Australian Broker Call

Citi rates 29M as Buy (1) -

Citi retains its Buy ratings across the broker's copper coverage though trims target prices when taking into account the near-term macro outlook. It's thought share price weakness, driven by China data and a hawkish Fed is setting up a long-term buying opportunity.

The Citi commodities team highlights copper is the most leveraged commodity to the decarbonisation thematic and looks set to outperform most other commodities over the coming decade.

For 29metals, the analyst reduces the target price to $3.00 from $3.30. Buy.

Target price is $3.00 Current Price is $2.62 Difference: $0.38
If 29M meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.14, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates ALL as Buy (1) -

First half profit (NPATA) for Aristocrat Leisure beat Citi's estimate by 8% and the consensus forecast by 11%, driven by a strong performances by the land-based businesses.

The broker adjusts its FY22-24 earnings (EBITA) forecasts by 4.4%, 0.5% and -1.5%, respectively. Nonetheless, the target falls to $41 from $44 due to the application of a higher risk free rate and lower peer multiples.

The Buy rating is maintained, and the analyst feels the company's current strong market position is sustainable.

Target price is $41.00 Current Price is $33.73 Difference: $7.27
If ALL meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates ALL as Outperform (1) -

Casino earnings were a positive surprise in Aristocrat Leisure's first half result, exceeding Credit Suisse's expectations, and the company intimated pipeline orders look strong moving into the second half. 

Looking forward, the company intends to return a majority of the nearly $1bn free cash generated annually to shareholders by complementing dividend payments with ongoing buybacks, and the broker factors in an assumed $1bn buyback from FY23.

The Outperform rating is retained and the target price decreases to $40.00 from $43.50.

Target price is $40.00 Current Price is $33.73 Difference: $6.27
If ALL meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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 ALL as Outperform (1) -

Aristocrat Leisure reported a 41% year on year increase in first half profit, beating consensus by 12%, and announced a $500m buyback.

Macquarie  is not seeing any weakening in consumer spending, with land-based showing strong momentum sequentially, but is monitoring with caution. On the flipside, Pixel United is being impacted by delays in some new game launches.

Aristocrat plans to launch North American iGaming before the end of 2022, with two major customers lined up. With balance sheet optionality to pursue M&A and studio deals, along with capital management, valuation is attractive, the broker suggests.

Outperform and $44 target retained.

Target price is $44.00 Current Price is $33.73 Difference: $10.27
If ALL meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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 ALL as Add (1) -

First half profit (NPATA) was a 13% beat compared to Morgans forecast. Profit for the Americas Gaming segment rose 56% in US dollar terms,  which is considered a reward for investment in product and partnerships.

The broker also highlights positive earnings growth for A&NZ, International Class III Gaming, Digital and Pixel United. Management announced a $0.5bn share buyback, after operating cash flow increased by 42% for the half.

As the broker now applies a higher discount rate in its valuation calculation and incorporates lower peer company multiples, the target price falls to $43 from $48. The Add rating is unchanged.

Target price is $43.00 Current Price is $33.73 Difference: $9.27
If ALL meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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 ALL as Upgrade to Buy from Accumulate (1) -

A solid result across the board from Aristocrat Leisure in its first half has reflected the resilience of the gaming sector according to Ord Minnett, delivering a significant beat to the broker's underlying net profit forecast with a reported $530.7m compared to an anticipated $386.0m.

The broker highlighted the land-based segment was a major driver with strong year-on-year volume and fee growth, but continuing robust performance from the digital segment should quiet concerns around digital weakness.

The rating is upgraded to Buy from Accumulate and the target price decreases to $46.00 from $49.00.

Target price is $46.00 Current Price is $33.73 Difference: $12.27
If ALL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates ALL as Buy (1) -

Following 1H results, UBS highlights that because Aristocrat Leisure continues to outspend the competition, a steady product pipeline should result going forward.

First half profit (NPATA) was 14% ahead of the broker's forecast, with the Americas land-based business reporting a record half year profit.

The broker retains its Buy rating, while the target price falls to $44.80 from $49.

