Australian Broker Call

Macquarie rates ABP as Outperform (1) -

Following Abacus Property Group's $402m equity raising to fund $160m of self-storage assets, Macquarie rates the stock as Outperform.

The raise is expected to be -7.4% dilutive to the group's FY21 funds from operations (FFO) and -12.1% dilutive to FFO in FY22. While this may appear undesirable, Macquarie notes there is upside if the group can execute on deployment opportunities.

The broker also notes deployment activities will focus on self-storage acquisitions with Abacus trying to increase exposure to the asset class.

Outperform. Target is $3.15.

Target price is $3.15 Current Price is $2.65 Difference: $0.5
If ABP meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 10.4% (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 ACF as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker forecasts first half earnings (EBITDA) for Acrow Formwork and Construction Services to be up 25% to $9.8m supported by an incremental four-month contribution from the Uni-span acquisition and further contract wins in the civil infrastructure sector.

On the back of those recent strong contract wins, the analyst thinks there is potential for management to upgrade FY21 outlook commentary.

The Add rating and target price of $0.40 are unchanged.

Target price is $0.40 Current Price is $0.36 Difference: $0.04
If ACF meets the Morgans target it will return approximately 11% (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 AMC as Neutral (3) -

Ahead of Amcor's second-quarter result, Credit Suisse notes the weakening USD versus the Euro and AUD and has its target price reduced to $15.10 from $16. 

Rising plastic resin, aluminium and other input costs have the broker assuming a slight lag in cost recovery in the second half. Credit Suisse also highlights Amcor recovers any rise in raw material costs over time via pass-through arrangements and price management.

Noting the stock looks inexpensive on a P/E basis, Credit Suisse retains its Neutral rating. 

Target price is $15.10 Current Price is $14.69 Difference: $0.41
If AMC meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 16.3% (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: 0.7

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

Citi rates ANN as Buy (1) -

Ansell announced ahead of its first-half result that the earnings would be between US$0.81-0.84cps, above Citi's forecast of US$0.58. The company does not expect the second half to be stronger than the first half.  

The company continues to see strong demand for its products across both healthcare and industrial segments and has been able to pass through price increases to offset higher costs from raw material.

Citi sees upside risk to FY21 earnings given the second wave of covid and positive demand outlook.

Buy rating with the target rising to $41.50 from $41.

Target price is $41.50 Current Price is $39.28 Difference: $2.22
If ANN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

Credit Suisse rates ANN as Outperform (1) -

Ansell will report its first-half results on 16 February and expects to deliver organic growth above 20%, higher than Credit Suisse's previous forecast of 14% with unaudited earnings per share expected to be up 62-68% over last year.

Credit Suisse notes the result is stronger than expected due to higher covid-led PPE demand and market share gains in both mechanical and surgical gloves.

The broker has increased its FY21 estimates by 19% and expects earnings per share of US$1.68 for the year.

Outperform retained. Target is raised to $45.50 from $45.

Target price is $45.50 Current Price is $39.28 Difference: $6.22
If ANN meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

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

Ansell's trading update ahead of its first-half results shows the company is doing better than expected, observes Macquarie.

Earnings per share in the first half are expected to be between US81-84cps, 20% ahead of Macquarie's forecast with FY21 earnings expected to exceed the previous guidance range of US135-145cps.

The robust outlook can be attributed to covid related demand across several business units and market share gains in mechanical and surgical segments. The company has also been able to pass through price increases.

Rating is upgraded to Neutral from Underperform with the target rising to $36.35 from $33.35.

Target price is $36.35 Current Price is $39.28 Difference: minus $2.93 (current price is over target).
If ANN meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

Morgan Stanley rates ANN as Overweight (1) -

Morgan Stanley notes a strong first half performance by Ansell with organic revenue growth of greater than 20%, well ahead of expectations. Earnings (EPS) were also around 33% ahead of the broker's estimate.

The company expects FY21 EPS will exceed the guidance range provided in October 2020, for an EPS in the range of US$1.35-1.45.

Revised guidance will be provided at the result on February 16.

The Overweight rating is unchanged. Target is $45.50. Industry view is In-Line.

Target price is $45.50 Current Price is $39.28 Difference: $6.22
If ANN meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

Ord Minnett rates ANN as Accumulate (2) -

Ord Minnett points out Ansell's latest trading update indicates the company has improved its market share through what the broker describes as "a period of extraordinary demand for personal protective equipment (PPE)".

