Australian Broker Call

Ord Minnett rates AKE as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Allkem, the Buy rating is retained and the target price decreases to $15.00 from $18.50.

Target price is $15.00 Current Price is $10.25 Difference: $4.75
If AKE meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $15.30, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Credit Suisse remains positive on the Australian platforms sector, as an around -30% fall in share prices (ex AMP) over the June quarter more than accounts for the broker's earnings downgrades.

The earnings downgrades occur as a result of marking-to-market earnings and factoring-in higher expenses (inflation) and higher interest rates where relevant, explains the analyst.

The broker downgrades FY22-24 earnings forecasts for AMP by -11%, -14%, and -12%, respectively. Credit Suisse is currently restricted on providing a rating or target.

Current Price is $0.97. Target price not assessed.

Current consensus price target is $1.12, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Morgan Stanley rates ANN as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The analyst retains an Overweight rating for Ansell and believes the currently low multiple compensates for the EPS risk involved. The target price is lowered to $28.93 from $33.43. Industry view In-Line.

Target price is $28.93 Current Price is $22.14 Difference: $6.79
If ANN meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 31.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Citi rates ASB as Buy (1) -

Austal's recently announced contract win with the US Coast Guard to produce offshore patrol cutters should resolve investor concern about scaling down of the company's Mobile operations, according to Citi. The broker estimates a contract value of $4.35bn for up to eleven vessels.

Given the contract will cover shipyard overheads, the broker expects Austal will be better positioned to bid on future projects, and notes it finds the company's Mobile division to be more sophisticated and diversified than a few years ago. 

The Buy rating is retained and the target price increases to $2.91 from $2.35.

Target price is $2.91 Current Price is $2.25 Difference: $0.66
If ASB meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.38, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates ASB as Hold (3) -

Austal has been awarded a contract to construct up to eleven offshore patrol cutters for the US Coast Guard valued at US$3.3bn. Ord Minnett notes the contract goes a long way in refilling the company's longer-term pipeline. 

Ord Minnett highlights the initial award is for the design and construction of one vessel for US$208m, with options for a further ten vessels. 

The broker also notes the news was well received by the market, with the stock now trading near net tangible asset value. 

The Hold rating is retained and the target price increases to $2.30 from $2.10.

Target price is $2.30 Current Price is $2.25 Difference: $0.05
If ASB meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.38, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates AWC as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Alumina Ltd, the Buy rating is retained and the target price decreases to $2.00 from $2.40.

Target price is $2.00 Current Price is $1.45 Difference: $0.55
If AWC meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

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

Morgan Stanley feels BHP Group has taken a step towards achieving medium/long term emissions targets as the mine life for NSW Energy Coal is now shorter than previously envisaged. 

The broker feels the shorter mine life is already priced into the group's share price. The Equal-weight rating and $40.05 target are retained. Industry View: Attractive.

Target price is $40.05 Current Price is $40.05 Difference: $0
If BHP meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $45.91, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Ord Minnett rates BHP as Hold (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For BHP Group, the Hold rating is retained and the target price decreases to $44.00 from $45.00.

Target price is $44.00 Current Price is $40.05 Difference: $3.95
If BHP meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $45.91, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Citi rates BOQ as Buy (1) -

Reflecting a -6% decline in Citi's average interest earning assets assumptions for Bank of Queensland, the broker's earnings estimates for the bank decrease between -6% and -12% through to FY24.

The Buy rating is retained and the target price decreases to $8.75 from $9.25.

Target price is $8.75 Current Price is $6.70 Difference: $2.05
If BOQ meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 37.5% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates BSL as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For BlueScope Steel, the Buy rating is retained and the target price decreases to $23.00 from $26.00.

Target price is $23.00 Current Price is $15.76 Difference: $7.24
If BSL meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $22.96, suggesting upside of 45.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates BXB as Outperform (1) -

Now that Brambles has decided not to invest in a plastic pallet pool for Costco's US supply chain, Credit Suisse believes a significant discount in the company's share price may reverse.

Moreover, the analyst feels that if Brambles couldn't get an attractive return with its scale advantages, then it's unlikely competitors will be able to do so. The Outperform rating and $13.45 target price are unchanged.

Target price is $13.45 Current Price is $11.05 Difference: $2.4
If BXB meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $12.14, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Macquarie rates BXB as Neutral (3) -

Brambles has announced that it will not proceed with plastic pallets in North America, a decision Macquarie found surprising given previous commentary from the company. 

The broker notes the choice not to proceed means the company will not make the US$450-700m investment required for plastic pallets, which would have impacted already challenged near-term cash generation. 

