Australian Broker Call

Morgan Stanley rates 3PL as Overweight (1) -

At the Morgan Stanley conference incoming CEO Jose Palmero highlighted engagement with features of the company's products as a top priority as well as B2C profitability.

There are several opportunities in the pipeline worth more than $1m in multiple jurisdictions.

Morgan Stanley retains an Overweight rating. Target is $1.60. Industry view: In-line.

Target price is $1.60 Current Price is $1.34 Difference: $0.26
If 3PL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates ABY as Overweight (1) -

Morgan Stanley notes Adore Beauty is aiming to increase its market share and this implies a revenue growth rate of 25-30%. This is consistent with the pre-pandemic experience as revenue grew at 40%, the broker highlights.

Still, Morgan Stanley suspects growth is likely to be anaemic over the next several months as large comparables are lapped. Overweight rating and $5 target maintained. Industry view: In-line.  

Target price is $5.00 Current Price is $4.03 Difference: $0.97
If ABY meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates AIM as Add (1) -

Morgans upgrades forecasts materially to include a contribution from the acquisition of EEG, which is being funded by a capital raise. EEG delivers closed captioning of live streaming for over 90% of North American broadcasters.

The acquisition adds 24% to revenue forecasts and 200% to the broker's earnings (EBITDA) and EPS forecasts. Additionally, it's estimated business is tracking three months ahead of plan and is now earnings positive, after management released a 3Q update.

The Add rating is maintained and the target price rises to $1.38 from $1.37.

Target price is $1.38 Current Price is $0.77 Difference: $0.61
If AIM meets the Morgans target it will return approximately 79% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates ALQ as Outperform (1) -

Credit Suisse thinks the accelerating year-end and positive macro outlook for ALS bode well for an ongoing upgrade cycle. In light of a unique market position and more expensively priced offshore peers, the broker does not see the valuation as stretched.

The second half revenue at $1.76bn was down -4% over last year and was in line with forecast with operating income of $301m some 1% ahead of Credit Suisse's estimate. The result was led by a combination of cost-outs and a solid fourth-quarter recovery in Geochem.

The broker highlights brighter prospects in FY22 driven by better Life Science volumes going into the first quarter of 2022 and commodities momentum.

Credit Suisse retains an Outperform rating and increases the target to $13.45 from $10.40.

Target price is $13.45 Current Price is $12.30 Difference: $1.15
If ALQ meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates ALQ as Outperform (1) -

Macquarie assesses the FY21 result beat at virtually all levels, with underlying profit 7% better estimated. The Outperform rating is maintained with the target rising to $13.50 from $10.55 to reflect an uplift in EPS forecasts and a valuation set against global peers.

The broker considers ALS is the leader versus other global cyclicals in terms of resilient earnings. It's also considered the leader versus domestic contractors in terms of less exposure to labour/supply chain constraints.

The analyst feels growing the exposure to junior resource companies could contribute to the company lifting prices. Juniors are considered typically higher margin due to the requirement for more analytics.

Target price is $13.50 Current Price is $12.30 Difference: $1.2
If ALQ meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates ALQ as Downgrade to Equal-weight from Overweight (3) -

ALS Ltd provided a strong FY21 result, in Morgan Stanley's view. Commodities momentum impressed amid higher volumes which lead to higher earnings margins. Still, cost inflation is a risk. In life sciences there was modest margin compression, the broker notes.

Morgan Stanley upgrades estimates by 8% and 3% for FY22 and FY23, respectively, noting that the stock has performed well and while there may be further upside the magnitude is likely to be lower.

Morgan Stanley downgrades to Equal-weight from Overweight. Target is raised to $12.90 from $10.70. Industry view: In-line.

Target price is $12.90 Current Price is $12.30 Difference: $0.6
If ALQ meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

Morgans downgrades the rating for ALS to Hold from Add after a strong share price rise. It’s considered astute management of costs and capacity drove underlying FY21 profit 4.5% ahead of consensus.

The broker lifts FY22-24 EPS forecasts by 4-11% due mainly to a lift in assumed Commodities margins close to 30%, to reflect the sector outlook. The target rises to $11.56 from $10.35.

