Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley forecasts a 90,000 uplift in US subscriptions for Life360 when reporting Q3 results.

The analysts also anticipate an incremental 4.9m monthly active users (MAU), 130,000 paid subscribers and US$2m in advertising revenue.

The target rises to $23 from $20.50 after the broker raises its valuation multiple. Industry view: In-Line.

Target price is $23.00 Current Price is $22.29 Difference: $0.71
If 360 meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.59, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Macquarie rates AD8 as Downgrade to Neutral from Outperform (3) -

Macquarie downgrades Audinate Group to Neutral from Outperform, with the broker stressing the outlook has scope to deteriorate further, with negative EPS "momentum" expected before financials improve.

The analyst's longer-term positive view is overshadowed by near-term negatives, including a soft macro backdrop and weak user demand, as evidenced in the latest trading update, where gross profits were down -28% at the midpoint of guidance.

New product launches in 2H25 are expected to underpin some half-on-half revenue growth, though the contribution is forecast to be in the low to mid-single digits.

Macquarie lowers EPS forecasts by -1228% in FY25 and -93% in FY26.

Target price falls by -30% to $10.20 from $14.60.

Target price is $10.20 Current Price is $9.23 Difference: $0.97
If AD8 meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.48, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Bell Potter rates AVJ as Buy (1) -

Commenting after a 1Q trading update, Bell Potter assesses AV Jennings is tracking well in FY25 with revenues (and likely earnings) up significantly versus this time last year.

Compared to 1Q of FY24, settlements of 122 lots represented an 82% rise and revenue jumped by 29%. Profit growth likely exceeded revenue growth due to a larger representation of higher-margin land settlements, explains the broker.

The Buy rating and 45c target are unchanged.

Target price is $0.45 Current Price is $0.30 Difference: $0.15
If AVJ meets the Bell Potter target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Shaw and Partners rates AW1 as Buy, High Risk (1) -

During Q1 for American West Metals, the Storm Copper project continued to deliver outstanding drill results, highlights Shaw and Partners.

Test work confirmed the suitability of Storm mineralisation to low-cost ore sorting and dense media separation techniques to
produce a 16-22% copper direct shipping ore product, explain the analysts.

The Buy, High Risk rating and 32c target are maintained.

Target price is $0.32 Current Price is $0.07 Difference: $0.248
If AW1 meets the Shaw and Partners target it will return approximately 344% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates BRE as Speculative Buy (1) -

The beginning of this week saw significant rallies for ASX-listed rare earth stocks, notes Ord Minnett, after Chinese strategists concluded Myanmar rare earth oxides (REO) supply restrictions (two-week old news) will cause higher prices.

The broker expects price rises because Myanmar was the major global supplier for heavy rare earth oxides (HREOs).

The Speculative Buy rating and $7 target price for Brazilian Rare Earths are retained.

Target price is $7.00 Current Price is $2.99 Difference: $4.01
If BRE meets the Ord Minnett target it will return approximately 134% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates CIA as Outperform (1) -

Macquarie believes the lower-than-expected 2Q25 production for Champion Iron is a reasonable outcome, given the company reduced stockpiles by -0.2mt as management focused on stripping and maintenance.

The analyst points to weaker-than-forecast EBITDA and cash results due to lower prices, down -6%, combined with higher capex.

This was also the 10th consecutive quarter where Bloom Lake reported recoveries of 79%, which, the analyst notes, is close to the long-term assumption of 82%.

Macquarie lowers EPS estimates by -3% for FY25/FY26. The target price slips to $6.80, with an Outperform rating unchanged.

Target price is $6.80 Current Price is $6.11 Difference: $0.69
If CIA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in CAD. 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 CSC as Outperform (1) -

Capstone Copper reported 3Q2024 production in line with Macquarie's forecasts. Cash costs came in slightly higher than consensus estimates, the broker notes.

Macquarie observes Mantoverde was the top-performing asset relative to consensus expectations, with mill downtime affecting Mantos Blancos and Pinto Valley.

Management indicated 2024 guidance is trending toward the lower end of production, with cash costs at the upper end due to a slower ramp in Mantoverde and increased costs at Mantos Blancos.

No change to the Outperform rating and $12.80 target price. Macquarie's earnings forecasts are maintained.

