Australian Broker Call

Ord Minnett rates A2M as Upgrade to Hold from Lighten (3) -

Ahead of the first half results on February 25 Ord Minnett upgrades to Hold from Lighten and raises the target to $10.30 from $9.90. The broker expects operating earnings of NZ$182.6m, down -30.6%.

The company faces challenges such as a recovery in daigou amid excess inventory, and the timing of a resolution is unclear. Following recent share price weakness, some valuation support is emerging, the broker argues, and this makes the risk/reward argument more balanced, in the broker's view.

Target price is $10.30 Current Price is $10.35 Difference: minus $0.05 (current price is over target).
If A2M 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 $12.17, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Ord Minnett rates ABP as Hold (3) -

First half results were slightly ahead of Ord Minnett's forecast. No guidance was provided, although management expects second half earnings per security will be in line with the first half.

Ord Minnett considers the stock attractively priced but lacking catalysts and maintains a Hold rating. Target rises to $3.10 from $3.00.

Target price is $3.10 Current Price is $2.66 Difference: $0.44
If ABP meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates ALD as Neutral (3) -

Ampol’s (replacement cost operating profit) NPAT of $212m was in line with the consensus estimate of $221m, and slightly ahead of Citi’s $195m.

In its early response, Citi notes that management have flagged difficult operating conditions in 2021, including increased competition in QLD wholesale supply, and lower jet fuel demand (ALD is over-indexed to international) and domestic demand more broadly.

Citi also notes the impacts of an appreciating Australian dollar, with an increase to 0.79 from 0.69 impacting finance and insurance (F&I) earnings by more than $40m.

Ampol have also reiterated 2024 earnings (EBIT) uplift of $185m by 2024 vs 2019 levels, which Citi takes as suggesting optimism on the long earnings outlook despite the 2021 competition and AUD headwinds.

Neutral rating retained. Target price reduces to $31.11 from $34.

Target price is $31.11 Current Price is $26.49 Difference: $4.62
If ALD meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $31.33, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates ALD as Hold (3) -

Ampol’s FY20 replacement cost of sales operating profit (RCOP) net profit of $212m was in-line-to-slightly-below Ord Minnett's forecast of $214m and the company declared a fully franked final dividend of 23cps (above the broker’s expected 21cps).

At first glance, the broker notes the reiterated target earnings (EBIT) uplift of $195m by 2024, with FY21 being negatively impacted by around -$40m due to higher spot AUDUSD versus FY20 and Australian fuel volumes.

Hold rating and target price of $30.00 are unchanged.

Target price is $30.00 Current Price is $26.49 Difference: $3.51
If ALD meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $31.33, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates ANZ as Outperform (1) -

In a review of the bank sector, Macquarie expects banks to continue to re-rate though medium-term challenges will likely limit the upside. First quarter performance was underpinned by low (or negative) impairment charges, leading to around 10-25% upgrades.

Underlying results were also generally better than expected as banks surprised on margins and the broker expects deposit pricing to provide further upside risk to margins. However, looking beyond FY21, the impact of low rates and competition are expected to remain.

A key standout for Macquarie in the reporting season was a material improvement in banks’ CET1 ratios, providing the broker with more confidence to raise dividend expectations across the sector. 

Macquarie raises the ANZ Bank (its preferred bank in the sector) price target to $28.50 from $26 due to a negative impairment charge (as a result of provision writebacks - larger than peers), improved margins, solid volume growth and well-managed expenses. 

Target price is $28.50 Current Price is $26.61 Difference: $1.89
If ANZ meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $28.34, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates APX as Buy (1) -

Appen is scheduled to report interim results on Wednesday this week, but Citi has already lowered its forecasts and its price target to $30.90 from $32.60.

The Buy rating has been retained.

The broker believes market consensus forecasts are due for a reset lower, if only because of the strong Aussie dollar.

Target price is $30.90 Current Price is $21.60 Difference: $9.3
If APX meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $26.68, suggesting upside of 29.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates ASB as Neutral (3) -

Austal will report the first-half result on 26 February and Credit Suisse expects revenue to be down -9% to $943m and below consensus. Operating income is forecast to be $62m.

Some margin expansion is expected due to continued momentum in the Australasian shipbuilding business and improvement in the US shipbuilding industry. No change to FY21 guidance is expected.

Neutral rating and a target of $2.70.

