Australian Broker Call

Citi rates 29M as Neutral (3) -

Amid softer copper supply and the expectation of more agressive cuts from the US Federal Reserve, Citi's commodities team has upgraded its second quarter copper outlook to an average US$9,000 per tonne.

The broker considers pure play 29Metals to be the biggest beneficiary of higher base metal pricing in FY24 within its coverage. Citi does continue to expect an $80m raise from the company within the calendar year.

The Neutral rating is retained and the target price increases to 55 cents from 45 cents.

Target price is $0.55 Current Price is $0.54 Difference: $0.01
If 29M meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.50, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates ALQ as Outperform (1) -

Management at ALS Ltd now expects FY24 underlying profit at the lower end of the previously announced range of $310-325m.

The company will acquire the remaining 51% of Nuvisan at no cost. This move allows full capture of potential earnings upside from depressed levels and preserves funding capacity for addition M&A activity, highlights the analyst.

Macquarie believes issues at Nuvisan are more cyclical than structural.

The Outperform rating is retained and the target price falls to $13.90 from $14.25 on lower FY24 and FY25 EPS forecasts due to a slightly weaker finish to FY24 and higher short-term losses from Nuvisan.

The FY24 result is due on May 21.

Target price is $13.90 Current Price is $13.07 Difference: $0.83
If ALQ meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.29, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates ALQ as Neutral (3) -

ALS Ltd has announced its intention to acquire the remaining 51% stake of Nuvisan, which it will acquire at no cost through exercising its call option. 

Given the underperformance of Nuvisan, ALS Ltd expects to write down the majority of the exisitng carrying value in the business. UBS points out the company will then implement a restructuring program aimed at lifting earnings, which will come at a cost of -EUR20m. 

The Neutral rating is retained and the target price increases to $13.30 from $13.00.

Target price is $13.30 Current Price is $13.07 Difference: $0.23
If ALQ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.29, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates AMC as Accumulate (2) -

Ord Minnett lowers its target price for Amcor, having reviewed volumes expectations for the company. The broker notes despite Amcor's exposure to the relatively stable markets of consumer staples and healthcare, it isn't immune to a consumer spend slowing down.

The broker has pulled back volume expectations in developed markets, aligned with its longer-term population growth expectations. 

The Accumulate rating is retained and the target price decreases to $17.00 from $17.80.

Target price is $17.00 Current Price is $14.20 Difference: $2.8
If AMC meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $15.53, suggesting upside of 9.7% (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: 0.3

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

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

Following the release of the Australian Energy Market Operator's (AEMO's) Gas Statement of Opportunities (GSOO) and the Victorian Gas Planning Report (VGPR), Macquarie notes (like in 2023) the market is heading for a gas shortfall.

The broker suggests the likely first trouble will occur in the winter of 2026, though the material shortfall will be in 2027 or 2028. It's felt APA Group will benefit from growing contracting in off peak on the energy performance contract (EPC) to deliver more gas in Victoria.

Target rises to $9.40 from $8.90 after the broker also incorporates a lower tax assumption. The rating is upgraded to Outperform from Neutral on valuation.

Target price is $9.40 Current Price is $8.27 Difference: $1.13
If APA meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 5.0% (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

Morgan Stanley rates ASX as Underweight (5) -

Morgan Stanley anticipates cyclical and structural factors will drive a rebound for global capital markets and prefers to play this theme via Macquarie Group in preference to Underweight-rated ASX.

The broker forecasts a 50% recovery in global M&A volumes in 2024, with M&A and debt capital markets (DCM) leading, with an equity capital market (ECM) recovery more gradual.

The $53.50 target and Underweight rating are maintained for the ASX. Industry view: In-Line.

Target price is $53.50 Current Price is $65.76 Difference: minus $12.26 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $62.68, suggesting downside of -4.7% (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 BHP as Upgrade to Add from Hold (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Morgans upgrades its rating for BHP Group to Add from Hold after a recent share price selloff and is preferred over Rio Tinto and Fortsecue for iron ore exposure. The $47.60 target is unchanged.

Target price is $47.60 Current Price is $43.88 Difference: $3.72
If BHP meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $45.06, suggesting upside of 3.5% (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: 0.3

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

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

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Afriac enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

The target for Beach Energy rises to $2.15 from $1.65 and the rating is upgraded to Add from Hold after a new analyst at Morgans updates financial assumptions. Higher oil and gas price forecasts are also incorporated into forecasts.

