Australian Broker Call

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

In Ord Minnett’s view, the separation of AGL Energy's businesses is in the best interests of existing shareholders, as Accel Energy as a standalone entity will generate substantial cash flow, while AGL Australia is likely to generate corporate interest.

That said, with Mike Cannon-Brookes’ Grok Ventures signalling its intention to vote against the demerger, the process likely depends on the level of retail participation.

A vote against will likely lead to significant instability, hence the broker downgrades to Hold from Accumulate and drops its target to $8.70 from $9.15.

Target price is $8.70 Current Price is $8.29 Difference: $0.41
If AGL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates ALK as Buy (1) -

Following 3Q results for Alkane Resources, Ord Minnett reiterates its Buy rating and $1.50 target price. The analyst likes the $69m cash balance thanks to a $34 sell down of listed investments.

The broker highlights expansion plans at the Tomingley gold operations appears on-track and the maiden resource at Boda (gold/copper) is due for release shortly.

Target price is $1.50 Current Price is $0.97 Difference: $0.53
If ALK meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates AMS as Add (1) -

Atomos has downgraded FY22 revenue guidance to $80-90m from more than $95m and the earnings (EBITDA) margin is now expected to be 6-8%, down from 12-15%.

Morgans believes the negative share price reaction to the amended guidance is overdone and ratains an Add rating.

Nonetheless, the broker lowers its target price to $1.08 from $1.40 on lower forecast unit sales and lower base Atomos monitor margin assumptions.

Management pointed to a change in its marketing approach, that didn't resonate with customers, and led to a soft start to the second half of the financial year.

Target price is $1.08 Current Price is $0.31 Difference: $0.77
If AMS meets the Morgans target it will return approximately 248% (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

Citi rates APX as Buy (1) -

While demand for human-labelled training data, as outlined by Appen's competitor Telus International, should be a positive read through for Appen according to Citi, the broker questions if the company could be losing market share.

Web traffic to Appen's two largest customers, Google and Facebook, continue to slow, with traffic to each rating website down -9% and -22% respectively month-on-month in April, reflecting the fourth consecutive monthly declines on a year-on-year basis for each.

The Buy rating and target price of $9.15 are retained.

Target price is $9.15 Current Price is $6.47 Difference: $2.68
If APX meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $7.28, suggesting upside of 12.1% (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

Credit Suisse rates AUB as Outperform (1) -

AUB Group is set to acquire UK insurance broker Tysers for $880m and has announced a $350m equity raising. Credit Suisse believes the rationale is sound and estimates the transaction to be around 20% accretive on a pro forma basis (management expects 30% accretion).

While the broker lowers FY22 and FY23 cash EPS estimates by -15% (share dilution) and -2%, FY24 forecasts rise by 24% as the full benefit of synergies begin to be realised.

The Outperform rating and $24.95 target price are retained.

Target price is $24.95 Current Price is $22.15 Difference: $2.8
If AUB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $25.76, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates AX1 as Neutral (3) -

Accent Group's first quarter result points to an end in supply shortages in the second quarter, with Citi noting a strong start to the second quarter from the Adidas brand gives further resolve to the expectation that supply constraints are close to being resolved.

Adidas has reiterated its intention to increase its market share with key alliance partners, which does not include Accent Group. Citi notes this is a risk to Accent Group, albeit a lower relative risk to other retailers given the company's limited exposure to Adidas.

Despite a positive company outlook, the broker remains Neutral rated and looks for further evidence that newer formats can consistently outperform before upgrading its rating. The target price of $1.45 is retained.

Target price is $1.45 Current Price is $1.29 Difference: $0.16
If AX1 meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.06, suggesting upside of 59.9% (ex-dividends)

The company's fiscal year ends in June.

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 BPT as Outperform (1) -

As a result of the Russia/Ukraine conflict, Credit Suisse expects European LNG demand to rise structurally (to replace Russian supply). Also, it's thought long-term LNG prices (including contract prices) may need to rise to incentivise new marginal supply.

The broker increases its long term LNG price forecast to US$9/mmbtu from US$8mmbtu and also lifts near-term LNG prices aligned with forward JKM (Japan/Korea Marker) prices, and mid-term prices to US$11-12/mmbtu. The long term oil price forecast remains at US$63/bbl.

As a result of these new forecasts, Credit Suisse increases its target price for Beach Energy to $1.98 from $1.77.

Target price is $1.98 Current Price is $1.68 Difference: $0.3
If BPT meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates BST as Outperform (1) -

Best & Less Group's second half sales to date are down -7.0%, impacted by omicron and floods, but Macquarie notes June Q sales to date are up 2.1% on a record performance in key kids’ and baby departments in April.

