Australian Broker Call

Credit Suisse rates 360 as Outperform (1) -

Life360's September-quarter trading update pleased Credit Suisse, the company posting strong performances across most metrics.

Management upgrades 2021 annual monthly revenue guidance and reduces the loss forecasts to no-more-than -US$15m.

The broker increases the target price to $12.70 from $10, its revenue estimates falling at the top end of guidance, and spies a market rerating.

Outperform rating retained.

Target price is $12.70 Current Price is $10.36 Difference: $2.34
If 360 meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

After Life360's 3Q activities report, Morgan Stanley gleans the company is much closer to break-even than anticipated. Jiobit (GPS trackers) were impacted by supply-chain issues in the quarter, notes the analyst.

The broker estimates a saving of around $2m on reduced Android app store fees though iOS would have a greater impact. Overweight rating and $10.50 target price are retained. Industry view: In-line.

Target price is $10.50 Current Price is $10.36 Difference: $0.14
If 360 meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Credit Suisse rates A2M as Upgrade to Neutral from Underperform (3) -

Credit Suisse upgrades the a2 Milk Company to Neutral from Underperform to reflect rising English Label sales and more ambitious market-share targets for China.

Still the total market is declining, risk remains with the company's ambitions in China (from a reduction in newborns and government regulation), and the company has a long road to hoe, although much of this is priced in, says the broker.

EPS forecasts fall roughly -3% in FY22 and rise 3% and 12% in FY23 and FY24.

Target price rises to $5.75 from $5.50.

Target price is $5.75 Current Price is $6.03 Difference: minus $0.28 (current price is over target).
If A2M meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Macquarie rates A2M as Underperform (5) -

a2 Milk's investor briefing included a five-year revenue target of $2bn and Macquarie calculates this assumes China label share doubles to 5% and half the English label revenue decline is recovered amid growth in other dairy and nutritional projects in China.

The medium-term margin outlook appears materially weaker to Macquarie and, while this is likely to be the final material downgrade, there is significant risk and uncertainty around the growth path. Underperform retained. Target is reduced to $5.20 from $5.40.

Target price is $5.20 Current Price is $6.03 Difference: minus $0.83 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

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

Morgans expects downward revisions to consensus estimates after the a2 Milk Company materially lowered its five-year margin target, despite the revenue target slightly exceeding expectations. The broker sees corporate activity as the key upside risk.

The analyst maintains a Hold rating on a full valuation and ongoing regulatory and earnings uncertainties. The target price rises to $6.35 from $6.25. The performance of the high-margin English label infant formula is thought to be the key to the company's FY22 earnings. 

Target price is $6.35 Current Price is $6.03 Difference: $0.32
If A2M meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

UBS rates A2M as Buy (1) -

UBS assesses a2 Milk Company should experience a meaningful recovery over the next three years, resulting in a 122% rise in EPS on FY22 levels by FY24, after incorporating the losses from Mataura Valley Milk.

The broker notes investors are cautious, the share price only factoring in a limited recovery. The company has reported sequential growth in English labelled infant formula sales in the first quarter, while China label sales were significantly lower.

Buy rating maintained. Target is reduced to NZ$10.20 from NZ$11.00.

Target price is $10.20 Current Price is $6.03 Difference: $4.17
If A2M meets the UBS target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Citi rates ACL as Neutral (3) -

Increasing covid testing by Australian Clinical Labs in the first four months of FY22 has resulted in another profit guidance upgrade - 35% ahead of last month's upgraded guidance. Citi expects more first-half upgrades, given the company is using prospectus forecasts.

The broker raises its target price to $5 from $4.50.

A  Neutral rating is retained, assuming a normalisation of growth to about 5%.  After reducing debt estimates and normalising dividend forecasts, Citi expects a net cash figure of $67m by close of FY22.

Target price is $5.00 Current Price is $4.23 Difference: $0.77
If ACL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates ANZ as Sell (5) -

Today, ANZ Bank released its FY21 financial performance and Citi, upon initial assessment, finds continuing cash earnings are slightly ahead of market consensus and Citi's own forecast.

