Australian Broker Call

Credit Suisse rates ALL as Outperform (1) -

The Eilers-Fantini slot survey included about 35% of the North America slot machine market in the December quarter and found that for a Class III machine, survey participants added 272 premium leased Aristocrat Leisure games in the quarter. This is in line with the broker's estimate.

For Class II machines, survey participants added 22 premium leased Aristocrat games in the quarter. While a low number, Credit Suisse anticipates Aristocrat Leisure will capture 50% of the 3000 units expansion at Choctaw resort (Oklahoma). 

Outperform retained. Target is $34.50.

Target price is $34.50 Current Price is $31.68 Difference: $2.82
If ALL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $35.26, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates ALL as Buy (1) -

The latest Eilers-Fantini quarterly slot survey has revealed a 10% sequential improvement in the North American outright replacement cycle.

The survey also indicated a significant number of leased games are coming back to the floor which should benefit Aristocrat Leisure, given its revenue skew towards participation product.

Buy rating and $35.50 target retained.

Target price is $35.50 Current Price is $31.68 Difference: $3.82
If ALL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $35.26, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates ASB as Initiation of coverage with Neutral (3) -

Credit Suisse initiates coverage on Austal with a Neutral rating and a target of $2.70.

Austal is a global shipbuilder and defence contractor. Credit Suisse sees uncertainty around the company's US business that contributes circa 75% of the group revenue. There are also risks around expansion into steel, expected to face competition compared to aluminium.

The broker expects FY22 operating income to be 2.5% above consensus led by factoring in EPF-15 (15th Expeditionary Fast Transport).

Target price is $2.70 Current Price is $2.52 Difference: $0.18
If ASB meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 42.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Argenx gave the go-ahead for its ADHERE trial of Efgartigimod in Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) that will enroll 130 patients.

Morgan Stanley notes the key issues for CSL include how much of CSL's immunoglobulin (Ig) in the CIDP franchise will be disrupted if the trial is successful and whether CSL can push into other underserved indications to offset this market erosion.

According to the broker's back-of-the-envelope calculation, CIDP treatment makes up circa 25% of CSL's Ig revenue. If all of CSL's CIDP exposure was hit, the company's plasma collections would reduce by -25%, a net impact of -US$790m.

Equal-weight rating with the target falling to $272 from $294. Industry view: In-line.

Target price is $272.00 Current Price is $278.06 Difference: minus $6.06 (current price is over target).
If CSL 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 $307.63, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

UBS rates DRR as Upgrade to Buy from Neutral (1) -

UBS forecasts a 5% lift in world's steel production in 2021. This drives a 3% lift in expectations for seaborne iron ore demand and the market is likely to be in deficit, requiring high-cost supply to remain.

As a result, UBS lifts expectations for 2021 average iron ore prices to US$125/dmt and the long-term price to US$65/dmt. The broker upgrades the rating for Deterra Royalties to Buy from Neutral and raises the target to $5.15 from $5.00.

Target price is $5.15 Current Price is $4.34 Difference: $0.81
If DRR meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates ELD as Buy (1) -

Strong lamb prices are expected to persist throughout 2021 as the rebuilding of flocks is likely to mean slaughter supply is constrained. 2020 was fairly resilient for Australian lamb exports, Citi notes, and export volumes are expected to increase by around 10% in 2021.

The broker continues to envisage upside risk to livestock agency earnings, given the current conditions in both the sheep and cattle markets. The high return on capital from Elders is highlighted and Citi retains a Buy rating and $13 target.

Target price is $13.00 Current Price is $11.13 Difference: $1.87
If ELD meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.89, suggesting upside of 17.0% (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

Citi rates EOS as Buy (1) -

Citi expects cash flow will continue improving in the first half amid a pick up in RWS deliveries to Abu Dhabi as freight bottlenecks reduce. 

Despite the challenges over the short term, the broker assesses multiple opportunities are ahead of Electro Optic Systems, which will drive medium-term earnings growth.

Buy/High Risk maintained, given the exposure to high growth sectors such as counter drones and the SpaceLink opportunity. Target is reduced to $7.15 from $7.75 amid lower market multiples.

