Australian Broker Call

Citi rates ALL as Buy (1) -

Tomorrow, Citi is expecting Aristocrat Leisure to report 1H earnings (EBITA) of $992m.

The analysts are confident the company can sustain its industry-leading market share given its investment in design and development (D&D) is without peer in the industry. Buy.

The broker's target price falls to $51 from $52.70 on slightly weaker forecasts for Gaming.

Target price is $51.00 Current Price is $39.96 Difference: $11.04
If ALL meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $47.26, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in September.

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

Bell Potter rates APE as Buy (1) -

Eagers Automotive is expected to provide a trading update year-to-date at the upcoming AGM on May 22nd.

Bell Potter anticpates underlying net profit to be in line for the first four months of 2024 with the previous corresponding period.

The analyst notes strong Toyota sales in Australia, up 45%, are anticipated to be offset by lower contributions from BYD due to stock clearance sales and impacts from a cyber security incident in late 2023.

The company is also facing higher finance costs compared to the first half of 2023, which might lead to a flat or slightly lower performance for the 1H24.

Bell Potter make no changes to earnings forecasts at this stage.  

Buy rating and the target price is revised to $14.75 from $15.20.

Target price is $14.75 Current Price is $12.45 Difference: $2.3
If APE meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $15.01, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in December.

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

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

ARB Corp offered a 3Q24 update at the Macquarie Australia Conference, and reported sales rose 6.4%, aligned with expectations.

Macquarie notes export sales increased by 13% on the previous quarter, boosted by improved US distribution and eCommerce efforts.

Australian aftermarket sales expanded 4.6% for the 9-months to March 2024, supported by positive vehicle supply trends and new store rollouts.

The broker notes that management is focused on expanding its original equipment (OE) programs with automakers like Toyota and Ford, enhancing manufacturing in Thailand, and growing US distribution, including a new Seattle retail site planned for 2Q25.

The company's strategy to innovate and expand globally underpins its steady growth outlook, suggests the broker. Macquarie makes no changes to earnings forecasts.

The rating is upgraded to Neutral from Underperform. Due to an adjustment in the valuation method, the target lifted 24% to $40.10.

Target price is $40.10 Current Price is $38.96 Difference: $1.14
If ARB meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $40.58, suggesting upside of 3.4% (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

Ord Minnett rates AVH as Accumulate (2) -

As expected by Ord Minnett, 1Q operating expenses were -8% worse (higher) than the prior quarter, largely due to increased sales and marketing costs A net loss of -US$18.7m for the period doesn't detract from the longer-term opportunity, in the broker's view.

Management's 2Q commercial revenue guidance of between US$14.3-15.3m is underpinned by a larger sales team to drive growth for PremeaDerm, explains the analyst.

The May 30 launch of the company's improved Recell device is also expected to assist in meeting guidance.

Management also anticipates achieving the lower end of unchanged FY24 guidance for commercial revenue.

The Accumulate rating and $5.40 target are maintained.

Target price is $5.40 Current Price is $2.78 Difference: $2.62
If AVH meets the Ord Minnett target it will return approximately 94% (excluding dividends, fees and charges).

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

Shaw and Partners rates AZY as Buy (1) -

Shaw and Partners has assessed the latest results from Antipa Minerals, noting the latest drilling results from the Minyari Dome's 2024 Phase 1 program show promising mineralisation.

The analyst suggests this proves the potential viability of an open pit operation, including increased thickness of the main mineralisation zone.

Further results are expected by the end of May 2024, which could affirm the project’s resource expansion potential.

Antipa Minerals has $5.4m in cash and no debt at March end and the broker is looking to a forthcoming maiden resource estimate for GEO-01 and developments regarding the nearby Telfer mine, which could impact Antipa’s project timelines and strategy.

Buy rating with 4c target price unchanged.

Target price is $0.04 Current Price is $0.01 Difference: $0.027
If AZY meets the Shaw and Partners target it will return approximately 208% (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 BHP as Hold (3) -

In an amended takeover proposal, BHP Group is now offering 15% more shares (0.8132 for each Anglo share) to Anglo American shareholders, which implies an 11% premium to Ord Minnett's valuation for Anglo American.

The Anglo American Board has rejected the new offer, suggesting to Ord Minnett a new, and higher offer will be needed to secure the deal. 

BHP is required under UK regulations to announce a firm intention to make an offer by May 22, suggesting to the broker a 50% chance of a higher bid by BHP prior to that date.

The broker's target falls to $40 from $40.50 and the Hold rating is maintained.

Target price is $40.00 Current Price is $43.15 Difference: minus $3.15 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.05, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

UBS rates CSL as Buy (1) -

UBS analysts have spotted a positive development for CSL in a partner's market update.