Target price is $11.56 Current Price is $12.30 Difference: minus $0.74 (current price is over target).
If ALQ meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates ALQ as Hold (3) -

ALS' FY21 net profit from operations at $185.9m was broadly in line with Ord Minnett’s forecast. The broker takes this to be a strong result despite significant currency headwinds that led to an impact of -$31.6m on earnings before interest and tax.

A 70%-franked final dividend of 14.6c was declared, 23% ahead of consensus. To Ord Minnnet, it appears ALS has rounded the covid corner straight into a potential commodities boom.

The company’s commodities division appears to be at an inflection point with margins now approaching levels not seen since the tail end of the previous boom, putting the broker in a pickle from a stock-picking perspective.

Even so, Ord Minnett prefers to stick to its Hold recommendation with the target price rising to $11.40 from $9.80.

Target price is $11.40 Current Price is $12.30 Difference: minus $0.9 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates ALQ as Neutral (3) -

FY21 earnings were ahead of UBS estimates. The broker found the second half recovery significant, with organic revenue growth of 5%. This was driven by the commodities division.

The company also expects it can maintain the current operating leverage throughout FY22. No formal earnings guidance was provided.

UBS retains a Neutral rating, believing the stock is adequately factoring in an improvement in both geochemistry testing and a normalisation of life sciences demand. Target is raised to $12.25 from $9.90.

Target price is $12.25 Current Price is $12.30 Difference: minus $0.05 (current price is over target).
If ALQ meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.51, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates AMA as Buy (1) -

A recovery in volumes continues, although the labour cost pressures and parts inflation are a headwind UBS observes. There is likely to be a lag in passing through cost inflation, which could push out the margin recovery.

The broker still considers the company a beneficiary of consolidation opportunities and higher volumes in a post-pandemic world.

Valuation remains attractive and the broker retains a Buy rating. Target is $0.70.

Target price is $0.70 Current Price is $0.58 Difference: $0.12
If AMA meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates APA as Neutral (3) -

At an investor day, APA Group re-iterated the strategy of developing the business beyond gas pipelines, into renewables and transmission, and geographically to the US. Macquarie sees risk around the energy transition and the re-contracting of traditional East Coast assets.

Overall, the group is banking on a slower transition away from gas, with gas-powered generation needed for firming renewables. The Neutral rating is maintained and the target falls to $10.06 from $10.09.

Target price is $10.06 Current Price is $9.47 Difference: $0.59
If APA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.60, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates APA as Add (1) -

One day, Morgans expects APA Group to announce a capital raising to fund an acquisition in the US. This comes after an investor day highlighted a potentially significant investment pipeline, enlarged by the expansion of targets into electrification opportunities.

While the broker backs the company's judgement, the question will be if potential returns on a new investment be sufficiently attractive to offset the earnings decline expected in the existing asset base. The Add rating and $10.53 target are maintained.

Target price is $10.53 Current Price is $9.47 Difference: $1.06
If APA meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.60, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates APA as Buy (1) -

APA Group's investor day was focused on the growth outlook for the business. Ord Minnett notes management considers the company well-positioned to benefit from the energy transition, with gas in particular remaining a key component of the future energy mix.

The group aims to reach $600m in organic growth capital expenditure in FY22 after a number of years of lower investment. There was no update on a potential US acquisition that suggests the delay is due to the pandemic.

Buy rating with a target of $11.30.

Target price is $11.30 Current Price is $9.47 Difference: $1.83
If APA meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $10.60, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates CHC as Outperform (1) -

A Macquarie survey indicated 74% of employees would prefer a hybrid model of working with just 2% wanting to work in the office full time. However, only 56% of employers preferred a hybrid working model and 32% preferred employees to come into the office full time.

This gap has further diverged in recent months, and the broker points out a skilled labour shortage suggests flexibility will be required by employers. While the cyclical recovery could be stronger versus expectations, it's felt work from home remains the risk to demand.

Macquarie's preferred office exposure is Charter Hall Group, given the long WALE of its portfolio and upside for an improvement in equity inflows for its office funds. The Outperform rating and $16.12 target are maintained.