Now for the million dollar question: is the lift in demand temporary or has covid prompted a permanent change in behaviour? The broker believes the question will not be answered for many months, but also that increased market share should support future growth.

In addition, Ord Minnett says Ansell’s operations are also attractively leveraged to the expected economic recovery. Target price lifted to $40.80 from $40.70. Accumulate.

Target price is $40.80 Current Price is $39.28 Difference: $1.52
If ANN meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

UBS rates ANN as Neutral (3) -

Ansell released a trading update that revealed organic sales growth in excess for H1, signalling EPS growth in the order of 62%-68% and with higher growth guidance for the full financial year, albeit without the usual H2 skew.

UBS analysts, in response, have increased forecasts by 4% for FY21, but only by 1-2% in following years. A stronger AUD is weighing down their valuation with the price target declining to $39.60 from $41.75. Neutral rating retained.

Target price is $39.60 Current Price is $39.28 Difference: $0.32
If ANN meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $44.18, suggesting upside 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: 0.6

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

Morgan Stanley rates ANZ as Overweight (1) -

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

Some of the positive attributes attributable to ANZ Bank include improved retail franchise performance, upside to housing loan
growth forecasts and revenue diversification benefits.

The broker upgrades the EPS estimates for ANZ Bank for FY21-23 by 16%, 0% and 2.5%, respectively.

The Overweight rating remains in place. Target price is increased to $26.20 from $21.90. Industry view is In-Line.

Target price is $26.20 Current Price is $25.47 Difference: $0.73
If ANZ meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $26.06, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgan Stanley rates APE as Overweight (1) -

Ahead of the earnings season, Morgan Stanley believes Eagers Automotive offers the best potential (of eight small and mid-cap stock ideas) for raising earnings expectations in 2021.

Structural growth opportunities underpin the broker's view. Additionally, if the new vehicle sales rebound is sustained, there is considered substantial upside to 2021 earnings expectations.

Overweight rating. Target is $17. Industry view: In-Line.

Target price is $17.00 Current Price is $14.18 Difference: $2.82
If APE meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $14.04, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgans rates APE as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

With the prospect of another strong growth year in 2021, the broker maintains an Add rating and target of $15.05 for Eagers Automotive.

Also, national new car volumes are still well below ‘normalised’ levels, and there is optionality around the group’s used car/EA123 strategy, explains the analyst.

Target price is $15.05 Current Price is $14.18 Difference: $0.87
If APE meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.04, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates APX as Outperform (1) -

Appen's share price has fallen -36% in the last three months. Relevance, the company's largest business saw growth declining due to a fall in digital advertising spend in 2020.

While growth in digital advertising spend is expected to rebound to circa 12% in 2021 from 7% in 2020, headwinds from the stronger AUD are expected to remain.

The company will report its 2020 results on February 24, expected to be a non-event since the company downgraded its 2020 guidance last month.

Macquarie retains its Outperform rating with the target price reducing to $27 from $43.

Target price is $27.00 Current Price is $25.46 Difference: $1.54
If APX meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.02, suggesting upside of 15.1% (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

Morgans rates AQZ as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects Alliance Aviation Services to deliver a strong first half result. Flight hours are expected to have strengthened relative to the group’s strong second half result as the pandemic has driven a market shift towards charter services. 

High aircraft utilisation levels should be supportive of margins and the analyst expects operating cashflow will be strong.

The Add rating and target of $5 are unchanged.

Target price is $5.00 Current Price is $4.25 Difference: $0.75
If AQZ meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 23.1% (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

Morgan Stanley rates BEN as Underweight (5) -

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

Bendigo and Adelaide Bank is rated Underweight by the broker due to a narrow business mix, with pressure on retail bank profitability. Also, it's considered there are downside risks to margins as the bank pursues a new growth strategy.

The broker upgrades the EPS estimates for FY21-23 by 0%, 1% and 1.5%, respectively.

Underweight retained. Target is raised to $8.60 from $7.70. Industry View: In-line.

Target price is $8.60 Current Price is $11.28 Difference: minus $2.68 (current price is over target).
If BEN meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.42, suggesting downside of -7.8% (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

Credit Suisse rates BHP as Outperform (1) -

BHP Group noted a slightly soft but mostly expected December quarter with numbers down on planned maintenance and tie-in work across the group. Marking to markets for December quarter commodity prices causes Credit Suisse to lift its FY21 earnings 3%.