CSL's partner Terumo confirmed at its Q4 results yesterday it has rolled out the new Rika platform in 60 US plasma collection centres (up from 40 when the analysts toured CSL's Melbourne facilities in April).

The analysts explain this means CSL's target for 60 by the end of FY24 has been met slightly early.

As per the broker, Rika will give CSL advantages like shorter donation times for patients and increases plasma yield via the use of a
personalised nomogram. The broker considers this a positive development and expects the market to do so too.

The remaining centres (circa 240) are set to be deployed in FY25. Buy. Target $330.

Target price is $330.00 Current Price is $279.58 Difference: $50.42
If CSL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $316.73, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

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 DHG as Neutral (3) -

Domain Holdings Australia presented at the Macquarie Conference, revealing a strong 3Q24 trading update with an increase in FY24 listings growth guidance to 2-3% from 1-3%.

The broker highlights the strength in listings was offset by a rise in operating expenses (opex), adjusted to the upper end of the mid to high single-digit growth range. An additional $4m in listings revenue is largely neutralised by about -$5m in opex.

Management expects ongoing investments in technology are forecast to keep opex elevated as it continues to defend and expand its market position.

Slight revisions to FY24 EPS of 1% and -2% for FY25, notes the analyst. Neutral rating and the target price is lowered -1% to $3.53.

Target price is $3.53 Current Price is $3.03 Difference: $0.5
If DHG meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.35, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates DXS as Buy (1) -

Ord Minnett assesses a "solid" 3Q update by Dexus, noting high occupancy across both office and industrial assets.

A high concentration in premium CBD office spaces has largely spared Dexus from the worst of the wider office market decline, explains the broker.

Management maintained FY24 adjusted funds from operations (AFFO) and distribution guidance.

The analyst is hopeful upgrades to transport infrastructure adjacent to the REIT's office assets will accelerate an improvement in rents as workers return to the office. Constrained office supply and population growth are also expect to assist.

Buy. Target price of $10.80.

Target price is $10.80 Current Price is $7.02 Difference: $3.78
If DXS meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates FBU as Sell (5) -

After a further review of yesterday's trading update by Fletcher Building, Citi lowers its target to NZ$3.10 from NZ$3.50. After initially thinking there was potential for a capital raise, the broker now believes management will focus on cost-outs and preserving capital.

A summary of yesterday's intial view by Citi follows.

In a first glance by Citi, today's trading update for Fletcher Building appears "soft". New guidance also implies slowing 2H sales, a decline in sequential growth and a negative exit rate compared to consensus expectations for growth into FY25.

FY25 EBIT guidance was downgraded to between NZ$500-530m, an around -10% miss against the consensus forecast. Lower earnings will lift balance sheet leverage, cautions the broker.

Management attributes the miss to around -5% lower New Zealand market volumes compared to the 2Q of FY24, and circa -10% lower Australian volumes.

As a result of this update, and potentially higher-for-longer interest rates, Citi believes there will be material (negative) FY25 implications. The need for an equity raise is not being ruled by the broker.

Current Price is $2.75. Target price not assessed.

Current consensus price target is $4.27, suggesting upside of 61.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.3

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

Citi rates FPR as Buy (1) -

After further deliberation on FleetPartners Group's 1H result, Citi lowers its target to $4.10 from $4.20 to reflect the analysts' earnings changes and alterations to market multiples.

A summary of the broker's research yesterday follows.

FleetPartners Group's 1H net operating income (NOI) of $110m slightly missed the Citi forecast for $112m, while end-of-lease (EOL) income beat forecasts by the broker and consensus by 5% and 28%, respectively.

This greater EOL income was offset by lower NOI pre-EOL and provisions, explain the analysts.

Management increased FY24 opex guidance to $89-90m, largely due to increased new business writings (NBW) activity. NBW of $448m was -7% below Citi's estimate of $479m, though order activity is considered positive, given a seasonally soft January.

Target price is $4.10 Current Price is $3.34 Difference: $0.76
If FPR meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates FPR as Downgrade to Accumulate from Buy (2) -

Ord Minnett raises its target for FleetPartners Group to $3.50 from $3.00 after 1H results slightly beat consensus profit (NPATA) due to strong end-of-lease (EOL) income. Growth in assets under management or financing (AUMOF) also exceeded expectations by 10%.

The broker notes a 'higher-for-longer' trend for used car prices due to lower volumes of three-to-five year old cars and some increased demand for used vehicles from both consumers and business.

These buoyant used car prices should flow through to the buyback between now and the end of 2026, anticipate the analysts.

Ord Minnett's rating is downgraded to Accumulate from Buy on valuation.