Target price is $44.80 Current Price is $33.73 Difference: $11.07
If ALL meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $43.13, suggesting upside of 22.6% (ex-dividends)

The company's fiscal year ends in September.

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 BHP as No Rating (-1) -

Ord Minnett notes the solid iron ore track record established by BHP Group in recent years will benefit the company moving forward, and particularly post petroleum exit.

Im comparison to Rio Tinto ((RIO)), which has downgraded iron ore guidance for seven of the last eight years, BHP Group has a more balanced record, including achieving guidance in the last two financial years, and the broker notes the company appears on track to meet guidance this year.

The broker is currently restricted from making a recommendation.

Current Price is $46.23. Target price not assessed.

Current consensus price target is $52.66, suggesting upside of 11.4% (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

Morgan Stanley rates BPT as Underweight (5) -

Morgan Stanley suggests the challenge for newly-appointed ceo Morne Engelbrecht will be to lead a more stable team and deliver on the company's growth program.

The Underweight rating and $1.70 target are maintained. Industry view is Attractive.

Target price is $1.70 Current Price is $1.66 Difference: $0.04
If BPT meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 12.0% (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

Morgans rates BPT as Add (1) -

After being in an acting capacity since last November, Morne Englebrecht has been appointed permanent ceo by Beach Energy. Morgans sees this announcement as an endorsement for a continued focus upon developing domestic gas.

After a number of counterbalancing forecast and valuation changes, the broker raises its target price to $1.86 from $1.84, and retains its Add rating.

Target price is $1.86 Current Price is $1.66 Difference: $0.2
If BPT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting upside of 12.0% (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

Credit Suisse rates CGF as Neutral (3) -

Credit Suisse sees possibility for Challenger to announce a joint venture with Apollo, likely focused on the domestic direct lending market, and predicts the market could sustain a $14-18m contribution to Challenger from the partnership, based on a equal split joint venture.

With the company set to update investors next week, the broker anticipates positive news noting credit spreads and higher interest rates should benefit Challenger. Credit Suisse lifts earnings per share forecasts 4% and 7% for FY23 and FY24.

The Neutral rating is retained and the target price increases to $7.60 from $7.00.

Target price is $7.60 Current Price is $7.47 Difference: $0.13
If CGF meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.13, suggesting downside of -4.6% (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

Macquarie rates CHN as Outperform (1) -

Chalice Mining has received all final outstanding approvals that will enable the drilling of the higher priority targets in the State Forest. Macquarie believes the Hartog and Baudin prospects have the potential to add significant mineralisation at Julimar.

Confirmation that mineralisation extends into the State Forest area presents a key near-term catalyst, the broker suggests.

Outperform and $10.00 target retained.

Target price is $10.00 Current Price is $5.72 Difference: $4.28
If CHN meets the Macquarie target it will return approximately 75% (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

Ord Minnett rates ECF as Accumulate (2) -

Elanor Commercial Property Fund has announced a $37m equity raising to fund the acquisition of a 49.9% stake in the Harris Street Fund, a fund jointly owned by Elanor Commercial Property Fund's and Elanor Investors Group's ((ENN)) private wealth clients that is set to take ownership of A-grade Pyrmont office real estate, 19 Harris Street.

Elanor Investors Group will provide an $8.4m capital contribution to Elanor Commercial Property Fund to offset net tangible asset dilution, but Ord Minnett estimates the purchase will be -6% dilutive to funds from operations per share in FY23.

The Accumulate rating is retained and the target price decreases to $1.06 from $1.13.

Target price is $1.06 Current Price is $1.03 Difference: $0.03
If ECF meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

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 GMG as Outperform (1) -

Goodman Group's third quarter update saw the company upgrade full year earnings per share guidance again, now suggesting 23% growth from a pervious 20%, and Credit Suisse increases its own forecasts 1.8%, 3.1% and 2.1% through to FY24 accordingly.

The update also provided some visibility on earnings ahead, with the broker noting suggested work in progress anticipated to be $13.4bn in June likely sustains two years of production on the books based on an annual production rate of $7bn.

The Outperform rating is retained and the target price decreases to $24.05 from $26.09.

