Australian Broker Call

Citi rates A2M as Sell (5) -

Citi envisages the capital intensity and risk profile will increase should exclusive due diligence lead to an acquisition of a controlling stake in Mataura Valley Milk.

The benefits include an increased ability for a2 Milk to comply with evolving Chinese regulations along with improved bargaining power with existing suppliers.

Given the current Mataura Valley facility can only process milk and base powder for infant formula, a2 Milk intends to establish further capacity for a fully-integrated plant for infant nutrition.

Citi estimates this could cost at least -$40-50m. Sell rating and $17.20 target retained.

Target price is $17.20 Current Price is $18.24 Difference: minus $1.04 (current price is over target).
If A2M meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.35, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates A2M as Outperform (1) -

a2 Milk has disclosed it is undertaking due diligence before potentially acquiring 75.1% of NZ's Mataura Valley Milk.

The deal will involve participating in manufacturing, and returns will be driven by an expected 20%-plus return on capital employed over time, the broker notes, as well as associated new products.

Such a deal is a big one for a2 Milk but consistent with its strategy, the broker points out, and immaterial for the balance sheet given cash on hand.

The broker also believes it would strengthen relationships with China, which would be handy at this time. Outperform and $21.25 target retained.

Target price is $21.25 Current Price is $18.24 Difference: $3.01
If A2M meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.35, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 A2M as Lighten (4) -

a2 Milk has made a non-binding offer to acquire 75.1% of Mataura Valley Milk for NZ$270m. Ord Minnett assesses this would mitigate some risks for a2 Milk as it would provide another relationship in China as well as product extension opportunities.

Mataura Valley is loss-making and in breach of banking covenants yet Ord Minnett is confident this will improve with an investment by a2 Milk. Lighten rating and $17.03 target retained.

Target price is $17.03 Current Price is $18.24 Difference: minus $1.21 (current price is over target).
If A2M meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.35, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates A2M as Buy (1) -

a2 Milk has made an offer to acquire 75% interest in Mataura Valley Milk for NZ$270m as part of its long-term strategy to participate in infant formula (IF) manufacturing.

UBS reckons in the long-term, this will provide a2 Milk with manufacturing diversification and protection against potential China regulatory shift requiring integrated manufacturing.

UBS reiterates a Buy rating with a target price of NZ$22.70.

Current Price is $18.24. Target price not assessed.

Current consensus price target is $17.35, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 AMC as Accumulate (2) -

Following the FY20 results Ord Minnett updates its financial modelling, expecting 9% constant-currency growth in FY21.

The broker considers the 4% dividend yield solid and maintains an Accumulate rating, raising the target to $17.50 from $16.50.

Target price is $17.50 Current Price is $15.10 Difference: $2.4
If AMC meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.98, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 APA as Equal-weight (3) -

APA Group's Orbost gas processing plant commissioning has been delayed which is considered by Morgan Stanley a small and manageable negative. 

The broker believes once the plant is commissioned, the group will earn a return on capital invested and thus the valuation impact is minimal.

Morgan Stanley retains an Equal-weight rating. Industry view is Cautious. Price target is $11.66.

Target price is $11.66 Current Price is $10.57 Difference: $1.09
If APA meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.28, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates AQG as Reinstate Coverage with Buy (1) -

Alacer Gold's proposed merger with SSR Mining has been approved. Turkish regulatory approvals remain outstanding but are expected in coming weeks.

The merged company will provide a larger, diversified production base and is trading on compelling relative valuation metrics compared with Ord Minnett's existing gold coverage.

The broker expects updated guidance following the transaction completion, with all operations at full rates post the pandemic interruptions. A combined production rate of 800,000 ounces per annum gold equivalent at all-in sustaining costs of US$900/oz is envisaged.

The broker reinstates coverage of Alacer Gold with a Buy rating and $12 target.

Target price is $12.00 Current Price is $8.62 Difference: $3.38
If AQG meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Ord Minnett rates ASB as Lighten (4) -

Upon first assessment, it appears Austal's FY20 financials released today were slightly better-than-expected, with declared dividend in line.

Ord Minnett comments the US division delivered a strong result. The company intends to invest US$100m in building modern steel shipbuilding capability in the US.

No guidance was provided for the year ahead.

Target price is $2.75 Current Price is $3.55 Difference: minus $0.8 (current price is over target).
If ASB meets the Ord Minnett target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.97, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates ASX as Underperform (5) -

FY20 results were slightly ahead of Credit Suisse estimates. ASX has signalled a mixed operating environment going forward while Credit Suisse believes the risks are skewed to the downside and expects a -6% decline in FY21 underlying net profit.

Currently, ASX has chosen not to raise fees in the majority of its businesses. This is likely to ensure a slower rate of earnings growth. Credit Suisse envisages little valuation support and reiterates an Underperform rating. Target is $73.

Target price is $73.00 Current Price is $88.70 Difference: minus $15.7 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.52, suggesting downside of -19.5% (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

Morgans rates ASX as Reduce (5) -

The Australian Securities Exchange reported a FY20 underlying profit (NPAT) around -2% below Morgans forecast.

