Australian Broker Call

Ord Minnett rates 360 as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage of Life360 with a Buy rating and $8.84 target. The broker takes a positive view on the company, supported by 2023 performance which includes 40% revenue growth to date.

The result comes despite an aggressive cost reduction program, and Ord Minnett expects with some cost pressures now easing Life360 should start to benefit from meaningful free cash flow.

Target price is $8.84 Current Price is $7.53 Difference: $1.31
If 360 meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.53, suggesting upside of 37.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

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

Aeris Resources is undertaking a $30m capital raising, comprised of a $13.9m institutional placement and a $16.2m entitlement offer. Proceeds will be used for both general working capital, and to improve financial flexibility.

Priced at 11 cents per share, the entitlement offer, as Macquarie notes, represents a -27% discount to the previous closing price. The broker also acknowledges that should base metal prices not improve, Aeris Resources may be required to raise further capital.

The rating is downgraded to Neutral from Outperform and the target price decreases to 15 cents from 28 cents.

Target price is $0.15 Current Price is $0.15 Difference: $0
If AIS meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.22, suggesting upside of 48.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates ANZ as Hold (3) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank, while Judo Bank is the pick of the smaller banks.

The target price for Hold-rated ANZ Bank rises to $24.60 from $24.36. The broker likes the bank's currently cheap multiples and attractive cash yield, though is concerned by management's desire to pursue acquisitions which may be value destructive.

Target price is $24.60 Current Price is $24.13 Difference: $0.47
If ANZ meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $26.32, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates ASG as Buy (1) -

UBS highlight positive AGM commentary by management at Autosports Group noting resilient prestige/luxury demand and no signs of a slowdown in FY24 to-date.

The company also expects consistent vehicle supply through the 2H and ongoing growth for high-margin back-end revenue.

However, UBS notes the market focused on a moderation in implied profit (PBT) margins (due to interest expense), a mild reduction in the order backlog and increased vehicle inventory.

The broker feels 1H guidance for 23-25% year-on-year revenue growth and normalised PBT of $50-52m looks conservative. The Buy rating is maintained and the target falls to $3.10 from $3.20.

Target price is $3.10 Current Price is $2.23 Difference: $0.87
If ASG meets the UBS target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $3.23, suggesting upside of 39.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates BOQ as Hold (3) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank, while Judo Bank is the pick of the smaller banks.

For Bank of Queensland, the target falls to $5.18 from $5.45. The broker finds it difficult to be bullish on the stock given a weak competitive position in the home loan market, low return on equity (ROE) and downside potential for the dividend. Hold.

Target price is $5.18 Current Price is $5.53 Difference: minus $0.35 (current price is over target).
If BOQ meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.60, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Morgans rates CBA as Hold (3) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank, while Judo Bank is the pick of the smaller banks.

For CommBank, the target price falls to $90.18 from $92.70. A Hold rating is maintained given the highest multiples and lowest dividend yield relative to peers, explains the broker.

Target price is $90.18 Current Price is $102.61 Difference: minus $12.43 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.03, suggesting downside of -12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Shaw and Partners rates ELD as Buy (1) -

Elders' FY23 Investor Day and site visits confirmed Shaw and Partners's positive view of the company.

Mostly, the broker appreciated the company's strong farmer-focused culture; the company's strategy to streamline its supply chain, innovate and invest in sustainable solutions; and optimise its existing business.

Buy rating and $9 target price retained.

Target price is $9.00 Current Price is $7.42 Difference: $1.58
If ELD meets the Shaw and Partners target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates FPH as Neutral (3) -

Macquarie's first half forecasts for Fisher & Paykel Healthcare are largely in line with consensus, with the broker anticipating revenue of NZ$793m with a 59.6% gross margin and a 17.2% earnings margin, ahead of a bigger second half, with a 59% skew.

