Australian Broker Call

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

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley lowers its target for Adbri to $1.60 from $1.70. The share price is expected to range trade range trade until there's evidence of earnings stability and certainty around long-term leadership. Equal-weight. Industry view In-Line.

Target price is $1.60 Current Price is $1.56 Difference: $0.04
If ABC meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.55, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ANZ as Buy (1) -

In an initial response on Friday to ANZ Bank 's result, UBS concluded top line growth is "solid". The broker has since increased its earnings forecasts by 6-9% over FY23-25 on stronger net interest income and lower bad debts.

The key questions remain as: to what extent can the bank continue to benefit from deposit pricing gains; how long will asset quality remain benign?

But and $30 target retained.

Target price is $30.00 Current Price is $25.21 Difference: $4.79
If ANZ meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $27.54, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates ARB as Outperform (1) -

ARB Corp's AGM trading update appears to have sharply missed Macquarie's forecasts, the company posting a -10% fall in September-quarter sales and an even greater profit decline as inflation hit operational costs, crunching margins, and labour shortages stymied fitting capacity.

The company recorded a -19% slump in export sales to a US customer due to restructuring says the broker, but otherwise, expansion in the US continues apace, with a third distribution scheduled to open in Dallas in January.

The order book remains strong.

Management advises the September-quarter is not likely to be indicative for the full year, noting a strong start to the December quarter.

EPS forecasts fall -16% in FY23; -18% in FY23; and -19% in FY24.

Outperform rating retained. Target price is $30, which compares with the last update in the FNArena database in August of $35.30.

Target price is $30.00 Current Price is $26.98 Difference: $3.02
If ARB meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.85, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgan Stanley rates ARB as Overweight (1) -

While Morgan Stanley sees few short-term catalysts for ARB Corp following 1Q results, the long-term story is still seen as favourable and the Overweight rating and $35 target are retained. Industry view: In-Line. 

The broker doesn't extrapolate the -10% fall in 1Q sales compared to the previous corresponding period, and notes the 2Q has started well. It's thought strategic initiatives will support stronger growth in the 2H of FY23 and FY24.

Exports fell by -19% on the previous corresponding period though the analyst points to an elevated order book and expects stronger 2H sales, supported by an improvement in the supply of new vehicles.

Target price is $35.00 Current Price is $26.98 Difference: $8.02
If ARB meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $35.85, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates ARB as Buy (1) -

While 1Q sales for ARB Corp came in lower than Ord Minnett's forecast, (impacted by a decline in Export sales), the broker believes growth will improve over the remainder of FY23. This view is founded on an improvement in key vehicle sales and a strong order book.

The broker also observes increasing cost pressures in the 1Q meant profit declined at a greater rate than sales.

Management noted 2Q sales have "started well" and now expects improved sales in the 2H of FY23 and FY24.

Ord Minnett lowers its target to $35 from $39 and retains its Buy rating.

Target price is $35.00 Current Price is $26.98 Difference: $8.02
If ARB meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $35.85, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates ART as Add (1) -

Following a 1Q trading update, Morgans assesses solid year-on-year growth for Airtasker's domestic business and notes early signs of marketplace performance offshore.

Gross marketplace volume (GMV) rose by 82% on the previous corresponding period.

While underlying business momentum appears to be resilient, the analyst's price target falls to $0.95 from $1.05 due to slightly higher opex forecasts for the international build out and after adjusting for lower peer multiples. Add.

Target price is $0.95 Current Price is $0.34 Difference: $0.61
If ART meets the Morgans target it will return approximately 179% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates BBT as Buy (1) -

While BlueBet Holdings' 1Q was a slight miss versus Ord Minnett's forecasts, the performance was consistent with recent reporting by peers. The Buy rating and $0.80 target are retained.

Wet weather on the east coast of Australia impacted the results with a material number of race meetings canceled, though the analyst notes win margins stayed healthy.

Ord Minnett still likes the strategy of developing white-labeled solutions in the US in 2023, which is both a capital-light and differentiated approach to peers. Discussions with potential partners for their Sportbook-as-a-Solution strategy are ongoing.

Target price is $0.80 Current Price is $0.44 Difference: $0.365
If BBT meets the Ord Minnett target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates BLD as Underweight (5) -

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its building materials coverage. Stocks with repair and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley lowers its target for Boral to $2.20 from $2.50 and retains its Underweight rating as it notes the market has not seen a material cyclical decline for some time and may be surprised by the extent of the company's downside leverage. Industry view In-Line.