The broker notes covid-19 impacts saw FY20 expense growth of 9%, which was above guidance of 6%-8%. FY21 expense guidance is for 6%-7% growth.

A fully franked dividend final dividend of 122.5cps was declared.

Morgans makes minor changes to EPS estimates in coming years and suggests the stock remains expensive given its earnings growth profile.

The Reduce rating is maintained. The target price is increased to $77.08 from $74.47.

Target price is $77.08 Current Price is $88.70 Difference: minus $11.62 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.52, suggesting downside of -19.5% (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

Ord Minnett rates ASX as Lighten (4) -

The ASX reported a FY20 normalised net profit slightly ahead of Ord Minnett's forecast, boosted by income on participant balances.

A fully franked final dividend of 122.5cps was declared.

The company is guiding for an increase in capital expenditure for FY21 and a total expense increase guidance of 6%-7% in FY21 (including depreciation and amortisation).

The broker suggests the stock is very fully valued and has just registered what the analyst considers peak near-term earnings.

The Lighten rating is maintained. The target price is decreased to $78.07 from $79.14.

Target price is $78.07 Current Price is $88.70 Difference: minus $10.63 (current price is over target).
If ASX meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.52, suggesting downside of -19.5% (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 BLD as Neutral (3) -

Citi's initial assessment of today's trading update is that Boral -yet again- missed expectations; both at Citi and market consensus.

Further pre-tax impairment charges have been announced, with the analysts highlighting Boral is keeping some $1bn in goodwill related to Headwaters in the US on its books.

While the analysts estimate Boral's balance sheet still has some $2bn in buffer left before debt covenants come into play, they nevertheless see risk of an earnings rebase and potential capital raising.

Target price is $4.22 Current Price is $3.76 Difference: $0.46
If BLD meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates BWX as Buy (1) -

Underlying net profit was ahead of Citi's estimates because of a lower-than-expected tax rate. BWX has reiterated its FY21 outlook for at least 10% growth in revenue and operating earnings.

BWX is now targeting $30-50m in revenue from European operations by 2023, through both direct-to-consumer and traditional retail partners. Along with the UK, Citi views a potential distribution gain from this region as a hedge against US retail softness and uncertainty.

Over the longer term, the company is also aiming to build a $50m Australian grocery skincare business. Citi retains a Buy rating and raises the target to $5.05 from $4.85.

Target price is $5.05 Current Price is $4.80 Difference: $0.25
If BWX meets the Citi target it will return approximately 5% (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

Credit Suisse rates CHC as Downgrade to Neutral from Outperform (3) -

FY20 results were better than Credit Suisse expected. All three operating divisions reported growth and the broker envisages a growth opportunity from sale and leaseback opportunities and completions.

Charter Hall is guiding to operating earnings per security of 51c in FY21 with distribution growth of 6%.

Credit Suisse increases FY21 and FY22 estimates by 5.1% and 4.6%, respectively. The stock appears fairly valued, hence the rating is downgraded to Neutral from Outperform. Target is raised to $12.21 from $9.17.

Target price is $12.21 Current Price is $12.62 Difference: minus $0.41 (current price is over target).
If CHC meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.75, suggesting upside of 1.4% (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

UBS rates CTD as Buy (1) -

UBS notes Corporate Travel Management's FY20 result was materially ahead of expectations led by exposure to essential services customers.  Moreover, strong cost control with near-term upside from domestic corporate travel opening is expected to drive the recovery.

The high degree of uncertainty around short term earnings does not dissuade the broker who believes the stock's long term thesis remains intact.

Expecting material medium-term earnings cuts, UBS reaffirms its Buy rating with the target price lowered to $18 from $25.50.

Target price is $18.00 Current Price is $15.36 Difference: $2.64
If CTD meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.19, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates DHG as Outperform (1) -

Domain Group posted a solid result, the broker suggests, driven by strong yield growth, resilient volumes and good cost control. Revenues matched forecasts but earnings exceeded.

Uncertainty still reigns, nonetheless. It is unclear whether typical spring volumes have been pulled forward into winter, the broker warns, and Melbourne's lockdown has kicked off FY21. Outperform nonetheless retained. Target rises to $4.00 from $3.20.

Target price is $4.00 Current Price is $3.67 Difference: $0.33
If DHG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.58, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

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 ENN as Upgrade to Buy from Accumulate (1) -

Earnings in FY22 were materially lower than Ord Minnett expected following the temporary suspension of several fund distributions. The highlight of the result was the growth in funds management, with revenue up 43%.

The portfolio was obviously affected by the pandemic, given the concentration in retail and hospitality assets, but the capital position of each fund is stable, the broker notes.

Ord Minnett also assesses the share price describes no value to the funds management business now and this is underpinned by recurring fees. Rating is upgraded to Buy from Accumulate and the target lowered to $1.77 from $2.27.

Target price is $1.77 Current Price is $1.19 Difference: $0.58
If ENN meets the Ord Minnett target it will return approximately 49% (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

Macquarie rates FCL as Reinstate Coverage with Outperform (1) -

Fineos Corp has completed the acquisition of Limelight, which releases the broker from research restriction. Initial FY21 guidance has been provided of 20% revenue growth on 30% growth in subscription fees.

