Australian Broker Call

Macquarie rates AFG as Outperform (1) -

A big December quarter for Australian Finance Group saw record lodgment activity. Macquarie notes there was a continued shift towards higher margin home loan products, with growth in AFG Home Loan products exceeding lower margin third party products. 

Although Macquarie expects earnings growth will benefit from lodgment activity and product mix shift, no updates are issued to earnings per share forecasts. 

The Outperform rating and target price of $3.18 are retained.

Target price is $3.18 Current Price is $2.51 Difference: $0.67
If AFG meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 31.5% (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

Morgans rates AFG as Add (1) -

In anticipation of Australian Finance Group's 1H results on February 25, Morgans estimates reported profit of $29.78m and a fully franked interim dividend of 6.7cps.

While earnings are expected to impress, driven by volume growth for both the aggregation business and the AFG Securities business, the broker remains wary of the effect of monetary policy tightening. Due to heightened risk the target price falls to $3 from $3.60.

Target price is $3.00 Current Price is $2.51 Difference: $0.49
If AFG meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 31.5% (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

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

The lithium market saw a turning point in 2021 according to UBS, as an acceleration of electric vehicle demand drove higher lithium pricing. Expect pricing to further benefit Allkem in the coming year given the broker notes more contracts being renegotiated in line with pricing. 

The broker updates its lithium price deck, noting forecasts have spodumene up 39% and carbonate up 70%. Elsewhere, Allkem's Mt Cattlin project production was up 16% on forecasts while Olaroz production was a miss on UBS forecasts but a 30% beat on consensus. 

The rating is downgraded to Neutral from Buy and the target price increases to $11.20 from $10.75.

Target price is $11.20 Current Price is $11.09 Difference: $0.11
If AKE meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.64, suggesting upside of 22.1% (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

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

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

ANZ Bank has been upgraded to Overweight from Equal-weight with a price target of $31 (up from $28) while the industry view has been lifted to Attractive.

This report was released on January 20 (yesterday).

Target price is $31.00 Current Price is $28.58 Difference: $2.42
If ANZ meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $30.21, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates ANZ as Upgrade to Accumulate from Hold (2) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

The price target has lifted to $31.50 from $30.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $31.50 Current Price is $28.58 Difference: $2.92
If ANZ meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $30.21, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ASX as Downgrade to Underweight from Equal-weight (5) -

After a review of ASX Ltd versus global peers and some local negatives, Morgan Stanley lowers its rating to Underweight from Equal-weight and reduces its target price to $72.50 from $79.50. Industry view In-Line.

The local negatives include the persistently lower interest rate environment and a delay in new revenue options, along with risks concerning cost growth and execution, explains the analyst.

Morgan Stanley feels the company is susceptible to technology-industry wage inflation in handling its key project with the CHESS replacement plus work required after regulatory scrutiny on system stability.

Target price is $72.50 Current Price is $87.95 Difference: minus $15.45 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.21, suggesting downside of -5.4% (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

Citi rates AWC as Neutral (3) -

Following 4Q quarter results (as per AWAC-partner Alcoa), Citi estimates the upcoming March quarter will be much tougher, with a lower alumina price and higher costs to flow through. Despite lower dividend and earnings forecasts, the $1.90 target and Neutral rating are unchanged.

The company's share of AWAC profit was lower than expected in the 4Q as costs increased. Operating results were mostly in-line, while there was a beat versus expectations in the alumina segment.

Target price is $1.90 Current Price is $2.01 Difference: minus $0.11 (current price is over target).
If AWC meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.07, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Credit Suisse rates AWC as Outperform (1) -

Credit Suisse maintains its Outperform rating and $2.30 target price for Alumina Ltd, despite a miss on margins due to higher unit costs (as per AWAC-partner Alcoa).

Additionally, the broker and consensus overestimated net distributions estimates to the company (due to a three month pricing lag).

However, the ensuing months cash sweep to the company will capture most of the higher margin earnings missed in the December quarter, explains the analyst.

Due to these timing issues and higher costs, Credit Suisse trims its final dividend forecast to US$4.7cps from US$5.8cps.

Target price is $2.30 Current Price is $2.01 Difference: $0.29
If AWC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Macquarie rates AWC as Neutral (3) -

AWAC-partner Alcoa's fourth quarter results has bauxite and alumina production largely in line with Macquarie's expectations, while costs were ahead 2% and realised prices a -3% miss on forecasts. 

The broker notes alumina prices have normalised following a peak in the fourth quarter, but cost pressures from energy and caustic soda are expected to persist. Earnings forecasts decrease -3% and -1% for 2021 and 2022 respectively. 