Macquarie does highlight risk that Costco will pursue the project with another provider, but the broker expects should this happen impacts will be near-term and Brambles will be able to win new customers to offset. 

The Neutral rating is retained and the target price increases to $10.75 from $10.55.

Target price is $10.75 Current Price is $11.05 Difference: minus $0.3 (current price is over target).
If BXB meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.14, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Ord Minnett rates CHN as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Chalice Mining, the Buy rating is retained and the target price decreases to $7.00 from $9.50.

Target price is $7.00 Current Price is $3.70 Difference: $3.3
If CHN meets the Ord Minnett target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

While the analyst lowers its price target for Cochlear to $194 from $208, the Equal-weight rating is retained for the growth outlook. Industry View: In-line.

Target price is $194.00 Current Price is $199.63 Difference: minus $5.63 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.25, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates CSL as Outperform (1) -

Commentary from CSL suggests collections were largely in line with pre-covid levels in June, with Macquarie highlighting foot traffic across the company's US plasma centres appeared to show continued momentum.

The broker highlighted foot traffic was improved in Texas, despite the ongoing impact of restrictions on paid donations by Mexican citizens. Macquarie considers CSL's earnings growth profile to be attractive through to FY24.

The Outperform rating and target price of $312.00 are retained.

Target price is $312.00 Current Price is $269.23 Difference: $42.77
If CSL meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $315.32, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Morgan Stanley rates CSL as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks were the growth outlook is now better than in 2013 or EPS certainty is high.

The analyst raises its price target for CSL to $312 from $310 and retains an Overweight rating for the growth outlook. Industry View: In-line.

Target price is $312.00 Current Price is $269.23 Difference: $42.77
If CSL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $315.32, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Morgan Stanley rates EBO as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high. 

The Overweight rating is retained for Ebos Group, while the target slips to $41 from $43. Industry view In-Line.

Target price is $41.00 Current Price is $34.12 Difference: $6.88
If EBO meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $39.69, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates EBR as Speculative Buy (1) -

Morgans feels EBR Systems has attained a key milestone by completing interim trial enrolment in SOLVE on time, which may lead to FDA submission by the first half of 2023.

The company has secured up to $50m in debt financing, which the broker sees as prudent. The target falls to $1.38 from $1.84 to reflect increased volatility and higher funding costs. The Speculative Buy rating is maintained.

Target price is $1.38 Current Price is $0.53 Difference: $0.85
If EBR meets the Morgans target it will return approximately 160% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates FMG as Hold (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Fortescue Metals, the Hold rating is retained and the target price decreases to $18.00 from $19.00.

Target price is $18.00 Current Price is $17.00 Difference: $1
If FMG meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $17.54, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

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

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Equal-weight rating and $3.75 target are retained for Healius. Industry view In-Line.

Target price is $3.75 Current Price is $3.65 Difference: $0.1
If HLS meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.36, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates HUB as Outperform (1) -

Credit Suisse remains positive on the Australian platforms sector, as an around -30% fall in share prices (ex AMP) over the June quarter more than accounts for the broker's earnings downgrades.

The earnings downgrades occur as a result of marking-to-market earnings and factoring-in higher expenses (inflation) and higher interest rates where relevant, explains the analyst.

Hub24 is the broker's most preferred exposure in the sector and the Outperform rating is maintained, while the target falls to $35 from $38.

Target price is $35.00 Current Price is $20.45 Difference: $14.55
If HUB meets the Credit Suisse target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $30.78, suggesting upside of 46.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Equal-weight rating is retained for Integral Diagnostics, while the target falls to $3.51 from $4.36. Industry view In-Line.

Target price is $3.51 Current Price is $3.00 Difference: $0.51
If IDX meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.26, suggesting upside of 39.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates IFL as Outperform (1) -

Credit Suisse remains positive on the Australian platforms sector, as an around -30% fall in share prices (ex AMP) over the June quarter more than accounts for the broker's earnings downgrades.

The earnings downgrades occur as a result of marking-to-market earnings and factoring-in higher expenses (inflation) and higher interest rates where relevant, explains the analyst.

The broker lowers earnings forecasts for Insignia Financial by the most (for stocks under coverage of the sector), given a lower earnings (EBITDA) margin, a relatively fixed cost base and higher leverage.

The target falls to $4.30 from $5.30, while the Outperform rating remains.

Target price is $4.30 Current Price is $2.71 Difference: $1.59
If IFL meets the Credit Suisse target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 80.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates ILU as Hold (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Iluka Resources, the Hold rating is retained and the target price decreases to $10.50 from $11.00.

Target price is $10.50 Current Price is $9.51 Difference: $0.99
If ILU meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.92, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates JHG as Neutral (3) -

Credit Suisse downgrades it EPS forecasts for asset managers by -16% on average for FY23, after allowing for market movements in the second quarter just finished.