The broker reinstates with Outperform. Target rises to $5.87 from a prior $5.12.

Target price is $5.87 Current Price is $5.40 Difference: $0.47
If FCL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in EUR. 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

Citi rates FLT as Neutral (3) -

With Flight Centre having pre-released key financial numbers, today's FY20 report contained no major surprises for Citi analysts.

Citi's initial response does contain a few interesting snippets, such as management expects to become profitable again next year and sees possibilities for further consolidation in the industry.

Also, management predicts industry activity to return to pre-covid levels by FY24.

Target price is $13.50 Current Price is $12.61 Difference: $0.89
If FLT meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $13.47, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates FMG as Hold (3) -

Nothing new under the sun. Such is, broadly summarised, Ord Minnett's initial response to today's FY20 release. Record earnings for Fortescue Metals Group are not expected to trigger a material reaction in the share price.

The final dividend of $1 is a little below the broker's forecast, but it takes total FY20 payout to $1.76ps, 77% of EPS, which is above market consensus, says the broker.

The company made no changes to earlier provided FY21 guidance.

Target price is $18.60 Current Price is $18.72 Difference: minus $0.12 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.59, suggesting downside of -12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Citi rates HLS as Neutral (3) -

Citi does not consider FY20 results comparable, as Healius has classified medical centres as discontinued operations. The broker also notes reported net profit of $72m included a long list of one-offs.

Capital expenditure is expected to reduce substantially after the sale of medical centres and should be completed in the first half of FY21. While no FY21 guidance was provided the broker notes a strong start in July.

Around $100m in Covid-19 testing revenue is expected in the first half with Citi expecting a reversion to normal in the second half. Neutral retained. Target is raised to $3.55 from $3.35.

Target price is $3.55 Current Price is $3.26 Difference: $0.29
If HLS meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates HLS as Outperform (1) -

FY20 underlying earnings were in line with prior guidance. Healius is targeting overhead savings of $15m or more in FY21-22.

No cost savings targets were associated with the pathology/imaging divisions but rationalisation of the collection centre footprint remains the company's intention.

Credit Suisse forecasts pathology earnings margins will be over 300 basis points in FY21 and Covid-19 testing should add around 20% to operating earnings (EBITDA). The broker retains an Outperform rating and raises the target to $3.45 from $3.35.

Target price is $3.45 Current Price is $3.26 Difference: $0.19
If HLS meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates HLS as Outperform (1) -

Healius produced a strong result, the broker suggests, in line with its recent update. Operational trends are positive heading into FY21, with July seeing strong growth in pathology and day hospitals, with imaging more subdued.

An improved balance sheet position provides flexibility for growth options both organic and inorganic. The broker believes a demonstration of operating leverage within pathology is the catalyst for a PE re-rating from current levels. Outperform retained, target rises to $3.70 from $3.55.

Target price is $3.70 Current Price is $3.26 Difference: $0.44
If HLS meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates HLS as No Rating (-1) -

Healius' FY20 result was below Morgan Stanley's forecast. The impact of covid-19 was -$7.1m in revenue and -$1.5m in operating income. The broker highlights as opposed to Healius' revenue growth of 1.4%, Sonic Healthcare's ((SHL)) revenue grew by 5%.

Morgan Stanley is under research restriction on Healius

Current Price is $3.26. Target price not assessed.

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates HLS as Hold (3) -

FY20 underlying results for Healius did not surprise Morgans, as they were pre-released.

Covid-19 negatively impacted all divisions, but Pathology held up better on government support and private billing fee increases, with Imaging posting double-digit profit declines and Day Hospitals remaining in the red, notes the broker.

No final dividend was declared, but the dividend is expected to re-commence in the first half of FY21, with consideration of a special dividend after the receipt of $470m from sales of the Medical Centre division, expected in 1HFY21.

No FY21 guidance was provided, nevertheless, the outlook commentary was positive, according to the broker.

Morgans increases earnings (EBITDA) estimates by up to 37% for FY21-FY22.

The Hold rating is maintained. The target price is increased to $3.22 from $3.16.

Target price is $3.22 Current Price is $3.26 Difference: minus $0.04 (current price is over target).
If HLS meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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 HLS as No Rating (-1) -

FY20 results were broadly in line with forecasts. No final dividend was declared, as expected, and the deferred interim dividend will be paid in October.

Ord Minnett believes Healius is on track to deliver a strong recovery in FY21, supported by Covid-19 testing. With testing likely to remain elevated for some time, Ord Minnett expects a dramatic lift in the pathology division earnings despite a drop in routine work.

The broker is currently research restricted and cannot provide a recommendation or target price.

Current Price is $3.26. Target price not assessed.

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates HLS as No Rating (-1) -

UBS notes Healius' FY20 results were complicated due to factors including the sale of the GP component of its Medical Centres division and the impact of covid-19 across divisions.