All major catalysts except for commodity prices remain unchanged and the broker retains its $40 target. Outperform.

Target price is $40.00 Current Price is $47.00 Difference: minus $7 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $47.18, suggesting downside of -1.9% (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

Macquarie rates BHP as Outperform (1) -

Macquarie observes BHP Group’s second-quarter result was mixed with a beat in copper offset by weaker coal output and in-line iron-ore shipments. The group has adjusted its guidance ranges for Samarco, Cerrejón and Escondida.

The broker believes buoyant iron-ore prices will continue to drive strong earnings upgrade momentum with earnings expected to lift by 25% and 85% for FY21-22.

Outperform rating with the target falling slightly to $50 from $51. BHP Group will report its first-half result on February 16, 2021.

Target price is $50.00 Current Price is $47.00 Difference: $3
If BHP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $47.18, suggesting downside of -1.9% (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 BHP as Overweight (1) -

BHP Group's second quarter production was broadly in-line with Morgan Stanley's expectations from a revenue perspective. The copper division is considered to have performed strongly despite covid impacts, while the overall performance was partly offset by weaker coal.

The broker notes the iron ore division performance continues to be strong with the third quarter key in determining whether a 'beat' on the financial year guidance is possible.

Overweight rating is retained with a target price of $46.25. Industry view: Attractive.

Target price is $46.25 Current Price is $47.00 Difference: minus $0.75 (current price is over target).
If BHP meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $47.18, suggesting downside of -1.9% (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

Morgans rates BHP as Hold (3) -

Morgans describes the overall second quarter operational result as consistent. Production from West Australian Iron Ore (WAIO) and copper businesses were considered in-line and on track for 2021 guidance. 

Petroleum was -7% below the broker's estimates on a larger-than-expected impact from hurricane activity.

The analyst highlights the strength of iron ore spot prices is supplying a substantial earnings tailwind and an impressive dividend profile. Any unexpected supply losses from the wet season are expected to contribute to tight supply conditions and could see further price strength.

Finally, in anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

An overweight exposure to resources shapes as one of the strongest sector allocation ideas for 2021, with the best opportunities in the lagging energy and gold sectors, notes the analyst.

The broker expects bumper earnings from tailwinds provided by strength in iron ore and copper prices. The company is considered likely to continue channeling meaningful cash flow into cash dividends, with some potential for a share buyback.

The Hold rating is unchanged and the target price lowered to $40.55 from $40.90.

Target price is $40.55 Current Price is $47.00 Difference: minus $6.45 (current price is over target).
If BHP meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $47.18, suggesting downside of -1.9% (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

Ord Minnett rates BHP as Buy (1) -

Ord Minnett's assessment of BHP Group's December quarter production report is copper performed better (than expected), while coal and petroleum fell short and iron ore -the most important division- met the broker's forecast.

The broker was disappointed by the higher-than-expected net debt outcome, but suggests some of the working capital buildup should unwind next period.

All in all, earnings estimates have been reduced, as well as the DPS estimate. Target price falls to $52 from $53. Buy rating retained, as the share price is still regarded "cheap".

Target price is $52.00 Current Price is $47.00 Difference: $5
If BHP meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $47.18, suggesting downside of -1.9% (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

UBS rates BHP as Buy (1) -

BHP Group's trading update proved in-line with UBS's forecasts but the broker suggests most forecasts elsewhere in the market were for higher numbers, hence the update would have been a slight disappointment.

UBS has slightly adjusted production projections, but also sees risk to management's cost guidance. The broker notes management's current guidance is based off AUDUSD at 70c whereas it trades currently near 77c.

UBS equally sees capex risk due to FX. No special dividend is expected. Plus investors are yet to be convinced about the Jansen project, in the analysts' view.

The Buy rating is unchanged but the target price rises to $48 from $44.5 on a slight increase in valuation; to $43.20 from $42.34. UBS sees ongoing upside risk to projected free cash flows if/when commodity prices surprise to the upside.

Target price is $48.00 Current Price is $47.00 Difference: $1
If BHP meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $47.18, suggesting downside of -1.9% (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

Morgans rates BKG as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects strong growth on the previous corresponding period for Booktopia Group, predicated on consumer moves to online retailers and the company's market share gains.

The analyst sees the company as a lower-risk way to play the structural move to e-commerce, with an enhanced ability to cycle the covid-19 induced spike of 2020.

