinations, leveraging traveller data (in Corporate) to create tailored corporate options, and enabling automatic policy approvals, highlights the broker.

The Overweight rating is maintained, with the target price at $22. Industry view: In-Line.

Target price is $22.00 Current Price is $17.70 Difference: $4.3
If FLT meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $22.68, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates FND as Buy (1) -

Ord Minnett is upbeat on Findi's announcement for a further 900 brown label ATMs with the Union Bank of India, a contract projected to generate revenue of $75m-$85m and earnings of $33m-$38m over an eight-year period.

The analyst highlights this is the third significant announcement since Ord Minnett started coverage of the company in late October, with accompanying upgrades in EPS forecasts.

On the back of the latest contract, the broker raises EPS estimates by 5% for FY27, and the target price lifts 8% to $8.95 with a Buy rating maintained.

Target price is $8.95 Current Price is $4.56 Difference: $4.39
If FND meets the Ord Minnett target it will return approximately 96% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates ING as Outperform (1) -

Ahead of Inghams Group's 1H result on February 21, Macquarie says its focus will be on the company's ability to cover the second tranche of the Woolworths ((WOW)) contract, without sacrificing price.

Given risks remain of the tranche not being fully covered, the broker's modeling has an EBITDA skew to 1H (52%) and is ahead of consensus forecasts by 1.5%.

The broker expects feed costs over 1H25 to be a tailwind given the decline in input costs over the last year, partly offsetting general inflationary costs, and remains cautious on the NZ outlook.

The analyst has lowered FY25 and FY26 EPS estimates by -3.2% and -4.4% respectively, after adjusting D&A forecasts, tapering margin expectations for the NZ business and updating forex forecasts.

Target price declines to $3.4 from $3.5. Rating remains at Outperform.

Target price is $3.40 Current Price is $3.20 Difference: $0.2
If ING meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Bell Potter rates JLG as Hold (3) -

Through the lens of Johns Lyng's US peer, FirstService, Bell Potter assesses the outlook for the company's upcoming 1H25 earnings report.

The analyst believes the peer's earnings announcements and weather are anticipated to assist US operations in performing above market expectations across both revenue generation and margins.

Management has pointed to a decline in margin of around -170bps for the Australian business as usual. The broker believes the indications for margins in 2H25 will be important.

Bell Potter tweaks EPS estimates. Target price slips to $4.10 from $4.40 with no change to Hold rating.

Target price is $4.10 Current Price is $3.66 Difference: $0.44
If JLG meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

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

With more challenging comps to recycle from a year earlier and increasing risks of slowing volumes and a reversal in EV sales, Bell Potter downgrades McMillan Shakespeare to Neutral from Buy with a lower target price of $15.80 from $21, as earnings risks rise.

While recent car sales data support sales growth for the company in 1H25, the analyst's attention is focused on the order book and cost management, which are believed to be approaching an inflection point.

Bell Potter lowers EPS forecasts by -13% and -10% for FY25/FY26, respectively.

Target price is $15.80 Current Price is $15.42 Difference: $0.38
If MMS meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.80, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Citi rates NCK as Buy (1) -

In a first look at Nick Scali’s 1H result, Citi expects a margin-driven beat to be partially offset by weaker second-half topline trends, noting continued volatility in trading with A&NZ written orders falling in January.

The A&NZ store rollout remains weaker-than-expected, the biggest negative issue, suggests the broker.

Statutory profit of $30m for the first half was 15% ahead of consensus, with the impact of higher freight rates not as severe as feared. The A&NZ gross margin of 64.4% exceeded the 62.8% consensus forecast.

An underlying net loss of -$2.8m for the UK was better than management’s guidance of -$3.3-$3.8m, highlight the analysts. The UK gross margin was 45% (consensus 42.8%), with management expecting 57-59% in the long-term.

Target $15.31. Buy.

Target price is $15.31 Current Price is $16.29 Difference: minus $0.98 (current price is over target).
If NCK 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 $15.30, suggesting downside of -16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgan Stanley rates NWS as Overweight (1) -

Morgan Stanley observes News Corp reported slightly better-than-expected 1H25 earnings versus consensus estimates, resulting in a slight increase in EPS forecasts.