Target price is $12.80 Current Price is $10.82 Difference: $1.98
If CSC meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 CSL as Accumulate (2) -

July data from the U.S. Plasma Protein Therapeutics Association (PPTA) indicated sustained growth in Immunoglobulin (IG) volumes. Ord Minnett attributes this growth to improved plasma collection, which enhances overhead recovery and reduces plasma costs per litre.

The broker expects this growth trend, which mirrored CSL’s second-half 2024 performance, will persist robustly through 2024.

Lower donor fees, as highlighted in competitor Takeda’s recent results, are expected to support a gross margin recovery.

Target $320. Accumulate rating.

Target price is $320.00 Current Price is $286.34 Difference: $33.66
If CSL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $335.13, suggesting upside of 18.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.9

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

Citi rates DHG as Buy (1) -

A day ahead of Domain Holdings Australia's AGM and 1Q trading update, Citi expects listings will outperform competitor REA Group ((REA)) though controllable yield will likely be negatively impacted by a retracement in free listings.

The broker suggests a key focus by the market will be on whether Domain's bundling of Audience boost is driving depth upgrades.

The Buy rating and target price of $3.65 are retained.

Target price is $3.65 Current Price is $3.03 Difference: $0.62
If DHG meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.34, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Macquarie rates DMP as Neutral (3) -

Domino's Pizza Enterprises CEO Don Meij will retire after 22 years as CEO but will continue to work with the board and his replacement Mark van Dyck. New management will likely review store rollout targets, suggests Macquarie.

Management also provided a trading update for the first 17 weeks of FY25. The performance of France and Japan remain negative, with "more work required in these markets to deliver positive sales", according to management.

Germany improved from the August update, notes the broker, while Australia is positively compounding last year's sales.

Target $35. Neutral.

Target price is $35.00 Current Price is $33.71 Difference: $1.29
If DMP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $34.14, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Ord Minnett rates EMR as Hold (3) -

First quarter results for Emerald Resources highlight a steady operational and financial performance at the Okvau gold mine, according to Ord Minnett.

Guidance for production and costs is maintained.

The broker notes management is aiming to lift group production to over 300,000ozpa, up from 110,000ozpa within five years by
developing new mines at Memot in Cambodia and Dingo/Bullseye in Australia.

Target $4.00, up from $3.90. The broker’s Hold rating is kept on valuation grounds.

Target price is $4.00 Current Price is $4.22 Difference: minus $0.22 (current price is over target).
If EMR meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: 0.0

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

Shaw and Partners rates FFM as Buy (1) -

FireFly Metals has acquired the Tilt Cove copper-gold project in Newfoundland. Tilt Cove comprises 115 square km of highly prospective exploration ground immediately continuous to FireFly’s Green Bay copper-gold project, explains Shaw and Partners.

To acuire Tilt Cove from Canadian-listed Signal Gold, FireFly Metals wil pay -CAD3m in cash and shares and a non-guaranteed -CAD1m milestone payment.

Buy, High risk. Target price $1.90, unchanged.

Target price is $1.90 Current Price is $1.27 Difference: $0.63
If FFM meets the Shaw and Partners target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates GPT as Buy (1) -

GPT Group's 3Q update showed ongoing strong leasing spreads momentum for retail, while the strategic shift towards Funds management remains a key focus for 2024, which the broker sees as a medium-term growth driver.

The REIT continues to benefit from strong industrial demand, observes the broker, with 103,200 sqm released so far in 2024.

Management reaffirmed 2024 guidance for funds from operations (FFO) and DPS.

Target $4.90. Buy.

Target price is $4.90 Current Price is $4.71 Difference: $0.19
If GPT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Morgan Stanley rates GPT as Overweight (1) -

Following a review of GPT Group's 3Q update, Morgan Stanley believes the new CEO's strategy is taking shape.

The performance of the retail portfolio was good without being great, according to the broker, and Office occupancy was down to 92% from 92.4% in June, though the company had flagged some ups and downs.

Management maintained 2024 guidance for funds from operations and DPS.

Target $6.15. Overweight. Industry View: In-Line.

Target price is $6.15 Current Price is $4.71 Difference: $1.44
If GPT meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Citi rates LIC as Neutral (3) -

Citi highlights HMC Capital has acquired a 2.69% stake in Lifestyle Communities with the option to acquire another 4.5% stake in a "cash-settled total return swap."

The broker believes this is a positive announcement, as HMC Capital is seen as an activist investor potentially aiming to alter the business and enhance returns.