Target price is $2.20 Current Price is $2.82 Difference: minus $0.62 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.78, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Credit Suisse rates CAR as Outperform (1) -

Credit Suisse described a positive first quarter from Carsales' Trader Interactive, noting growth initiatives, including a new dealer auto-response product, should benefit the business for the remainder of the year. This underpins a lift in  the broker's revenue and earnings assumptions for Trader Interactive.

Carsales has reaffirmed its expectations for good revenue and earnings growth in the current fiscal year. The Outperform rating is retained and the target price increases to $25.30 from $25.25.

Target price is $25.30 Current Price is $19.84 Difference: $5.46
If CAR meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $23.83, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining's September-quarter trading update appears to have met Macquarie's forecasts, the company finishing the quarter with sufficient cash to fund its drilling program for 18 months, says the broker.

Drilling has also confirmed the northern extension at Gonneville.

Macquarie says management is considering strategic minority joint venture partners to develop the project, and is seeking technical knowledge, market connections and balance-sheet strength in a partner.

Management expects the mine will benefit from the passing of the US inflation Reduction Act bill, which should raise market interest.

Outperform rating and $7.50 target price retained.

Target price is $7.50 Current Price is $4.23 Difference: $3.27
If CHN meets the Macquarie target it will return approximately 77% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates CRN as Initiation of coverage with Neutral (3) -

UBS "initiates" coverage of Coronado Global Resources with a Neutral rating and a $1.80 target, having last updated on the stock in March 2021. The broker sees strong returns and net cash levered to metallurgical coal, but modest organic growth.

While met coal demand has softened with weak Chinese construction activity and fading demand growth elsewhere, seaborne supply has tightened due to sanctions on Russian supply, the broker notes.

In Australia, which accounts for 55% of seaborne exports, La Nina is expected to impact for the third year in a row.

Target price is $1.80 Current Price is $1.86 Difference: minus $0.06 (current price is over target).
If CRN meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.49, suggesting upside of 32.9% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

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

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair-and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley lowers its target for CSR to $4.80 from $6.20 and retains its Equal-weight rating as it notes the market has not seen a material cyclical decline for some time and may be surprised by the extent of the company's downside leverage. Industry view In-Line.

The analyst feels CSR will be more resilient than peers due to an under-geared balance sheet, capital management and significant value in the Property book.

Target price is $4.80 Current Price is $4.70 Difference: $0.1
If CSR meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates DTL as Buy (1) -

Data#3's AGM trading update met Ord Minnett's forecasts.

Management confirmed continued growth in new contracts in the year to date, despite a weaker macroeconomic environment.

Ord Minnett admires the company's strong pipeline for large digital transformation projects across both public and private sectors, and its defensive long-term contracted revenue.

The broker also expects strong margin growth as the revenue mix changes.

Buy rating and $7.50 target price retained.

Target price is $7.50 Current Price is $6.56 Difference: $0.94
If DTL meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates EDV as Buy (1) -

Ord Minnett notes Endeavour Group is a large owner and operator of electronic gaming machines, making it vulnerable to recent regulation in Tasmania and NSW.

The NSW Crime Commission recently recommended cashless gaming should be introduced to cut money-laundering risks, while Tasmania plans to introduce daily, monthly and annual loss limits from 2024.

On the upside, electronic gaming revenue provides added income into NSW governments coffers at a time of likely declining stamp duty, observes the broker, which should cushion the blow for now, but ongoing regulation is likely to remain a feature of the operating landscape.

The broker notes gaming constitutes 24% of Endeavour's earnings. 

Buy rating retained. Target price falls to $7.90 from $8.20.

Target price is $7.90 Current Price is $7.04 Difference: $0.86
If EDV meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.26, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates ELD as Outperform (1) -

Macquarie cuts Elders FY22 EPS forecast by -3.6% ahead of its result, to reflect the impact of wet weather in the country's east, which the broker says is likely to push some FY22 sales into FY23.

The broker also forecasts sharply lower cash conversion, which it expects will also correct in FY23 given ABARES has forecast a 7% uptick in the value of farm production over the period.

Outperform rating retained. Target price eases to $16.40 from $16.54.

Target price is $16.40 Current Price is $12.79 Difference: $3.61
If ELD meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $15.38, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates FBU as Overweight (1) -

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley maintains its Overweight rating for Fletcher Building. It's felt the company is benefiting from a supportive macro backdrop, significant cost benefits from earlier self-help initiatives, and has balance sheet flexibility to support growth.

The broker's target decreases to NZ$6.30 from NZ$7.90 due to a decline in peer multiples. Industry view is In-Line.

Current Price is $4.51. Target price not assessed.