Target price is $16.12 Current Price is $13.95 Difference: $2.17
If CHC meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $15.81, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates COE as Add (1) -

Cooper Energy updated on talks with lenders, who are working to lower the amortisation profile of the debt facility. Morgans views the securing of this adjustment as a catalyst that should give the market greater confidence around short-term capital needs.

The broker highlights sales volumes out of Sole have risen above 51tj/d on seasonal demand strength for gas. However, production from Sole remains volatile, with Orbost plant operator APA Group ((APA)) trying to flex production.

Add maintained and target rises to $0.36 from $0.34.

Target price is $0.36 Current Price is $0.28 Difference: $0.08
If COE meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 32.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates DXS as Outperform (1) -

A Macquarie survey indicated 74% of employees would prefer a hybrid model of working with just 2% wanting to work in the office full time. However, only 56% of employers preferred a hybrid working model and 32% preferred employees to come into the office full time.

This gap has further diverged in recent months, and the broker points out a skilled labour shortage suggests flexibility will be required by employers. While the cyclical recovery could be stronger versus expectations, it's felt work from home remains the risk to demand.

Macquarie's preferred office exposure is Charter Hall Group ((CHC)), while maintaining an Outperform rating for Dexus with a target of $10.60.

Target price is $10.60 Current Price is $10.27 Difference: $0.33
If DXS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates FBU as Neutral (3) -

Citi observes Fletcher Building has emerged from the pandemic as a structurally leaner business. Earnings margins are expected to improve from current levels but the target of 10% could be difficult to achieve without a more meaningful turnaround in Australia.

Hence, the broker requires evidence of a sustained turnaround before becoming more positive and retains a Neutral rating, raising the target to NZ$7.40 from NZ$6.70.

Current Price is $6.97. Target price not assessed.

Current consensus price target is $7.60, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 FBU as Outperform (1) -

Fletcher Building's management reaffirmed a FY23 margin target of 10%. Also, the balance sheet is strong with the company declaring a NZ$300m buyback and affirming gearing would stay below target 1-2x for the medium term.

Credit Suisse increases its FY23 operating income forecast by 5% led by higher price inflation and increased confidence on the delivery of residential volume targets.

At the same time, the broker remains cautious on Australian margins given the need for trajectory and exhausted cost outs.

Outperform rating with the target rising to $7.60 from $7.20.

Target price is $7.60 Current Price is $6.97 Difference: $0.63
If FBU meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.60, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Morgan Stanley rates FBU as Overweight (1) -

Fletcher Building strengthened its FY21 operating income guidance.

The company continues to target 10% operating income margins in FY23 and the broker notes management is more confident about underlying market strength with the business beginning to spend to drive future growth initiatives.

The broker has increased its operating income forecasts for FY21 by 3% to NZ$663m, at the upper end of the new guidance range of NZ$650-665m. This is mainly driven by an increase in the distribution earnings.

Overweight rating with the target rising to NZ$8.10 from NZ$7.80. Industry view is In-Line.

Current Price is $6.97. Target price not assessed.

Current consensus price target is $7.60, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

UBS rates FBU as Neutral (3) -

Fletcher Building has raised FY21 EBIT guidance to NZ$650-665m. Development guidance has also been raised to 850 houses.

The company will undertake a capital return via an on-market share buyback of NZ$300m in FY21 and will resume its dividend policy, targeting a pay-out ratio of 50-75%.

Guidance for all divisions was largely in line with UBS estimates while the FY23 margin target was slightly ahead of expectations at 10%. UBS retains a Neutral rating which is under review. Target is NZ$6.55.

Current Price is $6.97. Target price not assessed.

Current consensus price target is $7.60, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Morgans runs various legal scenarios as a result of a Dispute Notice from joint venture partner Pitkin Petroleum and concludes the development will likely be immaterial. The broker sees a modest settlement as reasonable, given the underlying agreement.

The dispute stems from an agreement to drill an additional exploration well in Peru, which Karoon energy did not go ahead with after the conclusive failure of the first well. The Add rating and $1.80 target are maintained.

Target price is $1.80 Current Price is $1.20 Difference: $0.6
If KAR meets the Morgans target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates LNK as No Rating (-1) -

The trading update on PEXA showed transaction volumes are ahead of UBS' expectations with revenue in the second half up 54.5%.