Target price is $24.05 Current Price is $19.15 Difference: $4.9
If GMG meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $26.36, suggesting upside of 36.2% (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

Ord Minnett rates HMY as Buy (1) -

A solid quarterly result from Harmoney, including loan book growth to NZ$627m, saw the company reaffirm full year guidance. While the company points to a loan book above NZ$650m by the end of the financial year, Ord Minnett forecasts this will reach $669m.

A majority of loan originations coming from Australia in the period supports company strategy to expand domestic market share, and the broker highlights the Australian loan book looks to surpass New Zealand in the coming financial year.

The Buy rating is retained and the target price decreases to $2.19 from $2.42.

Target price is $2.19 Current Price is $1.19 Difference: $1
If HMY meets the Ord Minnett target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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

Credit Suisse rates IDX as Neutral (3) -

Integral Diagnostics has acquired Auckland-based Horizon Radiology for NZ$30.3m, with Credit Suisse noting the purchase is immediately accretive and drives increases to the broker's earnings per share forecasts of 5.1-5.5% through to FY24.

Despite the excess capital obtained from the company's February raise suggesting acquisition activity was on the cards, as the third purchase made in four months Credit Suisse has been surprised by the high level of activity but trusts the company has chosen acquisitions with a strong clinical fit.

The Neutral rating is retained and the target price increases to $4.11 from $3.95.

Target price is $4.11 Current Price is $3.80 Difference: $0.31
If IDX meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 13.8% (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

Citi rates NUF as Buy (1) -

First half profit for Nufarm was in-line with expectations and Citi makes minimal changes to FY22/23 estimates. The Buy rating and $7.40 target price are unchanged.

The analyst feels the company's earnings have not yet peaked as agricultural prices should remain high into FY23 (as a result of the Russia-Ukraine conflict), and ongoing organic growth.

Target price is $7.40 Current Price is $6.07 Difference: $1.33
If NUF meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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 NUF as Neutral (3) -

A solid first half result from Nufarm demonstrated ability to mitigate rising costs, as well as grow profitability in both North America and Asia Pacific. Credit Suisse notes it was previously bullish on profitability in Europe and now expects earnings to be broadly stable over the next few years.

The company also advanced its omega-3 canola and carinata initiatives in the half, and the broker notes the establishment of an offtake and marketing agreement with BP for the production of sustainable carinata aviation fuel offers bullish earnings possibilities from FY24.

The Neutral rating is retained and the target price decreases to $6.96 from $7.07.

Target price is $6.96 Current Price is $6.07 Difference: $0.89
If NUF meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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 NUF as Outperform (1) -

Nufarm's result ws largely pre-released but profit was a slight beat on Macquarie. North America was a key driver on a combination of strong agri-market conditions and internal investment driving a 167% first half uplift in this segment.

Europe disappointed versus expectations with improved market conditions only offsetting a previously flagged regulatory phase-out.

The stock’s -9% fall appears relatively harsh, Macquarie suggests, for an in-line result and second half outlook consistent with April
update. While the stock has had a good run this year the broker thinks broader agri-market dynamics remain favourable, which should be supportive.

The longer term potential of Seeds is not captured in the price. Outperform retained, target falls to $7.20 from $7.40 on higher net debt.

Target price is $7.20 Current Price is $6.07 Difference: $1.13
If NUF meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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 NUF as Equal-weight (3) -

Following 1H results for Nufarm, Morgan Stanley found the revenue and earnings (EBITDA) outcome in Europe was disappointing and the impact of product deregistrations was more than expected. Nonetheless, the results were in-line with the broker's and consensus forecasts.

The APAC region and the Seeds segment were in-line while Nth America segment earnings were 78% above Morgan Stanley's forecast, driven by product mix, volume growth and efficiencies/cost-out.

The interim 4cps dividend exceeded the consensus estimate for 3.5cps. The analyst feels the company is managing inflationary pressures well via both pricing and efficiencies. The Equal-weight rating and $6.40 target price are retained. Industry view: In-Line.

Target price is $6.40 Current Price is $6.07 Difference: $0.33
If NUF meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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

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

Despite first half results for Nufarm coming in at the mid-point of prior guidance, Morgans lowers its rating to Hold from Add. FY23 earnings are thought likely to fall when compared to the exceptional FY22.

