Australian Broker Call

Ord Minnett rates ABC as Hold (3) -

Ord Minnett has updated input assumptions and forecasts for Australia's building materials sector. For AdBri, the result is a slight reduction in price target, to $3.10 from $3.15. Hold rating retained.

Target price is $3.10 Current Price is $3.23 Difference: minus $0.13 (current price is over target).
If ABC 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 $2.97, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ABC as Neutral (3) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

The good news for AdBri is a 30% jump in the price target, to $3.15 from $2.40 but the rating remains on Neutral due to ongoing uncertainty concerning its lime operations.

Target price is $3.15 Current Price is $3.23 Difference: minus $0.08 (current price is over target).
If ABC 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 $2.97, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ALU as Outperform (1) -

Weaker-for-longer, such is Credit Suisse's conclusion post the release of Altium's unaudited half-yearly numbers. The analysts do note management declared the pipeline of deals looking to materialise in H2 is "significant".

Earnings estimates have been reduced and the analysts conclude their initiation of coverage with an Outperform rating and $42 price target has proved to be "a half too early".

In Credit Suisse's words: "This business is exposed to high levels of non-recurring sales (e.g. license sales), which increases cyclicality and makes the business susceptible to headwinds such as COVID-19."

Outperform rating retained, while the price target drops to $35 from $42.

Target price is $35.00 Current Price is $30.13 Difference: $4.87
If ALU meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $34.63, suggesting upside of 22.0% (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: 0.3

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

Macquarie rates ALU as Neutral (3) -

Altium released unaudited H1 revenue declined by -3% as the pandemic and license issues in China had a negative impact. FY21 guidance has been maintained, and continues to imply a recovery in H2, comment analysts at Macquarie.

Incorporating the divestment of the Tasking operations, as well as near-term weakness has triggered reduced forecasts and thus a fall in price target; to $31 from $35. Neutral rating retained.

All in all, yesterday's update was weaker than the broker had expected. Longer-term, Macquarie notes, targets remain intact.

Target price is $31.00 Current Price is $30.13 Difference: $0.87
If ALU meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $34.63, suggesting upside of 22.0% (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: 0.3

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

UBS rates ALU as Neutral (3) -

UBS is still in the process of reviewing Altium's trading update. Today's research update indicates the analysts are awaiting the release of H1 results on February 15 to remodel forecasts and projections.

Meanwhile, a price target of $36 in combination with a Neutral rating remain in place.

Target price is $36.00 Current Price is $30.13 Difference: $5.87
If ALU meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $34.63, suggesting upside of 22.0% (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: 0.3

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

UBS rates AMP as Neutral (3) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

For AMP, Neutral rating and $1.80 price target remain intact. EPS forecasts have fallen but DPS forecast for FY21 has risen to 3c after an anticipated payout of 10c in FY20.

Target price is $1.80 Current Price is $1.61 Difference: $0.19
If AMP meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.59, suggesting upside of 0.5% (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

Citi rates ARB as Buy (1) -

Citi analysts observe recent media reporting suggests a global shortage of semiconductors for auto parts is forcing auto manufacturers to cut production.

It is the broker's view this benefits both Bapcor and GUD Holdings in Australia. Older vehicles remaining on the road plus ongoing strong demand for second hand vehicles should be direct consequences beneficial for both.

Outside the two companies mentioned, Citi remains positive about ARB Corp's medium term growth outlook, as expressed last week. A pickup in truck demand remains strong in the US which the analysts see as an indicator for strong export sales. Buy. Price target $34.25.

Target price is $34.25 Current Price is $33.47 Difference: $0.78
If ARB meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $31.76, suggesting downside of -2.1% (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 ARB as Neutral (3) -

It is Credit Suisse's view that ARB Corp delivered a "cracking" H1 trading update, but the analysts question whether the company is experiencing a sustained and material step up in demand.

Nevertheless, yesterday's trading update has triggered an increase in forecasts which pushes the price target to $33.30 from $30.25. No change to the Neutral rating.

Credit Suisse prefers to remain conservative, on its own assessment, while observing the market is happy to pay up for continued strong momentum.

Target price is $33.30 Current Price is $33.47 Difference: minus $0.17 (current price is over target).
If ARB meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.76, suggesting downside of -2.1% (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

Macquarie rates ARB as Neutral (3) -

ARB Corp's trading update showed stronger than expected operational momentum with the profit margin benefiting from scale, reduced cost base, subsidies & FX, comment the analysts.