The analyst notes previous examples include Lendlease ((LLC)) and Ingenia Communities ((INA)).

Citi remains Neutral rated due to the VCAT resolution. No change to the target price at $9.50.

Target price is $9.50 Current Price is $8.45 Difference: $1.05
If LIC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.78, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

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

Macquarie downgrades Lynas Rare Earths to Neutral from Outperform due to the valuation.

The company's recent 1Q25 results were largely as anticipated, with management adjusting production rates to suit demand. Macquarie notes the Mt Weld expansion continued, with stage 1 concentrate de-watering commissioned, the analyst highlights.

Phase 2 construction is underway, with expected completion by the end of FY25. The broker highlights the delay in earthworks at the Seadrift site due to wastewater issues as one of the less positive updates from management.

The target price remains unchanged at $7.50. Neutral. The broker’s forecasts are adjusted by less than 1%.

Target price is $7.50 Current Price is $7.94 Difference: minus $0.44 (current price is over target).
If LYC meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.79, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Ord Minnett rates LYC as Accumulate (2) -

At the beginning of this week, there were significant rallies for ASX-listed rare earth stocks, notes Ord Minnett, after Chinese strategists concluded Myanmar rare earth oxides (REO) supply restrictions (two-week old news) will cause higher prices.

The broker expects price rises because Myanmar was the major global supplier for heavy rare earth oxides (HREOs).

The $7.80 target and Accumulate rating are maintained for Lynas Rare Earths.

Target price is $7.80 Current Price is $7.94 Difference: minus $0.14 (current price is over target).
If LYC meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.79, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Ord Minnett rates MEI as Speculative Buy (1) -

At the beginning of this week, there were significant rallies for ASX-listed rare earth stocks, notes Ord Minnett, after Chinese strategists concluded Myanmar rare earth oxides (REO) supply restrictions (two-week old news) will cause higher prices.

The broker expects price rises because Myanmar was the major global supplier for heavy rare earth oxides (HREOs).

The Speculative Buy rating and 20c target price for Meteoric Resources are retained.

Target price is $0.20 Current Price is $0.12 Difference: $0.08
If MEI meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $0.32, suggesting upside of 190.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates MIN as Buy (1) -

New processes will be introduced at Mineral Resources to strengthen corporate governance, notes Bell Potter, and Managing Director Chris Ellison and Chairman James McClements will be leaving over time.

The broker sees potential for ongoing volatility in the company's share price for some time due to the chance of further allegations and the long-dated nature of the leadership transition.

Further, speculation may be ongoing around largest shareholder Chris Ellison's stake in the company.

No change to Buy rating and $61.50 target. 

Target price is $61.50 Current Price is $36.70 Difference: $24.8
If MIN meets the Bell Potter target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $44.36, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgan Stanley rates MIN as Overweight (1) -

Mineral Resources provided an update on conclusions reached by the board over governance issues involving Managing Director Chris Ellison and others.

While Mr Ellison will remain in his role, an orderly transition will be effected within the next 12-18 months. He will also incur board-imposed penalties of $8.8m and loss of remuneration up to $9.6m.

As previously flagged, James McClements will step down as Chairman before next year's AGM.

Target $58. Overweight. Industry View: Attractive. 

Target price is $58.00 Current Price is $36.70 Difference: $21.3
If MIN meets the Morgan Stanley target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $44.36, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Ord Minnett rates MIN as Accumulate (2) -

Ord Minnett opines uncertainly will likely keep the Mineral Resources share price trading below its valuation given enquiries will be ongoing even after significant strengthening of governance protocols and a financial penalty for current MD Chris Ellison.

Mr Ellison will also transition out of his role over the next 12-18 months.

The broker's target rises to $44 from $42 after the sale of gas assets to Hancock Prospecting for $1.1bn alleviated balance sheet
concerns. Accumulate.

Target price is $44.00 Current Price is $36.70 Difference: $7.3
If MIN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $44.36, suggesting upside of 16.1% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgans rates MM8 as Initiation of coverage with Speculative Buy (1) -

Morgans initiates coverage of Medallion Metals with a Speculative Buy rating and a 27c target price.

The broker believes Medallion Metals is one of the companies capitalising on a high gold price and utilising existing infrastructure to generate cash flows.

The analyst highlights the company as attractive due to its low capex, high-grade resource, and potential for robust margins. A speedy payback is anticipated with copper credits and M&A appeal.