The Add rating and target of $3.17 are unchanged.

Target price is $3.17 Current Price is $2.77 Difference: $0.4
If BKG meets the Morgans target it will return approximately 14% (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 BKL as Sell (5) -

Citi views FY20 a low point in terms of earnings but needs more evidence of new product development and topline momentum before feeling more bullish on the stock.

While many FY20 issues should not recur next year, Citi views the topline as a harder thing to fix noting the company seems to be going backwards in its major market.

Also, Blackmores' partnership to address Chinese distribution and regulatory shortcomings appears unlikely at present.

Blackmores is scheduled to report interim financials on Feb 24. Citi sticks with its Sell rating with a $60.50 price target.

Target price is $60.50 Current Price is $73.30 Difference: minus $12.8 (current price is over target).
If BKL meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $66.96, suggesting downside of -6.8% (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

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

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

Bank Of Queensland is the broker's preferred regional bank in view of a clear strategy and roadmap for improved operating performance and niche growth options.There is also considered to be strong capital and some valuation support.

The broker upgrades the EPS estimates for FY21-23 by 0.5%.

Equal-weight rating has been retained. Target rises to $8.60 from $7.30. Industry view: In-line.

Target price is $8.60 Current Price is $8.56 Difference: $0.04
If BOQ meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in August.

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 BPT as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 22 key stock buy ideas to guide investors toward expected positive price reactions.

An overweight exposure to resources shapes as one of the strongest sector allocation ideas for 2021, with the best opportunities in the lagging energy and gold sectors, notes the analyst.

The broker expects the interim result for Beach Energy to be fairly soft, but investors will look past this period to the growth projects in the pipeline.

The company is one of Morgans key picks in the mid-cap oil and gas sector. It is considered to have a strong balance sheet despite the turmoil in oil markets, and has a number of interesting growth opportunities.

The Add rating and $2.25 target are unchanged.

Target price is $2.25 Current Price is $1.65 Difference: $0.6
If BPT meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates BRG as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 22 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects a strong result for Breville Group, forecasting around 16% earnings (EBIT) growth and believes a strong first half outcome could make FY21 guidance look conservative.

Commentary around geographical rollout, the performance of European operations and  new product development pipeline are expected by the analyst to be key to the result.

The Add rating and $29.18 target are unchanged.

Target price is $29.18 Current Price is $31.35 Difference: minus $2.17 (current price is over target).
If BRG meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.27, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates CAR as Overweight (1) -

Post covid-19, Morgan Stanley expects some recovery in new car units sold, which should produce an increase in demand for advertising on the company's online auto sites/apps.

Overweight rating and the target price is $21. Industry view: Attractive.

Target price is $21.00 Current Price is $22.10 Difference: minus $1.1 (current price is over target).
If CAR meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.67, suggesting downside of -10.5% (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 CBA as Underweight (5) -

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

The Commonwealth Bank of Australia is the broker's least preferred major bank given less earnings leverage to recovery and less re-
rating potential than other major banks. Also, there is considered high investor expectations and modest dividend rebound prospects.

The broker upgrades the EPS estimates for the bank for FY21-23 by 5%, 5.5% and 3%, respectively.

The Underweight rating is unchanged and the target price is increased to $78.50 from $68.50. Industry view: In-line.

Target price is $78.50 Current Price is $85.91 Difference: minus $7.41 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.50, suggesting downside of -4.4% (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 CGF as Hold (3) -

Looking ahead of the interim report release by Challenger, scheduled for 9th February, Ord Minnett has retained its Hold rating, with an unchanged price target of $6.50.

The actual result is expected to come out slightly above the midpoint of management's guidance, which is for profits before tax in a range of $390–440m.

Equally noteworthy, the analysts point out Challenger shares are trading on about 1.8x net tangible asset (NTA) value, which is considered high for a capital-intensive financial.

Target price is $6.50 Current Price is $6.40 Difference: $0.1
If CGF meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 3.5% (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

Morgans rates CSL as Hold (3) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon key stock buy ideas to guide investors toward expected positive price reactions. The broker also highlight a few stocks with a difficult outlook.

Unfortunately CSL is in the latter group as the analyst views the majority of possible upside earnings drivers are slated to play out over the next three to five years. The largest opportunity is seen for CSL112 in acute coronary syndrome.

The broker expects the demand for plasma, recombinant products and vaccines to remain strong, and views reversion of China Albumin growth as fortuitous. However, there is considered risk relating to continued plasma collection challenges.

