Australian Broker Call

Morgan Stanley rates AMC as Upgrade to Equal-weight from Underweight (3) -

Guidance from Amcor suggests the company will continue to be challenged in the coming year, particularly in the first half. Morgan Stanley expects destocking progression and softening consumer demand will impact on the company's first half, but anticipates cost saving initiatives and price rises will take effect and drive a second half earnings lift. 

Despite challenges, Morgan Stanley finds Amcor to offer defensive earnings and quality management, and finds near-term challenges to be priced in. 

The rating is upgraded to Equal-Weight from Underweight and the target price increases to $14.50 from $14.00.

Target price is $14.50 Current Price is $14.04 Difference: $0.46
If AMC meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.54, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Macquarie rates ANZ as Neutral (3) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For ANZ Bank, the target falls to $24.50 from $25. Neutral.

Target price is $24.50 Current Price is $25.32 Difference: minus $0.82 (current price is over target).
If ANZ meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.94, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates ASX as Outperform (1) -

While Q1 quarter FY24 futures volumes for the ASX increased by 8.9% on the previous corresponding period, led by strength in 90-day bills and supported by 3-year bonds, observes Macquarie. Equities trading volumes remained compressed, falling by -9.4%.

The broker's target falls to $60.00 from $64.50.

The Outperform rating is unchanged given the company's price earnings ratio is currently -23% below the three-year average. However, a lack of catalysts until an announcement relating to CHESS in the December quarter is considered a concern.

Target price is $60.00 Current Price is $57.02 Difference: $2.98
If ASX meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $62.13, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Macquarie rates BEN as Underperform (5) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For Bendigo & Adelaide Bank, the broker lowers its target to $8.50 from $8.75 and retains its Underperform rating.

Target price is $8.50 Current Price is $8.98 Difference: minus $0.48 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.17, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

UBS rates BHP as Upgrade to Neutral from Sell (3) -

UBS upgrades its ratings for the majority of iron ore stocks under coverage after raising its long-term iron ore price forecast to US$85/t from US$65/t, while noting consensus sits at US$75/t. The broker raise its global iron ore sector call to Neutral from Sell.

The analysts believe iron ore prices will fall by less than originally anticipated as costs will likely remain higher for longer.

Ex-China demand for iron ore will offset the generational reset for property in China, in the broker's opinion. It's thought around 90% of global steel demand and circa 87% of seaborne iron ore demand won't be driven by China residential property construction from 2025.

The UBS rating for BHP Group is upgraded to Neutral from Sell and the target rises to $43 from $36. Rio Tinto is the broker's preferred exposure over BHP, partly due to higher growth and returns and lower net debt.

Target price is $43.00 Current Price is $43.97 Difference: minus $0.97 (current price is over target).
If BHP meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.73, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

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

Prior to FY23 results on Wednesday for Bank of Queensland, Citi is concerned by potential for an earnings miss against consensus expectations from lending woes, deposit costs and cost headwinds.

As risks are skewed to the downside the broker's rating is downgraded to Sell from Neutral.

The target also falls to $5.00 from $5.75 after the analysts reduce FY24 and FY24 earnings by -4% and -9%, respectively.

Lending has displayed negative growth over the last six months, even as the company continues to grow its relatively expensive deposit book, which implies to Citi a lower net interest margin (NIM), as occurred in the 1H.

The broker is also concerned by the impact of top leadership changes over the last few years upon the business.

Target price is $5.00 Current Price is $5.71 Difference: minus $0.71 (current price is over target).
If BOQ meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.94, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Underperform (5) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For Bank of Queensland, the target falls to $5.00 from $5.25 and the Underperform rating is maintained.

Target price is $5.00 Current Price is $5.71 Difference: minus $0.71 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.94, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in August.

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 CBA as Underperform (5) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For CommBank, the broker lowers its target to $87.50 from $89 and the Underperform rating is unchanged.

Target price is $87.50 Current Price is $100.04 Difference: minus $12.54 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $91.00, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Macquarie rates CVN as Underperform (5) -

Macquarie highlights offshore oil and gas permitting in Australia has become unworkable and until consultation processes can be better defined, there will be no new final investment decisions (FIDs).

Legal challenges from activists are causing significant delays and potential for capex overruns, in the broker's view.