Current consensus price target is $7.00, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Citi rates ILU as Downgrade to Neutral from Buy (3) -

Citi expects September zircon, rutile and synthetic rutile pricing to be a peak for the current cycle, anticipating demand for both zircon and pigments to decline ahead with the Chinese ceramic market and real estate markets softening. 

The broker expects this demand and pricing drag to keep investors on the sideline, but continues to see value in the stock. Having already assumed a price peak, earnings per share forecasts changes are modest. 

The rating is downgraded to Neutral from Buy and the target price decreases to $9.50 from $12.20.

Target price is $9.50 Current Price is $8.45 Difference: $1.05
If ILU meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.77, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates ILU as Upgrade to Outperform from Neutral (1) -

Iluka Resources' September quarter was largely in line with Credit Suisse's expectations, with production 11% higher than the broker had estimated. Despite the strong quarter, rutile production year to date is only 60% of full year guidance, and the broker raised concerns around the company's ability to meet its target.

The broker lifts its zircon pricing over the coming six months to US$2000 per tonne, from US$1730 per tonne, but does maintain expectations of a downturn ahead.

Given a busy catalyst schedule, the rating is upgraded to Outperform from Neutral and the target price of $10.00 is retained.

Target price is $10.00 Current Price is $8.45 Difference: $1.55
If ILU meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $10.77, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates ILU as Outperform (1) -

Iluka Resources' September-quarter result outpaced Macquarie's forecasts on both production and sales, and the broker expects a healthy dividend.

Management advises that zircon demand remains elevated but expects prices to be stable over the next six months.

The broker cuts 2022 and 2023 EPS forecasts accordingly.

Outperform rating and $12.60 target price retained.

Target price is $12.60 Current Price is $8.45 Difference: $4.15
If ILU meets the Macquarie target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $10.77, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

Morgan Stanley expects shipping delays that weighed upon 3Q results for Iluka Resources will be caught up. Pricing and production were in line with the analyst's forecasts.

There was no update to management's FY22 guidance and the broker retains its Equal-weight rating and $11.25 target price. Industry view: Attractive.

Target price is $11.25 Current Price is $8.45 Difference: $2.8
If ILU meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $10.77, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates ILU as Buy (1) -

Iluka Resources's September-quarter update generally outpaced Ord Minnett's forecasts, sales volumes relating mainly to port congestion being the main drag, but the broker expects this to recover in the December quarter after an October catch-up shipment.

Zircon production outpaced by 9% and revenue missed by -9% given lower sales turnover.

The broker is in the process of reviewing the company's rare-earths profile.

Buy rating and $11 target price retained.

Target price is $11.00 Current Price is $8.45 Difference: $2.55
If ILU meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $10.77, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates JDO as Buy (1) -

Judo Capital's first annual general as a listed entity provided a positive operational update, with first quarter profit before tax of $23m a notable beat to Citi's expected $16m. 

Favourable term deposit margins support the company's expectations of reaching the upper end of its first half net interest margin guidance range of 3.3-3.5%, but Judo Capital warns margins are likely to revert back towards 3.0% in the second half. 

The Buy rating and target price of $1.80 are retained.

Target price is $1.80 Current Price is $1.17 Difference: $0.63
If JDO meets the Citi target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 65.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates JHG as Underperform (5) -

Credit Suisse is encouraged by what it considers a refined focus and potential expanded total addressable market from Janus Henderson's strategic update. Less positively, the broker warns the fourth quarter is likely to be impacted by elevated redemptions and lower than expected earnings power. 

The broker finds consensus outlooks to be too high, and its adjusted forecasts sit -10% and -17% below for FY23 and FY24 respectively. 

The Underperform rating is retained and the target price decreases to US$17.00 from US$18.00.

Current Price is $34.48. Target price not assessed.

Current consensus price target is $30.45, suggesting downside of -15.3% (ex-dividends)

The company's fiscal year ends in December.

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: -0.7

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

Morgan Stanley rates JHX as Overweight (1) -

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley notes James Hardie Industries is the highest quality stock under its coverage and maintains an Overweight rating and sees significant upside potential for its $43 target, down from $46. Industry View: In-Line.

The analyst believes house price weakness will be countered by price, mix, and share growth.

Target price is $43.00 Current Price is $33.46 Difference: $9.54
If JHX meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $48.07, suggesting upside of 41.7% (ex-dividends)

The company's fiscal year ends in February.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates KLS as Outperform (1) -

Kelsian Group has acquired Horizons West, a bus and charter service to the Western Australian education sector.

Macquarie considers the transaction a good strategic fit, believing Horizons will provide a platform for growth, be margin-accretive and offer defensive earnings.