The Neutral rating and target price of $1.80 are retained. 

Target price is $1.80 Current Price is $2.01 Difference: minus $0.21 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.07, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Morgan Stanley rates AWC as Overweight (1) -

While 4Q production for AWAC-partner Alcoa was -7% weaker than Morgan Stanley expected, 2021 production was only around -1% shy of both the broker's forecast and guidance.

Realised prices were lower than expected due to timing lags versus the fast-moving alumina price, which significantly impacted  distributions, explains the analyst.

However, the board is contemplating a one-off adjustment to allow January and February distributions to be taken up in the 2021 final dividend. The Overweight rating and $2.15 target price are retained. Industry view: In-Line. 

Target price is $2.15 Current Price is $2.01 Difference: $0.14
If AWC meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Ord Minnett rates AWC as Downgrade to Hold from Accumulate (3) -

AWAC-partner Alcoa has released a stronger-than-expected Q4 production update and in response Ord Minnett has raised its price target for Alumina Ltd to $2.20 from $2.10.

However, in response to the strong share price, the broker has downgraded its rating to Hold from Accumulate.

To put things in perspective: Alcoa's December result was the strongest quarterly for several years, observes Ord Minnett, with the company forecasting an aluminium market deficit of -1.4m this year.

Target price is $2.20 Current Price is $2.01 Difference: $0.19
If AWC meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Morgan Stanley rates BEN as Underweight (5) -

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

The industry view has been lifted to Attractive. While estimates have gone up for the Majors, they have gone down for the regional lenders. Bendalaide's price target has moved to $9.50 from $10.20. Underweight.

This report was released on January 20 (yesterday).

Target price is $9.50 Current Price is $9.00 Difference: $0.5
If BEN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.92, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates BEN as Hold (3) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

No changes were made for Bendalaide Bank. Target $9.60. Hold.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $9.60 Current Price is $9.00 Difference: $0.6
If BEN meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.92, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates BLX as Buy (1) -

Continuing recent positive results for large-format retailers, Beacon Lighting Group's trading update significantly outperformed Citi's expectations. Profit guidance for the 1H was 59% ahead of the broker's and consensus expectations.

To incorporate guidance, the analyst upgrades FY22-FY24 profit forecasts by 5%-32%. The target rises to $3.55 from $2.35.

Target price is $3.55 Current Price is $3.12 Difference: $0.43
If BLX meets the Citi target it will return approximately 14% (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

Morgans rates BLX as Add (1) -

In an outcome significantly better than Morgans expected, Beacon Lighting Group indicated its 1H22 earnings would be in-line with the first half of last year. Second quarter results indicated strong demand for lighting products, especially premium installations.

This prompts the analyst to raise the full year profit estimate by 18% and increase the target price to $3.40 from $2.30. It's felt this will not be management's last earnings upgrade. Add retained.

Target price is $3.40 Current Price is $3.12 Difference: $0.28
If BLX meets the Morgans target it will return approximately 9% (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 BOQ as Overweight (1) -

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

The industry view has been lifted to Attractive. While estimates have gone up for the Majors, they have gone down for the regional lenders. Bank of Queensland's price target has moved to $10.00 from $10.30. Overweight.

This report was released on January 20 (yesterday).

Target price is $10.00 Current Price is $8.02 Difference: $1.98
If BOQ meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $10.35, suggesting upside of 31.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates BOQ as Accumulate (2) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

No changes were made for Bank of Queensland. Target $9.80. Accumulate.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $9.80 Current Price is $8.02 Difference: $1.78
If BOQ meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.35, suggesting upside of 31.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Morgan Stanley rates BRG as Overweight (1) -

Prior to the reporting season, Morgan Stanley reiterates Breville Group is its preferred global expansion story. It's considered a key small/mid-cap for which the broker has conviction around earnings and outperformance into 2022.

The analyst estimates low earnings risk heading into the 1H result as reinvestment can be delayed if sales are affected by supply-
chain disruptions. Multiple product launches are expected in FY23-24.

The Overweight rating and target price of $36 are maintained. Industry: In-line.

Target price is $36.00 Current Price is $28.03 Difference: $7.97
If BRG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $33.59, suggesting upside of 24.5% (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 CBA as Underweight (5) -

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

The industry view has been lifted to Attractive. CommBank's price target improved to $90 from $87.50. Underweight rating retained.

This report was released on January 20 (yesterday).