The broker thinks assessing the operating cash flow will give a better idea of company performance, noting an increase of 20% versus last year. The assessment suggests pathology replaced lost routine work with high margin PCR tests.

UBS is under research restriction on Healius.

Current Price is $3.26. Target price not assessed.

Current consensus price target is $3.48, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates HPI as Hold (3) -

Hotel Property Investments’ result was in-line with Morgans expectations

The FY20 distribution was 20cps and the broker forecasts FY21 DPS of 19cps.

The analyst notes the company’s portfolio has exposure to 45 hotel and accommodation assets with a weighted average cap rate (WACR) of 6.1%, while the weighted average lease expiry (WALE) is currently around 11.4 years and occupancy is 100%.

The Hold rating is maintained. The target price is increased to $3.15 from $3.10.

Target price is $3.15 Current Price is $3.14 Difference: $0.01
If HPI meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates IFN as No Rating (-1) -

Spanish giant Iberdrola announced on 20 August, 2020 it had an interest of around 72.8% in Infigen Energy.

Iberdrola's offer period has been extended until 7 PM AEST 26 August, 2020. Iberdrola will need greater than 90% of securities to compulsorily acquire the remaining securities.

Following a review of its research universe, Morgans discontinues coverage of the company.

Current Price is $0.92. Target price not assessed.

Current consensus price target is $0.91, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates ING as Outperform (1) -

Credit Suisse acknowledges the pandemic has had a greater impact on the company's operations than previously allowed for but the FY20 result still highlighted resilience in overall poultry demand.

Adding to this, better feed costs are expected in FY22 as rain/crop indicators continue to support lower wheat prices. Still, FY21 earnings are expected to be depressed. Outperform retained. Target is steady at $3.95.

Target price is $3.95 Current Price is $3.38 Difference: $0.57
If ING meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.62, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates ING as Neutral (3) -

While Inghams Group has benefited from strong retail volumes during the virus, the overwhelming counter has been weaker higher margin restaurant etc sales and sustained higher input costs due to virus disruption.

A&NZ volumes declined in the June quarter and with Melbourne and Auckland back in lockdown, FY21 has not seen any improvement, the broker notes.

The defensive retail channel is key to countering ongoing weakness for out-of-home sales, the broker suggests, and higher feed costs mean a margin recovery is pushed further out. Given a strategy of increasing capex while maintaining its divided, debt is becoming a focus.

Neutral retained, target rises to $3.40 from $3.35.

Target price is $3.40 Current Price is $3.38 Difference: $0.02
If ING meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.62, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Morgan Stanley notes Inghams Group's FY20 operating income was circa -4% below Morgan Stanley's estimate. Revenue for both Australia and New Zealand was hit by a shift towards lower-margin retail and an oversupplied market in the fourth quarter, states the broker.

The result is considered reasonable given the tough operating environment. Expecting the current uncertainty to persist, Morgan Stanley retains its Equal-weight rating with a target price of $3.60. Industry view: Cautious.

Target price is $3.60 Current Price is $3.38 Difference: $0.22
If ING meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.62, suggesting upside of 7.4% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates ING as Hold (3) -

The Inghams FY20 result was weak and slightly below expectations, according to Morgans.

Australia posted a weaker-than-expected result, however, New Zealand’s performance exceeded expectations and was a credible outcome considering the impact of covid-19 restrictions, notes the broker.

The analyst highlights a sign of confidence by the company in declaring a fully franked final dividend of 6.7cps.

No FY21 guidance was provided.

Morgans reduces FY21 earnings (EBITDA) estimates by -4%, with a greater impact at the profit (NPAT) level.

The Hold rating is maintained. The target price is increased to $3.57 from $3.48.

Target price is $3.57 Current Price is $3.38 Difference: $0.19
If ING meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.62, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates ING as Neutral (3) -

Inghams Group's FY20 net profit was circa -5% below UBS's expectations (excluding a circa -$8m inventory impairment) while cashflow improved.

The broker highlights the group operates in a solid industry with growing end-market demand and improving outlook for feed prices. However, in the near term, the broker notes capital expenditure will need to be stepped-up materially.

UBS retains its Neutral rating with the target price increasing to $3.30 from $3.10.

Target price is $3.30 Current Price is $3.38 Difference: minus $0.08 (current price is over target).
If ING meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.62, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates IVC as Neutral (3) -

InvoCare's first half result was below UBS's expectations. The broker notes the company's spend per case was down during the pandemic-led disruptions.

While this is considered temporary, the broker finds it hard to ignore the continued market share loss in InvoCare's portfolio. Furthermore, upside from the protect and grow strategy is also taking longer than expected.

The broker has adjusted for a softer 2020 and pushed out the benefit from the protect and grow strategy, reducing earnings forecasts for FY20-23.

UBS maintains its Neutral rating with the target price falling to $10.75 from $11.85. 

Target price is $10.75 Current Price is $9.83 Difference: $0.92
If IVC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.79, suggesting upside of 9.3% (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

Credit Suisse rates MGR as Outperform (1) -

FY20 operating profit was slightly below Credit Suisse estimates. This was partially because of the impact of the pandemic and partially because of timing delays. Residential earnings were ahead but this was offset by a lower contribution from commercial developments.