While Macquarie acknowledges a favourable medium to long-term outlook for Fisher & Paykel Healthcare, it does warn that earnings disappointment could drive a de-rating, pointing particularly to the anticipated second half earnings skew as a potential point of concern.

The Neutral rating is retained and the target price decreases to NZ$23.50 from NZ$23.80.

Current Price is $20.24. Target price not assessed.

Current consensus price target is $21.00, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.2

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

UBS rates IPL as Buy (1) -

Despite an earnings (EBIT) fall of -41% versus FY22, FY23 earnings were a 3% beat versus the consensus forecast as a result of a better-than-expected performance across all segments, notes UBS.

Less positively, operating cash flow was a -20% miss against consensus, resulting in net debt of $1.4bn, compared to the $0.9bn forecast by the broker and consensus.

The analyst believes management commentary implies the operating outlook for Explosives is supportive of earnings growth. The company noted FY24 earnings for Fertlisers will be impacted by ongoing maintenance, though gas supply costs should ease.

The broker's target falls to $3.30 from $3.50 on the higher net debt position. The Buy rating is maintained on valuation support.

Target price is $3.30 Current Price is $2.85 Difference: $0.45
If IPL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates JDO as Add (1) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank.

Judo Bank is the broker's pick among the smaller banks as it offers an attractive high-return/high-risk proposition if delivery of at-scale metrics is achieved over coming years. The $1.43 target and Add rating are maintained.

Target price is $1.43 Current Price is $0.86 Difference: $0.575
If JDO meets the Morgans target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 39.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates JDO as Reinitiate with Accumulate (2) -

Ord Minnett has reinitiated coverage on Judo Capital, a small bank focused on growing its market share of small and medium sized business loans through its relationship-led lending model, with an Accumulate rating.

The bank's strategy is to pay top-of-market rates on term deposits and charge above-average returns on lending, generating a net interest rate above 3%, and Ord Minnett believes the market is overly pessimistic about net interest margins.

The broker expects the bank can experience strong loan growth as brokers direct customers dissatisfied with the majors to Judo Capital. Target price is $1.10.

Target price is $1.10 Current Price is $0.86 Difference: $0.245
If JDO meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting upside of 39.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates MTS as Buy (1) -

For Metcash's 1H result due on December 4, UBS and consensus forecast total sales of $9bn. For earnings (EBIT) the broker forecasts $250.6m while consensus is expecting $244.7m.

The target falls to $4.25 from $4.50. The broker notes FY24 trading updates at the FY23 result, and 2023 AGM for the first seven weeks and first 18 weeks respectively, indicated sales growth was slowing.

The analyst notes Total Tools growth remains strong and Hardware sales should recover when compared to the AGM update. The Buy rating is retained.

Target price is $4.25 Current Price is $3.63 Difference: $0.62
If MTS meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates NAB as Hold (3) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank, while Judo Bank is the pick of the smaller banks.

For National Australia Bank, the target price falls to $27.60 from $28.23. The Hold rating is kept for a number of reasons including the potential impact of a weakening Australian economy on business banking.

Target price is $27.60 Current Price is $28.02 Difference: minus $0.42 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.77, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Bell Potter rates NXD as Buy (1) -

Alongside providing a trading update at its recent AGM, NextEd Group has reaffirmed guidance for first half revenue of $59.0-63.0m. Bell Potter points out the final result is expected to be at the lower end of range, and second half revenue is expected to be higher.

According to NextEd Group, English student numbers have stabilised at around 6,000, and as such Bell Potter has lowered its FY25 and FY26 revenue forecasts by -3%.

Bell Potter considers recent share price weakness a good buying opportunity. The Buy rating is retained and the target price decreases to $1.05 from $1.10.

Target price is $1.05 Current Price is $0.71 Difference: $0.345
If NXD meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgan Stanley rates ORA as Upgrade to Overweight from Equal-weight (1) -

Shares in Orora are trading at a significant discount to value, in historical terms, according to Morgan Stanley, after a -24% share price decline following the announced acquisition of Saverglass.