The company will also buy Horizon's strategic property assets (two depots) for $16.7m.

FY23 and FY24 EPS forecasts rise 2.1% in FY23 and 3.6% in FY24.

The broker suspects defensive Kelsian could be subject to a re-rate should risk-off appetite re-emerge. 

Target price rises to $8.20 from $8.

Target price is $8.20 Current Price is $4.51 Difference: $3.69
If KLS meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $8.17, suggesting upside of 76.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates KMD as Neutral (3) -

KMD Brands' competitors lowered guidance due to growing pressure on gross margins and high inventories.

Macquarie says it has already factored these trends into it outlook for KMD Brands.

Neutral rating and 90c target price retained.

Target price is $0.90 Current Price is $0.93 Difference: minus $0.025 (current price is over target).
If KMD meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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 M7T as Add (1) -

While 1Q cash receipts and net operating cash outflow were below Morgans forecast, the broker prefers to focus on better progress indicated by the sales order book and growth in such metrics as annual recurring revenue (ARR).

FY23 guidance for Mach7 Technologies was unchanged and the broker leaves its $1.34 target price and Add rating unchanged. Three quarters of strong growth are anticipated for the remainder of FY23 and investors are advised to build positions.

Target price is $1.34 Current Price is $0.55 Difference: $0.795
If M7T meets the Morgans target it will return approximately 146% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates MCR as Outperform (1) -

Mincor Resources' maiden FY23 production guidance fell -26% short of Macquarie's forecasts as September-quarter production and nickel grades disappointed.

The broker slows its ramp-up forecasts accordingly but remains positive on the 12-month view, believing FY23 to be a transitional year..

EPS forecasts fall -65% in FY23; -13% in FY24; -24% in FY23 and -21% in FY27.

Outperform rating retained. Target price falls -30% to $1.60.

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

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Morgan Stanley sees the appointment by Mirvac Group of Campbell Hanan as Group CEO and Managing Director as a mild positive, given the respect he holds in the market and the removal of uncertainty around the appointment.

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

Target price is $2.30 Current Price is $2.00 Difference: $0.3
If MGR meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgan Stanley rates MMS as Overweight (1) -

Morgan Stanley highlighted McMillan Shakespeare as a key pick following FY22 results, and a 1Q trading update (in-line with August commentary by management) does not alter this view.

The broker sees no impact from the current macroecenomic backdrop and notes robust novated demand and retention.

The Overweight rating and $17.50 target are kept. Industry View: In-Line.

Target price is $17.50 Current Price is $13.20 Difference: $4.3
If MMS meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $15.46, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates MQG as Neutral (3) -

Performance from commodities and global markets underpinned Macquarie Group's 6% first half cash earnings beat to consensus. Cash earnings of $2,305m were a -13% decline on the previous half. 

Citi continues to expect Macquarie Group's earnings to moderate to $3.6bn by FY25 as a reversion of cyclical markets businesses and higher costs offset structural rates benefits in annuity businesses.

The Neutral rating and target price of $172.00 are retained.

Target price is $172.00 Current Price is $166.50 Difference: $5.5
If MQG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $189.05, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Credit Suisse rates MQG as Underperform (5) -

Off the back of Macquarie Group's first half performance Credit Suisse has lifted its earnings forecasts 8%, 0% and 2% through to FY25. Despite the period benefiting from trading, the broker continues to expect the company to face headwinds and a slow down ahead.

While Macquarie Group's first half revenue declined -13% half-on-half, the result exceeded Credit Suisse's expectations by 13%.  

The Underperform rating and target price of $150.00 are retained.

Target price is $150.00 Current Price is $166.50 Difference: minus $16.5 (current price is over target).
If MQG meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $189.05, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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 assesses a strong 1H for Macquarie Group and slightly increases its FY23 earnings forecast though expects the market will await improving economic conditions before pushing shares higher.

The broker feels management's FY23 guidance on both commodities and gains on sale will prove conservative and believes Green Energy and other growth options will assist. The Overweight rating is unchanged.

The target falls to $215 from $231 on lower peer multiples. Industry View: Attractive.

Target price is $215.00 Current Price is $166.50 Difference: $48.5
If MQG meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $189.05, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates MQG as Add (1) -

First half profit for Macquarie Group exceeded the forecasts of Morgans and consensus by 13% and 9%, respectively. A $3.00 1H dividend was declared, which was in line with consensus.

The broker lifts FY23 and FY24 EPS forecasts by 1.2% and 0.2%, respectively and the target eases to $214.30 from $215. It's felt the general tone of divisional commentary has become steadily more positive across the 1H. Add.