Target price is $2.70 Current Price is $2.50 Difference: $0.2
If ASB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 45.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates AWC as Underperform (5) -

General sector update. No changes made to forecasts for Alumina Ltd though Macquarie remains cautious on alumina exposure. Target $1.50. Rating Underperform.

Target price is $1.50 Current Price is $1.68 Difference: minus $0.18 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.98, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 BHP as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Another theme highlighted by the broker is trade data showing that more Australian coal is flowing to ex-China markets, particularly to India, where coking coal import growth has far outpaced that of pig iron production, pointing to some inventory building.

BHP Group's first half result was seen as mixed by the broker, with weaker earnings offset by stronger cash flow and a higher interim
dividend. The currency is putting pressure on costs and capex though this is considered far outweighed by strong commodity prices.

Outperform and $50 target retained.

Target price is $50.00 Current Price is $47.32 Difference: $2.68
If BHP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $47.18, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Ord Minnett rates BRG as Hold (3) -

First half net profit was ahead of forecasts. The result was supported by strong top-line growth, the first half boosted by sales as a result of working from home.

Ord Minnett observes significant growth ahead through geographic expansion, new products and bolt-on acquisitions. Nevertheless, this appears fully Incorporated in the valuation and the broker retains a Hold rating. Target is raised to $28 and $24.

Target price is $28.00 Current Price is $30.20 Difference: minus $2.2 (current price is over target).
If BRG meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.93, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates BSL as Outperform (1) -

BlueScope Steel's first-half results were in line with pre-release numbers, reveals a preliminary analysis, with net profit at $332.8m falling slightly short of Macquarie's expected $338.6m.

In the second half, operating income is guided to $750-830m versus Macquarie's $653.5m. The guidance assumes average US mini-mill spreads will be circa USD340/t higher half on half in the second half.

While the outlook is positive, management still points to uncertainty in the market environment, reports the broker. Outperform maintained with a target of $21.60.

Target price is $21.60 Current Price is $17.28 Difference: $4.32
If BSL meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $20.56, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates BSL as Accumulate (2) -

In an initial assessment of BlueScope Steel's first half result, operating income from North Star appears to be in line with Ord Minnett's forecast while it was softer than expected from Australian Steel Products (ASP). A 6c dividend was declared.

For the second half, operating income guidance of $750-830m is below Ord Minnett's $897m while on projects, there is no change to the North Star expansion timing or budget. The guidance is softer than expected.

Accumulate maintained with a target of $23.

Target price is $23.00 Current Price is $17.28 Difference: $5.72
If BSL meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $20.56, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates CBA as Underperform (5) -

In a review of the bank sector, Macquarie expects banks to continue to re-rate though medium-term challenges will likely limit the upside. First quarter performance was underpinned by low (or negative) impairment charges, leading to around 10-25% upgrades.

Underlying results were also generally better than expected as banks surprised on margins and the broker expects deposit pricing to provide further upside risk to margins. However, looking beyond FY21  the impact of low rates and competition are expected to remain.

A key standout for Macquarie in the reporting season was a material improvement in banks’ CET1 ratios, providing the broker with more confidence to raise dividend expectations across the sector. 

The Commonwealth Bank announced a dividend of $1.50, which was below Macquarie's expectations. As management has guided for a payout ratio of around 70-80% on a full-year basis, the broker sees scope for a $2.00 dividend at year-end.

The Underperform rating and $80 target are unchanged and Macquarie adjudges the bank as the least preferred of the majors.

Target price is $80.00 Current Price is $82.51 Difference: minus $2.51 (current price is over target).
If CBA 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 $80.50, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Citi rates CGC as Neutral (3) -

Due to better pricing in both citrus and avocado categories, which saw 2H20 earnings (EBITDA) more than treble, Costa Group reported FY20 earnings (EBITDA) of $145m, up 47% (ex-lease accounting), and ahead of consensus.

In an initial response, Citi comments the company generated good cash flow and declared a full-year total dividend of 9 cents per share, up 64%.

Costa Group has not provided any earnings guidance for FY21, but noted that demand and pricing have remained strong so far this year.

Citi is forecasting FY21 earnings (EBITDA) of $171m, and notes the balance sheet is well positioned to grow scale in citrus and develop new growing techniques in avocados, plus support bolt-on acquisitions.

Neutral and $4.30 target remain unchanged.