Target price is $3.50 Current Price is $3.34 Difference: $0.16
If FPR meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in September.

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 HLO as Buy (1) -

Shaw and Partners views the latest ABS Arrivals and Departures date for March as a potential positive for Helloworld Travel.

The substantial growth in arrivals (up 38.1% for the 9-months to March) and departures (up 40.5% for the 9-months to March) indicates a robust recovery in travel demand and supports the analyst's 34.1% revenue growth forecast for Helloworld Travel in 2H24.

An expected decline in international airfares, estimated at around -15%, is likely to stimulate further demand for travel services and could increase booking volumes, notes the broker.

No changes to the earnings forecasts have been made at this time, with FY24 EBITDA expected to reach the upper end of company guidance at $72.0m. 

Buy rating as the stock is trading at a discount to its peers; $3.80 target retained.

Target price is $3.80 Current Price is $2.43 Difference: $1.37
If HLO meets the Shaw and Partners target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $3.72, suggesting upside of 53.1% (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

Morgan Stanley rates HLS as Underweight (5) -

Morgan Stanley questions whether operating conditions have worsened for Healius after management noted gearing covenants for both debt facilities (recently refinanced) have been increased.

The Underweight rating and $1.00 target are maintained. Industry view: In-Line.

Target price is $1.00 Current Price is $1.34 Difference: minus $0.34 (current price is over target).
If HLS meets the Morgan Stanley target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.55, suggesting upside of 23.3% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates LTM as Buy (1) -

Citi highlights Arcadium Lithium is currently trading below 'replacement cost', partly because of a contract book and capex program
positioned for a market downturn. It's felt the company presents a ‘ready to go’ option for a large-cap mining or chemicals company.

Further reasons for the market's current negative stance include a negative read-across from peer financings, reduced disclosures and perceived Argentina risk, suggests the broker.

It could potentially cost at least 60% more to develop a comparable lithium production base, according to the analysts.

The Buy rating and $9.40 target are maintained.

Target price is $9.40 Current Price is $7.07 Difference: $2.33
If LTM meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $9.43, suggesting upside of 29.4% (ex-dividends)

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 MXI as Buy (1) -

Ord Minnett lowers its target for MaxiPARTS to $2.85 from $3.20 following weaker-than-expected trading conditions revealed in yesterday's trading update.

At the mid-point, management's FY24 adjusted earnings (EBITDA) guidance falls -8% short of the broker's $25m forecast, while sales guidance misses by -3.4%.

Implied EBITDA margins are now expected to fall in the range of 9.4%-9.6%, slightly below management's prior expectation for margins to be “greater than 10%” in the 2H of FY24.

The Buy rating is maintained.

Target price is $2.85 Current Price is $1.96 Difference: $0.895
If MXI meets the Ord Minnett target it will return approximately 46% (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

Macquarie rates NCK as Outperform (1) -

Macquarie resumes coverage of Nick Scali, post the Fabb Furniture acquisition and 3Q24 report with total written orders for the 9-months to March up 1.2%.

Macquarie highlights it maintains a positive outlook with store expansion pivotal and growth expected to 176-186 stores from 108 over the longer term post the Fabb Furniture acquistion.

Integration of Fabb is projected to leverage the existing supply chain and manufacturing efficiencies, and gross margins should expand to 50% from 41.5% by FY27 with 7% additional revenue growth.

Macquarie revises EPS forecasts by -6% and -15% for FY24 and FY25, respectively on the back of the share issuance and initial losses from the acquisition.

Outperform rating unchanged with a target price of $16.10.

Target price is $16.10 Current Price is $14.40 Difference: $1.7
If NCK meets the Macquarie target it will return approximately 12% (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

Macquarie rates NEC as Neutral (3) -

Nine Entertainment reported 13% year-on-year decline in TV trading in 3Q at the Macquarie Conference, with similar trends expected in 4Q, reflecting a subdued advertising market.

Macquarie notes costs were managed leading to a 10% increase in FY24 EPS projections, partially offset by weaker top-line results. FY25 EPS forecast is revised up 1%.

At its Data & AI investor day, Nine Entertainment showed advances in leveraging first-party data and AI to improve efficiencies and customer engagement. The media company is navigating regulatory changes in digital sports rights and content production.

A recovery in the advertising market outlook is expected within 6-12 months. Neutral rating retained and the target remains at $1.65.

Target price is $1.65 Current Price is $1.54 Difference: $0.11
If NEC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 41.1% (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

Ord Minnett rates PNR as Speculative Buy (1) -

Given the high gold price and the recent free cash flow (FCF) inflexion point reached at Norseman, Ord Minnett suggests the recently completed $100m equity raise was opportunistic.