Macquarie finds the immediate outlook for ARB remains positive, carried by a strong orderbook, but also believes visibility into FY22 is rather low. Neutral rating retained. Price target improves to $33.50 (versus $29.50 in November last year).

Target price is $33.50 Current Price is $33.47 Difference: $0.03
If ARB meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $31.76, suggesting downside of -2.1% (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

Ord Minnett rates ARB as Lighten (4) -

ARB Corp's latest trading update proved yet another positive event. While acknowledging ongoing strong operational momentum, Ord Minnett sticks to its view the shares are too expensively priced.

While the share price target lifts by $2 to $26, the Lighten rating thus remains in place.

Target price is $26.00 Current Price is $33.47 Difference: minus $7.47 (current price is over target).
If ARB meets the Ord Minnett target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.76, suggesting downside of -2.1% (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 AX1 as Downgrade to Equal-weight from Overweight (3) -

Time to take some profits, in the view of Morgan Stanley. The broker has downgraded to Equal-weight from Overweight with a revised price target of $2.60 (versus $2 in late November).

The analysts believe this company has executed well under unusual circumstances. Operational momentum is expected to continue, but conditions are nevertheless expected to normalise, probably by FY22.

On this basis, Morgan Stanley sees the risk-reward as balanced with an eye to the stock's multiple. DPS forecasts have noticeably moved higher.

Target price is $2.60 Current Price is $2.41 Difference: $0.19
If AX1 meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 5.6% (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

Citi rates BAP as Buy (1) -

Citi analysts observe recent media reporting suggests a global shortage of semiconductors for auto parts is forcing auto manufacturers to cut production.

It is the broker's view this benefits both Bapcor and GUD Holdings in Australia. Older vehicles remaining on the road plus ongoing strong demand for second hand vehicles should be direct consequences beneficial for both.

Bapcor remains Citi's top pick in the local small cap auto sector. The business is seen as "defensive" while the potential for EPS-accretive acquisitions remains intact, according to the broker. Buy. Target price $8.85.

Target price is $8.85 Current Price is $7.85 Difference: $1
If BAP meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $8.72, suggesting upside of 11.1% (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

UBS rates BKW as Buy (1) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

Buy rating and $22.70 price target for Brickworks have remained untouched.

Target price is $22.70 Current Price is $18.95 Difference: $3.75
If BKW meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $21.09, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in July.

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 BLD as Upgrade to Hold from Lighten (3) -

Boral has received an upgrade to Hold from Lighten as Ord Minnett updates assumptions and forecasts for Australia's building materials sector.

While the broker believes the share price has "overshot" by some margin, it remains concerned about the outlook for the company's fly ash operations in the US given structural decline of US coal-fired power.

Because optimism seems warranted for Boral's other operations, Ord Minnett believes an upgrade to Hold is now appropriate. Price target has lifted to $4.90 from $4.50.

Target price is $4.90 Current Price is $4.88 Difference: $0.02
If BLD meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 1.8% (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

UBS rates BLD as Buy (1) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

Boral's price target at $5.60 and the rating on Buy remain unchanged.

Target price is $5.60 Current Price is $4.88 Difference: $0.72
If BLD meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 1.8% (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

UBS rates CGF as Buy (1) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target.

Challenger is one of the two with UBS incorporating the recent acquisition. Price target has improved to $7.70 from $6.85 in December. Buy rating retained as EPS estimates have been reduced.

Target price is $7.70 Current Price is $6.88 Difference: $0.82
If CGF meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting downside of -22.0% (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 CIM as Buy (1) -

A general sector update on contractors, plus the fact Ord Minnett is returning from research restrictions, has opened the way for a fresh Buy rating for Cimic Group.

The broker highlights the 50% divestment of Thiess to Elliott Advisors in the UK will generate $2.2bn in cash proceeds for the company.

The broker sees an attractive looking 4.3% dividend yield on offer. Plus there is scope for buybacks. The price target is $32 (for December 2021).

Target price is $32.00 Current Price is $24.86 Difference: $7.14
If CIM meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $31.17, suggesting upside of 16.7% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates CSR as Accumulate (2) -

Ord Minnett has updated input assumptions and forecasts for Australia's building materials sector. For CSR, the Accumulate rating has remained intact with an increase in price target by 50c to $5.50.