The retailer has managed to stock for winter despite shipping delays.

The broker retains Outperform and a $4.10 target, noting the attractiveness of lower price point retailers in the current environment, particularly in baby/kids apparel etc, which is relatively less discretionary and also subject to repeat purchasing.

Target price is $4.10 Current Price is $2.99 Difference: $1.11
If BST meets the Macquarie target it will return approximately 37% (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 CPU as Outperform (1) -

Computershare's growth in unpaid principal balances was +0.7% in the March Q compared to 2.1% market growth, Macquarie reports,
resulting in a decline of market share of -1 basis point to 0.91%.

The company’s UPB growth momentum nevertheless continues despite being below the market. With foreclosure restrictions now lifted, refinancing levels well below long term averages, and increasing mortgage rates, market conditions are supportive of a recovery in the US Mortgage Servicing business.

Hence the broker retains Outperform and a $36 target.

Target price is $36.00 Current Price is $24.15 Difference: $11.85
If CPU meets the Macquarie target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $25.95, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Ord Minnett rates DOW as Hold (3) -

Downer EDI still expects an earnings recovery in FY23 and sees 3Q setbacks from weather and covid-induced labour restrictions as temporary.

The analyst points out the company's transition over the last couple of years to a focus upon urban services (includes transport, utilities and facilities management), and management remains positive on this business.

The Hold rating is maintained, while the target price slips to $5.70 from $5.80.

Target price is $5.70 Current Price is $5.47 Difference: $0.23
If DOW meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates EHE as Neutral (3) -

Estia Health's covid-related costs have increased in the second half, Macquarie notes, and the timing of government grants is expected to be delayed. While occupancy has improved, its been more subdued than in the times of previous covid variants.

While the broker sees medium-longer term fundamentals as favourable for residential aged care providers, earnings risk in the near term associated with covid as well as a degree of uncertainty in relation to future funding keeps the broker on Neutral.

Target unchanged at $2.30.

Target price is $2.30 Current Price is $2.17 Difference: $0.13
If EHE meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.30, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates EHE as Hold (3) -

Ord Minnett lowers its FY22 EPS forecast for Estia Health by -80% due to increased covid19-related costs and deferred grant income. It's assumed the bulk of the company's grants will not be booked until FY23.

The broker remains Hold-rated with the lack of clarity around a new industry funding model and associated regulations, which are yet to be released.

The target rises to $2.30 from $2.10 as the analyst is confident earnings will recover in FY23 as funding lifts and grants are received.

Target price is $2.30 Current Price is $2.17 Difference: $0.13
If EHE meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.30, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates GPT as Downgrade to Lighten from Hold (4) -

Following the RBA's first interest rate increase in 12 years and material moves in long bond yields in 2022, Ord Minnett has made a series of adjustments to valuations and lowered property sector valuations by -6% on average.

GPT Group's target falls to $5.20 from $5.70. Downgrade to Lighten from Hold.

Target price is $5.20 Current Price is $4.73 Difference: $0.47
If GPT meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.38, suggesting upside of 14.9% (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

Ord Minnett rates HPI as Downgrade to Hold from Buy (3) -

Following the RBA's first interest rate increase in 12 years and material moves in long bond yields in 2022, Ord Minnett has made a series of adjustments to valuations and lowered property sector valuations by -6% on average.

Hotel Property Investments' target falls to $3.90 from $4.00. Downgrade to Hold from Buy.

Target price is $3.90 Current Price is $3.63 Difference: $0.27
If HPI meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Market Sentiment: 0.5

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

Credit Suisse rates IPL as Outperform (1) -

Credit Suisse likes the way Incitec Pivot is positioned for CPI-contracted gas costs in Australia and favourable gas terms in the US.

The broker also upgrades its FY22/23 fertiliser price assumptions and estimates the company will accumulate $1.5bn in surplus cash through to the end of FY23. The target price rises to $4.28 from $3.85 and the Outperform rating is maintained.

Target price is $4.28 Current Price is $3.84 Difference: $0.44
If IPL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates MMS as Outperform (1) -

Credit Suisse assesses shares of McMillan Shakespeare represent compelling value and should benefit from a number of factors. These include an industry-wide recovery in novated lease revenues as the supply of new cars begins to normalise.

The company has a fast-growing NDIS business, points out the analyst, and interest earned on client money in trust should rise with a lift in interest rates. The target is lowered to $14.25 from $14.55. Outperform.

Target price is $14.25 Current Price is $11.22 Difference: $3.03
If MMS meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $13.56, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

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 SFR as Outperform (1) -

The site tour to Sandfire Resources' Motheo project confirmed for Macquarie the strong progress being made on mine development and on construction of key infrastructure. First production is expected in late FY24.