Target price is $4.30 Current Price is $4.01 Difference: $0.29
If CGC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.74, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates CIA as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Champion Iron is one of the preferred small caps in the space. Outperform and $6 target retained.

Target price is $6.00 Current Price is $5.27 Difference: $0.73
If CIA meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in CAD. 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 COH as Downgrade to Sell from Neutral (5) -

First half underlying net profit was well ahead of Citi's estimates. While growth is expected to return in developed markets the broker suspects a recovery in emerging markets outside of China will take some time.

The company remains in a good position to gain market share in both implants and acoustics. Over the longer term, earnings growth will be dependent on market growth and Citi expects Cochlear will reinvest in expanding the market and maintain a net profit margin of 18%.

Rating is downgraded to Sell from Neutral on valuation. Target is steady at $200.

Target price is $200.00 Current Price is $221.68 Difference: minus $21.68 (current price is over target).
If COH meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates COH as Neutral (3) -

With strong recovery seen across all businesses in the second quarter, Credit Suisse notes Cochlear's first half net profit at $125m was 20% above the broker's estimate.

Management has guided to net profit of $225-245m assuming a skew towards the first half. Cochlear expects the second half to be impacted by elective surgery restrictions in January and February, a slower recovery of the emerging markets and higher operating expenses.

Also, the broker highlights Cochlear's first half result indicated significant market share gains in terms of Cochlear implant unit sales. These share gains are sustainable in the broker's view and will support stronger earnings growth into the medium term.

Neutral rating and target raised to $230 from $220.  

Target price is $230.00 Current Price is $221.68 Difference: $8.32
If COH meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates COH as Outperform (1) -

While first half gross profit was in-line with Macquarie's expectation, earnings and net profit were substantially ahead due to lower than expected operating expenses. The broker now expects above-industry revenue growth over the forecast period.

Improved activity trends were recorded, with sequential quarterly improvement in Cochlear Implant (CI) units and Services revenue.
In Developed Markets, surgeries have progressed across all age groups with recovery in the new patient pipeline, explains the analyst.

Macquarie highlights FY21 management guidance assumes flat CI unit sales in Developed Markets reflecting more recent lock-downs in Europe/certain US regions and a gradual improvement in Emerging Markets.

Outperform rating and target increases to $245 from $241.

Target price is $245.00 Current Price is $221.68 Difference: $23.32
If COH meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates COH as Overweight (1) -

Cochlear's first-half result was a strong beat to Morgan Stanley's estimates with revenue, operating income and net profit all ahead of the broker's forecasts. The dividend was reinstated.

Management has guided to a net profit of $225-245m, implying a slowdown in the second half to $100-120m. The broker lifts net profit expectations for FY21 to $246m.

Overweight retained with the target rising to $227 from $214. Industry view: In-line.

Target price is $227.00 Current Price is $221.68 Difference: $5.32
If COH meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates COH as Hold (3) -

First half results were better than Morgans expected, with a favourable mix shift and surgeries recovering to varying degrees following covid shutdowns across key regions.

While Cochlear Implants (CI) fell -8% and differed across geographies, it improved sequentially with a similar pattern seen in the Services and Acoustics divisions, explains the broker.

The analyst considers an emerging market recovery is likely to be protracted, the trajectory of covid uncertain and guidance suggests a flat or down second half profit.

Hold rating and target is increased to $201.1 from $195.3.

Target price is $201.10 Current Price is $221.68 Difference: minus $20.58 (current price is over target).
If COH meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates COH as Hold (3) -

First half net profit was ahead of forecasts, largely because of lower operating expenses. The dividend has been reinstated, representing a 60% pay-out ratio, and ahead of forecasts. Volumes have returned almost to pre-pandemic levels across most developed markets.

Given an unmet need for hearing implants and the dominant position of Cochlear, Ord Minnett is confident enough to forecast consistent low double-digital earnings growth well into the future. Hold maintained. Target rises to $216 from $200.

Target price is $216.00 Current Price is $221.68 Difference: minus $5.68 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates COH as Sell (5) -

First half net profit was well ahead of UBS estimates. The broker calculates geographic mix has added around 10% to system revenue growth.

Operating costs were also well below forecasts and a higher dividend payout-out signals confidence in the sustainability of the recovery.

UBS retains a Sell rating on valuation grounds and raises the target to $185 from $175. Sustained cochlear implant unit sales growth of 7% is assumed with processor upgrade penetration of around 55%.