Unsurprisingly, retail was weaker and Mirvac has not provided FY21 guidance. Credit Suisse observes the stock is trading at a -17% discount to net tangible assets and the market is not only discounting the investment portfolio but also assuming inventory will be impaired.

Still, Credit Suisse is attracted to the leverage to urbanisation, although acknowledges uncertainty in terms of the rolling out of future commercial developments. Outperform retained. Target is reduced to $2.41 from $2.61.

Target price is $2.41 Current Price is $2.11 Difference: $0.3
If MGR meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 19.5% (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

Ord Minnett rates MGR as Accumulate (2) -

FY20 results were weaker than Ord Minnett forecast. Retail remains challenging, with high abatements, and development earnings are expected to moderate in FY21.

The broker assesses the investment portfolio is well-positioned, with 98.6% occupancy and a 5.6-year weighted average lease expiry. Accumulate rating and $2.50 target maintained.

Target price is $2.50 Current Price is $2.11 Difference: $0.39
If MGR meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 19.5% (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

Citi rates MHJ as Downgrade to Neutral from Buy (3) -

Citi finds the sales outlook challenging, given the deteriorating macro economic outlook. The broker upgrades estimates for FY21 and FY22 net profit because of wage subsidies and rent concessions that were stronger than expected.

However, the easy gains appear to be exhausted and there remains an absence of material long-term growth strategies, in the broker's view. Rating is downgraded to Neutral from Buy and the target lowered to $0.33 from $0.46.

Target price is $0.33 Current Price is $0.34 Difference: minus $0.01 (current price is over target).
If MHJ meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.56, suggesting upside of 70.7% (ex-dividends)

The company's fiscal year ends in June.

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 MPL as Hold (3) -

Medibank Private reported a FY20 underlying net profit of $315.6m versus the Ord Minnett forecast of $296.2. The main difference was weaker bounce back assumptions for delayed claims than the broker had assumed.

The analyst explains there were many diverging impacts from covid-19, making it difficult to work out the net impact.

A fully franked final dividend of 6.3cps was declared.

The broker reduces earnings forecasts by about -5%, given the company guided to underlying margin pressures.

The Hold rating is maintained. The target price is decreased to $2.70 from $2.76.

Target price is $2.70 Current Price is $2.81 Difference: minus $0.11 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.79, suggesting downside of -2.5% (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

Citi rates MYX as Neutral (3) -

Citi downgrades FY21-22 estimates and lowers gross margin expectations. FY20 results were broadly in line, largely because of cost reductions.

If approved and successful, Citi suggests Nextstellis could represent significant upside to forecasts but excludes this from estimates as it is not yet approved by the US FDA. Neutral/High Risk rating maintained. Target is lowered to $0.37 from $0.40.

Target price is $0.37 Current Price is $0.35 Difference: $0.02
If MYX meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 7.1% (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

Credit Suisse rates MYX as Neutral (3) -

FY20 underlying operating earnings (EBITDA) were down -27% but ahead of Credit Suisse estimates. The underlying figure excluded $15m in one-off items and there was a $99m impairment of generic intangibles.

The broker observes there are two items up for approval in FY21 - generic NuvaRing and Nextstellis, and believes there is still significant opportunity for Mayne Pharma to gain significant market share in NuvaRing albeit at a weaker price because of competition.

The company is targeting a 25% market share of the US$300m market in NuvaRing. Neutral rating retained. Target is reduced to $0.38 from $0.43.

Target price is $0.38 Current Price is $0.35 Difference: $0.03
If MYX meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 7.1% (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

UBS rates MYX as Neutral (3) -

Mayne Pharma Group's FY20 revenue was down -13% versus last year and -3% below UBS's forecast.

The underlying operating income was only slightly below the broker's estimate. The profit was hit by a material impairment charge of -$99m along with some non-recurring items, elaborates the broker.

The company has flagged launch costs for Nextstellis in FY21 and as a result, the broker's group operating income forecast is effectively flat versus last year. UBS feels a meaningful recovery in base business performance is needed to drive operating income growth. 

The broker maintains its Neutral rating and lowers the target to $0.37 from $0.39.

Target price is $0.37 Current Price is $0.35 Difference: $0.02
If MYX meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 7.1% (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

Morgan Stanley rates NEW as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley thinks New Energy Solar's near-term outlook suffers from operating and capital issues. Moreover, the company's gearing levels have increased, necessitating the company to consider refinancing options.

Noting the distributions are largely tax-deferred and supported by cashflows, Morgan Stanley downgrades its rating to Equal-weight from Overweight with the target price decreasing to $1.08 from $1.41. Industry view: Cautious.

Target price is $1.08 Current Price is $0.83 Difference: $0.25
If NEW meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

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

Credit Suisse rates NHC as Neutral (3) -

Bengalla produced a strong fourth quarter after recovering from the geotechnical issues that occurred in the April quarter. However, strength was offset by wet weather.