As the analyst's FY23 forecasts are now more reflective of normal operating conditions and price, the target price falls to $6.65 from $7.20. In-line with the company's growth strategy, solid growth is expected to resume in FY24-26.

The broker suggests there will be material share price upside if Nufarm delivers on its FY26 aspirational targets.

Target price is $6.65 Current Price is $6.07 Difference: $0.58
If NUF meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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 NUF as Hold (3) -

Nufarm's first half earnings of $330m hit the mid-point of company's guidance range, reflecting a 41% beat to the previous comparable period. Ord Minnett highlights although demand conditions should remain favourable, pull-forward sales will contribute to a first half skew.

The market outlook remains positive for crop protection and seed, and the company continues to progress Nuseed initiatives including the core seed portfolio and carinata biofuel feedstock. Expansion of supply of the carinata fuel will be a focus to meet the needs of the 10-year agreement signed with BP. 

The Hold rating is retained and the target price increases to $6.10 from $5.00.

Target price is $6.10 Current Price is $6.07 Difference: $0.03
If NUF meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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

UBS rates NUF as Buy (1) -

Nufarm delivered 1H22 earnings (EBITDA) in-line with recently provided guidance range. Market share gains and the continued recovery in turf and ornamental markets following covid boosted the North America segment, explains the analyst.

The broker describes the Europe division result as 'solid'. After a share price selloff, it's thought shares provide an attractive entry point to gain leverage to the apparent stronger-for-longer agriculture cycle.

A successful ramp-up of Nufarm's Omega-3 and Carinata seeds platforms would also provide significant upside, in the broker's view. The target falls to $7.40 from $7.90. Buy.

Target price is $7.40 Current Price is $6.07 Difference: $1.33
If NUF meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.87, suggesting upside of 17.9% (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

Citi rates OZL as Buy (1) -

Citi retains its Buy ratings across the broker's copper coverage though trims target prices when taking into account the near-term macro outlook. It's thought share price weakness, driven by China data and a hawkish Fed is setting up a long-term buying opportunity.

The Citi commodities team highlights copper is the most leveraged commodity to the decarbonisation thematic and looks set to outperform most other commodities over the coming decade.

For OZ Minerals, the analyst reduces the target price to $27.50 from $30.50. Buy.

Target price is $27.50 Current Price is $22.60 Difference: $4.9
If OZL meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $25.04, suggesting upside of 9.3% (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

Macquarie rates RIO as Outperform (1) -

Rio Tinto has agreed to provide Canada's Turquoise Hill Resources with US$400m in short-term funding, which delays Turquoise Hill's equity-raising deadline from August to December 2022.

Copper is core to Rio’s growth strategy, Macquarie notes, and Oyu Tolgoi is a key pillar of volume growth, underpinned by its underground development.

Formalising the cost and schedule review presents a key near-term catalyst for Turquoise Hill while the Rio cash offer is being assessed.

Outperform and $140 target retained.

Target price is $140.00 Current Price is $106.75 Difference: $33.25
If RIO meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $125.07, suggesting upside of 15.2% (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: 0.6

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

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

Morgan Stanley points out the focus shifts back to Reckon's business division after the announced sale of the Accountants Practice Management division for $100m.

The business division's cloud migration is the most progressed and has the strongest top-line momentum of the company's segments, explains the analyst. The Equal-weight rating and $1.05 target price are retained. Industry view: In-Line.

Target price is $1.05 Current Price is $1.27 Difference: minus $0.22 (current price is over target).
If RKN meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates SFR as Buy (1) -

Citi retains its Buy ratings across the broker's copper coverage though trims target prices when taking into account the near-term macro outlook. It's thought share price weakness, driven by China data and a hawkish Fed is setting up a long-term buying opportunity.

The Citi commodities team highlights copper is the most leveraged commodity to the decarbonisation thematic and looks set to outperform most other commodities over the coming decade.

For Sandfire Resources, the analyst reduces the target price to $7.20 from $8.00. Buy.