Target price is $2.15 Current Price is $1.74 Difference: $0.415
If BPT meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates CAR as Neutral (3) -

Data suggest CAR Group's South Korean digital marketplace, Encar, has carried momentum into the second half, says Citi. Transactions to date in the second half are up 1% year-on-year, while web traffic growth remains strong.

The broker points out there was a dip in February, with used car sales falling into a decline in the month, but expects this was related to the Lunar New Year.

The Neutral rating and target price of $34.70 are retained.

Target price is $34.70 Current Price is $36.79 Difference: minus $2.09 (current price is over target).
If CAR 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 $34.02, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates COE as Add (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

The Add rating is maintained for Cooper Energy and the target rises to 30c from 28c.

Target price is $0.30 Current Price is $0.19 Difference: $0.11
If COE meets the Morgans target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $0.23, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates COI as Speculative Buy (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

The Speculative Buy rating and 28c target are maintained for Comet Ridge.

Target price is $0.28 Current Price is $0.21 Difference: $0.07
If COI meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Bell Potter rates CWY as Initiation of coverage with Buy (1) -

Bell Potter has initiated coverage on Cleanaway Waste Management, which it expects will be a beneficiary of the ongoing transition to a circular economy. 

Australia has historically relied on landfilll and export markets as cheap alternatives to local recycling, but is transitioning to a circular economy, and Cleanaway Waste Management should be leveraged to a recycling supply-demand deficit. 

The company outlined a three-year pathway to earnings above $450m in June 2023, and the broker points out the growth outlook for Cleanaway Waste Management screens in the top quartile ASX100 companies.

The broker initiates with a Buy rating and a target price of $3.10.

Target price is $3.10 Current Price is $2.68 Difference: $0.42
If CWY meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates ELD as Neutral (3) -

UBS is forecasting a full year earnings result of $177m from Elders, reflecting year-on-year growth of 3%. 

The broker points out Elders' result will be impacted by many moving parts, including mergers and acquisitions in excess of $10m, the backwards integration of Titan, earnings improvements from Australian Independent Rural Retailers, and a $10m cost out program.

The broker is also anticipating an update on the company's systems modernisation program, which has been another key focus of the year, expecting the company to have reasonable visibility of initial trial programs.

The Neutral rating is retained and the target price increases to $9.70 from $7.20.

Target price is $9.70 Current Price is $8.93 Difference: $0.77
If ELD meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.50, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates EVN as Buy (1) -

Amid softer copper supply and the expectation of more agressive cuts from the US Federal Reserve, Citi's commodities team has upgraded its second quarter copper outlook to an average US$9,000 per tonne.

Copper accounts for only 30% of Evolution Mining's revenue, but the broker's higher copper deck sees it lift earnings forecasts for the company in both FY25 and FY26.

The Buy rating and target price of $3.95 are retained.

Target price is $3.95 Current Price is $3.48 Difference: $0.47
If EVN meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Morgans rates FMG as Hold (3) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

For Fortescue, Morgans negative view on Fortescue Future Industries is offset by a bullish medium-term view on iron ore, though Buy-rated BHP group is preferred for iron ore exposure at present. The $24.70 target is unchanged.

Target price is $24.70 Current Price is $25.50 Difference: minus $0.8 (current price is over target).
If FMG 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 $20.70, suggesting downside of -17.6% (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: -0.7

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

Macquarie rates GMD as Outperform (1) -

Over FY25-29, Genesis Minerals forecasts total production of 1.3moz, in line with Macquarie's estimate. The production plan from FY30-34 is a beat against the broker's forecasts by circa 75,000oz per annum, due to stronger-than-expected production at Laverton.

Overall, management's five-year plan was softer than the analyst's prior expectations, driven by materially higher capex.

Macquarie reduces near-term EPS forecasts, and higher-than-expected growth capital is balanced by longer-term upgrades.

The $2.00 target and Outperform rating for Genesis Minerals are retained.

Target price is $2.00 Current Price is $1.80 Difference: $0.2
If GMD meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 9.5% (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

Shaw and Partners rates GMD as Buy, High Risk (1) -

Genesis Minerals has provided a five-year outlook as part of its capital markets day targeting total production of 1.3moz between FY25 and FY29 at a mid-point on costs (AISC) of $2,000/oz.

Leonora is expected to grow to 192koz from 155koz over the outlook period, observes the analysts, while Laverton will commence production in FY25.

Management also presented upside to over 400koz per annum between years five and ten.

The broker's Buy, High Risk rating is unchanged and the target is increased to $2.30 from $2.20.