As Santos is probably unwilling to take FID on Dorado in the current regulatory environment, Carnarvon Energy will need to preserve capital, suggest the analysts. It's thought a key risk is engagement by management in M&A activity.

The Underperform rating and 10c target are unchanged.

Target price is $0.10 Current Price is $0.15 Difference: minus $0.05 (current price is over target).
If CVN meets the Macquarie target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -1.0

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

Macquarie rates DHG as Underperform (5) -

Despite an improvement in the listings market, Macquarie points out Underweight-rated Domain Holdings Australia is not showing the same amount of upside as Neutral-rated REA Group. Listings for Domain in September rose by 1% year-on-year.

However, there is structural growth in the group outside of the listings cycle with the broker's tracking of depth advertisements showing Platinum (including Platinum Edge) advertisements had the highest penetration.

Macquarie's target falls to $2.86 from $2.93 on lower overall earnings forecasts from both residential and commercial avenues.

Target price is $2.86 Current Price is $3.88 Difference: minus $1.02 (current price is over target).
If DHG meets the Macquarie target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

UBS rates DRR as Upgrade to Neutral from Sell (3) -

UBS upgrades its ratings for the majority of iron ore stocks under coverage after raising its long-term iron ore price forecast to US$85/t from US$65/t, while noting consensus sits at US$75/t. The broker raise its global iron ore sector call to Neutral from Sell.

The analysts believe iron ore prices will fall by less than originally anticipated as costs will likely remain higher for longer.

Ex-China demand for iron ore will offset the generational reset for property in China, in the broker's opinion. It's thought around 90% of global steel demand and circa 87% of seaborne iron ore demand won't be driven by China residential property construction from 2025.

The UBS rating for Deterra Royalties is upgraded to Neutral from Sell and the target rises to $4.80 from $3.90. In the sector, Rio Tinto is preferred to BHP Group partly due to higher growth and returns and lower net debt.

Target price is $4.80 Current Price is $4.74 Difference: $0.06
If DRR meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates FMG as Sell (5) -

UBS upgrades its ratings for the majority of iron ore stocks under coverage after raising its long-term iron ore price forecast to US$85/t from US$65/t, while noting consensus sits at US$75/t. The broker raise its global iron ore sector call to Neutral from Sell.

The analysts believe iron ore prices will fall by less than originally anticipated as costs will likely remain higher for longer.

Ex-China demand for iron ore will offset the generational reset for property in China, in the broker's opinion. It's thought around 90% of global steel demand and circa 87% of seaborne iron ore demand won't be driven by China residential property construction from 2025.

The UBS rating for Fortescue Metals is upgraded to Neutral from Sell and the target rises to $20.30 from $15.20. In the sector, Rio Tinto is preferred to BHP Group partly due to higher growth and returns and lower net debt.

Target price is $20.30 Current Price is $21.06 Difference: minus $0.76 (current price is over target).
If FMG meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.88, suggesting downside of -18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -1.0

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

Ord Minnett rates GQG as Buy (1) -

GQG Partners remains one of the only listed asset managers generating positive net flow, and has now reported a strong third quarter update, notes Ord Minnett, with net flows exceeding expectations.  

Funds under management are up 1.6% quarter-on-quarter, spurred on by net flows of US$1.8bn. Ord Minnett commends the strong performance given the difficult macroeconomic environment. The broker expects longer-term strong investment performance to sustain longer-term net flows.

The Buy rating and target price of $2.15 are retained.

Target price is $2.15 Current Price is $1.36 Difference: $0.79
If GQG meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 52.2% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates JDO as Neutral (3) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For Judo Capital, the broker lowers its target to $1.05 from $1.15 and retains its Neutral rating.

Target price is $1.05 Current Price is $0.96 Difference: $0.09
If JDO meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates MIN as Sell (5) -

UBS upgrades its ratings for the majority of iron ore stocks under coverage after raising its long-term iron ore price forecast to US$85/t from US$65/t, while noting consensus sits at US$75/t. The broker raise its global iron ore sector call to Neutral from Sell.

The analysts believe iron ore prices will fall by less than originally anticipated as costs will likely remain higher for longer.

Ex-China demand for iron ore will offset the generational reset for property in China, in the broker's opinion. It's thought around 90% of global steel demand and circa 87% of seaborne iron ore demand won't be driven by China residential property construction from 2025.