The broker upgrades Orora's rating to Overweight from Equal-weight and anticipates meaningful valuation upside. Consistent earnings and robust cash flows are expected.

A share price re-rating may occur once the market becomes more comfortable with the explanation for the Saverglass acquisition at the 1H 2024 investor day, believe the analysts.

Target $3.50. Industry view: In-line.

Target price is $3.50 Current Price is $2.47 Difference: $1.03
If ORA meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.47, suggesting upside of 37.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Shaw and Partners rates PEN as Buy (1) -

Peninsula Energy has announced it has raised $60m through a $50m placement and $10m share purchase plan at 7.5c to develop the company's Lance Uranium Project in Wyoming USA, subject to shareholder approval at an EGM on January 10.

The company expects to fund the balance of the project (needed to reach positive cash flow) with $50m in debt funding.

The broker believes the company is trading well below fair value following the delay of first production from Lance.

Buy rating retained. Target price falls to 25c from 27c to reflect the dilution (much of which had already been factored in).

Target price is $0.25 Current Price is $0.11 Difference: $0.145
If PEN meets the Shaw and Partners target it will return approximately 138% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates PPE as Buy (1) -

A soft trading update from PeopleIN, says Ord Minnett, as the company reported first half revenue of $281m (down -3% year-on-year) and earnings of $10m (down -33% year-on-year).

Weaker trading conditions are largely consistent with geographic peers, as companies cycle the boom time recruitment conditions of the last two years. Ord Minnett expects these softer conditions to persist into the third quarter, expecting the year to be a cyclical low.

The Buy rating is retained and the target price decreases to $2.09 from $2.19.

Target price is $2.09 Current Price is $1.46 Difference: $0.635
If PPE meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates PRU as Neutral (3) -

Perseus Mining has dipped into its more than $900m cash reserves to purchase a 15.03% stake in OreCorp ((ORR)), in a potentially strategic move to block a current takeover bid from Silvercorp, says Citi.

It is known that Perseus Mining intends to vote against Silvercorp's $260m bid, with a shareholder vote scheduled for early December, despite the scheme being Board recommended given the lack of a superior offer.

The Neutral rating and target price of $1.90 are retained.

Target price is $1.90 Current Price is $1.76 Difference: $0.145
If PRU meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates PWH as Neutral (3) -

While slightly disappointed, UBS is satisfied the right decision was made by PWR Holdings to withdraw from a well-flagged and material OEM contract opportunity.

Management cited commercial reasons including potential risks in meeting production milestones and the working capital requirements, along with the potential distraction to the broader business.

Potential revenues were not included in the analyst's forecasts, so the Neutral rating and $10 target are unchanged.

Target price is $10.00 Current Price is $9.68 Difference: $0.32
If PWH meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates QBE as Overweight (1) -

In the wake of a 3Q update by management, Morgan Stanley has become slightly more confident around QBE Insurance's ability to grow and stabilise earnings.

The update revealed resilient pricing and investment yields, in the analysts' opinion, while catastrophe costs were lower. Offsets were provided by crop headwinds and reserve top-ups (both expected) and lower gross written premiums (GWP).

The Overweight rating and $18.30 target are retained. Industry View: In-Line.

Target price is $18.30 Current Price is $15.64 Difference: $2.66
If QBE meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.29, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Morgans rates QBE as Add (1) -

The main point from QBE Insurance's "solid" 3Q performance update, according to Morgans, was the reiteration of key FY23 guidance statements.

Guidance implies to the broker a material improvement in the group's combined operating ratio (COR) in the 2H compared to the 1H. Strong profit growth of around 30% is anticipated if the implied 2H COR performance can be sustained into FY24.

The target rises to $17.46 from $17.16 despite slightly lower EPS forecasts on more conservative investment income assumptions, as a valuation roll forward offsets. The Add rating is maintained.