The Hold rating and $306.7 target are unchanged.

Target price is $306.70 Current Price is $285.84 Difference: $20.86
If CSL meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $306.81, suggesting upside of 9.2% (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: 0.4

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

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

Credit Suisse downgrades rating on Crown Resorts to Neutral from Outperform on the basis of share price appreciation.

Covid and casino closures make predicting earnings a difficult task in the near-term. The broker has been valuing Crown based on its FY23 operating income forecast that matches pre-covid FY19 numbers.

Although Crown is undergoing a number of regulatory inquiries and investigations, Credit Suisse thinks the probability of Crown losing its Sydney restricted gaming licence is low. $10.35 target retained.

Target price is $10.35 Current Price is $9.76 Difference: $0.59
If CWN meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -0.2% (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

Morgans rates DMP as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker believes the risk to the forecast for Domino's Pizza Enterprises lies to the upside, and expects strong top-line growth will be further complemented by solid margin expansion.

Key to the result will be the second half trading update, M&A pipeline, store rollout prospects in the second half and general franchisee economics, explains the analyst.

The Add rating and $82.96 target are unchanged.

Target price is $82.96 Current Price is $97.61 Difference: minus $14.65 (current price is over target).
If DMP meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.03, suggesting downside of -25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates DRR as Outperform (1) -

Production from Mining Area C was slightly below Macquarie's expectations although the broker points out South Flank project appears on track to achieve first production by mid-2021.

Buoyant iron-ore prices underpin strong earnings upgrade momentum for Deterra Royalties. 

The Outperform rating is unchanged and the target price is $5.50.

Deterra Royalties will report its first-half earnings result on February 24.

Target price is $5.50 Current Price is $4.64 Difference: $0.86
If DRR meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 8.4% (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

Macquarie rates DXS as Neutral (3) -

Macquarie assesses the outlook for Dexus Property Group ahead of the February reporting season. The broker notes office valuations have held to date on account of lower discount rates.

While cashflow risk persists especially considering the higher number of expiries in FY22, the broker believes valuation still looks attractive.

Macquarie upgrades to Outperform from Neutral with the target rising to $9.94 from $9.67.

Target price is $9.94 Current Price is $8.71 Difference: $1.23
If DXS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Citi has downgraded to Neutral from Buy with a price target of $27, up from $24.

Target price is $27.00 Current Price is $27.00 Difference: $0
If EBO meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $26.47, suggesting downside of -3.7% (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

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

Underlying fundamentals for Goodman Group like higher asset valuations, equity flows for logistics assets and rising tenant demand remain attractive and all point towards the group achieving earnings growth of 9% pa.

On the flip side, a rising bond yield and an elevated valuation offset the strong fundamentals and are likely to negatively impact the group's relative attractiveness in the sector, predicts the broker.

Rating is downgraded to Neutral from Outperform with the target falling to $18.77 from $19.86.

Target price is $18.77 Current Price is $17.98 Difference: $0.79
If GMG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $19.34, suggesting upside of 11.8% (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

Morgans rates ING as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18key stock buy ideas to guide investors toward expected positive price reactions.

The broker highlights Inghams Group is leveraged to an easing of covid-19 lockdown restrictions and the AGM update illustrated the resilience of its core poultry volumes.

Feed prices are expected to reduce significantly in the second half due to a large winter grain crop and the company's efficiency strategy will also deliver benefits, explains the analyst.

The Add rating and target of $3.76 are unchanged.

Target price is $3.76 Current Price is $3.58 Difference: $0.18
If ING meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates IPH as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon key stock buy ideas to guide investors toward expected positive price reactions. The broker also highlight a few stocks with a difficult outlook.

Unfortunately IPH Limited slots into the latter group, as the analyst notes currency headwinds for the stock, given the strong appreciation in the Australian dollar. 

The broker forecasts around 5% earnings (EBITDA) growth for IPH Limited, due to the additional contribution from the XIP acquisition and some organic growth, particularly in the Asian division.

Morgans also expects a strong performance from the domestic patent filing market with growth of 10.8% on the previous corresponding period.

The analyst estimates an interim dividend of 15 cents. The Add rating and target of $8.42 are unchanged.