The broker highlights News announced beats across all four of its divisions, with 1H25 revenue rising 4% year-on-year and earnings up 19%.

Earnings momentum was underpinned by REA Group as well as Dow Jones, up 6%, and Books rising 21%, the analyst states. Positively, News Media profits showed better results and were above consensus by 50%.

Management highlighted a further focus on increasing value from the asset portfolio.

Morgan Stanley retains an Overweight rating with a US$35 target price. Industry View: Attractive.

Current Price is $56.28. Target price not assessed.

Current consensus price target is $54.50, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 NWS as Buy (1) -

UBS raises its target for News Corp to $68 from $64.50 following EPS upgrades and a lower net debt forecast following 1H results. The Buy rating is unchanged.

FNArena's summary of yesterday's research by UBS follows.

UBS' first take on News Corp's 1H25 earnings report suggests the headline result was better than consensus, although the analyst stresses the market's expectations were "messy."

Excluding Foxtel, earnings lifted 11% above consensus forecasts, with a better result from book publishing, digital real estate, and news media, the broker observes.

The divestment of Foxtel led to a reduction in net debt to US$215m from US$1.1bn.

Target price is $64.50 Current Price is $56.28 Difference: $8.22
If NWS meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $54.50, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 ORG as Neutral (3) -

Octopus Energy released FY24 (April) numbers this week and Macquarie notes the result highlights UK profitability at GBP54/customer, but group profitability was at GBP33/customer as O/S, and service businesses ramped up.

The broker notes Kraken disappointed as strong revenue was accompanied by an equal rise in cost. Octopus' result provides colour on earnings mix which is not provided by Origin Energy.

The analysts lowered FY25 and FY26 EPS by -0.4% and -0.9% respectively. Target price cut to $9.83 from $10.0. Neutral rating retained.

Target price is $9.83 Current Price is $10.14 Difference: minus $0.31 (current price is over target).
If ORG 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 $10.68, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Macquarie rates PXA as Outperform (1) -

Pexa Group provided updated FY25 guidance on specified items and deferred tax assets (DTA) ahead of the 1H25 result on Feb 28. The company raised specified items guidance to $35-$40m from $15-$20m largely due to a non-cash impairment charge.

Tax expense guidance was revised to $40-$45m from 13-$18 due to the de-recognition of DTAs in 1H25 and a higher
Australian tax rate.

Macquarie cut FY25 EPS estimate to a -4c loss from 23.2c profit. Target price of $14.64 and Outperform rating are unchanged.

Target price is $14.64 Current Price is $12.45 Difference: $2.19
If PXA meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $15.08, suggesting upside of 24.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates REA as Buy (1) -

REA Group's 1H25 earnings report is flagged by Bell Potter as robust, including growth in EPS of 26% and a 110c dividend announced.

The analyst observes listings grew 5%, which met expectations. Buy yield lifted 14% against the broker's forecast of 13% due to average Premiere-plus price rises of 10% and better market share expansion.

Residential growth domestically came in above the analyst's forecast at 24% growth to $614m. The company ended the period with net cash of $263m, including lease liabilities.

Bell Potter does not expect disruption from the CEO transition due to depth of management and historical performance. The broker estimates FY25 listings advance by 2.5%, with a strong start in January offset by higher opex.

Target price rises to $281 from $258 with a "cautious" Buy rating retained. Near-term share price volatility is possible, the analyst stresses.

Target price is $281.00 Current Price is $254.90 Difference: $26.1
If REA meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Citi rates REA as Buy (1) -

REA Group's first-half earnings (EBITDA) of $535m beat consensus by 2%, driven by stronger-than-expected revenues from India and Residential, partly offset by higher costs, explains Citi.

The broker does not view higher costs negatively, as they are revenue-related.

Seller leads rose by 88% year-on-year, highlighting a second-quarter acceleration after an 80% increase in the first quarter.