A key near term catalyst is the completion of the expansion definitive feasibility study. Otherwise Sandfire is generating strong cash flow, and buoyant copper and zinc prices provide material upside risk to the broker's forecasts.

Outperform and $9.50 target retained.

Target price is $9.50 Current Price is $5.23 Difference: $4.27
If SFR meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $7.24, suggesting upside of 42.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates SIQ as Buy (1) -

Following a trading update by Smartgroup Corp, Ord Minnett considers a flat January to April result for both revenue and earnings (EBITDA) versus the previous corresponding period is a reasonable outcome.

Volume challenges with new car supply are persisting, explains the analyst, though Smart Future program improvements are providing an offset.

The Buy rating is maintained, while the target price rises to $9.20 from $9.10.

Target price is $9.20 Current Price is $8.50 Difference: $0.7
If SIQ meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.50, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates STO as Outperform (1) -

As a result of the Russia/Ukraine conflict, Credit Suisse expects European LNG demand to rise structurally (to replace Russian supply). Also, it's thought long-term LNG prices (including contract prices) may need to rise to incentivise new marginal supply.

The broker increases its long term LNG price forecast to US$9/mmbtu from US$8mmbtu and also lifts near-term LNG prices aligned with forward JKM (Japan/Korea Marker) prices, and mid-term prices to US$11-12/mmbtu. The long term oil price forecast remains at US$63/bbl.

As a result of these new forecasts, Credit Suisse increases its target price for Santos to $9.25 from $8.15. Outperform. The company is thought to provide strong exposure to uncontracted LNG upside versus global peers.

Target price is $9.25 Current Price is $8.08 Difference: $1.17
If STO meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.77, suggesting upside of 23.2% (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: 0.9

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

Citi rates SUN as Buy (1) -

Citi notes Suncorp Group's third quarter results suggest the company's new growth strategy is gaining traction, the release demonstrating growth in home lending with the portfolio now tracking above system growth.

Despite a largely positive quarter, the broker remains hesitant on the bank's 50% cost to income ratio target for FY23. Considering trends, Citi updates earnings per share forecasts -10%, 6% and 9% through to FY24, expecting performance improvement in the next 18 months.

The Buy rating and target price of $13.60 are retained.

Target price is $13.60 Current Price is $11.28 Difference: $2.32
If SUN meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $13.91, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates SUN as Upgrade to Buy from Hold (1) -

On the back of Suncorp Group's March Q update, Ord Minnett has upgraded to Buy from Hold to reflect the company’s leverage to rising interest rates and signs of growth in its banking business.

The broker also notes that while premium increases have not yet come through in personal insurance lines on the back of all the recent events, such increases will likely happen in the future.

Target rises to $14.00 from $13.30.

Target price is $14.00 Current Price is $11.28 Difference: $2.72
If SUN meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.91, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Credit Suisse rates TPG as Neutral (3) -

The $950m sale price of 100% of TPG Telecom's mobile tower and rooftop infrastructure assets is consistent with Credit Suisse's prior forecast. Proceeds will be deployed to pay down existing debt facilities.

The broker increases its target price to $5.95 from $5.80 to reflect value accretion from the transaction, though maintains a Neutral rating on valuation.

Target price is $5.95 Current Price is $5.70 Difference: $0.25
If TPG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates TPG as Buy (1) -

At first glance, TPG Telecom appears to have achieved an underwhelming price for its tower sites at $950m, -28% below Ord Minnett’s forecast of $1.32bn.

The broker had not expected the tower sale to be completed this early given the recently announced multi-operator core network
deal with Telstra ((TLS)) affects up to 10% of the sites that are to be sold.

The broker nevertheless retains Buy and a $7.25 target, noting the transaction is 7% value accretive.

Target price is $7.25 Current Price is $5.70 Difference: $1.55
If TPG meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates TWE as Buy (1) -

Treasury Wine Estates continues to underperform the industry, with market data suggesting the company's retail channel sales declined -5% over April. Citi highlights that not only was the sales decline less steep than the four weeks preceding, pricing trends remain positive.

The broker notes a decline in retail sales likely suggests an anticipated shift towards higher-margin on-premise consumption. More positively, the broker noted a premiumisation trend continues and should benefit Treasury Wine Estates.

The Buy rating and target price of $13.78 are retained.

Target price is $13.78 Current Price is $11.15 Difference: $2.63
If TWE meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.41, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates TYR as Buy (1) -

Ord Minnett deduces from Tyro Payments' strong total transaction value (TTV) figures for April, the company is on-track to reach the broker's FY22 TTV estimate of $34bn. High-frequency app downloads and active users are also thought to be trending favorably.