Target price is $185.00 Current Price is $221.68 Difference: minus $36.68 (current price is over target).
If COH meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $214.87, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates CRN as Outperform (1) -

General sector update. Minimal changes made to forecasts though Macquarie remains cautious on thermal coal exposure. Target $1.50. Rating Outperform.

Target price is $1.50 Current Price is $1.24 Difference: $0.26
If CRN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Citi rates CWY as Buy (1) -

Despite persistent Covid-uncertainty and headwinds, Citi believes that given the rational pricing and consolidation continuing to play out across the industry, Cleanaway Waste management is well-positioned to make strategic acquisitions (net debt to EBITDA 1.74x) and acquire growth, despite lower industry volumes.

Citi expects cost control and synergies to provide a buffer for (EBITDA) margins in the face of slower revenue growth.

The broker is forecasting 2H21 earnings (EBITDA) growth of 4.2% and overall FY21 earnings (EBITDA) of $534 million, moderately higher than FY20 and consistent with company guidance.

Buy rating and $2.55 target retained.

Target price is $2.55 Current Price is $2.26 Difference: $0.29
If CWY meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates CWY as Neutral (3) -

Cleanaway Waste Management's first-half numbers were "solid", observes Credit Suisse with an in-line revenue and the industrial & waste services and liquid waste & health services divisions meeting their medium-term margin targets. The guidance for FY21 remains intact.

The broker has cut its FY21 operating income by -3% to $533m mainly driven by slower expected top-line growth and lower anticipated margin in solid waste services in the second half.

Credit Suisse maintains its Neutral rating with the target falling to $2.30 from $2.45.

Target price is $2.30 Current Price is $2.26 Difference: $0.04
If CWY meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates CWY as Neutral (3) -

While Cleanaway Waste Management's first half results missed Macquarie's estimates slightly, it was regarded as a solid performance in the context of market conditions. Margins in Industrial and Waste Services and Liquid and Health Service were considered key standouts.

Management remains confident that FY21 Underlying earnings (EBITDA) will be “moderately higher” than in FY20, while simultaneously pointing to continuing uncertainty in the trading environment, more evident in some regions and industries than others.

Neutral rating and target falls to $2.50 from $2.55.  

Target price is $2.50 Current Price is $2.26 Difference: $0.24
If CWY meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgans rates CWY as Hold (3) -

First half profit showed earnings (EBITDA) rising by 3%, with Solid Waste Services (92% of earnings) the key due to operating leverage and earnings growth (supported by acquisitions).

The broker highlights operating cash flow increased 29%, with the earnings growth enhanced by lower remediation spend, taxes paid and underlying adjustments.

Management is confident of moderately higher FY21 earnings than FY20 and declared an interim dividend of 2.25 cents.

Hold rating and target is increased to $2.37 from $2.33.

Target price is $2.37 Current Price is $2.26 Difference: $0.11
If CWY meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates CWY as Neutral (3) -

First half results were in line with expectations. New municipal contract wins have offset pandemic-related weakness in small-medium business.

FY21 guidance is unchanged, with moderate operating earnings growth expected. UBS forecasts FY21 EBITDA of $530m. The business benefited from reduced staff turnover, shorter truck trips and reduced overtime.

Management expects some of the costs will return over time but this will not result in a net drag on margins. Neutral rating and $2.35 target retained.

Target price is $2.35 Current Price is $2.26 Difference: $0.09
If CWY meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates DBI as Initiation of coverage with Outperform (1) -

Credit Suisse initiates coverage on Dalrymple Bay Infrastructure with an Outperform rating and a target price of $2.50.

According to the broker's analysis, Dalrymple Bay Infrastructure is a low-risk infrastructure business that is likely moving to a "lighter touch" regulatory structure which may lead to higher financial returns.

Further, the Dalrymple Bay Terminal (DBT) is the largest met coal terminal in Queensland with low revenue risk due to take-or-pay contracts until June 2028.

Lastly, the broker points out Dalrymple Bay Infrastructure has low operating risk since terminal operations are handled by a company owned by customers with straight revenue/cost pass-through.

Target price is $2.50 Current Price is $2.07 Difference: $0.43
If DBI meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates DRR as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Deterra Royalties is one of the preferred small caps in the space. Outperform and $5.50 target retained.