Target price is $17.46 Current Price is $15.64 Difference: $1.82
If QBE meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.29, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates QBE as Hold (3) -

Given its third quarter update, QBE Insurance is on track to meet its guidance for 10% growth in gross written premiums. The company reported investment income of US$316m in the quarter, bringing year-to-date returns to US$978m.

Catastrophe claims of US$950m to date are tracking well against a full year allowance of US$1.3bn, but Ord Minnett does warn that a potential earnings benefit will likely be offset by high inflationary costs.

The Hold rating and target price of $13.50 are retained.

Target price is $13.50 Current Price is $15.64 Difference: minus $2.14 (current price is over target).
If QBE meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.29, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

UBS rates QBE as Buy (1) -

Following QBE Insurance's 3Q performance update, UBS feels its prior short-term caution around catastrophe costs and crop margins was unwarranted. Management reaffirmed key guidance metrics.

Gross written premiums (GWP) rose by 7% in Q3 and are up 11% year-to-date against full year guidance for around 10%.

Premium rates in Australia-Pacific and the US continued to accelerate in the 3Q, while International repricing slowed sharply to 6%, notes the analyst.

The target rises to $20 from $19.50 and the Buy rating is unchanged as the broker believes the stock remains cheap relative to peers and because of the high-teens consensus return on equity (ROE) forecast.

Target price is $20.00 Current Price is $15.64 Difference: $4.36
If QBE meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $17.29, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

UBS rates RIO as Neutral (3) -

At Rio Tinto's investor seminar on December 6, UBS anticipates management will reiterate the iron ore and copper guidance relayed at recent site visits, along with capex guidance for 2024/25.

Overall, the broker is not expecting a material change in strategy or guidance.

The $115 target and Neutral rating are retained.

Target price is $115.00 Current Price is $125.19 Difference: minus $10.19 (current price is over target).
If RIO meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.75, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Bell Potter rates SMP as Buy (1) -

SmartPay has reported first half revenue of NZ$46.9m, up 32.6% year-on-year, and earnings of NZ$10.6m, up 30.8% year-on-year. Bell Potter notes the result reflects a lower gross margin and higher operating expenditure.

With no formal guidance issued, the company instead reiterated its focus in Australia is the expansion of outbound sales, alongside a focus on direct marketing in merchant channels.

The Buy rating is retained and the target price decreases to $1.75 from $1.93.

Target price is $1.75 Current Price is $1.36 Difference: $0.395
If SMP meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Morgans rates WBC as Hold (3) -

In summarising the recent bank reporting, Morgans notes the 2H of 2023 decline in earnings was greater than expected due to net interest margin (NIM) and cost pressures.

The broker has a Neutral view on the sector, with the declining earnings trend expected to continue into FY24.

More positively, bank capital positions are strong, notes the analyst, allowing the major banks to retain relatively stable ordinary dividends and execute buybacks.

Westpac is Morgans preferred major bank exposure, followed by ANZ Bank, National Australia Bank and CommBank, while Judo Bank is the pick of the smaller banks.

For Westpac, the target falls to $21.51 from $21.58. The broker anticipates attractive returns as the share price re-rates upwards and cash returns for investors lift.

These outcomes are dependent upon a material lift in business performance, which is not without risk, notes the analyst. Hold.

Target price is $21.51 Current Price is $21.10 Difference: $0.41
If WBC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $22.55, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Macquarie rates WTC as Neutral (3) -

With WiseTech Global reaffirming full year guidance at its recent AGM, accounting for foreign exchange tailwinds and costs from recent acquisitions, Macquarie's investment thesis is retained.

The broker likes WiseTech Global's core freight forwarding business and customs opportunity, and believes the CargoWise platform offers exposure to the best business model on the ASX.

The Neutral rating is retained and the target price decreases to $58.00 from $59.00.

Target price is $58.00 Current Price is $65.05 Difference: minus $7.05 (current price is over target).
If WTC meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $77.26, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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