The "beat" included a $567m benefit from winding down BDD provisions which means, underlying, core performance actually marks a minor "miss" (circa -1%).

The analysts also point out, the bank's asset quality remains favourable and CET1 strong at 12.3%, but this by now is well understood by the market. Sell. Target $28.

Target price is $28.00 Current Price is $28.39 Difference: minus $0.39 (current price is over target).
If ANZ meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.18, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates ANZ as Outperform (1) -

Today, ANZ Bank released its FY21 financial performance and Macquarie's initial response starts with the observation the bank delivered a credible result.

Macquarie spotted improving margins, better-than-expected markets income, further provision releases, and reduced notable items, as per pre-announcement.

The broker does highlight home lending growth remains disappointing, but the market by now is well aware of this. Outperform maintained. Target $29.50.

Target price is $29.50 Current Price is $28.39 Difference: $1.11
If ANZ meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $29.18, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates BTH as Overweight (1) -

Bigtincan Holdings' September-quarter cash flow was "strong" according to Morgan Stanley. Management reiterated guidance and noted a significantly more constructive environment for enterprise sales (versus the previous corresponding period).

Overweight rating and $2.10 target price retained. Industry view: In-line.

Target price is $2.10 Current Price is $1.22 Difference: $0.88
If BTH meets the Morgan Stanley target it will return approximately 72% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates CBL as Add (1) -

Morgans makes no changes to forecasts for Control Bionics after the September-quarter cash-flow report revealed lower cash receipts than expected. Nonetheless, the remainder of the year is considered to be positive with a new product and potentially increased sales orders.

The broker maintains its Speculative Buy rating and $1.42 target price.

Target price is $1.42 Current Price is $0.50 Difference: $0.92
If CBL meets the Morgans target it will return approximately 184% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates CDA as Outperform (1) -

Codan has indicated FY22 has commenced with existing businesses in line and says record profitability is likely to be boosted by DTC and Zetron.

The the pandemic increased FY21 revenue by $15-20m and the current year should benefit from the launch of the GPX6000 detector in developed countries.

Macquarie reduces the target price to $15.20 from $17.50 to reflect a lower organic growth outlook in the core detection business. Outperform maintained.

Target price is $15.20 Current Price is $10.95 Difference: $4.25
If CDA meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Morgans raises its target price to $5 from $4.20 and upgrades its rating to Add from Hold for Camplify Holdings after after an agreement was struck to buy Mighway and SHAREaCAMPER for -$7.4m, in an all-scrip transaction from Tourism Holdings.

The analyst notes the transaction sets up the company to be the dominant peer-to-peer (P2P) RV platform in A&NZ. A strategic relationship with Tourism Holdings is also thought to confer additional marketing and revenue benefits.

Target price is $5.00 Current Price is $4.50 Difference: $0.5
If CHL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates COE as Neutral (3) -

Cooper Energy's September-quarter production outpaced Macquarie's estimates thanks to stronger output from Casino-Henry. Orbost production improved 18%.

Macquarie observes the funding position is starting to look tight yet the recovery in the share price has provided an opportunity to raise capital and pursue value-creating strategies.

Commissioning of the Athena gas plant is a milestone and the pipeline to re-direct Otway gas from Iona to Athena is scheduled for November. Neutral maintained. Target rises to $0.28 from $0.24.

Target price is $0.28 Current Price is $0.31 Difference: minus $0.03 (current price is over target).
If COE meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.28, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Morgans rates COE as Add (1) -

Morgans raises its target price for Cooper Energy to $0.35 from $0.31 and maintains its Add rating after the company reported record September-quarter production and sales revenue. Gas output from Sole rose, Orbost was on the improve and the Athena gas plant is expected to be online for the 2Q.

The analyst reminds investors a new commercial agreement is needed with Orbost operator APA Group ((APA)); the current Transition Agreement ending in May 2022. The metrics of any agreement (or non-agreement) will be material to the broker's investment thesis.

