Australian Broker Call

UBS rates AKE as Buy (1) -

Upon a change of analyst, UBS sets a $10.75 target price and maintains its Buy rating for Allkem (formerly named Orocobre). It's thought the company has the resource inventory and brine/hard rock experience to create significant shareholder value.

Near term growth is expected to come from Olaroz stage 2 and the Naraha lithium hydroxide plant, and company-wide, the analyst forecasts FY22 revenue to lift to US$505m from US$85m in FY21.

Target price is $10.75 Current Price is $9.15 Difference: $1.6
If AKE meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 17.8% (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

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

Morgan Stanley resumes coverage of AMP with an Equal-weight rating and believes shares are currently trading at a fair valuation. It's thought there is a long journey to stabilise the business.

While the target price is set at $0.95, the broker sees a broad range of outcomes with a $2 bull case (10% probability) and $0.50 bear case (30% probability). The announced Private Markets de-merger is considered likely to lessen outflows.

Target price is $0.95 Current Price is $0.91 Difference: $0.04
If AMP meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

UBS rates AX1 as Initiation of coverage with Buy (1) -

UBS initiates coverage on Accent Group with a Buy rating and a $3 target price. The company operates in the performance and lifestyle retail market, mainly in footwear though with a growing apparel business.

The broker forecasts a post-covid recovery, and then an ongoing modest expansion of earnings (EBIT) margins. The metric, cost of doing business (CODB)/Sales, is expected to fall due to operating leverage and lower rent/sales.

The key retail revenue growth driver is the number of stores, notes the analyst, with opportunities across larger brands and its recently acquired brands. The former are (Platypus, Hype, Skechers), while the latter are Stylerunner and Glue.

Target price is $3.00 Current Price is $2.38 Difference: $0.62
If AX1 meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates CCX as Initiation of coverage with Buy (1) -

UBS initiates coverage on City Chic Collective with a Buy rating and $6.50 target price. The plus-size women's fashion company is an omni channel retailer with store, online and marketplace channels in A&NZ.

There's also online, marketplace and wholesale channels in the Americas and Europe, the Middle East and Africa (EMEA). In particular, these latter two regions offer significant growth potential, according to the broker.

UBS notes tailwinds from improved sourcing should kick in once current supply chain issues pass.

Target price is $6.50 Current Price is $5.55 Difference: $0.95
If CCX meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.82, suggesting upside of 28.0% (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

Macquarie rates CNU as Neutral (3) -

The New Zealand Commerce Commission has delivered a final decision on Chorus' maximum allowable revenue, determining a $5.425 regulated asset base and a $690.2-789.5m maximum allowable revenue, but Macquarie notes results are similar to the draft decision. 

Expect an update on dividend guidance in February.

The Neutral rating and target price of NZ$7.22 are retained.

Current Price is $6.52. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates CTD as Buy (1) -

Corporate Travel Management has acquired Helloworld Travel's ((HLO)) Corporate Division for $175m, including the prestigious Federal Government Whole of Australian Government Hotel contract and travel management company services agreement. 

Ord Minnett notes while Corporate Travel paid an 8x multiple on FY19 earnings an expected underlying earnings benefit of $30m would make the price fair.

The purchase will be funded through an equity raise, and Ord Minnett expects it is one of a few global travel management companies that could pursue acquisition of this size. 

The Buy rating is retained and the target price increases to $24.35 from $22.53.

Target price is $24.35 Current Price is $22.29 Difference: $2.06
If CTD meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $25.47, suggesting upside of 21.7% (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

Macquarie rates CWY as Outperform (1) -

Cleanaway Waste Management announced its $501m Sydney SUEZ asset acquisition will complete earlier than expected on December 18. Macquarie notes the five transfer stations and two landfills combined generated $193.1m revenue and $76.9m underlying earnings in 2020.

According to Macquarie the purchase strengthens the company's Sydney network and execution is a positive for a new management team. Earnings per share increase 10.0%, 16.9% and 17.0% through to FY24. 

The Outperform rating is retained and the target price increases to $3.70 from $3.20.

Target price is $3.70 Current Price is $2.86 Difference: $0.84
If CWY meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.92, suggesting downside of -1.9% (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

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

UBS initiates coverage on call-recording provider Dubber Corp with a $3.30 target price. A Neutral rating is adopted as the analyst would like to see a consistent trajectory of accelerating subscriber growth before turning more positive.