Target price is $5.50 Current Price is $4.61 Difference: $0.89
If DRR meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates ECX as Outperform (1) -

A first quarter trading update revealed “all lines generally tracking to, or above, expectations” with end of lease (EOL) income an outlier and material outperformer, highlights Macquarie.

The EOL outperformance is being driven by used car pricing, caused in part by significant delays in new vehicle supply, explains the broker. Management expects EOL income to return to more sustainable levels from the end of June 2021.

The analysts highlight despite the vehicle supply issues, the company still achieved quarter on quarter growth in both Corporate and Novated new business writings.

Outperform retained and target rises to $2.41 from $2.22.

Target price is $2.41 Current Price is $2.18 Difference: $0.23
If ECX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates ECX as Overweight (1) -

Morgan Stanley notes the supply constraints that affected new business writings growth in the first quarter are temporary and there is evidence of organic demand growth with more tailwinds to follow from deferred demand.

No guidance was provided for FY21 guidance but Morgan Stanley notes the group is tracking well to net profit expectations. Believing the end of lease profitability can remain higher for longer, the broker increases its FY21 net profit estimate by 7%.  

Overweight rating is maintained with the target rising to $2.60 from $2.10. Industry view: In-line.

Target price is $2.60 Current Price is $2.18 Difference: $0.42
If ECX meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates ECX as Buy (1) -

At the AGM the company's signalled a strong first quarter, with all business lines keeping up with expectations. The strength in the used car market meant end-of-lease profits materially outperformed.

Cash flow has been strong and net debt has reduced to $79m in the first quarter. Capital management is expected in FY22 because of a low franking balance.

UBS acknowledges material upside risks exist and considers the multiple undemanding. Buy rating and $2.20 target maintained.

Target price is $2.20 Current Price is $2.18 Difference: $0.02
If ECX meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates EVT as Upgrade to Buy from Sell (1) -

Citi has upgraded Event Hospitality to Buy from Sell in the wake of the first half results. The broker's price target has lifted to $12.25 from $9.20.

Citi's upgrade is based upon the premise that core operations will start recovering from here onwards, from a low base, plus value shall be unlocked through the -$250m property divestment program.

As no buyer was found for the German cinemas, Citi was forced to include these operations back into estimates, which has depressed forward numbers as these operations remain loss-making.

Dividends have been scrapped for both FY21 and FY22.

Target price is $12.25 Current Price is $10.40 Difference: $1.85
If EVT meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates EVT as Buy (1) -

The interim result revealed a better-than-expected net loss but remains indicative of a company under pressure, Ord Minnett notes.

Nevertheless, costs have been removed aggressively and around $250m in non-core property assets will be sold to alleviate gearing concerns.

Ord Minnett now believes the business is well-positioned to leverage a gradual easing of the pandemic and retains a Buy rating. Target rises to $13.02 from $10.86.

Target price is $13.02 Current Price is $10.40 Difference: $2.62
If EVT meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates FCL as Buy (1) -

Citi believes Fineos Corp is well-placed to grow penetration in the life, accident & health insurance industry, expecting around 20% growth in operating earnings over the next five years.

The company reports its first half result on February 24 and Citi retains a Buy rating with a $4.60 target. The broker lowers FY22-23 estimates by -10% to reflect delays in gaining new customers.

Target price is $4.60 Current Price is $3.77 Difference: $0.83
If FCL meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Credit Suisse rates FLT as Neutral (3) -

Credit Suisse expects Flight Centre to confirm "ample" liquidity for 2021. The broker also does not expect any material change in revenue or cash burn since the last update in September.

With persisting uncertainty in speed and strength of a travel rebound, the broker states its base case involves Flight Centre returning to 80% of FY19 profit before tax in FY23. 

A Neutral rating is retained with the target declining slightly to $15.04 from $15.29.

Target price is $15.04 Current Price is $14.55 Difference: $0.49
If FLT meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.97, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates FMG as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Fortescue Metal Group's first half result was in-line with Macquarie's expectations with the interim dividend 7% higher than forecast. The payout ratio going forward has been confirmed at 80%, while the capex is increased at Iron Bridge to -US$3.0bn.

Outperform rating and $26.50 target retained. The broker prefers the company in the large-cap bulk commodity space.

Target price is $26.50 Current Price is $23.97 Difference: $2.53
If FMG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $23.38, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Citi rates GMG as Buy (1) -

First half operating earnings were ahead of expectations. FY21 guidance has been upgraded to 12% growth but Citi suspects this may be conservative.