Morgans notes Medallion Metals owns the Ravensthorpe Gold Project in SE Western Australia with a mineral resource of 1.3moz, including a high-grade component.

The company also has the option to acquire Forrestania Nickel operations' processing and adjacent infrastructure from IGO Ltd ((IGO)).

Speculative Buy. Target 27c.

Target price is $0.27 Current Price is $0.08 Difference: $0.19
If MM8 meets the Morgans target it will return approximately 238% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates MQG as Sell (5) -

Citi suggests FY26 expectations for Macquarie Group are too high, with several estimates around 30% higher than where management's qualitative statements are guiding this year.

Apart from the rally in interest rates back to within circa 30bps of a year ago, recent results also indicated to the broker a number of headwinds are becoming evident across the business.

Sell maintained. Target rises to $177 from $176.

Target price is $177.00 Current Price is $222.28 Difference: minus $45.28 (current price is over target).
If MQG meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $212.42, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgan Stanley rates MQG as Overweight (1) -

In the wake of yesterday's 1H result for Macquarie Group, Morgan Stanley lowers its target to $248 from $250. The Overweight rating is maintained. Industry view: In-Line.

Yesterday's Broker Call summary: Macquarie Group announced 1H25 results missed Morgan Stanley's estimate by -5% and were -7% below consensus, though results were up 14% year-on-year.

Management has lowered FY25 guidance, with expectations of a decline in commodities income and no anticipated increase in Macquarie Capital (MacCap) investment income.

The broker notes the declared dividend per share was lower than forecast, but the $2bn share buyback has been extended by an additional 12 months.

Target price is $248.00 Current Price is $222.28 Difference: $25.72
If MQG meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $212.42, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Macquarie rates PMV as Neutral (3) -

Macquarie highlights that at the current share price, the valuation of Premier Investments, excluding the sale of Apparel, values Peter Alexander and Smiggle at a past EV/EBIT multiple of 12.6x.

The analyst stresses Premier Investments has historically traded at higher valuation multiples relative to its peers.

Macquarie includes a lower than historical valuation for Peter Alexander and Smiggle due to expected slower revenue growth from macro headwinds and uncertainties around the overseas expansion of Peter Alexander.

The target price rises 7.2% to $34.20 from $31.90 due to an updated apparel valuation. The Neutral rating remains unchanged.

Target price is $34.20 Current Price is $33.00 Difference: $1.2
If PMV meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $35.34, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates QBE as Buy (1) -

Citi anticipates its positive stance on QBE Insurance will be vindicated at upcoming 3Q results on November 27. It's felt the US crop book will have had a good year, while supportive investment yields should lead to another "decent" quarter for investment income.

Forecasting an improvement in medium-term results, the broker sees potential for capital returns in time.

The Buy rating and $19.30 target are unchanged.

Target price is $19.30 Current Price is $16.90 Difference: $2.4
If QBE meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.81, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Shaw and Partners rates RFG as Buy (1) -

In a small, bolt-on acquisition helping create a critical mass platform for Retail Food's Gloria Jeans brand in South Australia, explains Shaw and Partners, the company will acquire CIBO Espresso from Retail Zoo.

CIBO Espresso has 22 locations (18 franchise and four company-owned), while Gloria Jeans currently has six locations in South Australia.

The Buy rating and the 10c target are maintained.

Target price is $0.10 Current Price is $0.07 Difference: $0.03
If RFG meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates RHC as Hold (3) -

Ord Minnett highlights ongoing investment in brownfield capacity expansion positions Ramsay Health Care to capture market share from smaller, capital-constrained hospital operators.

For the short-term, the broker expects margins will remain suppressed as cost inflation (mainly due to wage pressures from public nurse EBAs) negatively impact the private sector.

The broker retains its Hold rating, with the price target unchanged at $42.40. 

Target price is $42.40 Current Price is $39.49 Difference: $2.91
If RHC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $44.40, suggesting upside of 13.1% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgan Stanley rates RIO as Overweight (1) -

Media reports suggest Rio Tinto's CEO is in Mongolia seeking a deal with the Mongolian government and Entree Resources regarding the consolidation of Entree's tenements into Oyu Tolgoi.

While discussion delays may alter the 2025 mine plan, the broker doesn't anticipate a material impact on mine economics.

Overweight rating is maintained. The target is $135. Industry view is Attractive.