Proceeds will be deployed to extinguish around $45m of debt and $40m will go towards exploration and expansion of the mill or further mine life extensions at the Norseman Mainfield/Butterfly Area.

The Speculative Buy rating is retained and 10c target is unchanged as the dilutionary impact of the capital raise is offset by the company de-risking achieved.

Target price is $0.10 Current Price is $0.08 Difference: $0.02
If PNR meets the Ord Minnett target it will return approximately 25% (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 PWR as Neutral (3) -

UBS raises its target for Peter Warren Automotive to $12 from $10 due to a valuation roll-forward, time creep and single-digit upgrades to longer-term revenue forecasts. A Neutral rating is maintained as strong growth appears to be reflected in consensus numbers.

The broker attributes a recently strong share price to an ongoing strong performance in Motorsports (near-term F1 tailwinds from new car designs), and further increase in the number of contracts in the Emerging Tech (ET) pipeline.

The company is exposed to around 17% of forecast Electric Vertical Takeoff and Landing (eVTOL) demand prior to 2030, which forms only part of the ET contract pipeline, notes the analyst.

Target price is $12.00 Current Price is $2.21 Difference: $9.79
If PWR meets the UBS target it will return approximately 443% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 111.7% (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

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

UBS upgrades its rating for Qube Holdings to Buy from Neutral after becoming more positive on expected returns on investments. It's also felt  there is low risk to near-term earnings pre August results.

Valuation support still exists, in the broker's view, despite the share price pushing to all-time highs, because of the upside potential for both Moorebank and Patrick.

The broker's target rises to $4.15 from $3.53 upon earnings upgrades and a valuation roll-forward.

Target price is $4.15 Current Price is $3.55 Difference: $0.6
If QUB meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.86, suggesting upside of 7.5% (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

Citi rates S32 as Neutral (3) -

As part of South32's strategy update, Citi highlights management expects that, post the Met Coal sale, underlying revenue will be around 87% base metals, including alumina.

The sale of Met Coal will see sustaining capex (ex Australian Manganese) in FY25 at around -US$510m compared to guidance of circa -US$800m in FY24, noted management.

Growth capex will increase to around -US$580m from original guidance of -US$390m, with the Taylor Deeps prospect accounting for -US$530m, explain the analysts.

The Neutral rating and $3.80 target are maintained.

Target price is $3.80 Current Price is $3.62 Difference: $0.18
If S32 meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SBM as Neutral (3) -

St. Barbara announced it is moving from a restart of the Atlantic project in Nova Scotia to expanding the Simberi project in Papua New Guinea due to regulatory hurdles at Atlantic, notes Macquarie.

The broker points to the concept study for Simberi and an increase in gold production from current levels of about 75 koz p.a. to an average of 220 koz p.a. from 2028 to 2034.

This expansion has a pre-production capital estimate of circa -$258m and management aims to lower all-in-sustaining costs to around $1,100/oz.

Macquarie adjusts forecasts with the FY24 expected loss down by -1%, and the FY25 forecast loss expected to grow 15%.

Neutral rating unchanged. The target price is lifted 20% to 29c, reflecting changes to earnings assumptions and a notional $100m equity raising.

Target price is $0.29 Current Price is $0.27 Difference: $0.02
If SBM meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates WOR as Outperform (1) -

Worley management reaffirmed the FY24 EBITA margin target of 7.5-8.0%, excluding procurement, with a medium-term target for double-digit EBITA growth at the recent Investor Day, notes Macquarie.

The work backlog was flat as at February end, up 5% compared to June 2023 and reflecting a change in the contract mix between wins and deferrals in green fuels/hydrogen in Europe.

Construction on the VG LNG project is not expected until post the US November election now, but it has enough work through to the end of 2024.

Macquarie ponts to the company's strong balance sheet, maintaining leverage below 2.0x with investments funded via free cash flow.

No changes were made to the earnings projections. Target price of $18.10 and Overweight rating retained.

Target price is $18.10 Current Price is $15.24 Difference: $2.86
If WOR meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $18.27, suggesting upside of 22.9% (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

UBS rates WOR as Buy (1) -

At Worley's investor day, management reiterated FY24 guidance for aggregated revenue growth (ex procurement) as well as for underlying earnings (EBITA) margins (ex-procurement) of 7.5-8%.

Management explained higher margin work is entering its factored sales pipeline, and converting to improved backlog margins. The target to deliver a double-digit EBITA growth compound annual growth rate (CAGR) was reiterated, which also aligns with the UBS forecast.

UBS leaves its forecasts unchanged and the Buy rating and $22.00 target are maintained.

Target price is $22.00 Current Price is $15.24 Difference: $6.76
If WOR meets the UBS target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $18.27, suggesting upside of 22.9% (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