Target price is $7.15 Current Price is $5.12 Difference: $2.03
If EOS meets the Citi target it will return approximately 40% (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

Ord Minnett rates FCL as Accumulate (2) -

While the share market took guidance from the absence of any new clients in the company's recent market update, Ord Minnett points out the other aspect of the update highlighted heightened activity from existing clients which pushed upgrades and new installations to a new record high.

The absence of new clients coming on board is related to the overall pandemic, assures the broker, and considered but a temporary phenomenon.

Ord Minnett agrees the absence of new clients will weigh on the share price for the time being, but also suggests investors should buy on weakness, which is why the rating is kept at Accumulate. Price target is $4.36, down from $4.50.

Target price is $4.36 Current Price is $3.55 Difference: $0.81
If FCL meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 31.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Morgans rates FMG as Hold (3) -

Morgans sees ongoing iron ore price strength as a key takeaway from Fortescue Metal Group's second quarter result, with price realisation the highest since 2017.

The company stated it was conducting a detailed review of the budget and schedule for its Iron Bridge magnetite project, with headwinds putting pressure on plans.

The company also maintained its FY21 guidance of shipments of 175-180mt, C1 cash costs of US$13-$13.5/wmt and capex of US$3.0-$3.4bn.

Morgans maintains the Hold rating, while the target price is increased to $18.40 from $17.60, after the broker increased the earnings (EBITDA) multiple in the forecast model.

Target price is $18.40 Current Price is $22.27 Difference: minus $3.87 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.98, suggesting downside of -3.2% (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: 0.3

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

UBS rates HLS as Upgrade to Buy from Sell (1) -

UBS resumes coverage after a short hiatus and upgrades to Buy from Sell. Target is raised to $4.40 from $2.70.

The broker is confident the company is better placed to benefit from favourable demand for diagnostic services and a more benign reimbursement environment.

The sale of the GP component within the medical centre division has significantly improved the capital structure, in the broker's view, and Healius is now in a position to increase the dividend pay-out and fund an on-market share buyback.

Target price is $4.40 Current Price is $3.92 Difference: $0.48
If HLS meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates HT1 as Neutral (3) -

Macquarie previews the 2020 result for HT&E, and estimates an increase in market share for the radio division to 30.4% from 29.4% in 2019, and assumes 29.5% for 2021 onwards.

The broker explains the company is benefiting from an degeared balance sheet, with last reported net cash of $89.6m.

The Neutral rating is unchanged. The target rises to $1.84 from $1.35 from an adjustment to a methodology in the financial model and an increase in the oOh!media ((OML)) valuation. This is partially offset by EPS downgrades.

Target price is $1.84 Current Price is $1.86 Difference: minus $0.02 (current price is over target).
If HT1 meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.59, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates HUO as Neutral (3) -

Credit Suisse highlights Huon Aquaculture has been impacted by lower global salmon prices due to higher sales channel skew to exports.

Also, through higher production into the domestic wholesale channel, the group is more exposed to weakness in food service and restaurant channels.

The broker expects the current pressures to be temporary with strong earnings growth expected in FY22-23. 

Neutral rating retained with a target of $2.90.

Target price is $2.90 Current Price is $3.06 Difference: minus $0.16 (current price is over target).
If HUO meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates IGO as Buy (1) -

December quarter production was slightly weaker than UBS expected, largely stemming from Tropicana. FY21 production is now expected at the lower end of guidance.

The company's interest in Tropicana may be divested in the months ahead and the broker observes this would shift exposure towards lithium and away from gold.

UBS believes the acquisition of Tianqi's Australian lithium assets is a shrewd move. The broker includes the acquisition of the 24.99% interest in the Greenbushes spodumene mine and 49% interest in the Kwinana lithium hydroxide plant in forecasts.

Buy retained. Target rises to $7.50 from $5.85.

Target price is $7.50 Current Price is $6.46 Difference: $1.04
If IGO meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates LNK as No Rating (-1) -

Link Administration Holdings will not proceed with the PES transaction and exercised its right to terminate the transaction.

Credit Suisse lowers its earnings by -2% in FY21 and 11-12% in FY22-23. The company announced a trade sale process is underway for its 44% stake in PEXA.

Credit Suisse is restricted on providing a rating and target at present.

Current Price is $4.86. Target price not assessed.

