Australian Broker Call

Citi rates AMP as Neutral (3) -

Citi analysts remain of the view that the optimum strategy for the AMP board to release value for shareholders is through spinning off some of the divisions.

The analysts maintain there is ongoing interest for AMP Capital, as well as for AMP Wealth Management. In the same vein, the analysts also believe any deal is by no means guaranteed.

If it were left to an all-in restructuring strategy, Citi believes shareholders will be locked into a long drawn out process.

Neutral/High risk rating remains in place while the price target has improved to $1.60 from $1.55. Estimates have slightly increased following mark-to-market update.

Target price is $1.60 Current Price is $1.62 Difference: minus $0.02 (current price is over target).
If AMP 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 $1.59, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates AMS as Add (1) -

Atomos' trading update revealed much better than expected sales, but without guidance for what the bottom line might look like at the half-year report release.

Management did indicate Atomos will generate positive EBITDA and cash flow for the half.

Morgans retains a positive view, sticking by its Add rating and $1.32 price target.

Target price is $1.32 Current Price is $1.08 Difference: $0.24
If AMS meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates ANP as Initiation of coverage with Add (1) -

Stockbroker Morgans has initiated coverage of Antisense Therapeutics with a Speculative Buy rating and a maiden price target of 37.7c.

In the stockbroker's words, this is an advanced stage drug developer focused on inflammation in patients suffering from a number of rare genetic diseases with large unmet clinical needs.

Most importantly, for investors, it seems Antisense is now heading into a milestone rich period, including commencement of a pivotal
Ph2b trial, data on additional indications, possible monetising of non-core indications, and potential awarding of regulatory incentives and priority status.

Needless to say, Morgans views the stock as undervalued and has adopted a risk-weighted approach to set the initial price target. The company is not expected to turn a profit anytime soon.

Target price is $0.38 Current Price is $0.13 Difference: $0.247
If ANP meets the Morgans target it will return approximately 190% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

Citi analysts have identified several positive dynamics for car sales in Australia. Specifically for ARB Corp this includes the strengthening of the Aussie dollar against the Thai Baht.

Citi's proprietary ARB sales index showed acceleration in December. ARB Corp has been upgraded to Buy from Neutral with the price target improving to $34.25 from $30.30.

Target price is $34.25 Current Price is $30.15 Difference: $4.1
If ARB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $29.50, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates AST as Upgrade to Neutral from Sell (3) -

Citi analysts have turned more constructive (their words) on several aspects of the AusNet Services operational context, including lower forecast accounting tax and lower net interest expenses.

This has resulted in higher cash flow forecasts, but the price target loses one cent to $1.81 regardless. The analysts point to a lower regulatory asset base (RAB) as the key offset to explain the move.

All in all, Citi does not believe AusNet will be able to grow dividends faster than inflation for years to come and thus prefers APA Group ((APA)) instead.

Target price is $1.81 Current Price is $1.83 Difference: minus $0.02 (current price is over target).
If AST 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 $1.89, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Citi rates ASX as Sell (5) -

The ASX's latest market update has not changed Citi's expectation there will be increasing cost pressure for the exchange. Estimates have been slightly reduced.

Target price remains unchanged at $68 and so does the Sell rating with the share price persistently at much higher level.

Target price is $68.00 Current Price is $71.84 Difference: minus $3.84 (current price is over target).
If ASX meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.36, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.9

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

Macquarie rates ASX as Upgrade to Neutral from Underperform (3) -

Following the ASX's second quarter update, Macquarie analysts have updated their modeling ahead of the upcoming half-yearly report, scheduled for release in February.

The analysts observe a further sequential improvement in futures volume, while equity volumes remain elevated and amidst ongoing
“buoyant” capital market activity. Elsewhere interest yields remain under pressure.

Macquarie upgrades to Neutral from Underperform. Price target falls slightly to $70.50 on anticipation of higher bond yields.

Target price is $70.50 Current Price is $71.84 Difference: minus $1.34 (current price is over target).
If ASX meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.36, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.9

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

Macquarie rates AUB as Outperform (1) -

Macquarie retains its Outperform rating on the observation that premium rate increases continue to support the broker's investment
case.

Price target remains at $18.57, last upgraded in early December from $17.53 at that time.

Target price is $18.57 Current Price is $15.70 Difference: $2.87
If AUB meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.99, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates AX1 as Buy (1) -

Accent Group's latest market update delivered yet another upward surprise. Citi analysts continue to see scope for ongoing positive surprises, not just for Accent Group, but for Australian retailers in general.

Further adding to the positive view, Citi analysts believe the increase in profit margin might prove sustainable. Higher forecasts have pushed up the price target by 24% to $2.60.

Buy rating retained.

Target price is $2.60 Current Price is $2.35 Difference: $0.25
If AX1 meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting downside of -11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates BAP as Buy (1) -

Citi analysts have identified several positive dynamics for car sales related companies such as Bapcor, including renewed momentum for new car sales and an ongoing positive trend for used car sales.

Buy rating retained for Bapcor with an unchanged price target of $8.85. No changes were made to forecasts.

Target price is $8.85 Current Price is $7.69 Difference: $1.16
If BAP meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.72, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates GUD as Buy (1) -

Citi analysts have identified several positive dynamics for car sales related companies such as GUD Holdings, including renewed momentum for new car sales and an ongoing positive trend for used car sales.

Specifically for GUD Holdings and Bapcor, the analysts point out the growing new car sales market is less favorable as new cars are typically serviced at dealer garages, and they have less wear and tear relative to older cars.

Citi retains its Buy rating with a target price of $14.30. Estimates have remained unchanged too.

Target price is $14.30 Current Price is $11.18 Difference: $3.12
If GUD meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates MPL as Downgrade to Underperform from Neutral (5) -

Macquarie has used a general sector update to declare 2021 will be the year of structural pressures for health insurers in Australia.

While Medibank Private and competitor nib Holdings are likely to be less affected than the rest in the sector, the broker adds both will not prove immune to the pressures.

A catch-up in claims is coming, the broker warns. Macquarie downgrades Medibank Private to Underperform from Neutral. Forecasts have been cut. The price target lifts to $2.70 from $2.65.

Target price is $2.70 Current Price is $3.04 Difference: minus $0.34 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.91, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates NHF as Downgrade to Neutral from Outperform (3) -

Macquarie has used a general sector update to declare 2021 will be the year of structural pressures for health insurers in Australia.

While nib Holdings and competitor Medibank Private are likely to be less affected than the rest in the sector, the broker adds both will not prove immune to the pressures.

A catch-up in claims is coming, the broker warns. Macquarie downgrades nib Holdings to Neutral from Outperform. Forecasts have been cut. The price target lifts to $6.10 from $5.25.

Target price is $5.25 Current Price is $6.05 Difference: minus $0.8 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.35, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates SDF as Outperform (1) -

Outperform rating retained for Steadfast Group as the broker concludes premium rate increases continue to support the investment
case.

Target price remains unchanged at $4.30.

Target price is $4.30 Current Price is $4.03 Difference: $0.27
If SDF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgans rates SHL as Upgrade to Add from Hold (1) -

Morgans has upgraded to Add from Hold on the belief that covid-19 has created a New Normal and companies such as Sonic Healthcare stand to benefit from it through the need for continuous testing.

The broker has bumped up its forecasts which has lifted the price target to $37.32 from $34.57, supporting the upgrade.

Target price is $37.32 Current Price is $33.17 Difference: $4.15
If SHL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $37.47, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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