Credit Suisse notes the thermal coal market lacks a catalyst and this is a key concern. Acland stage 3 is now heading to the High Court in October.

Given uncertainty, a Neutral rating is retained along with the $1.40 target. The broker's US$75/t long-term forecast for thermal coal from 2023 assumes prices currently are unsustainable, rather than because of any particular conviction about demand.

Target price is $1.40 Current Price is $1.23 Difference: $0.17
If NHC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.48, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates NHC as Underperform (5) -

New Hope Corp's June quarter results featured strong production at Bengalla leading to record volumes for FY20. Drag-line maintenance will drag on FY21, the broker notes.

With New Acland stage 2 ramping down, stage 3 remains in limbo and the broker does not include it in valuation. Earnings risk is to the downside as current thermal coal spot prices would swing New Hope to a loss, rather than a profit on the broker's price forecasts. Underperform and $1.10 target retained.

Target price is $1.10 Current Price is $1.23 Difference: minus $0.13 (current price is over target).
If NHC 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 $1.48, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in July.

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 PGH as Hold (3) -

Pact Group’s FY20 overall result was better than expected by Morgans.

The broker highlights include stronger performances for all key financial metrics and a final dividend of 3cps versus the analyst's forecast of no dividend. Additionally, contract manufacturing was the key standout of the result.

Some key negatives were ongoing volume challenges in the Australian diary, food and beverage markets, and lower demand in the health and wellness and industrial sectors, notes the analyst.

No outlook guidance was provided. The Hold rating is maintained. The target price is decreased to $2.52 from $2.54.

Target price is $2.52 Current Price is $2.42 Difference: $0.1
If PGH meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates PPT as Neutral (3) -

FY20 results were in line with expectations. Credit Suisse found plenty of information that was encouraging, with a solid top-line growth in Corporate Trust expected to continue. There was upbeat commentary on Perpetual Private.

There is evidence the investment in new distribution will be larger and faster than previously expected but, if successful, the broker suspects this could mean a quicker turnaround in flows for acquired businesses. Neutral rating. Target is reduced to $35.00 from $36.50.

Target price is $35.00 Current Price is $31.44 Difference: $3.56
If PPT meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.23, suggesting upside of 12.2% (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

Ord Minnett rates PPT as Hold (3) -

Perpetual reported a FY20 underlying net profit down -19.4% on FY19 and in-line with the company's recent guidance, according to Ord Minnett.

A fully franked final dividend of 50cps was declared.

The analyst views any sustained rerating of the company's share price is unlikely until management can address funds under management (FUM) flows.

The Hold rating is maintained. The target price is decreased to $35 from $37.5.

Target price is $35.00 Current Price is $31.44 Difference: $3.56
If PPT meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.23, suggesting upside of 12.2% (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

Morgans rates PWH as Add (1) -

PWR Holdings’ result was slightly above Morgans expectations.

The main drivers were British Pound sales -10%, US sales up 14% and Australian dollar sales up 13%. Also a number of cost initiatives assisted earnings along with government assistance, in both Australia and the United States, notes the broker.

The result was driven by very strong sales growth in Emerging Technologies up 62% and original equipment manufacturer (OEM) up 60%.

No formal guidance was provided, but management said the outlook for the remainder of FY21 looks positive, with the key unknown of covid-19.

A dividend of 5.9cps was declared, which was lower than the 7.7cps forecast by the broker. Morgans remains confident in the medium-term growth outlook, despite a tough 2H20.

The Add rating is maintained. The target price is increased to $5.10 from $4.70.

Target price is $5.10 Current Price is $4.75 Difference: $0.35
If PWH meets the Morgans target it will return approximately 7% (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 RBL as Upgrade to Add from Reduce (1) -

Morgans bypasses a Hold rating and gives a double increase in rating for Redbubble to Add from Reduce.

The broker highlights momentum is strong and growth rates since the end of FY20 have accelerated on an already impressive 4QFY20.

Additionally, the business model should provide a fair degree of leverage, is capital light and in the right place at the right time.

The only incremental information from a pre-announced result was August trading had continued a similar trend to July (up 132%).

The target price is increased to $4.33 from $0.54.

Target price is $4.33 Current Price is $3.72 Difference: $0.61
If RBL meets the Morgans target it will return approximately 16% (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

Ord Minnett rates RHC as Accumulate (2) -

Ord Minnet's initial response to today's release of FY20 financials concludes that Ramsay Health Care's financial result missed expectations, and by quite the margin.

Depending on which item precisely, the analysts are talking a miss of up to -20%. No final dividend was declared, as anticipated.

Ord Minnett does point out there is mixture of pre and post AASB16 numbers in play, so any straightforward comparison with market consensus might not be appropriate.

Cash flow is labeled as strong, while no guidance for FY21 has been provided.

Target price is $78.25 Current Price is $65.61 Difference: $12.64
If RHC meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $68.45, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates RWC as Accumulate (2) -

Upon first glance, Ord Minnett believes today's FY20 release revealed better-than-expected numbers, while July-August provided encouraging trends and management remains focused on cutting costs.