Target price is $214.30 Current Price is $166.50 Difference: $47.8
If MQG meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $189.05, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates MQG as Buy (1) -

Macquarie Group's first half net profits of $2.3bn exceeded Ord Minnett's expectations by 4%, with a notably different composition as Banking and Financial Services and Commodities and Global Markets revenues and investment income exceeded expectations.

The broker expects gains to materially slow in the second half, reflecting a more challenging environment. Ord Minnett anticipates the earnings mix will improve over time, and finds Commodities and Global Markets well positioned to benefit from the ongoing energy market transition.

The Buy rating is retained and the target price decreases to $198.00 from $202.00.

Target price is $198.00 Current Price is $166.50 Difference: $31.5
If MQG meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $189.05, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates NHF as Neutral (3) -

Macquarie's survey of the Overseas Health Insurance Market reveals international workers health insurance continues to be the highest margin product in the category, reversing long-term trends.

The broker notes that, as one of the cheapest providers, nib Holdings' portfolio is benefiting from the trend but that it is weighted towards Indian customers, which suggests it may have underperformed in the December quarter.

Meanwhile, student visa grants rose in the September quarter and the broker spies a strong recovery in the wings. Worker visa holders also rose.

EPS forecasts rise 1.6% in FY23; are steady in FY24; and rise 6% thereafter.

Neutral rating retained. Target price shaved to $7.20 from $7.25 to reflect NDIS uncertainty.

Target price is $7.20 Current Price is $6.52 Difference: $0.68
If NHF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.59, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates NTO as No Rating (-1) -

Nitro Software delivered a solid result against a tough macro backdrop, UBS suggests, and the pick-up in third quarter momentum provides incremental support to the company's FY annual recurring revenue guidance range. The fourth quarter is seasonally stronger.

UBS is on research restriction.

Current Price is $1.73. Target price not assessed.

The company's fiscal year ends in December.

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

Ord Minnett rates PAC as Buy (1) -

Ord Minnett concludes after 1Q results shares of Pacific Current Group remain cheap and expects healthy earnings growth over its forecast period.

Excellent net flows and a favourable currency movement offset negative equity markets, observes the analyst, and the group reported a 1.1% quarter-on-quarter increase in funds under management (FUM).

The broker retains its Buy rating and $11.00 target price.

Target price is $11.00 Current Price is $8.51 Difference: $2.49
If PAC meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates PMV as Neutral (3) -

The rising cost of living is yet to have significant impact on demand for Premier Investments, with the retailer reporting sales growth of 42.8% in the first twelve weeks of the half, up 21.7% on pre-covid levels. With key sales events ahead in the period, Citi retains forecasts. 

The stock has outperformed the market since announcing its full year result in September, but Citi retains its rating given the tough customer environment.

The Neutral rating and target price of $25.30 are retained.

Target price is $25.30 Current Price is $23.71 Difference: $1.59
If PMV meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates PMV as Buy (1) -

Premier Investments has surprised by issuing a trading update with the publication of its annual report, when typically it waits for the AGM. The first twelve weeks of FY23 have seen 42.8% sales growth, UBS  notes, albeit cycling last year's lockdowns.

But sales are up 21.7% on equivalent pre-covid numbers, which suggests to the broker consumers remain strong and company-specific drivers continue to progress well.

UBS remains cautious on the consumer, especially for the second half FY23, but is confident Premier Retail is comparatively well positioned. Buy and $26 target retained.

Target price is $26.00 Current Price is $23.71 Difference: $2.29
If PMV meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates QAL as Outperform (1) -

Macquarie provides the following conclusions from Qualitas's investment day:

-The company expects that structural changes affecting traditional financiers will propel private credit from a niche to mainstream asset, substantially impacting the size and quality of the deployment opportunity, enhancing revenue and margins.

-In relation to its residential credit book, management advises -30% to -45% of value would need to be eroded before the company's capital position was at risk.

Outperform and $3.21 target price retained.
 

Target price is $3.21 Current Price is $2.35 Difference: $0.86
If QAL meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates QUB as Upgrade to Outperform from Neutral (1) -

Qube Holdings' trading update suggested high volume and margin improvement across most parts of the business. Credit Suisse likes the advantage offered by Qube Holdings' integrated logistics offering, and that new customer wins and expansion of services offers growth potential. 

Previous guidance was confirmed, and Credit Suisse retains its forecasts. The rating is upgraded to Outperform from Neutral and the target price increases to $2.90 from $2.80.