The broker retains its Neutral rating for Janus Henderson in the absence of potential upcoming catalysts and with incoming CEO risk. The company is considered one of the most highly leveraged asset managers under Credit Suisse's coverage.The target falls to $36 from $46. 

Target price is $36.00 Current Price is $33.82 Difference: $2.18
If JHG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $45.25, suggesting upside of 32.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates LTR as Hold (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Liontown Resources, the Hold rating is retained and the target price decreases to $1.10 from $1.30.

Target price is $1.10 Current Price is $1.00 Difference: $0.1
If LTR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates MFG as Neutral (3) -

Credit Suisse downgrades it EPS forecasts for asset managers by -16% on average for FY23, after allowing for market movements in the second quarter just finished.

Before changing its Neutral rating for Magellan Financial, the broker would like to see a stabilisation of institutional flows and some outperformance by the Global Fund. The target price falls to $12.40 from $14.40.

Target price is $12.40 Current Price is $13.00 Difference: minus $0.6 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.38, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

Morgan Stanley rates MPL as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high. Medibank Private is thought to slot into the latter category, with claims expected to be lower for longer and member share increasing.

The Overweight rating and $3.70 target price are unchanged. Industry View: In-Line.

Target price is $3.70 Current Price is $3.23 Difference: $0.47
If MPL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates MVF as Outperform (1) -

Monash IVF has announced the $3.9m acquisition of Brisbane-based ART Associates, adding six fertility specialists to the group's portfolio. 

The company estimates its newest acquisition will be $1.1-2.2m accretion to FY24 net profit, although Macquarie notes this range depends on the number of cycles specialists are able to bring to the company. 

With the purchased expected to settle in September, the broker is yet to factor the acquisition into forecasts. The Outperform rating and target price of $1.20 are retained.

Target price is $1.20 Current Price is $0.97 Difference: $0.23
If MVF meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates MVF as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Overweight rating is retained for Monash IVF, while the target falls to $1.20 from $1.25. Industry view In-Line.

Target price is $1.20 Current Price is $0.97 Difference: $0.23
If MVF meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates NCM as Downgrade to Hold from Buy (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

The broker notes it now prefers BlueScope Steel ((BSL)) and South32 ((S32)) to Newcrest Mining.

The rating is downgraded to Hold from Buy and the target price decreases to $23.00 from $29.00.

Target price is $23.00 Current Price is $20.27 Difference: $2.73
If NCM meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $27.19, suggesting upside of 31.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Morgans rates NHC as Add (1) -

Morgans sees dividend upside for New Hope and thinks shares can re-rate as the market appreciates the scope of current cash flows, as thermal coal prices continue to rally. The target price jumps to $4.69 from $3.67 and the Add rating is unchanged.

With no obvious M&A targets, the broker believes the company may maintain a modest cash balance. The FY23 outlook for seaborne thermal coal pricing is also thought to be better than implied by the market.

Target price is $4.69 Current Price is $3.34 Difference: $1.35
If NHC meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Equal-weight rating and $6.95 target price are unchanged for nib Holdings. Industry View: In-Line.

Target price is $6.95 Current Price is $7.36 Difference: minus $0.41 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.97, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates NWL as Outperform (1) -

Credit Suisse remains positive on the Australian platforms sector, as an around -30% fall in share prices (ex AMP) over the June quarter more than accounts for the broker's earnings downgrades.

The earnings downgrades occur as a result of marking-to-market earnings and factoring-in higher expenses (inflation) and higher interest rates where relevant, explains the analyst.

Netwealth's Outperform rating is maintained, as the group has been attracting significant inflows and growing market share. The latter has increased from 1% to around 6% over the last five years. The target price falls to $15.70 from $16.75.

Target price is $15.70 Current Price is $12.65 Difference: $3.05
If NWL meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $15.67, suggesting upside of 26.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates PDL as Neutral (3) -

Credit Suisse downgrades it EPS forecasts for asset managers by -16% on average for FY23, after allowing for market movements in the second quarter just finished.

The broker lowers its target price for Pendal Group to $4.00 from $5.35 and notes a significant deterioration in the group's largest strategy, the International Select fund, which has shifted into outflow.

The analyst retains a Neutral rating as the group could become a M&A target, with Perpetual having already made an offer.

Target price is $4.00 Current Price is $4.48 Difference: minus $0.48 (current price is over target).
If PDL meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.66, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates PPT as Outperform (1) -

Credit Suisse downgrades it EPS forecasts for asset managers by -16% on average for FY23, after allowing for market movements in the second quarter just finished.