Target price is $8.42 Current Price is $6.11 Difference: $2.31
If IPH meets the Morgans target it will return approximately 38% (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 IPL as Neutral (3) -

Citi notes the increase in fertiliser prices over the last week, especially urea, bodes well for Incitec Pivot earnings and is in line with the broker's bullish outlook for fertiliser prices.

Citi thinks FY21 will likely be a year of transition due to ongoing covid impact and four turnarounds in one year. Structural pressures around coal are likely to continue for some time, especially in the US..

Neutral rating remains in place with a target of $2.43.

Target price is $2.43 Current Price is $2.62 Difference: minus $0.19 (current price is over target).
If IPL meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in September.

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

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

For Lendlease Group to hit its return on equity targets, the group has to increase its profitable capital recycling, suggests Macquarie.

Having said that, the broker is of the view the capital cycling initiatives are likely to be more difficult given the current macro backdrop.

Rating is downgraded to Neutral from Outperform with the target price falling to $13.16 from $13.98.

Target price is $13.16 Current Price is $11.75 Difference: $1.41
If LLC meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 20.2% (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

Morgans rates LOV as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker thinks sales rates for Lovisa Holdings in regions like Australia and New Zealand (less covid impacted) could show solid momentum, which the market should appreciate.

Also key will be any commentary around rent negotiations, the recent Beeline acquisition and the outlook for new store rollout, explains the analyst.

The Add rating and target of $12.78 are unchanged.

Target price is $12.78 Current Price is $11.18 Difference: $1.6
If LOV meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting upside of 10.8% (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 MFG as Underweight (5) -

Morgan Stanley lowers the target price for Magellan Financial Group to $41.20 from $48, due to diversification away from fund management into the lower PE businesses of unlisted principal investments and investment banking.  

The broker feels the next few years may be volatile, and thinks these risks are not in the price. At the same time, the analyst highlights key funds have had weak returns.

Morgan Stanley lowers forecast profit (NPAT) by -7% in FY21 and -5% in FY22 on marking-to-market to December 2020. In addition, the broker takes into account likely start-up losses from the Barrenjoey investment.

Morgan Stanley maintains an Underweight rating. Industry view: In-line. 

Target price is $41.20 Current Price is $48.87 Difference: minus $7.67 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.91, suggesting upside of 10.1% (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

Morgans rates MGH as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker notes Maas Group Holdings has between $90-130m in potential balance sheet capacity to pursue M&A opportunities. It's expected acquisition activity will be focused on the construction materials (CM), Real Estate and plant hire & civil (CC&H) segments.

While no first half guidance has been provided, the December 2020 business update highlighted the overall business was on track with the company’s internal budget, explains the analyst.  

The Add rating and target of $3.05 are unchanged.

Target price is $3.05 Current Price is $2.69 Difference: $0.36
If MGH meets the Morgans target it will return approximately 13% (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

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

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

The broker believes National Australia Bank's strategy is clear, the operating performance has been sound and loan losses have
peaked. Additionally, capital is strong and there is potential for a strong dividend recovery.

The broker upgrades the EPS estimates for the bank for FY21-23 by 22%, 5% and 4.5%, respectively.

The rating is increased to Equal-weight from Underweight and the target is increased to $24.50 from $20.10. Industry view: In-line.

Target price is $24.50 Current Price is $25.56 Difference: minus $1.06 (current price is over target).
If NAB 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 $26.38, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates NIC as Outperform (1) -

Nickel Mines has revised its offtake pricing agreement from LME nickel to Chinese NPI pricing. Macquarie notes moving away from LME nickel pricing will align Hengjaya and Ranger RKEF (Rotary Kiln Electric Furnace) projects with the agreement in place for sales from the Angel Nickel RKEF project.

The company will also be acquiring an additional 10% interest in the Angel Nickel RKEF project. This acquisition in the Angel Nickel project will align the ownership of Hengjaya, Ranger and Angel RKEF projects to 80%, adds the broker.

Outperform. The new target price of $1.50 compares with $1.40 prior.

Target price is $1.40 Current Price is $1.31 Difference: $0.09
If NIC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 12.8% (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: 1.0

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

Morgans rates NXT as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects NextDC's revenue and earnings (EBITDA) guidance to be reiterated, and it's possible capex guidance will be increased following the recent and substantial debt refinancing.

The company is Morgans key pick in the sector and operationally it's considered the outlook remains incredibly strong.

The Add rating and $13.89 target are unchanged.