Target price is $2.90 Current Price is $2.69 Difference: $0.21
If QUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates REH as Underweight (5) -

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair and remodel exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley lowers its target for Reece to $11.00 from $12.20 after applying a -10% discount to account for the current macroeconomic uncertainty and likely declining demand environment. The Underweight rating is maintained.

Target price is $11.00 Current Price is $14.83 Difference: minus $3.83 (current price is over target).
If REH meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.77, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Citi rates RMD as Downgrade to Neutral from Buy (3) -

While supply chain impacts improve and the competitive dynamic remains in ResMed's favour, Citi anticipates a more gradual gross margin recovery and has updated its forecasts accordingly. 

A decision between competitor Philips and the US Department of Justice could either see Philips return to the market and negatively impact ResMed's earnings, or remain out of the market and allow ResMed to continue to benefit from a quiet competitive environment.

The rating is downgraded to Neutral from Buy and the target price decreases to $37.50 from $38.50.

Target price is $37.50 Current Price is $33.91 Difference: $3.59
If RMD meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Credit Suisse rates RMD as Outperform (1) -

While ResMed reported strength in card-to-cloud uptake in the US during the first quarter, up 23%, a -10% decline from the rest of world saw the company miss consensus net profit estimates by -2%. 

Credit Suisse attributes the weaker result partially to supply constraints, and highlights it will take longer for the backlog to be filled with demand continuing to outstrip supply. The broker retains its medium-term view, believing the market continues to underestimate the longer-term benefit to ResMed from the Philips recall. 

The Outperform rating is retained and the target price decreases to $37.50 from $40.00.

Target price is $37.50 Current Price is $33.91 Difference: $3.59
If RMD meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Macquarie rates RMD as Outperform (1) -

ResMed's September-quarter trading result met Macquarie's forecasts at the top line, but earnings (EBIT) and net profit after tax fell -3% and -4% short respectively due to higher expense.

The broker notes a divergence between revenue trends RoW devices (down -18%) and the Americas (up 23%), which it says reflects different uptakes of card-to-cloud devices. Stronger margins were largely offset by suppressed earnings growth.

Macquarie says the strong $US proved a $10m impost on earnings in the September quarter.

EPS forecasts fall -4% in FY23; -3% in FY24; and -2% in FY25 to reflect high cost growth forecasts and a 1% rise in the effective tax rate to 20%.

Outperform rating retained, the broker remaining positive on the medium to longer term, expecting strong growth in devices. Target price falls to $37.75 from $38.70.

Target price is $37.75 Current Price is $33.91 Difference: $3.84
If RMD meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

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

After analysing 1Q results for ResMed, Morgan Stanley feels low growth in the rest of the world (ROW) will persist, as some markets have rejected card-to-cloud devices. These regions prefer to await cloud connected devices.

Overall, 1Q revenue rose by 5%, in line with the consensus forecasts. This was due to strength in US device sales as card-to-cloud is successfully alleviating the chip shortage in this region, explains the analyst.

The broker lowers its target to $32.50 from $35.20 though concedes Philips may not compete for new patients for up to 12 months and notes management is confident that share gains from Philips will be permanent. Equal-weight. Industry view: In-line.

Target price is $32.50 Current Price is $33.91 Difference: minus $1.41 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Morgans rates RMD as Add (1) -

ResMed's 1Q results were ahead of Morgans expectations as gross margins expanded on strong demand and price rises, though operating margins fell on higher opex. A strong earnings trajectory is anticipated and the Add rating is retained.

Supply chain pressures are easing, notes the analyst, and management believes device production can be increased to drive revenue growth. The target eases to $37.00 from $37.08.

Target price is $37.00 Current Price is $33.91 Difference: $3.09
If RMD meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Ord Minnett rates RMD as Hold (3) -

Ord Minnett reports a strong first quarter from ResMed, noting revenue increased 5% to US$950.3m while gross margins expanded 90 basis points to 56.9%, underpinned by another strong lift in US device sales. 

The broker was disappointed by a contraction of sales in markets outside the US, but feels it reflects limited demand for card-to-cloud devices rather than competitive challenges. 

The Hold rating is retained and the target price increases to $37.50 from $36.50.

Target price is $37.50 Current Price is $33.91 Difference: $3.59
If RMD meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.63, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Macquarie rates RRL as Outperform (1) -

Regis Resources's September-quarter gold production met Macquarie's forecasts but all-in-sustaining costs were -13% higher than the broker expected, due to one-offs such as stamp duty and property acquisitions (the latter subsequently being sold).

Management retains guidance.

Duketon production disappointed but Tropicana outpaced, thanks to access to higher grade ore.

EPS forecasts dip into the red on expectations of higher depreciation and amortisation charges.

Outperform and $2 target price retained to reflect guidance.