Target price is $5.50 Current Price is $5.19 Difference: $0.31
If CSR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.22, suggesting downside of -0.1% (ex-dividends)

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

UBS rates CSR as Buy (1) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

For CSR, the Buy rating and $5.19 price target remain unchanged.

Target price is $5.19 Current Price is $5.19 Difference: $0
If CSR meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.22, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates GUD as Buy (1) -

Citi analysts observe recent media reporting suggests a global shortage of semiconductors for auto parts is forcing auto manufacturers to cut production.

It is the broker's view this benefits both Bapcor and GUD Holdings in Australia. Older vehicles remaining on the road plus ongoing strong demand for second hand vehicles should be direct consequences beneficial for both.

Citi has retained its Buy rating for GUD Holdings on the expectation the recent ACAD acquisition will provide additional optionality for growth. Target price has gained 10c to $14.40.

Target price is $14.40 Current Price is $10.91 Difference: $3.49
If GUD meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $12.90, suggesting upside of 16.0% (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 IAG as Buy (1) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

Buy rating and $5.80 price target for Insurance Australia Group remain unchanged. Estimates have increased, in particular DPS forecasts.

Target price is $5.80 Current Price is $5.00 Difference: $0.8
If IAG meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 8.1% (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 JHX as Accumulate (2) -

Ord Minnett has updated input assumptions and forecasts for Australia's building materials sector. The update has resulted in a higher price target for James Hardie -up to $42 from $40- while the rating remains at Accumulate.

Target price is $42.00 Current Price is $36.17 Difference: $5.83
If JHX meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting upside of 10.1% (ex-dividends)

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

UBS rates JHX as Buy (1) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

$43 price target and Buy rating for James Hardie remain intact.

Target price is $43.00 Current Price is $36.17 Difference: $6.83
If JHX meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates LOV as Neutral (3) -

Citi analysis suggests Lovisa's store rollout is slowing in the US, a key growth region for the retailer of cheap "bling". The analysts see further slowing ahead for the short term.

The broker also points out Lovisa needs to successfully navigate the trend towards less foot traffic in the post-covid world, while the pandemic can still throw up negative surprises in countries including the US, the UK and South Africa, all key growth markets.

 Long story short: Citi has pulled back its price target to $11.45 from $11.90 on reduced estimates inspired by temporary closures in the UK and a stronger AUD, which is negative for the translation of foreign earnings. Gross margins have improved. Neutral.

Target price is $11.45 Current Price is $11.27 Difference: $0.18
If LOV meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting upside of 12.2% (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 MFG as Neutral (3) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target.

Magellan Financial Group is negatively impacted by reducing estimates and UBS has pulled back the price target to $52 from $63.75. Neutral rating retained.

Target price is $52.00 Current Price is $49.79 Difference: $2.21
If MFG meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $57.15, suggesting upside of 14.0% (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

Ord Minnett rates MND as Hold (3) -

A general sector update on contractors has triggered an increase in forecasts and price target to $12.80 from $10.80 for Monadelphous Group.

The broker has removed an extra discount put in place following legal action by a key customer as risk is seen receding following a new three-year maintenance contract with Rio Tinto ((RIO) - yes, that same key customer.

Hold rating retained. 

Target price is $12.80 Current Price is $13.79 Difference: minus $0.99 (current price is over target).
If MND 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 $11.91, suggesting downside of -15.4% (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

UBS rates MPL as Neutral (3) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

UBS has kept its rating for Medibank Private on Neutral with a price target of $3.20, up from $2.95 in December. Only small adjustments have been made to forecasts.

Target price is $3.20 Current Price is $2.99 Difference: $0.21
If MPL meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting downside of -1.2% (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

UBS rates NHF as Neutral (3) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

UBS has kept a Neutral rating for nib Holdings while lifting its price target to $6.15 from $5.85 in December. Only minor changes have been made to forecasts.

Target price is $6.15 Current Price is $5.81 Difference: $0.34
If NHF meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.39, suggesting downside of -9.4% (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 NSR as Hold (3) -

Post the recent trading update, covering five months ending 30th November 2020, Morgans feels comfortable FY21 EPS will come out towards the upper end of management's guidance, which is for 7.7-8.3c.