Despite expanding the telco network (number of providers), launching the Cisco Webex foundation partnership and integrating with Zoom and Teams, organic revenue growth slowed in FY21, points out the analyst.

The broker notes the company is well capitalised for growth and any potential M&A activity will likely be earnings accretive.

Target price is $3.30 Current Price is $3.10 Difference: $0.2
If DUB meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates DXC as Accumulate (2) -

Dexus Convenience Retail has announced the $20.8m acquisition of two Brisbane metro service stations. Ord Minnett notes recent auction results suggest service station demand is easing which could provide opportunity for Dexus Convenience Retail to grow with acquisition.

The company updated funds from operations and divided guidance to 22.9 cents per share.

The Accumulate rating and target price of $3.89 are retained.

Target price is $3.89 Current Price is $3.58 Difference: $0.31
If DXC meets the Ord Minnett target it will return approximately 9% (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

Macquarie rates ELD as Outperform (1) -

Macquarie is optimistic Elders will continue to benefit from seasonal conditions. The Agriculture Bureau issued a 7% farm production valuation upgrade and the broker expects farm income value to increase 32% in 2022, following a 30% increase in 2021.

Elders continues to chase strategic acquisition and expand service offering, and remains committed to delivering 5-10% annual through-the-cycle earnings growth. Macquarie notes 38% pre-tax earnings growth in FY21 supports an 11% three-year compound annual growth.

Earnings per share forecasts increase 3.1%, 1.8% and 1.7% through to FY24.

Elders is one of Macquarie's key agricultural sector picks. The Outperform rating is retained and the target price increases to $14.77 from $14.67.

Target price is $14.77 Current Price is $11.54 Difference: $3.23
If ELD meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $13.63, suggesting upside of 16.4% (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

Ord Minnett rates HPI as Accumulate (2) -

Hotel Property Investments has committed $75m to acquisitional investment, including the $66.1m purchase of a seven venue South Australian hotel portfolio in partnership with Australian Venue Company. Ord Minnett notes an additional $100m loan will fund purchases.

The company has additionally recycled capital with the sale of the Acacia Ridge Hotel for $25m. Earnings per share forecasts increase 6% from FY23.

The Accumulate rating is retained and the target price increases to $4.00 from $3.60.

Target price is $4.00 Current Price is $3.61 Difference: $0.39
If HPI meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

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

Macquarie rates HT1 as Outperform (1) -

Given Macquarie views HT&E's Soprano platform as a potential target for larger communication platform as a service operators, the broker has estimated an enterprise value of $510m implying a $0.50 per share valuation for HT&E's 25% stake.

Recent trading updates are in line with expectations, and commentary suggests a potential 13% metro radio market increase in the last six months. Earnings per share forecasts increase 14%, 29% and 31% through to FY23.

Macquarie has recommenced recommendations on HT&E with an Outperform rating and a target price of $2.10.

Target price is $2.10 Current Price is $1.79 Difference: $0.31
If HT1 meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates HVN as Hold (3) -

With a supportive retail backdrop expected to continue into 2022, Ord Minnett expects spending to remain elevated and retailers such as Harvey Norman to emerge higher-quality on the other side of the covid pandemic. 

Retail normalisation continues to be pushed out, and structural shifts such as online retail market share gains, a housing cycle peak and flexible work arrangements, alongside trends such as slow recovery in travel spending and supply chain issues likely to benefit retail.

The Hold rating is retained and the target price decreases to $5.40 from $5.50.

Target price is $5.40 Current Price is $5.01 Difference: $0.39
If HVN meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 21.4% (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 IGO as Buy (1) -

Citi anticipates IGO's bid to acquire Western Areas ((WSA)) will succeed. The all-cash offer of $3.36/share is in-line with the broker's target price of $3.40/share.

While making the company an ever larger and unique global ‘EV metals’ player, the analyst doesn't feel the overall story changes much as a result of the transaction. Citi's earnings forecasts are unchanged. The Buy rating and $12.40 target price are also retained.

Target price is $12.40 Current Price is $10.78 Difference: $1.62
If IGO meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting downside of -15.0% (ex-dividends)

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

Morgan Stanley rates IGO as Underweight (5) -

Morgan Stanley feels IGO is paying a full price for the acquisition of Western Areas ((WSA)) at $3.36/share, via a scheme of arrangement. The broker had a price target of $2.95/share for Western Areas, which incorporated the potential for a bid.

As a result of this disparity, the analyst feels future developments in the target's portfolio is needed to justify the price. The deal is all cash, to be funded by a debt facility of $900m.