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

Current consensus price target is $1.94, suggesting upside of 9.5% (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 IEL as Buy (1) -

IDP Education continues to face uncertainty amid further tightening and changes to policy in Canada. As per UBS, this raises questions around potential earnings in FY24 and FY25, but the broker believes the disruption is not fully relfected in FY25 consensus forecasts.

The broker also points out there is speculation about the tightening or cancelling of study work rights in the UK, with an announcement anticipated between May and July. 

The broker does, however, remain positive on the longer term structural story and on market share gain opportunities.

The Buy rating is retained and the target price decreases to $25.30 from $28.00.

Target price is $25.30 Current Price is $18.10 Difference: $7.2
If IEL meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $24.33, suggesting upside of 39.0% (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 KAR as Add (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

The Add rating is maintained for Karoon Energy. Target $3.10.

Target price is $3.10 Current Price is $1.98 Difference: $1.12
If KAR meets the Morgans target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 31.3% (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

Morgans rates LTR as Hold (3) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Morgans upgrades its rating for BHP Group to Add from Hold after a recent share price selloff and is preferred over Rio Tinto and Fortsecue for iron ore exposure. The $47.60 target is unchanged.

The target for Liontown Resources rises to $1.30 from $1.00 after management secured a revised banking facility from its syndicate of lenders, after the original facility was withdrawn in January.

While completion of construction of Kathleen Valley is now assured, in the broker's view there is still material execution risk. Hold.

Target price is $1.30 Current Price is $1.17 Difference: $0.13
If LTR meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.35, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

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

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Despite believing lithium prices have likely bottomed, Morgans rating for Mineral Resources is downgraded to Hold from Add after a recent share price rally. The broker still sees plenty of reasons for investors to maintain their holdings.

The $71 target is unchanged.

Target price is $71.00 Current Price is $69.70 Difference: $1.3
If MIN meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $69.80, suggesting upside of 3.4% (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 MQG as Overweight (1) -

Morgan Stanley anticipates cyclical and structural factors will drive a rebound for global capital markets and prefers to play this theme via Macquarie Group in preference to Underweight-rated ASX.

The broker forecasts expect a 50% recovery in global M&A volumes in 2024, with M&A and debt capital markets (DCM) leading, with an equity capital market (ECM) recovery more gradual.

Overweight rating. The target for Macquarie Group rises to $225 from $202. Industry view: In-Line.

Target price is $225.00 Current Price is $197.48 Difference: $27.52
If MQG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $187.08, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

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

MMA Offshore has entered into a binding scheme implementation agreement with Cyan for the acquisition of all issued shares at $2.60 per share, in a deal the MMA Offshore has unanimously recommended to shareholders in the absense of a superior proposal.

Bell Potter described the bid, which reflects an 11% premium to the prior closing price as reasonable but not a knock out. It notes this leaves the door open for a potential competing offer.

The rating is downgraded to Hold from Buy and the target price decreases to $2.60 from $2.70.

Target price is $2.60 Current Price is $2.60 Difference: $0
If MRM meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.60, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates MRM as Buy (1) -

While MMA Offshore has entered into a binding scheme with Cyran for an all-cash offer of $2.60 per share, it is Citi's view the deal looks better for the buyer than the shareholders.

The offer price is consistent with the broker's target price, and an 11% premium to the prior closing price, but Citi points out its own take on oil prices from 2025 is cautious, and its view of peak earnings arguably conservative. 

A shareholder vote will be held between late June and mid July.

The Buy rating and target price of $2.60 are retained.

Target price is $2.60 Current Price is $2.60 Difference: $0
If MRM meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.60, suggesting downside of -0.4% (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

Shaw and Partners rates MRM as Downgrade to Hold from Buy (3) -

Aligning with Shaw and Partners valuation for MMA Offshore, a subsidiary of Singapore-based Cyan Renewables is offering $2.60 per share in cash after signing a binding Scheme Implementation Deed.

The broker's $2.60 target is maintained and the rating downgraded to Hold from Buy to reflect the likelihood MMA Offshore will be acquired at the agreed price.

Shareholders will have the opportunity to vote on the Scheme in late-June to mid-July 2024.

Target price is $2.60 Current Price is $2.60 Difference: $0
If MRM meets the Shaw and Partners target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.60, suggesting downside of -0.4% (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

Bell Potter rates PLS as Hold (3) -

Pilbara Minerals and Ganfeng Lithium Group will fund and complete a feasibility study for a lithium carbonate equivalent downstream conversion facility as a joint venture, as per a binding execution term sheet issues between the two parties.

The proposed facility is for 32,000 tonnes per annum, and the study is expected to be completed in the March 2025 quarter. Following study completion, each party will consider a final investment decision.