Current consensus price target is $5.20, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates LNK as No Rating (-1) -

Link Administration has terminated the Pepper European Services acquisition, citing “balance sheet strength” as a consideration.

The company will prioritise the PEXA trade sale process over a demerger, to “maximise shareholder value”. The sale is expected in the next two months. 

The previously announced PEXA capital return will no longer proceed.

Macquarie reduces EPS forecasts for FY21-23 by -1.1%, -12.3% and -13.3%, respectively, driven by the termination of the PES acquisition.

Macquarie is currently restricted on providing a rating or target.

Current Price is $4.86. Target price not assessed.

Current consensus price target is $5.20, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Link Administration has cancelled the Pepper European Servicing (PES) acquisition and confirmed that a PEXA trade sale is its preferred path.

Morgan Stanley thinks combined, these announcements simplify the structure of the group but could lead to consensus earnings downgrades since PES was flagged as more than 10% earnings accretive. 

Equal-weighted retained. Target is $5.20. Industry view: In-Line.

Target price is $5.20 Current Price is $4.86 Difference: $0.34
If LNK meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 4.2% (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 LNK as Hold (3) -

Due to regulatory approval and commercial conditions not being received in time, Link Administration’s Pepper European Services acquisition will not proceed. Morgans considers this marginally positive as the timing was poor and funds may be applied elsewhere. 

The company has also disclosed it is now prioritising a trade sale of PEXA versus a demerger. The broker sees a trade sale as the cleanest option to crystallise value in PEXA.

The Hold rating is unchanged and the target price is $5.40, which is the bid price of the private equity consortium.

Target price is $5.40 Current Price is $4.86 Difference: $0.54
If LNK meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates LNK as Hold (3) -

Post the company updating the market, Ord Minnett has reduced forecasts for Link Administration as the proposed acquisition of Pepper European Servicing (PES) is no longer going ahead.

The positive, the broker emphasises, is a better gearing position for Link. Another observation made is that Link management declared it was looking to simplify the business now, with a focus on cost savings and maintaining a strong balance sheet.

The broker retains its Hold rating while a price target of $5.

Target price is $5.00 Current Price is $4.86 Difference: $0.14
If LNK meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates LNK as No Rating (-1) -

Link Administration will not progress with the acquisition of Pepper European Servicing. Termination of the deal reduces the three-year growth outlook, UBS assesses, to 18% from 26% per annum.

The broker notes the balance sheet is now no longer stretched and with the PEXA trade sale process underway previous plans for external debt financing will no longer proceed.

UBS is currently restricted on providing a rating and target.

Current Price is $4.86. Target price not assessed.

Current consensus price target is $5.20, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates MIN as Buy (1) -

Iron ore shipments in the second quarter were below expectations amid staffing issues at Iron Valley and water problems in the Deception Pit at Koolyanobbing.

While Mount Marion production was ahead of expectations, shipments were below forecasts because of delays relating to border closures. UBS considers the outlook for 2021 is positive as projects are on track. Buy rating maintained. Target rises to $44.60 from $41.90.

Target price is $44.60 Current Price is $34.59 Difference: $10.01
If MIN meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $39.50, suggesting upside of 8.1% (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 MOZ as Hold (3) -

Mosaic Brands provided a first half trading update, with underlying earnings (EBITDA) expected to be $40-45m, which shows Morgans the benefit of a cost-out program and JobKeeper subsidies.

The broker highlights an end-of-period net cash balance of $65m ($110m cash; $45m debt), which is considered a meaningful improvement on FY20 (although assisted by timing benefits).

The analyst looks to the upcoming result for further detail regarding the outlook for the business and balance sheet position.

The Hold rating is maintained and the target rises to $1.19 from $0.89, after the broker assumes a breakeven outcome in the second half.

Target price is $1.19 Current Price is $1.02 Difference: $0.17
If MOZ meets the Morgans target it will return approximately 17% (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

UBS rates ORG as Buy (1) -

Production and sales volumes in the December quarter for APLNG were in line with UBS estimates. Lower realised LNG pricing meant revenue from sales was below forecasts.

Energy markets sales volumes were boosted by short-term contract gains for gas.

UBS maintains a Buy rating with a $6.65 target expecting earnings will lift from FY21 as oil prices, electricity and gas volumes recover and cost savings are delivered by Kraken.