UBS keeps its Sell rating and $60 target for Mineral Resources. In the sector, Rio Tinto is preferred to BHP Group partly due to higher growth and returns and lower net debt.

Target price is $60.00 Current Price is $60.95 Difference: minus $0.95 (current price is over target).
If MIN meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $76.86, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Macquarie rates NAB as Neutral (3) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector, and Neutral-rated National Australia Bank is the preferred exposure.

The broker lowers its target for NAB to $28.50 from $29.

Target price is $28.50 Current Price is $28.94 Difference: minus $0.44 (current price is over target).
If NAB meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.56, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in September.

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

Bell Potter rates PNR as Upgrade to Buy from Hold (1) -

Preliminary production figures for the September quarter shows growth at the Norseman Gold Project largely in-line with Bell Potter's estimate. A key swing factor for Pantoro, all-in-sustaining costs (AISC), are yet to be revealed.

Management noted mill head grades have improved, supported by open-pit and underground operations. The company is also looking at divestment alternatives for the Nicolsons gold mine which was on care and maintenance during the June quarter.

The broker's target is trimmed to 0.052c from 0.053c and the rating upgraded to Buy from Hold. Following a share price decline, there's thought to be 41% upside from the last closing share price.

Target price is $0.05 Current Price is $0.04 Difference: $0.015
If PNR meets the Bell Potter target it will return approximately 41% (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

Bell Potter rates PNV as Buy (1) -

PolyNovo has released a trading update showing accelerating sales for its biodegradable temporising matrix (BTM), notes Bell Potter, which can be applied to complex wounds and severe burns.

In addition, it was revealed the Biomedical Advanced Research and Development Authority (BARDA) will provide an additional US$10m in funding for the pivotal trial program of NovoSorb.

The broker raises its target to $2.05 from $2.00 as a result of the expected reduction in net R&D for the company due to the additional funding from BARDA. Buy.

Target price is $2.05 Current Price is $1.20 Difference: $0.85
If PNV meets the Bell Potter target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 53.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans rates PXS as Speculative Buy (1) -

Core operating expenses for Pharmaxis are forecast to decline by more than -60%, explains Morgans, with additional savings post separation after the company sold its mannitol respiratory business to Arna Pharma.

While Pharmaxis will receive no upfront fee for the business and there are nominal exit costs, royalties will be received for eight years on associated sales and products produced at a new Arna Pharma facility, note the analysts.

Pharmaxis has also restructured its board and re-badged to Syntara.

Morgans notes a strong and growing pipeline for a now smaller and more agile clinical-stage drug developer and raises its target to 17c from 13c. Speculative Buy.

Target price is $0.17 Current Price is $0.04 Difference: $0.135
If PXS meets the Morgans target it will return approximately 386% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates REA as Neutral (3) -

Listings for REA Group rose by 7% year-on-year in September while depth penetration increased to 63% for Premier and Premier+ advertisements combined. Macquarie expects ongoing incremental earnings upgrades via higher listings and depth penetration.

Offsetting generally higher EPS forecasts is an -8% target price decline to $155, after the broker marked-to-market its valuation multiple, underpinned by the residential cycle. The Neutral rating is unchanged.

Target price is $155.00 Current Price is $155.85 Difference: minus $0.85 (current price is over target).
If REA meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $156.48, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates RIO as Upgrade to Neutral from Sell (3) -

UBS upgrades its ratings for the majority of iron ore stocks under coverage after raising its long-term iron ore price forecast to US$85/t from US$65/t, while noting consensus sits at US$75/t. The broker raise its global iron ore sector call to Neutral from Sell.

The analysts believe iron ore prices will fall by less than originally anticipated as costs will likely remain higher for longer.

Ex-China demand for iron ore will offset the generational reset for property in China, in the broker's opinion. It's thought around 90% of global steel demand and circa 87% of seaborne iron ore demand won't be driven by China residential property construction from 2025.

The UBS rating for Rio Tinto is upgraded to Neutral from Sell and the target rises to $115 from $95. Rio Tinto is preferred over BHP Group partly due to higher growth and returns and lower net debt.

Target price is $115.00 Current Price is $113.19 Difference: $1.81
If RIO meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $119.00, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in December.