The Hold rating and target price of $3.55 are retained.

Target price is $3.55 Current Price is $3.88 Difference: minus $0.33 (current price is over target).
If PLS meets the Bell Potter target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.58, suggesting downside of -4.2% (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 PLS as Underweight (5) -

Pilbara Minerals has signed an agreement with Ganfeng to commence a joint feasibility study to explore a 32ktpa downstream lithium conversion plant. The economics of downstream conversion is still a headwind in Morgan Stanley's view.

The broker also still considers uncontracted tonnes a headwind for Pilbara Minerals, despite the option with Ganfeng to supply 100ktpa of spodumene should the study prove unfruitful.

The Underweight rating and $3.30 target are retained. Industry view: Attractive.

Target price is $3.30 Current Price is $3.88 Difference: minus $0.58 (current price is over target).
If PLS meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.58, suggesting downside of -4.2% (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 PLS as Add (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Morgans is attracted to Pilbara Minerals' strong balance sheet and progress in securing medium-term offtake coverage over its expanding lithium spodumene production at Pilganoora. Add rating. Target $4.30.

Target price is $4.30 Current Price is $3.88 Difference: $0.42
If PLS meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.58, suggesting downside of -4.2% (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 RIO as Hold (3) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa (a Rio Tinto joint venture) enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Morgans has a positive view on Hold-rated Rio Tinto though prefers Buy-rated BHP Group for iron ore exposure at present. Target $128.

Target price is $128.00 Current Price is $121.62 Difference: $6.38
If RIO meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $129.67, suggesting upside of 6.8% (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: 0.3

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

Morgans rates S32 as Add (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Following the announced  proposed sale of the Illawarra met coal operations, Morgans likes that South32 would become an around 90% base metals business. The stock is one the broker's top mining sector picks. Add. Target $4.10.

Target price is $4.10 Current Price is $2.96 Difference: $1.14
If S32 meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

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

Amid softer copper supply and the expectation of more agressive cuts from the US Federal Reserve, Citi's commodities team has upgraded its second quarter copper outlook to an average US$9,000 per tonne.

The broker points out Sandfire Resources is up 20% year-to-date, benefitting from being the go to name in copper on the ASX, and now looks fully valued to Citi. The broker expects there will be other entry points in the coming two years. 

The rating is downgraded to Sell from Neutral and the target price increases to $7.30 from $6.90.

Target price is $7.30 Current Price is $8.87 Difference: minus $1.57 (current price is over target).
If SFR meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.67, suggesting downside of -8.9% (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: 0.3

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

Ord Minnett rates SGR as Hold (3) -

Star Entertainment CEO Robbie Cooke has stepped down amid a second inquiry into the company's suitability to hold a casino license in New South Wales, which is already returning punitive results according to Ord Minnett. 

Cooke commented that his continuation in the CEO role would not be conducive to the regulator finding Star Entertainment suitable to hold the license. Ord Minnett does still expect Star Entertainment can prove suitability.

The Hold rating and target price of 90 cents are retained.

Target price is $0.90 Current Price is $0.53 Difference: $0.375
If SGR meets the Ord Minnett target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgans rates STO as Hold (3) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Morgans believes the valuation is currently full for Hold rated Santos and Woodside Energy (Add) takes over the mantle as the broker's top pick in the Energy sector. Target $8.10 for Santos.

Target price is $8.10 Current Price is $7.58 Difference: $0.52
If STO meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.00, suggesting upside of 18.2% (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: 0.4

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

Morgans rates WDS as Add (1) -

Morgans adopts a more positive view than consensus on demand conditions for commodities in the expectation US dollar weakness and a return to growth in the West offsets the weak property market in China.

Due to sustained supply deficits in coming years, the broker prefers copper and oil exposures. The iron ore price is expected to remain healthy until around 2026 when low-cost, high-quality supply from the Simandou mine in Africa enters the market, and potentially lowers prices.

The analysts anticipate gold stocks could rally to 'catch up' to all-time highs for gold prices. Oil, LNG and uranium price forecasts are increased, while the 2024 spodumene price estimate is further trimmed.

Woodside Energy is now Morgans top pick in the Energy sector following meaningful share price underperformance compared to Santos over the last year.

The broker highlights substantial progress securing approvals to resume work at Scarborough and staying within development budgets for growth projects (Scarborough/Sangomar). Add. Target $36.20.

Target price is $36.20 Current Price is $30.08 Difference: $6.12
If WDS meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $33.87, suggesting upside of 11.4% (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: 0.3

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