Target price is $7.20 Current Price is $5.18 Difference: $2.02
If SFR meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $7.13, suggesting upside of 33.5% (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

Morgan Stanley rates SQ2 as Equal-weight (3) -

Morgan Stanley reiterates Block could improve sustainability of its Cash App revenue by further diversifying product offering. Integration of Afterpay is key to this according to the broker, with the buy now pay later facility a step toward integrating additional credit services.

With the existing Borrow feature reaching 1m users the broker notes available credit products are resonating, but notes limiting buy now pay later functionalist to interest-free, short duration loans will not meet the needs of the company's customer base in the medium to long term.

The Equal-Weight rating is retained and the target price decreases to US$110.00 from US$118.00.

Current Price is $116.10. Target price not assessed.

Current consensus price target is $210.00, suggesting upside of 65.2% (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: 0.8

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

Morgan Stanley rates TPG as Overweight (1) -

Following last week's 3Q trading update and the TPG Telecom's announced sale of mobile towers, Morgan Stanley refreshes its estimates and reduces its target price to $8.20 from $8.90.

Nonetheless, the analyst points out around 35% upside to the current share price (from the amended target). It's felt the company offers attractive returns should it execute on increased profitability for mobile, fixed wireless gains and enterprise wins.

The end of the NBN rollout, cost-out and increasing average revenue per user metrics are lifting Australian telco industry returns for the first time in years, explains the broker. Overweight. Industry view: In-line.

Target price is $8.20 Current Price is $6.00 Difference: $2.2
If TPG meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $7.13, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates WEB as Buy (1) -

In the current environment, Citi believes the key metric for Webjet is revenue, which was slightly ahead of the consensus expectation at FY22 results. The broker increases its target price by 4% to $6.75 and retains its Buy rating.

Looking at B2B, the analyst points to strong bookings which more than offset soft average booking value (ABV), while total transaction value (TTV) was a beat. The Americas is expected to contribute around 20% of TTV to B2B in the coming year.

Target price is $6.75 Current Price is $5.87 Difference: $0.88
If WEB meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in March.

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 WEB as Neutral (3) -

Webjet's result was largely in line with Macquarie's forecast. The highlight was a return to group profit in the second half, with total transaction value greater than 80% of pre-covid levels.

Travel activity continues to recover but revenue and profit margins face headwinds, the broker notes, from lagging international travel and travel mix, which is likely to persist in the first half of FY23.

The company remains well placed medium term, underpinned by strong market share gains and a structurally lower cost base. Neutral and $5.80 target retained.

Target price is $5.80 Current Price is $5.87 Difference: minus $0.07 (current price is over target).
If WEB 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 $6.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in March.

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

Morgans rates WEB as Add (1) -

Total transaction value (TTV), revenue and cashflow were all beats compared to Morgans forecasts, when Webjet unveiled FY22 results. May is tracking ahead of April, the most profitable month since March 2020, with all business segments in profit.

Management is sticking with a target of returning to pre-covid booking levels in the 2H of 2023. The broker maintains its Add rating and marginally decreases its target price to $6.55 from $6.60.

Target price is $6.55 Current Price is $5.87 Difference: $0.68
If WEB meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates WEB as Buy (1) -

With B2B travel emerging as a structural winner of the covid pandemic, Ord Minnett notes the material turnaround in Webjet's B2B division ws a feature of the company's full year results. The broker expects Webjet is well placed to take market share in the segment.

As anticipated, reduced airline commissions and override revenue impacted, with the company disclosing an expected $10-12m revenue hit to its B2C division. With no control over commissions, Ord Minnett notes travel agents have few options but to focus on service fees.

The Buy rating is retained and the target price decreases to $7.48 from $7.51.

Target price is $7.48 Current Price is $5.87 Difference: $1.61
If WEB meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $6.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates WEB as Buy (1) -

Webjet's 2H results were a 6% revenue beat though a -4% earnings (EBITDA) miss versus the predictions by UBS. All businesses were profitable in April, and May profitability is expected to be significantly higher versus April.

The broker highlights cost out remains on track, with management confident around achieving an overall reduction in group costs of -20%. The Buy rating is maintained, while the target price slips to $6.70 from $6.75.

Target price is $6.70 Current Price is $5.87 Difference: $0.83
If WEB meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.14, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in March.

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