Target price is $0.35 Current Price is $0.31 Difference: $0.04
If COE meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Ord Minnett rates COE as Downgrade to Accumulate from Buy (2) -

Ord Minnett found Cooper Energy's September-quarter update but a "mixed" affair as both production and realised pricing missed the mark.

On the positive side, the troubled Orbost operation is finally showing improvement in operations. The broker has made only minor amendments.

Target price remains 33c but as the share price has moved higher, the recommendation shifts to Accumulate from Buy.

Target price is $0.33 Current Price is $0.31 Difference: $0.02
If COE meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Macquarie rates CRN as Outperform (1) -

Coronado Global Resources has sold the Amonate asset for US$30m. The sale will provide additional liquidity and the business should be in a net cash position by the end of 2021.

Macquarie observes buoyant metallurgical coal prices are procuring upside for the business, free cash flow yields increasing to about 85% in a spot price scenario.

Outperform and $2.00 target retained.

Target price is $2.00 Current Price is $1.35 Difference: $0.65
If CRN meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 37.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Morgans rates CRN as Add (1) -

Morgans says the investment case for Coronado Global Resources is best illustrated by an approaching net-cash position, just months after two recapitalisations. Way-higher-than-expected pricing is thought to outweigh downgraded 2021 guidance.

The broker lifts its target price to $1.63 from $1.21. Were debt funding terms not complicating the ability to pay dividends, Macquarie believes Coronado's shares would be trading much higher. Add rating maintained.

Target price is $1.63 Current Price is $1.35 Difference: $0.28
If CRN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 37.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates FMG as Outperform (1) -

Fortescue Metals earlier today released its September-quarter production update and Macquarie, upon initial assessment, describes the report a mixed affair, revealing in-line shipments and slightly better cash costs but also weaker realised prices.

Cash flow proved in-line, broadly speaking, and the broker notes management has kept guidance for the full-year unchanged.

While the company is performing well, Macquarie believes downside risk stems from the widening price discount for lower-grade ore.

Target $21. Outperform.

Target price is $21.00 Current Price is $14.00 Difference: $7
If FMG meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $18.16, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates GOR as Outperform (1) -

Gold Road Resources' September-quarter production revealed higher-than-expected costs, affected by unscheduled ball mill maintenance. Guidance has been downgraded and the company has upwardly revised costs to $1450-1525/oz.

Macquarie's 2021 forecast of 252,000 ounces is at the lower end of the guidance range and the broker anticipates costs will be at the high end of guidance.

An increase in reserves of 31% has extended the mine life to 2032. Outperform maintained. Target price rises to $1.60 from $1.40.

Target price is $1.60 Current Price is $1.35 Difference: $0.25
If GOR meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates GOR as Buy (1) -

Gold Road's Q3 update contained no surprises and Ord Minnett refers to pre-reported production numbers. The broker expresses confidence in an improved outlook.

The communicated reserve increase did surprise and Ord Minnett has lifted its target price by 10c to $1.70.

As the stock is expected to re-rate, the rating remains Buy.

Target price is $1.70 Current Price is $1.35 Difference: $0.35
If GOR meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates GOZ as Neutral (3) -

Growthpoint Properties' September-quarter trading update pleased Credit Suisse, thanks to its $50.9m incremental acquisition of Dexus Industria REIT ((ADI)); a -25 basis-point fall in the cost of debt, and leasing progress at Botanicca 3.

Weighted-average lease-expiry and portfolio occupancy were steady.

The broker was surprised that management reiterated guidance given the strength of the data and notes the balance sheet offers room for further acquisitions and the REIT's Industrial portfolio valuation is conservative.

Funds from operations (FFO) forecasts rise 1% to 1.2% for FY22-FY24. Target price inches up 1c to $4.22 from $4.21. Neutral rating retained.

Target price is $4.22 Current Price is $4.19 Difference: $0.03
If GOZ meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates HUM as Neutral (3) -

Humm Group's September-quarter update missed Credit Suisse's estimates as record volumes fell short of the mark, no thanks to covid.