Nevertheless, a flat margin outlook highlights the lack of operating leverage, in the broker's view, despite strong revenue growth, which suggests cost growth is currently elevated.

UBS upgrades FY21 estimates for earnings per share by 3.5%. UBS is currently restricted on providing a rating and target.

Current Price is $5.13. Target price not assessed.

Current consensus price target is $5.39, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates MGR as Outperform (1) -

A Macquarie survey indicated 74% of employees would prefer a hybrid model of working with just 2% wanting to work in the office full time. However, only 56% of employers preferred a hybrid working model and 32% preferred employees to come into the office full time.

This gap has further diverged in recent months, and the broker points out a skilled labour shortage suggests flexibility will be required by employers. While the cyclical recovery could be stronger versus expectations, it's felt work from home remains the risk to demand.

Macquarie's preferred office exposure is Charter Hall Group ((CHC)), while maintaining an Outperform rating for Mirvac with a target of $2.91.

Target price is $2.91 Current Price is $2.77 Difference: $0.14
If MGR meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates MGR as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley notes Australian dwelling prices have been pacing at 2-3% per month for most of 2021 and believes housing affordability will become a key issue in the physical as well as the equities market.

After completing a deep dive into the affordability of 72 residential projects by Mirvac Group and Stockland Corp ((SGP)), Morgan Stanley concludes the group's land product is more affordable than Stockland's core products.

Analysing Mirvac Group's 31 active projects, the broker suggests 79% of the lots look affordable. The broker is positive on the group's prospects and has increased its FY22 residential forecast to 2.6k from 2.3k while modelling in more apartment settlements in FY23-25. 

Morgan Stanley upgrades to Overweight from Equal Weight rating with the target price rising to $3.15 from $2.60. Industry view is In-Line.

Target price is $3.15 Current Price is $2.77 Difference: $0.38
If MGR meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates MPL as Neutral (3) -

Macquarie estimates around 85 basis points (bps) of industry-margin expansion in the 2H21 versus 1H21, with every 50bps equating to 5-6% EPS impact for Medibank Private. However, industry data continues to be choppy and is considered hard to assess in the short term.

With post-covid-19 exposures to travel insurance, and international students and workers taking longer to rebound, the broker continues to prefer Medibank Private over nib Holdings ((NHF)). The Neutral rating and $2.80 target are maintained.

Target price is $2.80 Current Price is $3.09 Difference: minus $0.29 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.13, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates NHC as Upgrade to Buy from Neutral (1) -

Citi updates coal prices to allow for marking-to-market adjustments and the recent rally in thermal coal. This results in material earnings upgrades for New Hope and the rating is upgraded to Buy from Neutral.

The broker notes risk appetite is low but argues the stock is now trading on 3x enterprise value/EBITDA for FY22 and the balance sheet is moving to a net cash position in FY23. Target is raised to $1.75 from $1.55.

Target price is $1.75 Current Price is $1.33 Difference: $0.42
If NHC meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

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 estimates around 85 basis points (bps) of industry-margin expansion in the 2H21 versus 1H21, with every 50bps equating to 5-6% EPS impact for nib Holdings. However, industry data continues to be choppy and is considered hard to assess in the short term.

With post-covid-19 exposures to travel insurance, and international students and workers taking longer to rebound, the broker continues to prefer Medibank Private ((MPL)) over nib Holdings. The Neutral rating and $5.95 target are maintained.

Target price is $5.95 Current Price is $6.18 Difference: minus $0.23 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.27, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates OZL as Upgrade to Buy from Neutral (1) -

Copper has eased back from highs of US10,700/t to US$9900/t, yet Citi expects this to be a temporary pullback before prices rebound. The broker envisages another 20% upside to spot prices over the next six months and forecasts copper will hit US$12,200/t.

The broker understands investors are hesitant about buying a stock that has rallied around 50% in the past six months but still expects it will trade higher and upgrades to Buy from Neutral. Target is $27.

Target price is $27.00 Current Price is $23.50 Difference: $3.5
If OZL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $23.31, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates RHC as Neutral (3) -

Ramsay Health Care has bid for Spire Healthcare, valuing the equity at GBP1bn. The combined group would have 25% of the UK private hospital market, Citi notes.