Structural tailwinds for industrial property have accelerated since the outbreak of coronavirus and are likely to drive upside for earnings and asset values.

While acknowledging the sentiment risk from higher bond yields Citi remains attracted to the stock and reiterates a Buy rating. Target is raised to $21.00 from $20.50.

Target price is $21.00 Current Price is $17.22 Difference: $3.78
If GMG meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates GMG as Upgrade to Outperform from Neutral (1) -

Credit Suisse upgrades Goodman Group to Outperform from Neutral with the target price falling to $19.62 from $19.84.

While Credit Suisse had expected Goodman Group to upgrade its guidance for FY21, the upgrade (12% growth in net profit versus 9%) exceeded the broker's pre-result expectations.

Earnings for the half were up 14.9% year on year and above the broker's expected 30.5c. Development income was also more than expected while management income was flat versus last year and investment income was down -8%. 

Funds under management growth were modest in the half due to asset sales, highlights the broker, but Credit Suisse expects this to resume.

Target price is $19.62 Current Price is $17.22 Difference: $2.4
If GMG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates GMG as Upgrade to Outperform from Neutral (1) -

Goodman's FY21 first-half result romped in 9% ahead of consensus, and 13% ahead of Macquarie.

Management upgraded FY21 guidance to rise 12%, compared with 9% previously.

Growth in working in progress and production helped the company hit its full-year target in September and management points to a strong, imminent pipeline.

Macquarie estimates that this could yield a three-year compound average growth rate of 17%.The broker expects EPS will be no less than 10% between FY21 and FY24 for this business

It also expects the funds management platform to yield returns in the mid-teens in FY21,

EPS are raise 1.5% in FY21, 4.1% for FY22, and 4.5% for FY23.

Target price rises 9% to $20.39. Broker upgrades to Outperform from Neutral.

Target price is $20.39 Current Price is $17.22 Difference: $3.17
If GMG meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates GMG as Overweight (1) -

Goodman Group reported first-half earnings of 33.1c, ahead of Morgan Stanley's estimated 31.7cps with the beat driven by strong development income. On the flip side, the broker notes assets under management look soft at the headline level.

FY21 guidance points to earnings per share growth of 12% and has led the broker to revise its FY21 forecast to 65c, up 13%.

Overweight rating with a target of $20.90. In-Line industry view.

Target price is $20.90 Current Price is $17.22 Difference: $3.68
If GMG meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

First half operating profit was well ahead of Ord Minnett's forecast. Development volumes have doubled over the past year and strong margins have been maintained.

Development revenue rose 32% and was well ahead of forecasts. The company remains a beneficiary of exceptionally strong demand for industrial property.

Ord Minnett considers the prospective 23x PE multiple and double-digital earnings growth attractive and upgrades to Buy from Hold. Target is raised to $20 from $19.

Target price is $20.00 Current Price is $17.22 Difference: $2.78
If GMG meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates GMG as Neutral (3) -

First half operating earnings were materially ahead of UBS estimates. The broker notes earnings guidance has been raised to 12% growth, which all sounds "very familiar to previous GMG results".

New items include strong development earnings, 32% above the previous peak and 44% of operating earnings from Europe. The broker considers the news is factored into the share price and retains a Neutral rating. Target is reduced to $18.70 from $19.00.

Target price is $18.70 Current Price is $17.22 Difference: $1.48
If GMG meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates HPI as Accumulate (2) -

First half results were ahead of Ord Minnett's forecast. The broker notes the impact of the pandemic on rent has been limited and the portfolio remains in good shape, with 100% hotel occupancy and a long 10.8-year WALE.

The stock offers around a 6.5% distribution yield, compared with the sector at 6%, underpinned by a secure income stream. Accumulate rating and $3.60 target maintained.

Target price is $3.60 Current Price is $3.00 Difference: $0.6
If HPI meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates HUM as Neutral (3) -

In Credit Suisse's view, Humm Group continues to be valued by the market on the assumption the group will not be one of the ultimate winners in the buy now pay later sector.

It looks like the market places more value on the growth generated by peers rather than Humm's existing profitable BNPL operations, adds the broker.

While Humm's recent updates have been positive, Credit Suisse believes until BNPL top-line growth turns consistently positive, it will remain hard to gain conviction in the outlook. 