Target price is $90.00 Current Price is $98.61 Difference: minus $8.61 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.83, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates CBA as Reduce (5) -

In anticipation of 1H results on February 9, Morgans forecasts a cash profit of $4.320bn, which is -2% below consensus forecasts for $4.406bn. The net interest margin is expected to be a primary focus and the analyst predicts a miss on consensus forecasts.

Regarding asset quality, the broker will be keen to hear about the impact of the omicron variant on the SME sector. The Reduce rating stays and the target price is adjusted to $74 from $73.

Target price is $74.00 Current Price is $98.61 Difference: minus $24.61 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.83, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

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 CBA as Hold (3) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

No changes were made for CommBank. Target $90. Hold.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $90.00 Current Price is $98.61 Difference: minus $8.61 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.83, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates CHN as Outperform (1) -

Necessary approvals from the WA government will enable Chalice Mining to commence diamond drilling of the Hartog and Baudin targets in the Julimar State Forest. Recent successful drilling outside the State Forest suggesting likely mineralisation derisks the project. 

Initial drilling will utilise existing access tracks to avoid disturbance to vegetation, but Macquarie notes Chalice Mining is unlikely to be able to use preferred locations to fully ascertain potential. Spot pricing on palladium, nickel, copper and gold continue to trade above forecasts. 

The Outperform rating and target price of $10.55 are retained.

Target price is $10.55 Current Price is $8.79 Difference: $1.76
If CHN meets the Macquarie target it will return approximately 20% (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

Credit Suisse rates CRN as Outperform (1) -

Following December quarter results, Credit Suisse focuses upon a 'decent' net cash position at year end of US$123m. Production and costs also beat revised company guidance. The Outperform rating and $2.20 target price are maintained.

The analyst feels dividends alone should keep investors interested and there's also potential upside from capital management initiatives. An update on the latter is expected at full year results on February 23.

Target price is $2.20 Current Price is $1.52 Difference: $0.68
If CRN meets the Credit Suisse target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 43.1% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates CRN as Outperform (1) -

A largely positive update from Coronado Global Resources, with better than expected fourth quarter production, increased realised prices and a positive net cash position. Macquarie notes full year production of 17.4m tonnes was above the company's revised guidance. 

Realised coal prices increased 48% quarter-on-quarter, and while a miss on Macquarie's expected increase the broker expects pricing strength to continue into 2022. Earnings per share forecasts increase 39% for 2021, and 23%, 38%, 11% and 18% between 2022-2025.

The Outperform rating is retained and the target price increases to $2.00 from $1.80.

Target price is $2.00 Current Price is $1.52 Difference: $0.48
If CRN meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 43.1% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Morgans rates CRN as Add (1) -

In the wake of 4Q results that revealed higher-than-expected coal pricing, Morgans lifts its forecasts and valuation for Coronado Global Resources. The broker's investment thesis is around price leverage, and this was demonstrated by cash accumulation during the quarter.

The target price rises to $1.81 from $1.63 and the Add rating remains. 

The company offers 20% and 68% upside to the analyst's base and bullish case valuations. The share price is thought to be held back by terms limiting the payout of dividends. These were put in place to avoid a distressed balance sheet.

Target price is $1.81 Current Price is $1.52 Difference: $0.29
If CRN meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 43.1% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Citi rates CSR as Buy (1) -

Despite current headwinds, Citi estimates residential detached construction will remain at capacity for multiple years and has a preference for residential-exposed names.

The broker retains its Buy rating for CSR and estimates sales can continue to grow and not flatten as implied by consensus estimates. Despite earning forecast upgrades, Citi's target price falls to $7.03 from $7.20 after applying lower relative multiples.

Target price is $7.03 Current Price is $5.74 Difference: $1.29
If CSR meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in March.

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

Morgans rates EBR as Add (1) -

Morgans makes no changes to earnings forecasts for EBR Systems Inc following a 4Q cash flow report and retains its Add rating and $1.84 target price.

The analyst assures investors all clinical timelines remain intact, with recruitment in the SOLVE pivotal trial unaffected by the omicron variant.

Target price is $1.84 Current Price is $0.76 Difference: $1.08
If EBR meets the Morgans target it will return approximately 142% (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

Citi rates FBU as Buy (1) -

Despite current headwinds, Citi estimates residential detached construction will remain at capacity for multiple years and has a preference for residential-exposed names.

The broker retains its Buy rating for Fletcher Building - though has a preference for CSR Ltd ((CSR)) - due to a lack of leverage for the former, in evidence in the prior cycle. However, a stronger macro scene should bring on upside surprises.