Target price is $2.00 Current Price is $1.55 Difference: $0.45
If RRL meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.73, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgan Stanley rates RRL as Underweight (5) -

Morgan Stanley lowers its target price for Regis Resources to $1.30 from $1.50 on the back of higher forecast costs and remains Underweight-rated following 1Q production results. Industry View: Attractive.

The brokers research last Friday was summarised by FNArena as follows:

While Regis Resources left FY23 guidance unchanged following 1Q results, Morgan Stanley observes significantly higher costs due to lower production. Production at Tropicana was a bright spot and strongly beat expectation.

Cash costs and all-in sustaining costs (AISC) were 15% and 16% above the analyst's forecasts, partially due to lower production at Duketon South.

Target price is $1.30 Current Price is $1.55 Difference: minus $0.25 (current price is over target).
If RRL meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.73, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgan Stanley rates RWC as Overweight (1) -

Morgan Stanley sees challenging conditions emerging for all of the domestic exposures for the building materials stocks within its coverage. Stocks with repair-and-remodel (R&R) exposures are preferred for greater valuation upside and resilience.

The broker points to headwinds from rising rates and tighter lending standards and the lagged impact from an absence of migration. Recent solvency issues for home builders and a roll-off of stimulus that brought forward demand are also expected to weigh.

Morgan Stanley lowers its target for Reliance Worldwide to $4.00 from $5.40 though maintains an Overweight rating on valuation support. Its felt earnings will be more resilient than peers given a greater exposure to the R&R segment.

The analyst sees leverage from raw materials relief and expects a boost to margins for the 2H of FY23 as a result. Industry view is In-Line.

Target price is $4.00 Current Price is $3.10 Difference: $0.9
If RWC meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.84, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.4

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

Credit Suisse rates SKC as Outperform (1) -

SkyCity Entertainment has agreed to re-acquire the Auckland casino and convention centre carparks from Macquarie Group ((MQG)). Credit Suisse anticipates SkyCity Entertainment to pay NZ$200m, compared to the original sale price of NZ$220, and expects the purchase to add NZ$10m to earnings in FY24 and NZ$17m in FY25.

While the company reported a strong first quarter, 10% above pre-covid levels, the broker warns this should be considered more of a buffer ahead of a potential consumer spending slowdown in later quarters. 

The Outperform rating is retained and the target price decreases to $2.80 from $2.90.

Target price is $2.80 Current Price is $2.54 Difference: $0.26
If SKC meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Macquarie rates SLR as Outperform (1) -

Silver Lake Resources' September-quarter result missed Macquarie's production and all-in-sustaining costs forecasts (-6% and -4% respectively).

But management retains guidance, expecting a strong skew to the second half.

Outperform rating and $1.50 target price retained.

Target price is $1.50 Current Price is $1.12 Difference: $0.385
If SLR meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates SLR as Buy (1) -

In the wake of -10% softer-than-expected 1Q production, Ord Minnett still retains its $2.10 target price and Buy rating, as increased free cashflow should bolster momentum in the 2H.

The broker also expects a strong balance sheet and the company's buyback will provide support for the share price.

The 1Q was weighed down by slightly lower grades and reduced throughput at the Deflector gold and copper operations, explains the analyst. This outcome more than offset an in-line performance at Mt Monger, according to Ord Minnett.

Target price is $2.10 Current Price is $1.12 Difference: $0.985
If SLR meets the Ord Minnett target it will return approximately 88% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates STP as Add (1) -

Step One Clothing is now aiming for profitability over growth, as its 1Q trading updated revealed growth (which had slowed in FY22) has now turned negative, explains Morgans.

Inflation and an economic slowdown have weighed on consumer demand both domestically and in the UK, explains the analyst. It's felt the investment case has now moved to asset value and long-term brand equity from sales momentum and global expansion.

The broker lowers its FY23 and FY24 EPS estimates by -16% and -24%, respectively, and reduces its target to 50c from 70c. Add.

Target price is $0.50 Current Price is $0.26 Difference: $0.245
If STP meets the Morgans target it will return approximately 96% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates STX as Outperform (1) -

Strike Energy's September-quarter results appears to have met Macquarie's forecasts. 

The broker expects Walyering is on track to produce its maiden gas revenues in the March quarter and Macquarie says the company is now positioned for strong production and revenue growth in the Perth basin.

The company purchases 3500 hectares of freehold land at South Erregulla, allowing a plant to be built on-site and saving $85m in capital expenditure, says the broker, not to mention shorter approval times. 

Strike Energy also awarded a FEED contract for Project Haber to Technip in the period, to be finalised after the establishment of a pre-development debt facility.