The Underweight rating and target price of $9.70 are retained. Industry view: Attractive.

Target price is $9.70 Current Price is $10.78 Difference: minus $1.08 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.28, suggesting downside of -15.0% (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 JBH as Upgrade to Buy from Hold (1) -

With a supportive retail backdrop expected to continue into 2022, Ord Minnett expects spending to remain elevated and retailers such as JB Hi-Fi to emerge higher-quality on the other side of the covid pandemic. 

Retail normalisation continues to be pushed out, and structural shifts such as online retail market share gains, a housing cycle peak and flexible work arrangements, alongside trends such as slow recovery in travel spending and supply chain issues likely to benefit retail.

The rating is upgraded to Buy from Hold and the target price decreases to to $54.00 from $55.00.

Target price is $54.00 Current Price is $47.11 Difference: $6.89
If JBH meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $53.39, suggesting upside of 12.1% (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

Morgan Stanley rates MGR as Overweight (1) -

In Morgan Stanley's view, November Housing Industry Association data augers well for Mirvac Group's December quarter pre-sales. The data showed a 9% lift in home sales versus October. This week management also highlighted apartment momentum is strong.

The broker also notes transaction volumes are at near-record highs for residential auction clearances.

Morgan Stanley's Overweight rating and $3.30 target price are maintained. Industry view: In-Line.

Target price is $3.30 Current Price is $2.91 Difference: $0.39
If MGR meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 6.7% (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 PNV as Hold (3) -

Polynovo's sales continue to track below expectations despite reported sales improvement, research and development investment and an increased US sales force. Coupled with a near-term covid hospitalisation headwind, Ord Minnett decreases revenue forecasts. 

The search for a new CEO continues, and the broker notes a quality appointment, cash position improvement and consistency in sales growth would improve share price confidence.

Revenue forecasts decrease -16% for FY22, with profit after tax loss updated to -$3.5m. 

The Hold rating is retained and the target price decreases to $1.70 from $2.25.

Target price is $1.70 Current Price is $1.48 Difference: $0.22
If PNV meets the Ord Minnett target it will return approximately 15% (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

Citi rates QAN as Buy (1) -

Citi remains Buy-rated on Qantas Airways given a favourable risk/reward outlook, and believes upside from International is largely not being priced in to the current share price.

While management downgraded guidance for 1H22 earnings (EBITDA), the analyst feels the main game centres on the outlook with borders reopening. The target price is lowered to $5.86 from $5.93.

Target price is $5.86 Current Price is $4.84 Difference: $1.02
If QAN meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 26.4% (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

Credit Suisse rates QAN as Underperform (5) -

In an around -$600m miss versus consensus expectations, Qantas Airways has guided to a 1H FY22 earnings (EBITDA) loss of between -$250m-$300m. Credit Suisse notes this is due to staff costs in preparation for the reopening recovery.

However, 1H net debt is better than the analyst's forecast due to strong flight bookings, particularly for international.

The broker raises its target price to $4.60 from $4.10 on a change of valuation method and maintains its Underperform rating.

Target price is $4.60 Current Price is $4.84 Difference: minus $0.24 (current price is over target).
If QAN meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.04, suggesting upside of 26.4% (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

Macquarie rates QAN as Outperform (1) -

Driven by increased staffing costs ahead of demand increase Qantas Airways is guiding to a first half earnings loss of -$250-300m, but Macquarie notes the second half provides a more positive outlook.

Qantas suggested domestic capacity could exceed pre-covid levels by 2% and 17% in the third and fourth quarters, noting likely intensified competition in the market. Macquarie finds Qantas a structurally better business than it was pre-covid with upside risk potential.

Underlying earnings forecasts decrease -22% and -2% for FY22 and FY23 respectively. 

The Outperform rating and target price of $6.10 are retained.

Target price is $6.10 Current Price is $4.84 Difference: $1.26
If QAN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 26.4% (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

Morgan Stanley rates QAN as Overweight (1) -

Morgan Stanley continues to see significant upside to Qantas Airway's earnings under 'normal conditions'. Managements earnings (EBITDA) guidance for the 1H22 was in-line with the analyst's estimate.

The broker is pleased the year-end net-debt target range will only be slightly exceeded. This comes after management revealed net debt will improve by around $250m, supported by land sales of circa $750m.

The Overweight rating and $7 target price are retained. Industry view: In-line.