Target price is $6.65 Current Price is $4.85 Difference: $1.8
If ORG meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse reduces its target to $14.80 from $15.40. Underperform rating is retained.

OZ Minerals concluded 2020 With Carrapateena and Prominent Hill operations ramping to design mining productivity rates circa 6 months ahead of target, highlights the broker.

The company's copper production guidance is in line with Credit Suisse but gold disappointed.

Target price is $14.80 Current Price is $19.07 Difference: minus $4.27 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.17, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates OZL as Hold (3) -

OZ Minerals met or exceeded 2020 production guidance and met expectations for 2020 revenue. Approval of the Carrapateena block cave expansion was earlier than Morgans expected.

The broker advises key development milestones at Prominent Hill and the West Musgrave project (WMP) are also looming in 2021.

The analyst increases the valuation to reflect stronger copper prices and earlier recognition of upside at both Carrapateena and Prominent Hill. Both of these expansions are considered to be better defined and de-risked.

The Hold rating is unchanged and the target price is increased to $17 from $14.37.

Target price is $17.00 Current Price is $19.07 Difference: minus $2.07 (current price is over target).
If OZL meets the Morgans target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.17, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates S32 as Neutral (3) -

Macquarie assesses South32's exposure to the spike in silver prices, which leads to forecast earnings rising around 60% for FY21 and FY22, at spot prices.

The broker resists the urge to alter the Neutral rating or $2.70 target price.

The analyst notes some key near-term catalysts are the formal exit from the South African Energy Coal business, and the release of the Hermosa feasibility study update.

Target price is $2.70 Current Price is $2.64 Difference: $0.06
If S32 meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 4.2% (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: 0.7

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

Ord Minnett rates SIQ as Upgrade to Buy from Hold (1) -

Ord Minnett considers the company's novated leasing and salary packaging a market leader in Australia. The rating is upgraded to Buy from Hold, as the broker changes its view on the outlook.

Anticipated challenges with novated yields and softness in novated volumes are no longer a key issue.

Ord Minnett suspects the yield story is moderating and volumes are currently improving. Target is raised to $7.70 from $6.80. The broker assesses the 2021 PE ratio of 12.6x signals an attractive entry point.

Target price is $7.70 Current Price is $6.92 Difference: $0.78
If SIQ meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates SSM as Buy (1) -

A follow-up on Ord Minnett's update on January 29th doesn't add anything substantial, other than a slight finetuning in estimates.

The broker has come to the conclusion the recent contract renewal with Telstra ((TLS)) has reduced the contract risk overhang for the stock.

Buy rating retained alongside a price target of $2.21.

Target price is $2.21 Current Price is $1.82 Difference: $0.39
If SSM meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates TGR as Outperform (1) -

In December, Credit Suisse had lowered its earnings forecasts for Tassal Group due to materially weaker international salmon prices impacting exports and causing flow-on effects to domestic channels.

Since then, prices have continued downwards, with current trends pointing towards lower export prices than the broker had previously assumed.

Outperform rating maintained with the target reduced to $3.90 from $4.05.

Target price is $3.90 Current Price is $3.42 Difference: $0.48
If TGR meets the Credit Suisse 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

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

Volpara Health has updated the market, including the announcement of a US-based acquisition for US$18m, with a potential further US$4m.

Ord Minnett had been expecting an acquisition, given the large amount of cash available, but, in an initial response to today's announcement, doesn't believe this is the game changer the market has been waiting for.

Today's acquistion, CRA Health, is a Boston, MA based cancer risk assessment platform.

Cash burn is to remain a key characteristic for the company, concludes the broker. Prior to today, Ord Minnett had a Hold rating and $1.45 price target. Both have now been placed under review.

Current Price is $1.49. Target price not assessed.

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Citi rates WOR as Buy (1) -

First half revenue of $4.4-4.5bn is -10% below consensus expectations. Citi observes activity seems to have fallen away rapidly since early November. This coincides with cases of coronavirus accelerating globally.

The company has emphasised the impact on the top line is a result of deferrals, not cancellations. Hence, as site restrictions ease Citi expects revenue will respond accordingly. Moreover, the broker points out maintenance cannot be indefinitely deferred.

Citi retains a Buy rating and reduces the target to $12.10 from $14.18.