Target price is $13.89 Current Price is $12.40 Difference: $1.49
If NXT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.00, suggesting upside of 15.9% (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

Morgans rates ORG as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

An overweight exposure to resources shapes as one of the strongest sector allocation ideas for 2021, with the best opportunities in the lagging energy and gold sectors, notes the analyst.

The broker expects the impact of lower commodity prices will impact first half earnings significantly, but thinks the market has factored this in already.

The gas and LNG exposure will be a strong tailwind in the second half and potentially into FY22, highlights Morgans. There's considered significant upside in the Integrated Gas business that outweighs the electricity market headwinds facing the Energy Markets business.

The Add rating and $6.29 target price are unchanged.

Target price is $6.29 Current Price is $4.55 Difference: $1.74
If ORG meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $5.41, suggesting upside of 17.8% (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

Macquarie rates PPC as Neutral (3) -

Macquarie forecasts Peet's FY21 earnings to be 6.4cps, 105% above last year. The broker also expects full-year settlements of 2,500 versus the 1,794 achieved in FY20.

Contracts on hand rose to $483m by value and 2,046 by number in the first quarter. The broker expects contracts on hand to continue to rise given the positive impact of stimulus from federal and states.

Macquarie upgrades its rating to Outperform from Neutral with the target rising to $1.31 from $1.04.

Target price is $1.31 Current Price is $1.27 Difference: $0.04
If PPC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

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

Morgans rates RHC as Hold (3) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon key stock buy ideas to guide investors toward expected positive price reactions. The broker also highlight stocks with an earnings risk.

Unfortunately Ramsay Health Care is in the latter group, as the analyst expects surgical restrictions, regional outbreaks and lower demand to retain pressure on reported result. 

In addition, higher operating costs in the current environment are expected to be detrimental. However, the longer-term core fundamentals remain sound and the balance sheet offers ample flexibility, explains Morgans.

The Hold rating and target of $62.31 are unchanged. 

Target price is $62.31 Current Price is $64.32 Difference: minus $2.01 (current price is over target).
If RHC meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $68.28, suggesting upside of 9.5% (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

Morgans rates RMD as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon key stock buy ideas to guide investors toward expected positive price reactions. The broker also highlight stocks with cyclical headwinds.

Unfortunately, ResMed falls into the latter category as the analyst expects fading gains from ventilators and reductions (albeit still improving) in sleep patient diagnosis. However, there is considered resilience in masks supported by a large installed base.

Morgans still views the company as well positioned, despite ongoing uncertainty around covid. It's considered backed by strong fundamentals, a solid pipeline of new products and offering end-to-end digital solutions.

The Add rating and $30.99 target price are retained.

Target price is $30.99 Current Price is $25.97 Difference: $5.02
If RMD meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 12.5% (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

Morgans rates RMS as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

An overweight exposure to resources shapes as one of the strongest sector allocation ideas for 2021, with the best opportunities in the lagging energy and gold sectors, notes the analyst.

The broker expects a healthy result from Ramelius Resources, as the company has exceeded its production forecast and the gold price remains strong compared to the first half of FY20.

The analyst is watching closely for the outcomes of studies at Edna May on open pit and underground expansions, which could materially increase the life of the project past current production forecasts to FY25. 

The Add rating and target of $2.44 are unchanged.

Target price is $2.44 Current Price is $1.39 Difference: $1.05
If RMS meets the Morgans target it will return approximately 76% (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 SHL as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects a strong result, underpinned by covid-19 testing across all key geographies. This is considered to more than offset weakness in the base business (ie non-covid testing).

The analyst views viral mutations and implementation of lockdowns as prolonging the pandemic duration and supporting further testing. 

The Add rating and target of $37.32 are unchanged.

Target price is $37.32 Current Price is $34.26 Difference: $3.06
If SHL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.48, suggesting upside of 12.1% (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 SSR as Buy (1) -

SSR Mining's guidance for 2021 proved in-line with UBS's forecasts, but costs are expected to be higher and more investments are on the agenda (some $100m more).

The broker explains projected free cashflow is a key component of its Buy thesis. It sees the stock trading on circa 12% FCF yield currently.

As UBS only models a 3% dividend yield, the broker believes there is material upside risk to potential investment returns. Valuation has dropped due to a stronger Aussie dollar.

New price target of $28 compares with $30 previously. Buy rating retained.

Target price is $28.00 Current Price is $20.85 Difference: $7.15
If SSR meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates SUN as Neutral (3) -

Citi lowers its earnings estimates for Suncorp Group over FY21-23 by -1%.