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) -

Morgan Stanley considers ResMed's 'clear runway' as a result of competitor Philips' recall to be even longer, with the latter having agreed to conduct further testing in relation to the PE-PUR sound abatement foam found in devices.

The additional testing comes at the request of the FDA, who found testing already conducted to be inadequate to evaluate risks posed to device users. In its initial testing Philips has found that exposure is unlikely to result in appreciable harm to patient health. 

The Equal-Weight rating is retained with a target price of US$180.00. Industry view: In-Line. 

Current Price is $22.87. Target price not assessed.

Current consensus price target is $36.89, suggesting upside of 60.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.6

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

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

Steadfast Group is set to make its entry into the US market having completed the acquisition of ISU Group. Morgan Stanley feels the company now has the tools necessary to replicate its business model in the US, and thinks it has taken a sensible and lower-risk entry pathway into the market. 

Among other benefits, the broker expects the acquisition to improve Steadfast Group's relationship with US carriers, some of which the company already partners with in Australia. 

The Equal-Weight rating and target price of $6.30 are retained. Industry view: In-Line. 

Target price is $6.30 Current Price is $5.54 Difference: $0.76
If SDF meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.38, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates SDF as Hold (3) -

Steadfast Group has expanded into the US market with the acquisition of ISU Group, at a cost of US$55m. While the purchase looks earnings accretive, the expected the earnings boost of $8m is not significant enough to impact on Ord Minnett's target price. 

The broker expects Steadfast Group will make more investment in the US market at some point, but likes that ISU Group offers a foothold to allow the company to better understand the market and opportunities before undertaking investments where more capital is at risk. 

The Hold rating and target price of $6.00 are retained.

Target price is $6.00 Current Price is $5.54 Difference: $0.46
If SDF meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.38, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates SDF as Buy (1) -

Steadfast Group has acquired ISU Group at a cost of US$55m, in a move UBS finds to be in line with the company's US expansion plans. Assuming the purchase is fully debt funded, the broker calculates a 1% earnings benefit to Steadfast Group.

UBS finds announcement an "initial and measured" entryway into a large and scalable market that it expects can extend Steadfast Group's growth runway and acquisition pipeline over time. 

The Buy rating and target price of $6.80 are retained.

Target price is $6.80 Current Price is $5.54 Difference: $1.26
If SDF meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.38, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates STO as Outperform (1) -

Macquarie highlights offshore oil and gas permitting in Australia has become unworkable and, until consultation processes can be better defined, there will be no new final investment decisions (FIDs).

Legal challenges from activists are causing significant delays and potential for capex overruns, in the broker's view. It's noted capex for Santos is already pivoting to Papua and New Guinea and the US (Alaska).

The Outperform rating is kept for Santos given the current share price implies negative value for Barossa. The target falls to $9.60 from $9.90.

Target price is $9.60 Current Price is $7.35 Difference: $2.25
If STO meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $9.47, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in December.

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 WBC as Neutral (3) -

Despite minor positive earnings changes, Macquarie lowers its 12-month target prices across its coverage of the Banking sector. These lower targets arise after higher discount rates are incorporated into forecasts given the new term structure of rates.

On the earnings front, higher bond yields provide some margin relief from competition and deposit switching, note the analysts. Also, forecast charges for bad and doubtful debts are reduced based on current trends and healthy provisions.

Overall, Macquarie has an Underperform rating on the Bank sector.

For Westpac, the broker lowers its target to $20.50 from $21.00 and retains its Neutral rating.

Target price is $20.50 Current Price is $21.44 Difference: minus $0.94 (current price is over target).
If WBC 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 $22.28, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Macquarie rates WDS as Neutral (3) -

Macquarie highlights offshore oil and gas permitting in Australia has become unworkable and, until consultation processes can be better defined, there will be no new final investment decisions (FIDs).

Legal challenges from activists are causing significant delays and potential for capex overruns, in the broker's view. It's noted capex for Woodside Energy is already pivoting to the US, Mexico and Senegal.

The analysts note Woodside shares have retraced since the Scarborough injunction and the pullback in oil prices, and now look less
expensive. It's felt the market is not yet pricing in delays or capex increases at this project.

Neutral rating. A $36 target is set.

Target price is $36.00 Current Price is $34.19 Difference: $1.81
If WDS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $37.15, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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