Target price is $12.10 Current Price is $10.18 Difference: $1.92
If WOR meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Credit Suisse downgrades the company formerly known as WorleyParsons (take note Credit Suisse) to Neutral from Outperform. The rating drops to $9.20 from $11.70.

Worley's preliminary numbers are pointing towards aggregate revenue of $4.4-4.5bn, down -26% versus last year and -19% below Credit Suisse's previous forecast. The company expects operating income of $200-210m, down -44% and below the broker's estimate.

With covid impacting demand in its end markets, Worley decided to reduce its staff numbers to 47,600 by the end of December, leaving the broker surprised at the magnitude of the deterioration in business conditions.

Operating income forecasts for FY21 and FY22 have been reduced by -36% and -23%.

Target price is $9.20 Current Price is $10.18 Difference: minus $0.98 (current price is over target).
If WOR meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.78, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates WOR as Outperform (1) -

Worley expects underlying earnings (EBITA) to be $200-210m, which compares to Macquarie's estimate of $290m. The broker calculates the issue is margin, with cost savings unable to offset the revenue decline.

The analyst reminds investors there is a tendency with cyclicals to underestimate operating leverage (on the downside and on the upside). Nonetheless, the broker remains positively disposed to the company’s medium-term recovery prospects.

Macquarie reduces EPS estimates for FY21-23 by -29%, -21% and -15%, respectively, which primarily reflects a lower margin profile post the update by management.

Outperform retained. Target falls to $11.50 from $13.60.

Target price is $11.50 Current Price is $10.18 Difference: $1.32
If WOR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 7.8% (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 WOR as Equal-weight (3) -

Worley's pre-guided first half financial results are well below Morgan Stanley forecasts with revenue expected between $4.4- 4.5bn versus the broker's $4.9bn and operating income pegged at $200-210m (versus the broker's $364m). Margins also look weaker.

Morgan Stanley expected a softer result but had forecast cost synergies and operational savings of about $100m would provide some offset. 

Morgan Stanley retains an Equal-weight rating and $10.50 target. Industry view is In-Line.

Target price is $10.50 Current Price is $10.18 Difference: $0.32
If WOR meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 7.8% (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

Ord Minnett rates WOR as Upgrade to Hold from Lighten (3) -

Ord Minnett had become more cautious on Worley's prospects, as shown through the Lighten rating, and still was surprised by the company's profit warning yesterday.

The broker continues to see the near term outlook as challenged, but post the share price fall, has decided to upgrade to Hold from Lighten. The price target falls to $10.60 from $11.50 (last increased in December) on sharply reduced forecasts.

Ord Minnett reminds investors the company is suffering subdued conditions because of covid, and management had been communicating tough conditions since December last year. Staff numbers have now reduced a further -1,600 to 47,600.

Target price is $10.60 Current Price is $10.18 Difference: $0.42
If WOR meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates WOR as Downgrade to Neutral from Buy (3) -

UBS was disappointed with the first half update. First half earnings are guided to be $200-210m, around -40% below consensus forecasts. Accelerating infection rates globally have meant further project deferrals albeit cancellations are limited.

The second half is expected to be better as economic circumstances post the pandemic improve and cost savings are realised.

UBS acknowledges it underestimated the disruptive impact of the second wave of infections in the northern hemisphere but still assumes a declining revenue outlook throughout FY22.

Rating is downgraded to Neutral from Buy. Target is reduced to $10.80 from $14.45.

Target price is $10.80 Current Price is $10.18 Difference: $0.62
If WOR meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 7.8% (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 WSA as Add (1) -

After a brief hiatus from coverage, Morgans takes another look at Western Areas and derives a target price of $2.96, with an Add rating. 

The broker notes the share price has pulled back sharply on weaker than anticipated second quarter production following on from a soft first quarter.

While the analyst anticipates production volatility in the short term from the ageing Forrestania operations, the medium-term upside from Cosmos and a strengthening nickel price is considered exciting.

Morgans sees the company well placed to benefit from the EV/battery thematic, because it is a pure nickel play that is already in production. It's also considered to have a large resource base, with development underway, as well as growth potential.

Target price is $2.96 Current Price is $2.44 Difference: $0.52
If WSA meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 7.1% (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