The company is forecasting at least GBP26m in synergies for the combined group which the broker finds reasonable on a combined revenue of GBP1.5bn, although points out when Ramsay acquired Capio it made similar statements and it is not obvious whether those synergies have been realised.

Neutral rating and $67 target maintained.

Target price is $67.00 Current Price is $64.54 Difference: $2.46
If RHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $68.97, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates RHC as Neutral (3) -

Ramsay Health Care has offered to acquire 100% of Spire Healthcare Group at 240 pence/share. Credit Suisse notes this represents GBP2bn in enterprise value.

While Spire's Board has recommended shareholders vote in favour of the scheme, Ramsay Health Care needs to engage with UK Competition and Markets Authority (CMA) for regulatory approval.

The broker thinks The CMA may require Ramsay to divest certain hospitals after the transaction becomes effective. The CMA review is expected to take 12 months.

Neutral rating with a $70 target price.

Target price is $70.00 Current Price is $64.54 Difference: $5.46
If RHC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $68.97, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates SGF as Overweight (1) -

SG Fleet's demand and order book remain elevated, observes Morgan Stanley while noting supply headwinds. The broker expects supply to normalise towards the end of 2021.

Morgan Stanley notes over the longer term, mobility platform is expected to drive efficiency in customer asset utilisation and mitigate asset management risk. 

Overweight rating and target of $3.50 are retained. Industry view: In-Line.

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

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SM1 as Neutral (3) -

Macquarie maintains an Underperform rating, given ongoing risks to earnings and balance sheet, and the long-term outlook around the a2 Milk Company ((A2M)).

The broker updates forecasts following the recent downgrade to FY21 earnings with a FY21 loss of -NZ$20-30m now expected, compared to previous guidance of broadly breakeven.

Management has had covenants waived for FY21 and noted it is working constructively with the syndicate to ensure appropriate funding for FY22. Neutral rating retained. Target is reduced to NZ$2.90 from NZ$3.

Current Price is $2.80. Target price not assessed.

Current consensus price target is $2.55, suggesting downside of -13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 STG as Buy (1) -

Straker Translations reported a very good FY21 result, observes Ord Minnett, weathering the covid storm well, winning the IBM contract and adding the highly strategic Lingotek acquisition.

The broker notes the company has a solid base for strong growth as conditions improve. Further, Lingotek is expected to provide cross-sell opportunities and drive higher margins while in FY22, the IBM contract will ramp up and aid Straker Translations in showcasing its RAY platform.

In Ord Minnett's view, covid should lead to a range of acquisition opportunities as the translation industry continues to consolidate. 

Buy rating with the target rising to $2.46 from $2.10.

Target price is $2.46 Current Price is $2.10 Difference: $0.36
If STG meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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

Ord Minnett rates UWL as Downgrade to Hold from Accumulate (3) -

Ord Minnett reviews the outlook for Uniti Group in light of a strong housing backdrop and stability in the wholesale broadband price.

The March quarter dwelling numbers highlight another quarter of above-trend growth, observes the broker, supported by positive sales and pricing from greenfield property developers in 2021.

The broker expects FY21 operating income of $84.4m and operating cash flow of $71m after-tax but prior to re-investment in new fibre construction. Ord Minnett also highlights lower integration risks with the recent OptiComm acquisition.

Ord Minnett downgrades to a Hold recommendation from Accumulate with the target rising to $2.90 from $2.23.

Target price is $2.90 Current Price is $3.00 Difference: minus $0.1 (current price is over target).
If UWL meets the Ord Minnett 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 June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates WOW as Outperform (1) -

Macquarie compares Dan Murphy’s and BWS within the off-premise liquor market in Australia. They collectively held around 48% of the retail liquor market pre-pandemic versus Coles Group holding 18%, followed by IGA with 2.9%.

The broker highlights BWS customers spend considerably less than Dan Murphy’s shoppers though BWS is only a touch behind Dan Murphy’s in terms of customer purchasing volume. Dan Murphy’s sales per sqm was almost double that of BWS in FY20.

The analyst maintains the Outperform rating for Woolworths and the $44.50 target price.

Target price is $44.50 Current Price is $41.79 Difference: $2.71
If WOW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $42.54, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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