The broker says the company expects a return to dividend payments this half; has set a three-to-four-year cash target of $100m; and is considering divesting its NZ Commercial business. Credit Suisse estimates a sale would yield $82m to $87m.

FY22 earnings forecasts fall -5% to reflect the volume disappointment and likely higher near-term net losses.

FY23 to FY24 earnings rise 2% to 4% to reflect strength in the Commercial and Leasing business and a forecast recovery in Cards.

Target price falls to $1 from $1.05. Neutral rating retained. 

Target price is $1.00 Current Price is $0.91 Difference: $0.09
If HUM meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 36.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates HUM as Outperform (1) -

Humm Group's management has set a target to more than double volumes and net-average receivables over the medium term, and for cash net profit to rise 50%.

Macquarie observes, with the rebranding complete and clear targets, if successful, this would result in material upside to the share price.

Yet the broker suspects the market will need to witness evidence of delivery and earnings upgrades before incorporating the company's aspirations into expectations.

Humm Group is also exploring the divestment of the NZ commercial business which contributed $10.9m in normalised cash net profit in FY21. Outperform rating and $1.20 target maintained.

Target price is $1.20 Current Price is $0.91 Difference: $0.29
If HUM meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 36.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates HUM as Buy (1) -

The investor briefing provided performance targets across key products and divisions, UBS noting the disclosure of medium-term targets of more than $100m in cash net profit and a reduction in the cost-to-income ratio to less than 40%.

BNPL is expected to be the largest driver of growth supported by a rebound in cards. The broker believes the commitment to targets should give the market more comfort around earnings visibility.

Buy rating and $1.45 target maintained.

Target price is $1.45 Current Price is $0.91 Difference: $0.54
If HUM meets the UBS target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 36.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates IAP as No Rating (-1) -

Irongate Group's first-half funds from operations (FFO) met Ord Minnett's forecasts. The broker is research restricted, so provides no rating or price target.

Among the multiple positives mentioned, the broker refers to management's proven track record, occupancy of 97%, positive re-leasing spreads, and net-tangible-asset (NTA) growth of more than 8%.

Ord Minnett has increased forecasts. Its net present value (NPV) increased 8c to $1.59 while the 12-month roll-forward NPV rises 11c to $1.62.

Current Price is $1.58. Target price not assessed.

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanley expects current energy price volatility in the UK could lead to more short-term trading opportunities in commodities for Macquarie Group. Additionally, climate change could lead to a structural increase in volatility.

Separately, the start of COP26 this weekend may signal a faster transition to renewables, suggests the analyst. The broker retains its Overweight rating and $240 target price. Industry view in-line.

Target price is $240.00 Current Price is $199.31 Difference: $40.69
If MQG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $200.62, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates NTO as Overweight (1) -

Nitro Software's September-quarter cash-flow report included a rise in revenue guidance to US$49-51m from US$47-50m due to stronger online sales. Guidance for an earnings (EBITDA) loss of -US$8-10m was also an upgrade on the previous -US$9-11m.

Subscriptions now account for 94% of business sales. Management flagged six new enterprise wins/expansions in Q3. Morgan Stanley retains an Overweight rating. Target is $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $3.58 Difference: $0.12
If NTO meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Credit Suisse rates OSH as Neutral (3) -

Oil Search's uneventful September-quarter trading data met Credit Suisse's estimates, as the merger with Santos ((STO)) continues.

Upgraded un-contracted LNG prices and rising near-term oil prices raise Oil Search and Santos' valuations roughly 8%, reports the broker.

Credit Suisse suspects asset sales will be needed to shore up the balance sheet, and to align the joint ventures but questions the wisdom of selling the best assets to support weaker assets.

The broker expects Oil Search and Santos will continue to trade in tandem until the merger is finalised in December, and doesn't rule out a delay.

Target price rises to $4.72 from $4.38 to reflect higher prices and merger synergies, and the broker perceives valuations to be relatively full. Neutral rating retained.