Neutral rating retained. Target rises to $1.40 from $1.36.

Target price is $1.40 Current Price is $1.27 Difference: $0.13
If HUM meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates ILU as Neutral (3) -

General sector update. No changes to forecasts. Target $6.70. Rating Neutral.

Target price is $6.70 Current Price is $7.06 Difference: minus $0.36 (current price is over target).
If ILU 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 $6.14, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates ING as Buy (1) -

The strong first half results revealed the disruptions from the pandemic have become more manageable and gross margins have improved as cost efficiencies emerge, Citi observes.

Inghams Group has flagged higher soy meal costs and a lack of a further fall in wheat prices means the company is cautious about FY22.

Citi reiterates a Buy rating and lifts the target to $4.40 from $3.70. The broker envisages a runway for margin expansion.

Target price is $4.40 Current Price is $3.75 Difference: $0.65
If ING meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates ING as Outperform (1) -

Credit Suisse terms Inghams Group's first-half result strong with both operating income and net profit higher than expected. Also, key trends like volume growth and margins remained strong despite costs related to covid.

The broker highlights the result did benefit from unwinding a part of the group's obsolete inventory provision raised in FY20 but also commends the speed with which Inghams managed to clear most of the excess. 

Outperform retained. Target is steady at $3.95.

Target price is $3.95 Current Price is $3.75 Difference: $0.2
If ING meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates ING as Outperform (1) -

Inghams Group's FY21 first-half result outpaced consensus by more than 10% as prices held, and fell a touch shy of Macquarie's forecasts.

Trading volumes have recovered to pre-covid levels, and demand strengthened across all channels.

Management aims to return to historic earnings before interest tax deprecisation and amortisation margins within five years.

EPS forecasts upgraded 0.5% in FY21; 1.7% in FY22; and 0.9% in FY23.

Target price rises to $3.95 from $3.78. Outperform rating retained.

Target price is $3.95 Current Price is $3.75 Difference: $0.2
If ING meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates ING as Add (1) -

In the wake of first half results, Morgans believes there are now industry tailwinds (chicken a more affordable protein over beef) and Inghams is set to benefit from its strategic initiatives. Add rating and the analyst lifts the target to $4.10 from $3.75.

The company delivered 4.0% core poultry volume growth, 9.8% underlying earnings (EBITDA) growth (4.4% beat versus Morgans) and 10.7% underlying profit (NPAT) growth a 9.2% beat.

The company benefited from strong growth in Retail and quick service delivery (QSR) volumes, and a recovery in food service and wholesale channels as covid restrictions were eased, explains the broker.

Target price is $4.10 Current Price is $3.75 Difference: $0.35
If ING meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates ING as Neutral (3) -

First half operating earnings were 5% ahead of UBS estimates. The highlight was a 29 basis points increase in gross margin from operating improvements. This came despite a negative mix and inventory clearance.

Nevertheless, UBS retains a Neutral rating, noting cash flow was weak. The broker suspects there is less upside in feed, given more muted commentary. Target is raised to $3.60 from $3.30. The broker forecasts a 1% half-on-half increase in operating earnings in the second half.

Target price is $3.60 Current Price is $3.75 Difference: minus $0.15 (current price is over target).
If ING meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.92, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates INR as Buy (1) -

Ord Minnett updates its modelling to allow for the latest cash balance and lowers its estimated weighted average cost of capital to 8%. The production scenario is shifted to lithium hydroxide after year 4.

The broker assesses there is substantial valuation upside to its conservative development outlook. Speculative Buy rating reiterated. Target is raised to $0.60 from $0.50.

Target price is $0.60 Current Price is $0.46 Difference: $0.14
If INR meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates JMS as Neutral (3) -

General sector update. Minimal changes made to forecasts though Macquarie remains cautious on thermal coal exposure. Neutral rating and $0.33 target retained.

The South African Tshipi (Jupiter Mines 49.9% share) has announced a Rand (ZAR) 1.1bn FY21 final dividend which was well ahead of Macquarie's expectations.

Tshipi has released cash previously retained for the proposed expansion study to 5.0mtpa, which has not yet been approved by the board.

Target price is $0.33 Current Price is $0.36 Difference: minus $0.03 (current price is over target).
If JMS meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in February.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates KLL as Outperform (1) -

General sector update. No changes to forecasts.Target $0.40. Rating Outperform.