EPS target rise 2% in FY24. Outperform rating and 25c target price retained.

Target price is $0.25 Current Price is $0.24 Difference: $0.015
If STX meets the Macquarie target it will return approximately 6% (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 TCL as Outperform (1) -

Transurban Group's September-quarter was affected by heavy rains, which proved a -1% to -1.5% drag on Sydney traffic, says Macquarie.

The broker observes traffic sensitivity has risen since covid, given the growing acceptance of working from home.

EPS forecasts fall -0.9% in FY23; -1% in FY24; and -1.2% in FY25.

Outperform rating retained. Target price falls to $14.08 from $14.36.

Target price is $14.08 Current Price is $13.27 Difference: $0.81
If TCL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.06, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates VCX as Neutral (3) -

Vicinity Centres' September-quarter update met guidance and Macquarie says the key highlight was the ongoing uptick in leasing spreads, which recovered to -0.4%.

This was coupled with a 21.2% increase in sales on pre-covid levels, implying a three-year compound annual growth rate of 6.6%, says the broker.

Macquarie expects releasing spreads to continue to improve but is keeping a wary eye peeled to retail sales as inflation and rate concerns take their toll.

Macquarie suspects an upgrade to guidance may be in the wings. EPS forecasts rise 1.7% in FY23; 0.7% in FY24; and 1.3% in FY23.

Neutral rating retained. Target price falls to $1.81 from $2.03 to reflect lower rent relief assumption and the factoring in of a 50 to 70 basis-point cap rate expansions against a flat to softer incomes.

Target price is $1.81 Current Price is $1.95 Difference: minus $0.14 (current price is over target).
If VCX meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.92, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates VCX as Underweight (5) -

Morgan Stanley leaves its Underweight rating and $1.90 target unchanged following a 1Q update by Vicinity Centres. Industry view: In Line.

The broker observes strong productivity at the shopping malls in the quarter, and management reiterated FY23 funds from operations (FFO) guidance.

While the company had previously suggested there would be some covid-related rent relief in FY23, the analyst points out rent collections were 95% of gross billings in the 1Q.

More negatively, Apparel & Footwear sales were partly driven by post-covid wardrobe refreshes, observes Morgan Stanley.

Target price is $1.90 Current Price is $1.95 Difference: minus $0.05 (current price is over target).
If VCX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.92, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates VCX as Hold (3) -

Vicinity Centres's September-quarter update appears to have met Ord Minnett's forecasts, the company posting a "strong" performance against a deteriorating macro backdrop. Guidance was reiterated.

Re-leasing spreads stole the show (most likely outpacing consensus, says the broker), and are now at their best since December, 2017, but Ord Minnett spies rising inflation and interest rate challenges.

The broker remains positive on mall REITs as a covid reopening play.

Hold rating and $2.10 target price retained.

Target price is $2.10 Current Price is $1.95 Difference: $0.15
If VCX meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates WAF as Outperform (1) -

West African Resources' September-quarter production missed Macquarie's forecasts by -7% while all in sustaining costs proved a tiny beat.

All up, Macquarie considers the company to be on track to meet 2022 guidance, with year-to-date production sitting on 78% of the guidance midpoint.

The broker says the company's next milestone will be the securing of a debt facility for Kiaka.

2022 EPS forecasts rise 1% to reflect the cost and sales beat.

Outperform rating and $1.42 target price retained.

Target price is $1.42 Current Price is $1.03 Difference: $0.39
If WAF meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Morgan Stanley rates WBC as Overweight (1) -

Westpac reports September-half results on November 7, and Morgan Stanley expects pre-provision profit of $5,303m and cash profit ex notable items of $3,425m.

To justify the current share price, the broker feels a a good margin outcome is needed along with a credible update on the Cost Reset plan.

The Overweight weighting and $24.40 target price are retained. Industry view: In line.

Target price is $24.40 Current Price is $23.99 Difference: $0.41
If WBC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $26.00, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

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 WOR as Hold (3) -

Ord Minnett notes sharp falls in global expenditure forecasts are likely to augur poorly for Worley.

Weak macroeconomic conditions are to blame, says the broker, and these are stymying the broadly anticipated covid recovery.

Ord Minnett expects global capital expenditure will rise 9%, resources taking the lion's share in FY23, up 11%; energy is forecast to rise 10%, and chemicals 8%.

The broker's forecasts for Worley sit below consensus.

Hold recommendation retained. Target price rises to $13 from $12.80.

Target price is $13.00 Current Price is $14.18 Difference: minus $1.18 (current price is over target).
If WOR meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.59, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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