Citi's target price falls to NZ$7.94 from NZ$8.50 after applying lower relative multiples. The Buy rating has been retained.

Current Price is $6.61. Target price not assessed.

Current consensus price target is $8.40, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Citi rates IPL as Neutral (3) -

Citi strategists have raised fertiliser price forecasts, which flows through to large increases in earnings estimates for Incitec Pivot and a rise in target price to $3.70 from $3.35. The Neutral rating is retained as lower fertiliser prices are anticipated in the near term.

As part of a trading update, management noted the Fertiliser segment profit is being underpinned by favourable farming conditions and value add products. The analyst forecasts dividend increases, on an assumed 50% payout ratio with FY22 estimates up 49%.

Target price is $3.70 Current Price is $3.44 Difference: $0.26
If IPL meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Neutral (3) -

Incitec Pivot's December quarter realised prices compared favourably with September-November market prices, according to Credit Suisse. There is a one month lag in realised pricing. Apart from that, all plants are considered to be operating in-line with expectations.

The analyst notes that while the purchase price for Titanobel appears reasonable, it is immaterial in the scheme of things. It's believed upside may derive from growth in the electronic detonator market, which the company has the technology to supply.

The target price rises to $3.58 from $3.14, while the Neutral rating is unchanged.

Target price is $3.58 Current Price is $3.44 Difference: $0.14
If IPL meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Outperform (1) -

Macquarie notes a solid update from Incitec Pivot from the first quarter should help the market realise current upside risk potential in fertiliser pricing. 

Incitec Pivot noted strong manufacturing performance in the quarter was in line with year-to-date expectations , and prior operating guidance is maintained including for nameplate capacity at the WALA plant despite a potential three week cooler replacement. 

The Outperform rating and target price of $4.10 are retained.

Target price is $4.10 Current Price is $3.44 Difference: $0.66
If IPL meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates IPL as Overweight (1) -

Incitec Pivot's trading update confirmed to Morgan Stanley that plants are operating well and the leverage to strong fertiliser markets is materialising.

The broker thinks operational momentum is here to stay and some significant upgrades to consensus forecasts should be forthcoming.

Morgan Stanley reiterates its Overweight rating. Price target moves to $4.60 from $4.30. Industry view is In-Line. Earnings estimates have been increased.

Target price is $4.60 Current Price is $3.44 Difference: $1.16
If IPL meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Add (1) -

Following a trading update by Incitec Pivot, Morgans makes material upgrades to FY22 forecasts to incorporate higher fertiliser prices, a slightly lower Australian dollar and a weaker US gas price. The Add rating is kept with a view to further potential earnings upgrades.

The analyst considers a solid manufacturing performance and firm fertilser prices were behind the 1Q performance. The target price rises to $3.98 from $3.75.

While the management update was positive for each of the business units, Morgans singles out the Explosives business, which is leveraging its technology offering to grow earnings.

Target price is $3.98 Current Price is $3.44 Difference: $0.54
If IPL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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

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

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

The industry view has been lifted to Attractive. National Australia Bank is rated Equal-weight, with a fresh price target of $28.50 (was $27.90).

This report was released on January 20 (yesterday).

Target price is $28.50 Current Price is $28.70 Difference: minus $0.2 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.58, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates NAB as Accumulate (2) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

The price target has lifted to $31.50 from $31.40 for National Australia Bank. Accumulate.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $31.50 Current Price is $28.70 Difference: $2.8
If NAB meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.58, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates NHF as Neutral (3) -

Citi estimates the postponement of the April 1 price rise of 2.66% will be offset by lower 1H claims for nib Holdings. The Neutral rating and $7.35 target price are unchanged.

Target price is $7.35 Current Price is $6.70 Difference: $0.65
If NHF meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.10, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates NST as Buy (1) -

After the December quarter result was assessed as in-line with expectations (or slightly softer) by Citi, the Buy rating and $12 target price are unchanged.

The broker feels achieving targeted Pogo production (a lift is required) is needed to underpin confidence in the North America strategy and drive a share price re-rating.

Like a few other similarly-located companies, the analyst anticipates challenges will come with opening of borders (now delayed) and covid.

Target price is $12.00 Current Price is $9.73 Difference: $2.27
If NST meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates NST as Outperform (1) -

December quarter production for Northern Star Resources exceeded Credit Suisse estimates. The beat was largely derived from Kalgoorie Consolidated Gold Mines on better ore volumes and grade (as waste was deferred).