A trading update revealed transaction volume in April was up 3% sequentially, and momentum into May appears strong to the analyst. The Buy rating and $3.00 target price are unchanged.

Target price is $3.00 Current Price is $1.05 Difference: $1.95
If TYR meets the Ord Minnett target it will return approximately 186% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 169.6% (ex-dividends)

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

Citi rates WBC as Buy (1) -

Westpac's first half cash earnings of $3,095 surprised the market according to Citi, reflecting a 5% pre-provision profit beat, but the result feature for Citi was a solid cost improvement driven the by the cutting of 2,500 full time equivalent permanent positions. 

Not only did Citi note revenue challenges moderated in the half, with the net interest margin stabilising at 1.69%, but further expects Westpac will deliver the strongest earnings per share in the sector on the back of higher revenue growth, cash rate rises and a reducing cost base.

The bank also retained its $8bn cost base target for FY24, unlike some peers, having already incorporated 2.5% inflation into targets.

The Buy rating and target price of $29.00 are retained.

Target price is $29.00 Current Price is $24.60 Difference: $4.4
If WBC meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $25.49, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates WBC as Neutral (3) -

In the wake of 1H results for Westpac, Credit Suisse makes only small changes to earnings forecasts and maintains its Neutral rating and $24.40 target price. Margins are thought to have stabilised towards the end of the half albeit at the expense of volumes.

The analyst notes some market skepticism around whether the $8bn cost target can still be achieved, given the recent increase in inflation.

Target price is $24.40 Current Price is $24.60 Difference: minus $0.2 (current price is over target).
If WBC meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.49, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates WBC as Neutral (3) -

The highlight of Westpac's result for Macquarie was its ongoing commitment to an $8bn cost base, when peers have now walked away from their own targets. The broker believes Westpac will do better than peers, but $8bn is "highly ambitious". It also comes with a 2.5% inflation assumption.

The banks' result was otherwise in line with the broker, albeit more stable margins offset lower markets income, which is a positive. The beat on costs was driven by a cut in investment spending. 

In the context of ongoing execution risk associated with the cost-out strategy, Macquarie prefers National Bank ((NAB)) from the quality angle and ANZ Bank ((ANZ)) from the valuation perspective. Neutral retained, target rises to $24.50 from $22.50.

Target price is $24.50 Current Price is $24.60 Difference: minus $0.1 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.49, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Morgan Stanley expects Westpac's first half result will elicit a positive response, with the bank delivering a 4% pre-provision profit beat to the broker's expectations, up 6% half-on-half, driven by cost improvements and margin stabilisation. 

The bank downgraded its second half expense guidance to $5.03-5.14bn, although Morgan Stanley continues to forecast expenses of $5.13bn.

The rating is upgraded to Overweight from Equal-Weight and the target price increases to $25.70 from $22.50. Industry view: Attractive.

Target price is $25.70 Current Price is $24.60 Difference: $1.1
If WBC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $25.49, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates WBC as Hold (3) -

Westpac reported profit 2% above Ord Minnett’s forecast, with pre-provision profit also 2% ahead of estimate. The dividend of 61cps was  broadly in line with the broker's 60cps expectation.

A positive market response reflected relief in a stable net interest margin, the broker suggests, despite below-peer revenues. Management admitted its $8bn cost target is based on a 2.5% inflation assumption.

Ord Minnett does not believe the risk-reward equation is attractive enough to move off a Hold recommendation on Westpac, although
its target price increases to $23.90 from $23.30.

Target price is $23.90 Current Price is $24.60 Difference: minus $0.7 (current price is over target).
If WBC meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.49, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates WPL as Outperform (1) -

As a result of the Russia/Ukraine conflict, Credit Suisse expects European LNG demand to rise structurally (to replace Russian supply). Also, it's thought long-term LNG prices (including contract prices) may need to rise to incentivise new marginal supply.

The broker increases its long term LNG price forecast to US$9/mmbtu from US$8mmbtu and also lifts near-term LNG prices aligned with forward JKM (Japan/Korea Marker) prices, and mid-term prices to US$11-12/mmbtu. The long term oil price forecast remains at US$63/bbl.

As a result of these new forecasts, Credit Suisse increases its target price for Woodside Petroleum by 13% to $34.37. Outperform. The company is considered one of the top LNG exposures globally.

Target price is $34.37 Current Price is $31.58 Difference: $2.79
If WPL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $31.90, suggesting upside of 3.9% (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: 0.4

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