Ord Minnett believes FY20 adjusted profit (NPAT) of $130.3m was 10.4% above its own forecast, and 6% above market consensus.

The final dividend of 2.5cps missed the broker's forecast of 3.5cps.

Target price is $3.40 Current Price is $3.62 Difference: minus $0.22 (current price is over target).
If RWC meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.77, suggesting upside of 1.7% (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

UBS rates SGP as Neutral (3) -

While retail has proven to be challenging, UBS considers Stockland's portfolio mix will likely be more resilient than peers and may surprise positively at the result.

The divergence in the performance of convenience based centres versus larger discretionary malls is at the highest level seen in some time, states the broker. 

In the long term, the broker sees challenges in Stockland's retail portfolio, expecting further devaluations that will cause gearing levels to rise. Neutral rating maintained and target is $3.55.

Target price is $3.55 Current Price is $3.92 Difference: minus $0.37 (current price is over target).
If SGP meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.93, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates SHL as Hold (3) -

Sonic Healthcare reported a FY20 underlying net profit 7.3% above Ord Minnett's estimate, due to a stronger operating result, with non-operational costs broadly in-line.

Ord Minnett increases EPS estimates by 5%, due to the rapid recovery in routine prompts and notes the company is generating the bulk of its covid-19 revenues from the US.

The rate paid by US Medicare was doubled in April as part of the government's emergency response. Thus, should the emergency be extended by three months, the broker's EPS estimates will be lifted by around 10%.

The final dividend of 51cps was maintained, despite the drop in profits, notes Ord Minnett. The Hold rating is maintained. The target price is increased to $33.50 from $32.

Target price is $33.50 Current Price is $34.16 Difference: minus $0.66 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.85, suggesting upside of 0.2% (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

Ord Minnett rates SSG as Buy (1) -

In initial response to today's FY20 release, Ord Minnett analysts observe Shaver Shop has beaten its own guidance, while also indicating the fresh financial year has begun on strong sales momentum.

Ord Minnett, while welcoming the positives, counters Christmas sales remain the all-important factor for the company, with the analysts more confident about Christmas this year than in the past.

No formal guidance was provided for FY21.

Target price is $0.92 Current Price is $0.90 Difference: $0.02
If SSG meets the Ord Minnett target it will return approximately 2% (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 SUL as Buy (1) -

On Citi's initial assessment, Super Retail has released FY20 financials in-line with guidance, while also intimating sales momentum is strong at the start of FY21 (in-line with other retailers, the analysts point out).

Automotive and online carried the day, as per usual, while Rebel's performance was weak and BCF's margin pressure is highlighted as a negative surprise too.

Citi still finds the shares remain relatively cheap.

Target price is $10.80 Current Price is $10.89 Difference: minus $0.09 (current price is over target).
If SUL 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 $11.37, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates SUN as Upgrade to Neutral from Underperform (3) -

FY20 results beat Credit Suisse estimates and the final dividend of $0.10 was also above forecasts. The second half did not contain the conservatism the broker was expecting and margins were also higher than anticipated. Still, further margin pressure is considered likely.

The broker assesses FY21 is commencing in better shape than previously anticipated and upgrades to Neutral from Underperform.

That said, while acknowledging Underperform was incorrect, Credit Suisse suspects the market is underestimating the extent of the headwinds in FY21 and is not supportive of a more positive stance.Target is raised to $9.95 from $8.75.

Target price is $9.95 Current Price is $9.36 Difference: $0.59
If SUN meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SUN as Neutral (3) -

Suncorp's result was positive at face value, the broker notes, being a slight beat on consensus and with declared dividend in line. But the beat was driven by low quality market trading income, as well as a lack of bad weather in NZ along with lockdowns. Australian underwriting was weaker than expected.

The second half net interest margin nevertheless bucked the banking trend in rising slightly. But insurance-wise, the broker notes medium term concerns remain around gross written premium growth and the underlying insurance trading ratio. Neutral retained, target rises to $10.40 from $9.50.

Target price is $10.40 Current Price is $9.36 Difference: $1.04
If SUN meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

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

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

Suncorp Group’s cash net profit beat Morgan Stanley's estimate by 5%. The second half dividend was 10c which is slightly below the broker's forecast.

The broker expects bank margins to benefit from deposit mix shift away from term deposits and towards at-call deposits in FY21. While the group has not given any cost targets, the broker expects cost headwinds from covid-19 to abate in FY21.

Morgan Stanley rates the stock as Underweight with a target price of $7.50. Industry view: In-line.

[FNArena has received confirmation the rating has been upgraded since to Equal-weight with a $9.50 price target].

Target price is $9.50 Current Price is $9.36 Difference: $0.14
If SUN meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates SUN as Hold (3) -

Suncorp Group’s FY20 cash earnings were 7% above company-compiled consensus, according to Morgans.

They were impacted by a range of factors including higher provisions and lower reserves releases, but this was overshadowed by a better-than-expected underlying insurance margin (UIM) performance.

Morgans upgrades FY21 and FY22 EPS estimates by 8% and 5% on improved UIM forecasts versus the broker’s previous expectations.