Target price is $4.72 Current Price is $4.45 Difference: $0.27
If OSH meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgans rates PWR as Add (1) -

Peter Warren Automotive noted September-quarter results for Qld were stronger than expected and demand in both Qld and NSW has remained strong. First half profit (NPBT) guidance was increased to $32-34m from $28m and a strong order book suggests a good second-half performance.

The broker lowers its target price to $4.02 from $4.08 and maintains its Buy rating. The analyst awaits first-half results for more detail on both the forward order book and the M&A pipeline.

Target price is $4.02 Current Price is $3.14 Difference: $0.88
If PWR meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

UBS observes Reliance Worldwide is benefiting from a strong environment, with recent market checks suggesting renovations in the US will be robust for the next year.

UBS assumes the trend continues into FY23 which will also benefit from the acquisition of EZ-FLO and result in synergies. The broker believes this is a logical expansion into adjacencies for the company.

Rating is upgraded to Buy from Neutral, given the recent underperformance in the share price, and the target is raised to $6.20 from $5.90.

Target price is $6.20 Current Price is $5.44 Difference: $0.76
If RWC meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates SLK as Neutral (3) -

Macquarie is adjusting first/second half earnings split for Sealink Travel Group to account for lockdowns and the timing of recovery in activity.

Lockdowns have affected the first half, with Sydney-Adelaide flight capacity down -39% for the fourth quarter.

Yet, in the second half, flight capacity is up 48% compared with the prior corresponding half. The broker retains a Neutral rating on valuation and $7.85 target price.

Target price is $7.85 Current Price is $7.39 Difference: $0.46
If SLK meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.59, suggesting upside of 30.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates STO as Neutral (3) -

Credit Suisse expects Santos will continue to trade in tandem with Oil Search ((OSH)) until the merger is finalised and doesn't rule out a delay.

Upgraded uncontracted LNG prices and rising near-term oil prices raise Oil Search and Santos' valuations roughly 8%, reports the broker.

Credit Suisse suspects asset sales (a key value driver presenting upside and downside risk) will be needed to shore up the balance sheet, and to align the joint ventures adnd risk, but questions the wisdom of selling the best assets to support weaker assets.

Target price rises to $7.53 from $6.98 to reflect higher LNG prices and merger synergies, and the broker perceives valuations to be relatively full. Neutral rating retained.

Target price is $7.53 Current Price is $7.23 Difference: $0.3
If STO meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.43, suggesting upside of 18.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Morgans rates VRT as Add (1) -

Morgans sees a buying opportunity for Virtus Health shares after a recent swoon due to the ACCC temporarily blocking the acquisition of the Adora Fertility clinic and day hospitals. The broker likes the attractive fully franked yield and the overall IVF thematic.

The analyst removes Adora's numbers from its forecasts and lowers its target price to $7.13 from $7.69 while retaining an Add rating.

Target price is $7.13 Current Price is $5.08 Difference: $2.05
If VRT meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $6.88, suggesting upside of 34.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

West African Resources will buy the 6.8m ounces Kiaka project for US$100m and raise $126m to support the transaction. Macquarie envisages an 11.5-year mine life for Kiaka, producing 254,000 ounces per annum at an all-in sustainable cost of US$1213/oz.

Significantly, previous work done on the project reveals a conventional cyanide leach plant will be sufficient for about 90% recovery.

This has potential to be a meaningful asset, the broker asserts, and upgrades to Outperform from Neutral. Target is raised to $1.60 from $1.50. 

Target price is $1.60 Current Price is $1.39 Difference: $0.21
If WAF meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates WGN as Neutral (3) -

Wagners Holding has revealed at its AGM that the south-east Queensland construction market remains strong, although price realisation is still poor and margins are under pressure.

The company has increased its own haulage fleet to service existing contracts and says a reduction in subcontractor dependence could help margins

Management is still seeking an investment partner for the low-carbon concrete product to assist with commercialisation. No specific guidance was provided and the update largely met Macquarie's view. Neutral reiterated. Target is $2.05.