The broker reminds investors DPS guidance is for a payout of at least 90% of underlying earnings. The broker retains its Hold rating while the price target lifts to $1.89 from $1.83.

Target price is $1.89 Current Price is $1.87 Difference: $0.02
If NSR meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.81, suggesting downside of -3.9% (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 NVX as Downgrade to Hold from Speculative Buy (3) -

Morgans has pulled back its rating for Novonix to Hold from Speculative Buy. The target price has remained unchanged at $1.33.

The downgrade comes in response to a sharp rally in the share price, which the analysts believe is due to optimism towards EVs and new batteries following the election of Joe Biden as president of the US.

Earnings estimates have been reduced due to delays to the company's contract with Samsung. While the company offers high growth potential, stockbroker Morgans points to some uncertainty given it’s still in the early stages of development.

Target price is $1.33 Current Price is $1.69 Difference: minus $0.36 (current price is over target).
If NVX meets the Morgans target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 QBE as Neutral (3) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

UBS freshly updated on QBE Insurance in yesterday's Report. Price target $9 and a Neutral rating. 2020 reported EPS estimate has declined materially (to a much greater loss) but prospective dividend for FY21 has increased to 30c.

Target price is $9.00 Current Price is $8.58 Difference: $0.42
If QBE meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.55, suggesting upside of 20.7% (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 REH as Downgrade to Lighten from Hold (4) -

Ord Minnett has updated input assumptions and forecasts for Australia's building materials sector. Reece has been the best performing sector exposure but Ord Minnett now sees the share price as having overshot fundamental value.

This explains the downgrade to Sell from Hold, while the price target improves by $1.50 to $13.50.

Target price is $13.50 Current Price is $16.29 Difference: minus $2.79 (current price is over target).
If REH meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.57, suggesting downside of -29.5% (ex-dividends)

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

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

Renegotiations and disagreements between operators at Oyu Tolgoi and the Mongolian governments have the potential to erode the value of the project for Rio Tinto shareholders, such was the view of the team of analysts in the UK yesterday.

Today, their peers in Australia are elaborating on this matter. Equal-weight rating retained, alongside an Attractive industry view. But the price target seems to have lifted to $116 from $113.50 previously.

Minor adjustments seem to have occurred to forecasts.

Target price is $116.00 Current Price is $121.41 Difference: minus $5.41 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $118.00, suggesting downside of -2.5% (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: 0.4

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

Ord Minnett rates RWC as Accumulate (2) -

Ord Minnett has updated input assumptions and forecasts for Australia's building materials sector. Reliance Worldwide is expected to release a very strong interim performance in February, highlight the analysts.

Price target remains at $4.50 alongside an Accumulate rating.

Target price is $4.50 Current Price is $3.84 Difference: $0.66
If RWC meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 13.9% (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

UBS rates RWC as Neutral (3) -

In a general update on building materials companies on the ASX, UBS analysts express the view that, unless a rate hike occurs or credit lending restrictions tighten, housing likely has more upside this year.

However, the analysts also point out home builders' ability to meet demand plus further possible stimulus are factors to watch for.

UBS's sector preferences are James Hardie first, followed by Boral, then Brickworks, while CSR, Reliance Worldwide and AdBri are less preferred.

UBS has not changed its $4.20 price target or Neutral rating for Reliance Worldwide.

Target price is $4.20 Current Price is $3.84 Difference: $0.36
If RWC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 13.9% (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 SUN as Buy (1) -

Marking-to-market for Australian financials and insurers has led to forecast changes across the board, but only two companies saw a change in price target (see elsewhere in today's Report).

Buy rating and $11.15 price target for Suncorp have remained intact amidst small adjustments to forecasts.

Target price is $11.15 Current Price is $10.70 Difference: $0.45
If SUN meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.72, suggesting upside of 0.3% (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 SVW as Hold (3) -

Earnings estimates for Seven Group Holdings have increased following Ord Minnett's general sector update on contractors. This has pushed up the share price target to $23 from $19.40.

Hold rating remains unchanged with the analysts explaining most of the increases to forecasts stem from higher oil prices impacting on the outlook for Beach Energy ((BPT)) in which Seven Group owns equity.

Target price is $23.00 Current Price is $22.95 Difference: $0.05
If SVW meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $24.38, suggesting upside of 6.3% (ex-dividends)

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