The benefits of the company’s significant reinsurance protection were highlighted by natural hazards being in-line with allowances, despite significant events like bushfires.

The second half dividend of 10cps came in slightly below consensus.

The Hold rating is maintained. The target price is increased to $10.32 from $9.40.

Target price is $10.32 Current Price is $9.36 Difference: $0.96
If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

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 SUN as Buy (1) -

UBS observes Suncorp delivered a surprisingly strong FY20 result with net profit from its core business up 12.5% versus consensus and 1% ahead of the forecast by UBS.

The broker thinks much of this improvement will be re-absorbed due to multiple margin headwinds expected in FY21. Margin is expected to recover from FY22 led by strong repricing post-covid. 

UBS reiterates its Buy rating with the target price decreasing to $10.60 from $10.80.

Target price is $10.60 Current Price is $9.36 Difference: $1.24
If SUN meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.24, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates TPG as Upgrade to Neutral from Underperform (3) -

First half operating earnings (EBITDA) were ahead of Credit Suisse estimates. The beat primarily came from Vodafone Australia. Regardless of the strong performance, management is still guiding to a more severe impact from the pandemic in the second half.

Credit Suisse notes market share trends remain unfavourable for Vodafone Australia with subscriber losses a result of limited network capacity prior to the merger and the impact of the pandemic from April to June.

Synergies from the merger were not quantified but integration is underway. Given the recent decline in the share price, Credit Suisse upgrades to Neutral from Underperform and raises the target to $7.40 from $7.35.

Target price is $7.40 Current Price is $8.19 Difference: minus $0.79 (current price is over target).
If TPG meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.34, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates TPG as Upgrade to Outperform from Neutral (1) -

TPG Telecom's maiden result post merger was in line but mixed, Macquarie notes. The virus dragged on mobile subscriptions but fixed line was as expected. Capex guidance has been reduced.

The reduction in capex, along with solid execution on fixed line, and recent share price weakness lead the broker to upgrade to Outperform from Neutral. Target rises to $9.00 from $8.60.

Target price is $9.00 Current Price is $8.19 Difference: $0.81
If TPG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.34, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Given the merger was completed only four days before the end of the interim period, Ord Minnett describes the TPG Telecom result as messy.

The company flagged a number of headwinds that impacted profitability in the half including Vodafone revenue and margins declines due to lower handset sales, lower subscribers and reduced roaming charges, while TPG Corporation saw lower margins because of the ongoing transition to the NBN, notes the broker.

The rating is downgraded to Hold from Accumulate. The target price is decreased to $7.70 from $8.65.

Target price is $7.70 Current Price is $8.19 Difference: minus $0.49 (current price is over target).
If TPG meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.34, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates TPG as Sell (5) -

TPG Telecom’s result was in-line with UBS's estimates except for expected revenues, which "missed". The miss was due to low margin hardware revenue, states the broker.

FY21-22 net profit forecasts have been revised upwards due to lower D&A assumptions. The company expects total covid-19 related impact to be circa -$38m in the first half, likely to increase in the second half.

UBS retains its Sell rating with a target price of $7.20.

Target price is $7.20 Current Price is $8.19 Difference: minus $0.99 (current price is over target).
If TPG meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.34, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgan Stanley rates WHC as Overweight (1) -

Morgan Stanley has made changes to inventory movement accounting for Whitehaven Coal, noting a limited impact on absolute earnings or asset values. FY20-22 earnings forecasts have been slightly changed.

Morgan Stanley maintains its Overweight rating with a target price of $2.30. Industry view: Attractive.

Target price is $2.30 Current Price is $1.02 Difference: $1.28
If WHC meets the Morgan Stanley target it will return approximately 125% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 85.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates WOW as No Rating (-1) -

Judging from Ord Minnett's initial response, it seems today's release fo Woolworths' FY20 numbers has slightly missed expectations both at the broker and as far as market consensus goes.

 The fully franked final dividend of 48cps also missed the broker's 50c estimate.

Initial trading into FY21 has remained strong, stronger than for Coles ((COL)) points out the broker. Ord Minnett also highlights group EBIT of $3.219bn was at the bottom end of guidance ($3.2-3.25bn).

Current Price is $39.27. Target price not assessed.

Current consensus price target is $38.53, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates Z1P as Accumulate (2) -

Things seem a little complicated with Ord Minnett, upon first response to Zip Co's FY20 results release, commenting cash EBITDA surprised to the upside, but underlying EBITDA was slightly below expectations due to higher than forecast non-cash costs.

Underlying revenue is labeled in-line, but then today's results also include a higher bad debt expense (compared with the broker's forecast), while debt is higher than anticipated too.

All in all, Ord Minnett categorises today's result as a net miss, due to the bad debt provision. The FY21 outlook is seen as "modest", however the analysts state the indications of an expected increase in revenue yield in FY21 is a welcome comment.

Target price is $6.45 Current Price is $9.65 Difference: minus $3.2 (current price is over target).
If Z1P meets the Ord Minnett target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.20, suggesting downside of -31.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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