The broker reiterates the company is a preferred gold pick and raises its target price to $10.80 from $10.20. Outperform.

Target price is $10.80 Current Price is $9.73 Difference: $1.07
If NST meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates NST as Outperform (1) -

A mixed second quarter for Northern Star Resources, with gold sales a 1% beat on Macquarie's forecast but all in sustaining costs also up 5% on estimates. Stronger realised pricing helped offset softness, and Macquarie increases FY22 earnings per share 1%.

The Pogo operations continue to drag on results, missing the broker's production estimate by -16%, but a strong quarter at the Kalgoorlie Production Centre largely offset weakness with production from the site a 4% beat.

The company maintains sales guidance of 1.55-1.65m ounces at an all in sustaining cost of $1,475-1,575 per ounce driven by a second half weighting, and Macquarie predicts the company will achieve lower end of guidance. 

The Outperform rating and target price of $15.00 are retained.

Target price is $15.00 Current Price is $9.73 Difference: $5.27
If NST meets the Macquarie target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

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

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

Following the release of December-quarter production numbers, which sligtly missed the mark as far as Morgan Stanley's modeling is concerned, the price target for Northern Star has increased to $10.65.

While earnings estimates have declined, today's update also includes mark-to-marking for spot prices.

The broker believes the stock is fairly valued and retains an Equal-weight rating. Industry view is now Attractive versus In-Line late last year.

Target price is $10.65 Current Price is $9.73 Difference: $0.92
If NST meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

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 NST as Buy (1) -

Ord Minnett believes Northern Star delivered a solid performance in Q2, once again highlighting the importance of delivery in the current climate (in reference to the share price).

The broker sees the company as well placed to achieve FY22 guidance. Northern Star is Ord Minnett's favourite pick inside the local large cap gold sector.

Target price has gained 10c to $12.40 as the modeling has rolled forward. Buy rating retained.

Target price is $12.40 Current Price is $9.73 Difference: $2.67
If NST meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates NWL as Outperform (1) -

Credit Suisse upgrades FY22 flow guidance for Netwealth Group to exceed $13.5bn from $12.5bn. This follows 2Q results where flows exceeded both the broker's and consensus estimates.

While upgrading funds under administration (FUA) and flow forecasts, the analyst keeps EPS forecasts largely unchanged due to lower cash allocations and higher expenses. Thus, the target price of $17.80 and Outperform rating are maintained.

Credit Suisse feels management's upgraded flow guidance was conservative.

Target price is $17.80 Current Price is $16.46 Difference: $1.34
If NWL meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.33, suggesting upside of 18.5% (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

Macquarie rates NWL as Outperform (1) -

Netwealth Group has maintained its strong flow momentum according to Macquarie, with the company reporting net inflows for the second quarter of $3.6bn bringing total funds under administration to $56.7bn as of the end of 2021.

The strong result saw Netwealth Group increase its flow guidance by more than $1m and full year funds under administration guidance increase to more than $13.5bn from $12.5bn, with Macquarie forecasting $14.0bn.

Macquarie notes any downside risk to results will be at the cost line, with the company flagging elevated costs in FY22. Earnings per share forecasts increase 0.1%, 3.5% and 2.3% through to FY24.

The Outperform rating is retained and the target price increases to $19.70 from $19.00.

Target price is $19.70 Current Price is $16.46 Difference: $3.24
If NWL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $18.33, suggesting upside of 18.5% (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

Morgans rates NWL as Hold (3) -

In presenting 2Q results, Netwealth Group upgraded funds under administration (FUA) net inflow guidance to $13.5bn from $12.5bn.

Morgans raises FY23 and FY24 forecasts by 2% and 4.8% due to higher flows/FUA and factors-in an improved margin on pooled cash in FY24. The target price rises to $18.25 from $17.60 and the Hold rating is unchanged.

It's estimated an RBA cash rate at 50bps would result in an around 13% EPS upgrade for FY23. The company will report its 1H22 result on 16 February. 

Target price is $18.25 Current Price is $16.46 Difference: $1.79
If NWL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.33, suggesting upside of 18.5% (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

Ord Minnett rates NWL as Buy (1) -

Netwealth's Q2 update yet again showed a strong performance with the company upgrading net flow guidance for the second quarter in a row, points out Ord Minnett.

The broker maintains Netwealth should be positively leveraged to an increasing interest rate cycle, while operational momentum is improving off an already high base.

Only minor adjustments have been made to forecasts. Buy rating retained. Target price unchanged at $19.50.