The group has a relatively high fully franked yield, observes Citi, with the prospect of cost savings in time. The group is running above its hazards allowance, pegged by Citi at circa $100m in the first half but the broker cautions this may reverse in the second half.

With lots of moving parts and the first half typically disappointing, Cit decides to retain its Neutral rating ahead of the result with the target rising to $11.10 from 10.2.

Target price is $11.10 Current Price is $10.24 Difference: $0.86
If SUN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.62, suggesting upside of 14.5% (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

Credit Suisse rates TAH as Outperform (1) -

Credit Suisse thinks lottery trends and gaming venues re-opening in Victoria will likely give some earnings momentum to Tabcorp Holdings going into the second half.

The broker expects lottery revenue to be down -1.4% in the first half and rise 3.8% in the second half.

Thinking there remains some share price upside in the stock, Credit Suisse maintains its Outperform rating with a target of $4.40.

Target price is $4.40 Current Price is $4.46 Difference: minus $0.06 (current price is over target).
If TAH 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 $4.16, suggesting downside of -5.8% (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

Morgans rates UNI as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker considers Universal Store Holdings to be somewhat of a covid exit trade. The company is considered still ‘young’ in terms of brand awareness and store footprint, leaving meaningful upside for incoming investors.

The second half trading update (like-for-like sales), general margin comments and outlook for resumption of the store rollout are key, believes the analyst.

The Add rating and target of $6.93 are unchanged.

Target price is $6.93 Current Price is $5.70 Difference: $1.23
If UNI meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates VRT as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects to hear positive commentary around cycle volumes remaining steady in the second half of FY21.

The operating environment has rebounded strongly since June 2020, explains the analyst. Although more normal conditions are expected to return in 2021, it's considered the valuation and dividend yield are attractive.

The Add rating and target of $5.82 are unchanged.

Target price is $5.82 Current Price is $6.32 Difference: minus $0.5 (current price is over target).
If VRT meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.24, suggesting downside of -2.4% (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 WBC as Overweight (1) -

Morgan Stanley believes banks will outperform the ASX200 in 2021 given domestic economic trends, a cyclical earnings recovery and healthy balance sheets. In addition, there is considered a lower overall risk profile and ongoing sector rotation.

The broker favours those banks with the most earnings and dividend leverage to a recovery and potential upside to operating performance. Also, additional relatively low investor expectations and more attractive valuations are considered important factors.

Morgan Stanley has increased earnings and EPS estimates due to modest upgrades to housing loan growth forecasts for all
banks, and material reductions in impairment charges for the majors.

Westpac Bank is the broker's most preferred major bank given the mortgage market share loss will moderate and the outlook for the housing market has improved. In addition, it's considered non-core asset sales will boost capital and simplify the business.

The broker upgrades the EPS estimates for FY21-23 by 17%, 3.5% and 4%, respectively.

Overweight. The target is increased to $24.60 from $20.40. Industry view: In-line.

Target price is $24.60 Current Price is $22.51 Difference: $2.09
If WBC meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $23.71, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates WGX as Outperform (1) -

Westgold Resources released its second-quarter report with production -5% below Macquarie's expectation although doing well on the cost front with the all in sustaining cost (AISC) of $1,293/oz beating the broker's expectation by 21%.

The company also targets 270–305koz of production across the group. The broker has trimmed its long-term unit cost assumptions for Westgold in light of the strong AISC outperformance.

Outperform retained for WestGold Resources. Target rises to $2.90 from $2.80.

Target price is $2.90 Current Price is $2.08 Difference: $0.82
If WGX meets the Macquarie target it will return approximately 39% (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 Z1P as Add (1) -

In anticipation of the February results season, Morgans previews all stocks under coverage. The broker settles upon 18 key stock buy ideas to guide investors toward expected positive price reactions.

The broker expects expect Zip Co to point to a significant long growth pathway ahead, and likely a solid pipeline of merchants and customers.

The recent capital raising provides a robust balance sheet to support growth, and the analyst sees significant upside if the company can achieve its vision of becoming a global payments player.

The Add rating and $7.86 price target are unchanged.

Target price is $7.86 Current Price is $13.92 Difference: minus $6.06 (current price is over target).
If Z1P meets the Morgans target it will return approximately minus 44% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.64, suggesting downside of -44.3% (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