Management reiterated guidance for double-digit Buy Yield growth, while opex is now expected to be in the low double digits versus the previously guided high single digits. 

In a separate report post the earnings call with REA Group, Citi expresses belief the CEO's resignation may generate uncertainty concerns for some investors for FY26 and thereafter. The analyst does not anticipate any challenges to the advance in yield growth for the company.

The broker reports management highlighted the March quarter for FY25 is robust, which may reflect a "pull forward" of listings into a Federal election, and the last quarter of the fiscal year could be more challenging on listings.

Target $230. Buy.

Target price is $230.00 Current Price is $254.90 Difference: minus $24.9 (current price is over target).
If REA meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Macquarie rates REA as Neutral (3) -

REA Group's 1H25 result showing 26% rise year on year in net profit to $314m met expectations, Macquarie highlights, with 21% year-on-year revenue growth slightly ahead of the analyst's 19% estimate.

The broker raised FY25 net profit forecast to $584m from $570m before on expectations of an 18% rise in residential revenue growth and listings growth of 2%.

The broker reckons CEO Owen Wilson's retirement announcement will not have an operational impact but it does bring into debate the M&A strategy, noting the recent attempt to acquire Rightmove in the UK.

Target price rises to $270 from $265 and rating remains at Neutral.

Target price is $270.00 Current Price is $254.90 Difference: $15.1
If REA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates REA as Overweight (1) -

Morgan Stanley notes REA Group announced growth in 1H25 revenue of 20%, above consensus by 2%, with earnings rising 17% year-on-year, also exceeding consensus estimates.

The analyst emphasises the results were "very strong," and the announcement of the CEO's retirement came out of the blue. Depth of management is highlighted as an offsetting factor around transition concerns.

Yield came in at 14% growth, above the broker's forecast, and combined with the better-than-expected listings results, the analyst believes consensus earnings forecasts will increase.

Morgan Stanley believes investors should own REA into an interest rate cutting cycle, with net cash of $338m providing M&A optionality.

The Overweight rating is maintained. Target price $275. Industry View: Attractive.

Target price is $275.00 Current Price is $254.90 Difference: $20.1
If REA meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Ord Minnett rates REA as Hold (3) -

REA Group reported better-than-expected 1H25 revenue and earnings against consensus, Ord Minnett notes.

On a more subdued note, the CEO announced his retirement, and FY25 cost guidance was raised, the broker emphasises, with the CEO's decision highlighted as "personal."

Ord Minnett believes the outlook for REA remains resilient and has lifted EPS forecasts by 1.4%, noting a slowing in revenue growth expectations to 13% in 2H25 and weaker growth from India and Australian listings.

No change to the Neutral rating. Target price is raised to $260 from $240.

Target price is $260.00 Current Price is $254.90 Difference: $5.1
If REA meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates REA as Buy (1) -

UBS explains REA Group's 1H revenue and earnings (EBITDA) growth of 20% and 22%, respectively, drove a 4% beat against the consensus EPS forecast.

The broker notes FY25 opex guidance increased to low double digits from high single digits, but management explained the increase was due to stronger-than-expected revenue growth.

UBS now expects the first interest rate cut this month, brought forward from May, which will likely take incremental pressure off sellers.

The target rises to $294 from $268. Buy maintained.

Target price is $294.00 Current Price is $254.90 Difference: $39.1
If REA meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $260.71, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Bell Potter rates VFY as Speculative Buy (1) -

Vitrafy Life Sciences reported a maiden first-half net loss of -$25.8m, including a one-off -$18.9m impairment related to the closeout of the convertible note during the IPO process, explains Bell Potter.

Operations are tracking in line with the broker’s expectations, including strong fertilisation results for Huon Aquaculture from the salmon milt breeding season.

The broker lowers its target to $1.99 from $2.36 due to a higher assumed weighted average cost of capital (WACC) from rising bond yields. Speculative Buy rating maintained.

Target price is $1.99 Current Price is $1.52 Difference: $0.475
If VFY meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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