While the target for Perpetual is lowered to $34 from $42, the broker likes the  exposure to better-than-industry flows, exposure to ESG and recent improvement in fund performance.

The company is Credit Suisse's preferred exposure in the sector and the Outperform rating is maintained.

Target price is $34.00 Current Price is $29.26 Difference: $4.74
If PPT meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $38.79, suggesting upside of 37.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates PTM as Upgrade to Neutral from Underperform (3) -

Credit Suisse downgrades it EPS forecasts for asset managers by -16% on average for FY23, after allowing for market movements in the second quarter just finished.

The broker upgrades its rating for Platinum Asset Management to Neutral from Underperform on valuation and in the belief earnings will improve after a period of improved fund performance. The target falls to $1.80 from $1.90.

Target price is $1.80 Current Price is $1.74 Difference: $0.06
If PTM meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 30.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Ord Minnett rates RED as Buy (1) -

With Red 5 reporting first gold last month at its King of the Hill mine site, Ord Minnett notes commercial production is the next catalyst for the company. 

Given current mill availability and low power requirements, the broker is confident in the site reaching nameplate production levels following commercial production.

The broker anticipates Red 5 can outperform peers on a relative basis if milestones are met and emphasis is made on near-term free cash flow. The Buy rating is retained and the target price decreases to $0.40 from $0.46.

Target price is $0.40 Current Price is $0.25 Difference: $0.15
If RED meets the Ord Minnett target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates RHC as Underweight (5) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

While the analyst lowers its price target for Ramsay Health Care to $68.80 from $69.80, growth is estimated to be superior to 2013 though somewhat inflated by a depressed EPS profile in the pandemic. The Underweight rating is maintained. Industry View: In-line.

Target price is $68.80 Current Price is $73.00 Difference: minus $4.2 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $79.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Ord Minnett rates RIO as Hold (3) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Rio Tinto, the Hold rating is retained and the target price decreases to $100.00 from $116.00.

Target price is $100.00 Current Price is $100.34 Difference: minus $0.34 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.21, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

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

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Equal-weight rating is retained for ResMed, while the target rises to $29.10 from $26.90. Industry view In-Line.

Target price is $29.10 Current Price is $30.50 Difference: minus $1.4 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.26, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Ord Minnett rates S32 as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For South32, the Buy rating is retained and the target price decreases to $4.80 from $5.70.

Target price is $4.80 Current Price is $3.87 Difference: $0.93
If S32 meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.66, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Ord Minnett rates SFR as Sell (5) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Sandfire Resources, the Sell rating is retained and the target price decreases to $3.80 from $4.80.

Target price is $3.80 Current Price is $4.40 Difference: minus $0.6 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.64, suggesting upside of 47.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates SGM as Buy (1) -

With commodity markets taking a hit in recent weeks as the market becomes increasingly focused on a potential economic recession, Ord Minnett's average net present value has declined -15% across its commodities coverage, but does expect macro economic conditions to improve in the second half of the year.

For Sims, the Buy rating is retained and the target price decreases to $23.00 from $25.00.

Target price is $23.00 Current Price is $13.74 Difference: $9.26
If SGM meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $20.59, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates SHL as Overweight (1) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The analyst lowers the price target for Sonic Healthcare to $36.35 from $40.00 though assesses an undemanding valuation and retains its Overweight rating. Industry view: In-Line.

Target price is $36.35 Current Price is $32.94 Difference: $3.41
If SHL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $38.29, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates SIG as Underweight (5) -

While price earnings (PE) multiples have generally contracted for the Australian Healthcare sector, they remain above the
levels when the Australian 10 year bond yield was last around 4% in 2013, notes Morgan Stanley.

As a result, the broker favours those stocks where the growth outlook is now better than in 2013 or EPS certainty is high.

The Underweight rating is retained for Sigma Healthcare while the target price rises to $0.48 from $0.43. Industry view In-Line.

Target price is $0.48 Current Price is $0.59 Difference: minus $0.11 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.51, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Macquarie rates SWM as Neutral (3) -

Seven West Media has filed a court proceeding against Cricket Australia for multiple contract breaches, but Macquarie notes the company will continue to perform its broadcasting obligations until the contract is terminated.

The broker highlights an earlier than anticipated termination of Seven West Media's cricket rights could create a -14% earnings per share headwind in the year that the contract is terminated, likely either FY23 or F24.

Macquarie has removed cricket broadcasting from its forecasts from FY25. The Neutral rating is retained and the target price decreases to $0.37 from $0.66.

Target price is $0.37 Current Price is $0.39 Difference: minus $0.02 (current price is over target).
If SWM meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.69, suggesting upside of 73.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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