Target price is $19.50 Current Price is $16.46 Difference: $3.04
If NWL meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.33, suggesting upside of 18.5% (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

Macquarie rates OML as Outperform (1) -

Macquarie notes downside risk to oOh!media's FY21 and FY22 earnings given softer activity in the December half could drive share price weakness in the near term. 

Given high correlation between activity and ad spend, the broker notes soft results have encouraged a -6% decrease to its 2021 revenue expectations.

While key segments returning to pre-covid levels could offer more than 80% upside to earnings, earnings per share forecasts are updated -169%, -38% and 16% through to 2023. 

The Outperform rating is retained and the target price increases to $2.10 from $1.52.

Target price is $2.10 Current Price is $1.76 Difference: $0.34
If OML meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in December.

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 QAN as Outperform (1) -

Omicron spread has impacted Qantas Airways' domestic recovery, with the company lowering third quarter guidance for domestic travel capacity to 70% of pre-covid levels, down from 102%, but retained an expected 117% fourth quarter capacity as noted by Macquarie.

The broker is now forecasting a -$297m first half underlying earnings loss. Full year underlying earnings forecasts decrease -75%, -5% and -4% for FY22, FY23 and FY24. 

The Outperform rating and target price of $6.10 are retained.

Target price is $6.10 Current Price is $5.04 Difference: $1.06
If QAN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.00, suggesting upside of 22.7% (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

Citi rates RSG as Neutral (3) -

To lift the share price, Citi believes Resolute Mining will need to deliver on a range of guided production metrics to lift margins, particularly at the Syama mine.

Meanwhile, the broker's concerns over sufficient cash levels drives a target price fall to $0.45 from $0.60.

December quarter gold production improved 5% quarter-on-quarter and costs were down -4%.

Target price is $0.45 Current Price is $0.36 Difference: $0.09
If RSG meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 0.5

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

Macquarie rates RSG as Outperform (1) -

Weakness from the Syama mine due to unplanned maintenance and power outages was offset by positive cost results and a strong 25% production beat at the Mako site, resulting in a mixed bag fourth quarter result for Resolute Mining according to Macquarie. 

The broker notes guidance for 2022 appears soft, with Resolute Mining's guidance of 345,000 ounces a -7% miss on forecast and all in sustaining costs of $1,425 per ounce a -25% miss. Earnings per share forecasts decrease -35% in FY21 and -63% in FY22. 

The Outperform rating is retained and the target price decreases to $0.45 from $0.70.

Target price is $0.45 Current Price is $0.36 Difference: $0.09
If RSG meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 0.5

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

Citi rates SFR as Buy (1) -

December quarter results revealed another strong showing from De Grussa (12% beat versus Citi) for ore mined and milled. The broker reiterates that Sandfire Resources is an alternate way to play the copper thematic on the local exchange.

While production guidance was unchanged, FY22 cost guidance rose due to higher diesel/power and shipping costs. The Buy rating and target price of $7.40 are retained. 

Target price is $7.40 Current Price is $7.37 Difference: $0.03
If SFR meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 3.8% (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 SFR as Neutral (3) -

Higher throughput at DeGrussa than Credit Suisse forecast drove a beat on 2Q production, while gold production was in-line though ahead of consensus estimates. However, Sandfire Resources expects lower 2H production to push up unit costs.

The broker lowers its target price to $7.35 from $7.60, while maintaining the Neutral rating.

Management advised the Motheo project is “on time and on budget”.

Target price is $7.35 Current Price is $7.37 Difference: minus $0.02 (current price is over target).
If SFR meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.14, suggesting upside of 3.8% (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 SFR as No Rating (-1) -

Stronger copper output offset higher cash costs in the second quarter for Sandfire Resources, and Macquarie notes the company has upgraded cash cost guidance 10% for the DeGrussa project given ongoing elevated transport costs. 

Copper and gold production for the quarter were 14% and 1% over estimates respectively, but cash cost guidance has driven a -7% decrease in Macquarie's earnings forecasts for FY22 and -8% for FY23. 

The broker is currently on research restriction for Sandfire Resources.

Current Price is $7.37. Target price not assessed.

Current consensus price target is $7.14, suggesting upside of 3.8% (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

Morgan Stanley rates SFR as Overweight (1) -

Sandfire Resources' December-quarter production update has triggered increased forecasts at Morgan Stanley, which has pushed up the broker's target price to $7.65 from $6.60.

Overall, volumes were stronger than forecast while costs proved lower, even though cost guidance has been lifted by 10%.

Overweight rating retained. Industry view: Attractive.