Target price is $7.00 Current Price is $4.84 Difference: $2.16
If QAN meets the Morgan Stanley target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 26.4% (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 QAN as Buy (1) -

Qantas Airways latest update has guided to a -$250-300m underlying earnings loss in the first half of FY22, a further miss on Ord Minnett's forecast -$230m loss. Despite this, the broker is optimistic in achieving 109% capacity guidance in the second half given pent up demand.

Underlying earnings decrease -4% for FY22 on delayed recovery and increased staffing costs as staff return to work. 

The Buy rating is retained and the target price decreases to $6.30 from $6.50.

Target price is $6.30 Current Price is $4.84 Difference: $1.46
If QAN meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 26.4% (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

UBS rates QAN as Buy (1) -

Sudden lockdowns and less fleet hibernation in preparation for reopening were cited by Qantas Airways as reasons for lower earnings guidance. However, working capital movements were materially better than Credit Suisse had forecast.

The analyst maintains that upside for the company is more a case of when than if, which outweighs short term earnings concerns. The Buy rating and $6.40 target price are retained.

Target price is $6.40 Current Price is $4.84 Difference: $1.56
If QAN meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 26.4% (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

Morgan Stanley rates SGP as Overweight (1) -

In Morgan Stanley's view, November Housing Industry Association data augers well for Stockland’s December quarter pre-sales. The data showed a 9% lift in home sales versus October.

The broker also notes transaction volumes are at near-record highs for residential auction clearances.

Morgan Stanley retains an Overweight rating, $5 target and In-Line industry view.

Target price is $5.00 Current Price is $4.35 Difference: $0.65
If SGP meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates SKT as Outperform (1) -

Sky Network Television has confirmed a conditional agreement with Goodman Property Trust for the $56m sale of the three properties that comprise its Mt Wellington campus. Macquarie notes the deal includes a ten-year leaseback of the Studio One core production facility.

The broker finds the sale consistent with company strategy to add value for shareholders and customers by recycling capital. The sale is an important step as the company reviews capital management strategy.

The Outperform rating and target price of NZ$4.71 are retained.

Current Price is $2.58. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates TPW as Initiation of coverage with Buy (1) -

UBS initiates coverage on Temple & Webster, which is set to benefit from the shift to online spending in the Furniture and Homewares category. The broker starts with a Buy rating and $12.20 target price

The broker likes the category and product expansion opportunity and the potential for bolt-on M&A. The repeat order rate has risen to 50%, order frequency is up 7% compared to pre-covid and average order value (AOV) is up 6%.

In short, the UBS investment thesis is based upon an above-peer-average-growth outlook with more than10% earnings (EBITDA) margins when scale is achieved.

Target price is $12.20 Current Price is $10.59 Difference: $1.61
If TPW meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.05, suggesting upside of 34.2% (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 WES as Upgrade to Accumulate from Hold (2) -

With a supportive retail backdrop expected to continue into 2022, Ord Minnett expects spending to remain elevated and retailers such as Wesfarmers' chains to emerge higher-quality on the other side of the covid pandemic. 

Retail normalisation continues to be pushed out, and structural shifts such as online retail market share gains, a housing cycle peak and flexible work arrangements, alongside trends such as slow recovery in travel spending and supply chain issues likely to benefit retail.

The rating is upgraded to Accumulate from Hold and the target price increases to $64.00 from $54.00.

Target price is $64.00 Current Price is $58.65 Difference: $5.35
If WES meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $58.39, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates WSA as Neutral (3) -

Citi anticipates IGO Ltd's ((IGO)) bid to acquire Western Areas will succeed. The all-cash offer of $3.36/share is in-line with the broker's target price of $3.40/share.

The scheme is subject to a shareholder vote and would require 75% approval. Shareholders could hold out for a better deal and the broker notes the Andrew Forrest-backed Wyloo Metal holds a 6.3% stake on the share register.

Target price is $3.40 Current Price is $3.42 Difference: minus $0.02 (current price is over target).
If WSA meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.10, suggesting downside of -10.0% (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

Morgans rates WSA as Hold (3) -

Morgans feels IGO Ltd ((IGO)) is paying a reasonable premium for Western Areas (all-cash offer of $3.36/share), given the large nickel development opportunity.

The analyst doesn't feel it is an opportunistic bid as a large portion of Western Area's resources are in large, low-grade deposits. The broker maintains its Hold rating and $3.08 target price.

Target price is $3.08 Current Price is $3.42 Difference: minus $0.34 (current price is over target).
If WSA meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.10, suggesting downside of -10.0% (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