Target price is $2.05 Current Price is $1.80 Difference: $0.25
If WGN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates WGN as Add (1) -

Wagners Holding's September-quarter update lacked quantitative detail though management reports increased construction-sector activity in south-east Qld and flags particularly strong cement and concrete volumes.

The broker maintains its Add rating and $2.30 target price. It's thought the external Earth friendly concrete (EFC) investment process will be an important catalyst for the stock. Management is encouraged by the initial level of interest in the technology.

Target price is $2.30 Current Price is $1.80 Difference: $0.5
If WGN meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates WGX as Outperform (1) -

Westgold Resource's September-quarter production results met Macquarie's expectations and guidance is unchanged. Cue and Fortnum are performing well and a grade improvement is flagged at Meekatharra.

Macquarie believes the company is in a strong position given cash generation is supported by reduced capital expenditure and increased production at Big Bell.

Outperform maintained. Target is $2.60.

Target price is $2.60 Current Price is $1.93 Difference: $0.67
If WGX meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates WOW as Underperform (5) -

Woolworths Group's September-quarter trading update was solid but Credit Suisse spies supply price inflation (yet management expects only "very modest" price increases, suggesting margin pressure is emerging).

Comparable store sales rose 14% to 16% through July and August; and Australian Food managed to hold market share.

The broker says store deleveraging risks are emerging, with click and collect sales falling -3%, which may affect the Woolworths' e-commerce fulfilment strategy. Credit Suisse expects the company may need to devote resources to building a centralised e-commerce fulfilment capability.

Target price edges up to $31.84 from $31.40. Underperform rating retained.

Target price is $31.84 Current Price is $39.16 Difference: minus $7.32 (current price is over target).
If WOW meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.76, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates WOW as Neutral (3) -

Macquarie observes Woolworths Group's sales growth is being supported by at-home consumption, although the trends are starting to unwind as the economy re-opens. Australian food sales grew 3.9% in the September quarter with like-for-like sales up 2.7%.

Deflation was observed, although Woolworths notes red meat pricing remains high. Unfavourable growing conditions have meant fruit has been the key driver of deflation.

Big W was hardest hit by the forced closure of non-essential retail with sales declining -17.5% in the quarter.

Macquarie believes the premium in the stock to rival Coles ((COL)) is too wide given the likely recovery in market share for Coles as restrictions ease. Neutral rating and $41.50 target.

Target price is $41.50 Current Price is $39.16 Difference: $2.34
If WOW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $38.76, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates WOW as Hold (3) -

Woolworths Group's September-quarter sales were slightly weaker than Morgans expected. Like-for-like sales growth for the key Australian Food business of 2.7% fell -1.8% shy of the analyst's 4.5% forecast.

Management noted sales have slowed in Australian Food as NSW lockdown restrictions eased while BIG W sales trends have improved as Sydney stores reopen. The broker lowers its FY22 underlying profit forecast by -2%. The target falls to $37.85 from $38.40. Hold rating.

Target price is $37.85 Current Price is $39.16 Difference: minus $1.31 (current price is over target).
If WOW meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.76, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Ord Minnett rates WOW as Accumulate (2) -

Ord Minnett observes Woolworths Group's September-quarter sales update disappointed but adds market forecasts were "elevated".

Culprits for the "miss" were tobacco sales, additional costs and a moderation in sales as NSW moved out of lockdown.

The broker remains positive on the company's outlook and has increased its forecasts by 3% and 1% respectively for FY22 and FY23.

Accumulate rating retained. Target price rises to $43 from $42.50.

Target price is $43.00 Current Price is $39.16 Difference: $3.84
If WOW meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $38.76, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

UBS rates WOW as Neutral (3) -

Woolworth's Group's Australian food sales growth was lower than UBS expected in the September quarter, and trading slowed at the start of the December quarter given tough comparables.

The broker notes the company did not repeat the remark that the first half EBIT (earnings before interest and tax) for Big W would be materially lower, although noted trading would be even more dependent on Christmas.

UBS retains a Neutral rating and $40 target.

Target price is $40.00 Current Price is $39.16 Difference: $0.84
If WOW meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $38.76, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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