Target price is $135.00 Current Price is $119.74 Difference: $15.26
If RIO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $126.83, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Citi rates WBC as Sell (5) -

Citi observes Westpac reported FY24 net profit in line with expectations.

The analyst believes FY24 was a year of transition for the bank, as several investment programs were completed, resulting in a -9% decline in investment spending.

UNITE is expected to require approximately -$3bn in investment capital over the next three to four years.

Citi highlights improving volumes across all business divisions, though few details were provided on costs.

The broker lifts EPS forecasts by around 3% in FY25/FY26, with an increase in the target price to $26.25 from $24.75.

Westpac remains Sell rated. The analyst nominates the bank as the preferred sector exposure ahead of other major banks.

Target price is $26.25 Current Price is $32.40 Difference: minus $6.15 (current price is over target).
If WBC meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.40, suggesting downside of -11.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Macquarie rates WBC as Underperform (5) -

Macquarie views Westpac's 2H24 result as "credible" due to tailwinds from the replicating portfolio, the analyst states.

Looking ahead, the broker anticipates revenue growth will remain challenging with headwinds from potential rate cuts affecting margins.

Expenses are forecast to stay high, with around $2bn allocated for investment spending. The analyst expects FY25 costs to rise by approximately $400m, with expenses advancing 6% to around $11.6bn. New management is expected to stay focused on the ongoing transformation of the bank.

Macquarie lifts the EPS forecast by 2% in FY25, while FY26 remains unchanged.

The target price rises to $26.50 from $26. The Underperform rating is unchanged.

Target price is $26.50 Current Price is $32.40 Difference: minus $5.9 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.40, suggesting downside of -11.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

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 Equal-weight (3) -

Morgan Stanley describes an uneventful FY24 result for Westpac with few surprises or talking points. Profit was better-than expected, but pre-provision profit was in line with consensus.

While franchise performance and earnings momentum are improving, valuation multiples have already re-rated a long way, notes the broker.

Further, the earnings growth profile is modest, according to the broker, while execution risk is high, and Project UNITE benefits are long-dated and have not been quantified.

Management provided no guidance or detailed outlook commentary.

The Equal-weight rating is retained. The target rises to $30 from $29.70. Industry View In-Line.

Target price is $30.00 Current Price is $32.40 Difference: minus $2.4 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.40, suggesting downside of -11.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Morgans rates WBC as Hold (3) -

Morgans observes Westpac reported 2H24 earnings above forecast and consensus by 4%. Opex rose 3% on 1H24 due to higher technology costs, with only minor improvement from the UNITE program.

The analyst forecasts cost growth at 6% in FY25 and between 2%-4% in the following years.

No special dividend was declared, and the ordinary dividend per share rose by 1c. Management opted to increase the share buyback to $1bn.

Morgans lifts EPS estimates by 4%-5% for FY25-FY26. The special forecast dividend has been removed, with the assumption of a rise in buybacks.

The target price increases 2% to $27.66. No change to the Hold rating.

Target price is $27.66 Current Price is $32.40 Difference: minus $4.74 (current price is over target).
If WBC 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 $28.40, suggesting downside of -11.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett retains a Hold rating and target price of $27 for Westpac following largely uneventful 2H FY24 results.

Pre-provision profits and EPS beat consensus forecasts by 1.5% and 3.5%, respectively.

Despite a "robust" CET1 ratio, according to the broker, and $3.5bn in excess franking credits, management refrained from declaring a special dividend.

The analyst believes special dividends will be paid with 1H FY25 and FY26 results.

Management's forecasts assume project cost targets will be met, though net interest margin (NIM) pressure from competition and customer disruption is anticipated.

Target price is $27.00 Current Price is $32.40 Difference: minus $5.4 (current price is over target).
If WBC meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.40, suggesting downside of -11.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Morgans rates WOW as Hold (3) -

Woolworths Group reported a weaker-than-expected 1Q25 trading update compared to Morgans' forecasts, with the company impacted by cost-conscious consumers trading down and seeking discounts.

Robust growth in e-commerce also affected the company regarding sales mix compared to store-oriented growth.

Management guided to a midpoint decline in Australian food EBIT of -6% for 1H25. The analyst revises down the EBIT forecast for FY25-FY27 by -5%.

The target price declines to $31.60 from $35.95. No change to the Hold rating.

Target price is $31.60 Current Price is $29.89 Difference: $1.71
If WOW meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.23, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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