Target price is $7.65 Current Price is $7.37 Difference: $0.28
If SFR meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.14, suggesting upside of 3.8% (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 SFR as Downgrade to Sell from Hold (5) -

It appears while production volumes for Q4 were higher-than-anticipated, Sandfire Resources' market update did disappoint through higher-than-expected costs.

Nevertheless, Ord Minnett's price target lifts to $5.60 from $5.50. But the rating is downgraded to Sell from Hold on the back of a rallying share price.

Target price is $5.60 Current Price is $7.37 Difference: minus $1.77 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.14, suggesting upside of 3.8% (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 SRL as Neutral (3) -

Sunrise Energy Metals has reported results from the first two diamond drill holes at its Sunrise East project and further drilling is planned, while the Phoenix Platinum project revealed lower grade platinum intercepts from phase 2.

Macquarie notes drilling at both sites offers upside risk to forecasts. The company's nickel-cobalt-scandium greenfield project remains development ready and recent finance support from Export Finance Australia derisks the funding process.

The Neutral rating and target price of $2.20 are retained.

Target price is $2.20 Current Price is $2.15 Difference: $0.05
If SRL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates STO as Neutral (3) -

While 4Q21 production from Santos was in-line with Citi's expectations (and an 8% beat on the consensus forecast), revenue was a 6% beat versus the broker. This was due to Darwin LNG being able to sell into the spot market after legacy contracts expired.

The broker maintains its Neutral rating and $7.07 target price. Management guidance was a 1% beat versus Citi's forecast for production, and in-line for sales.

Target price is $7.07 Current Price is $7.26 Difference: minus $0.19 (current price is over target).
If STO meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.93, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates STO as Outperform (1) -

Santos delivered solid fourth quarter results against a backdrop of improving pricing for both oil and LNG according to Macquarie. 

Expecting the company to issue 2022 guidance in the coming month, Macquarie forecasts production growth of 33% given Santos' current growth phase following a trio of acquisitions and global underinvestment.

Earnings per share estimates upgraded 13%, -2% and 22% through to FY22.

The Outperform rating is retained and the target price increases to $9.40. 

Target price is $9.40 Current Price is $7.26 Difference: $2.14
If STO meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $8.93, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates STO as Overweight (1) -

Underlying, meaning: ex-Oil Search, Santos' Q4 performance was in-line, comment analysts at Morgan Stanley. While the Cooper Basin continues to underperform against historical guidance, the broker sees a potential share price catalyst stemming from asset sales.

Updated modeling now includes higher LNG prices.

Price target remains at $10.40 (last update only two days ago). Overweight. Industry view Attractive.

Target price is $10.40 Current Price is $7.26 Difference: $3.14
If STO meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $8.93, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates STO as Add (1) -

Morgans notes 4Q production and sales revenue for Santos beat consensus estimates. Strong production performances from the WA business and Darwin LNG outweighed misses at both PNG and the Cooper Basin.

The analyst explains that while group sales revenue was a beat, the company is less exposed to spot prices (large fixed-price gas business in WA) than peer Woodside Petroleum ((WPL)).

Morgans maintains its Add rating and suggests a large share price discount still exists with the potential for many positive catalysts in 2022. The target price rises to $9.15 from $8.65.

Target price is $9.15 Current Price is $7.26 Difference: $1.89
If STO meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $8.93, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in December.

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 STO as Buy (1) -

Ord Minnett believes Santos released a strong December-quarter production report and the broker has rewarded the company with an increase in price target; to $9.35 from $9.20.

Part of the positive view can be explained by the expectation that Santos is considering asset sales, which could both deleverage the balance sheet and crystallise value, comments the broker.

Buy rating retained.

Target price is $9.35 Current Price is $7.26 Difference: $2.09
If STO meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $8.93, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates VRT as Downgrade to Hold from Add (3) -

Virtus Health is in receipt of a non-binding bid from CapVest to acquire 100% of the company by way of a scheme of arrangement for $7.60/share.

Morgans sets the target price at the bid price, up from $7.13, lowers its rating to Hold from Add and provides little in the way of commentary.

Target price is $7.60 Current Price is $7.20 Difference: $0.4
If VRT meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.07, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Morgan Stanley has issued a 72 pager on Australian banks, expressing the view the banks, as a group, might well outperform the broader share market in 2022 "against a backdrop of higher rates".

In support of its thesis, the broker notes credit quality should prove resilient, while the outlook for margins is positive and loan growth expectations are "reasonable".

The industry view has been lifted to Attractive. Westpac's price target has declined to $22.70 from $24.80. Equal-weight rating retained.

This report was released on January 20 (yesterday).

Target price is $22.70 Current Price is $21.11 Difference: $1.59
If WBC meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $25.78, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett has drawn the conclusion that the economic backdrop in Australia remains supportive of the Australian banking sector, and has thus upgraded ANZ Bank to Accumulate from Hold.

Against the general trend, the price target for Westpac has declined to $23.30 from $24.50. Hold.

The broker's sector ranking, in order of preference, is NAB on top, followed by ANZ Bank, Macquarie Group, Bank of Queensland, Westpac, Bendalaide Bank and CommBank least preferred.

Target price is $23.30 Current Price is $21.11 Difference: $2.19
If WBC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.78, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates WPL as Neutral (3) -

Citi maintains a Neutral rating and raises its target price marginally for Woodside Petroleum to $23.82 from $23.49. This follows a slight miss on 4Q production though sales and revenue were a beat versus the broker's expectations.

Management issued new 2022 guidance, with total production of 95mmboe (mid-point) a 2% beat versus Citi's forecast and a 3% beat over consensus estimates.

Target price is $23.82 Current Price is $25.81 Difference: minus $1.99 (current price is over target).
If WPL meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Macquarie rates WPL as Neutral (3) -

Off the back of fourth quarter forecast beats in both production and revenue, Woodside Petroleum is guiding to high capital expenditure of US$3.8-4.2bn in 2022. Macquarie expects capital will support front end phasing as both Senegal and Scarborough ramp up.

Given higher operating costs the broker reduces earnings per share -14% in FY21, but increases forecasts 8%, 17% and 32% for FY22, FY23 and FY24. 

The Neutral rating is retained and the target price increases to $27.95 from $24.00. 

Target price is $27.95 Current Price is $25.81 Difference: $2.14
If WPL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Morgan Stanley rates WPL as No Rating (-1) -

Woodside Petroleum's trading performance during the December quarter seems to have surprised to the upside with Morgan Stanley expressing the view this might well remain the trend in 2022 as spot gas prices look buoyant and might remain high.

Production guidance of 92-98mmboe was also provided which compares with the broker's 92mmboe estimate. Earnings estimates have been lifted.

The broker remains restricted on providing a rating and a target price estimate.

Current Price is $25.81. Target price not assessed.

Current consensus price target is $27.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Morgans rates WPL as Add (1) -

Woodside Petroleum's 4Q sales and 2022 guidance came in ahead of Morgans expectations. After allowing for this result and inputting the broker's higher forecast oil price, the target price rises to $30.55 from $29.95. Outperform.

The analyst now assumes a 50% payout (was 80%) though this is now applied to increased earnings and will result in a similar sized final dividend of US$0.638ps.

Target price is $30.55 Current Price is $25.81 Difference: $4.74
If WPL meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $27.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

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

It is Ord Minnett's assessment that Woodside Petroleum's December-quarter production report was a strong one, including a record quarterly revenue.

The broker remains under research restriction but notes elevated LNG spot prices are continuing into the start of 2022. This opens up potential for further upside in the near term, as well as potential for consensus earnings upgrades.

Current Price is $25.81. Target price not assessed.

Current consensus price target is $27.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Macquarie rates Z1P as Underperform (5) -

Despite the second quarter being traditionally stronger, Zip Co's momentum in the US continued to slow with 700,000 new customers adds compared to 915,000 in the previous corresponding period. Macquarie notes US region revenue was -$10m below forecasts. 

The Australia & New Zealand region achieved 18% quarter-on-quarter revenue growth following an increase to account fees and limits. Earnings per share forecasts decrease -10%, -36% and -125% through to FY25, before positive earnings are projected to be achieved in FY25. 

The Underperform rating is retained and the target price decreases to $3.40 from $5.70.

Target price is $3.40 Current Price is $3.61 Difference: minus $0.21 (current price is over target).
If Z1P meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.60, suggesting upside of 68.1% (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 Z1P as Accumulate (2) -

A weaker-than-expected recent quarterly performance has led to Ord Minnett reducing forecasts with sales estimates falling by -4-7%.

The broker's forecasts now assume deeper losses for the years ahead.

In addition, technology stocks are de-rating and this too has had an impact on the broker's valuation modeling.

Price target tumbles to $6 from $9.50. Accumulate rating retained.

Target price is $6.00 Current Price is $3.61 Difference: $2.39
If Z1P meets the Ord Minnett target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting upside of 68.1% (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