Target price is $0.40 Current Price is $0.22 Difference: $0.18
If KLL meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates LLC as Hold (3) -

A weaker investment division result, due to lower asset management fees and a large performance fee in the prior corresponding period (pcp), saw Lendlease deliver a 1H21 net profit of $205m (EPS of 29.8c), slightly below Ord Minnett’s $222m forecast.

In its initial response, the broker notes that while Lendlease is a good business, in the short term its asset classes and geographic mix are not conducive to a significant ramp-up in activity, which will see a more a measured recovery to normalised earnings.

With covid uncertainty likely to impact near-term conversions, Ord Minnett expects development production to be constrained over the next 18 months.

The company’s plans to convert over $20bn of the development pipeline by the end of FY23, suggests to the broker a slower recovery in the development earnings than the market may be expecting.

Hold rating and target price of $13.20 are unchanged.

Target price is $13.20 Current Price is $11.89 Difference: $1.31
If LLC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates LOV as Neutral (3) -

Citi was impressed with the way Lovisa Holdings managed costs and the strength of the balance sheet.

The broker reduces FY21 and FY22 net profit estimates by -11% and -2%, respectively, to account for a weaker-than-expected first half and a slower roll out in 2021, amid unexpected Beeline closures.

The pace of roll-out in the US and France has slowed. Lovisa has indicated it is not currently receiving deals from landlords that provide advocate downside protection. Neutral retained. Target is raised to $13.30 from $11.45.

Target price is $13.30 Current Price is $13.12 Difference: $0.18
If LOV meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates LOV as Outperform (1) -

Lovisa Holdings outpaced expectations, thanks to gross margin improvements, cost control and improved revenue.

Macquarie notes the solid balance sheet positions the company well for opportunities and further store rollouts.

The broker finds the company an attractive recovery story given its fortunes are not tied to the reopening of borders; and given that it could benefit from a less competitive rental environment.

EPS forecasts rise 37% in FY21 and 13% in FY22. Target price jumps to $15.50 from $12.90. 

Outperform rating retained.

Target price is $15.50 Current Price is $13.12 Difference: $2.38
If LOV meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Lovisa Holdings' first-half result was well ahead of Morgan Stanley's forecasts with sales and operating income higher than expected. The company almost achieved the broker's operating income forecast for the entire year in the first half at $34m.

Comps were back to positive for the first 7 weeks of the third quarter, after being negative for the last 9-12 months. 

From this point onwards, Morgan Stanley thinks Lovisa offers investors an early global store rollout story. The model is considered resilient while the quality of management has been proven over the last year, adds the broker.

Rating is upgraded to Overweight from Equal-weight rating with the target rising to $15 from $11.50. Industry view: In-line.

Target price is $15.00 Current Price is $13.12 Difference: $1.88
If LOV meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates LOV as Add (1) -

After a first half result ahead of expectations Morgans forecasts an even more attractive global rollout given the Beeline acquisition and likely improved rent terms.

The half bore the impact of full northern hemisphere rent accruals and inventory provisions which should partly reverse in the second half, notes the analyst.

Same store sales have accelerated by 12% over the first 7 weeks of the second half primarily driven by reopened markets, explains the broker.

Add rating and target price is increased to $17.95 from $12.78 as Morgans upgrades EPS forecasts by 20-40% over FY21-FY23

Target price is $17.95 Current Price is $13.12 Difference: $4.83
If LOV meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates MAI as Add (1) -

The first half result was in-line with Morgans expectations at the revenue level and well ahead of earnings (EBITDA) forecasts. FY21 guidance was reaffirmed and no interim dividend declared.

The broker highlights the earnings margin expanded robustly in the first half assisted by growth in higher margin businesses (US private equity, custody), scale/automation benefits and government grants.

Funds under administration (FUA) growth was considered strong by the analyst and the company added around 71,000 investors to its platform with the launch of its new Quoted Funds product.

The target  increases to $1.22 from $1.14, as Morgans lowers the FY21 EPS forecast by more than -20% on a higher share-based payments expense though lifts FY22 estimates by circa 30% on higher earnings margin assumptions. The Add rating is retained.

Target price is $1.22 Current Price is $1.06 Difference: $0.16
If MAI meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates MAI as Buy (1) -

First half results were better than Ord Minnett expected, driven by a surprise uplift in the operating margin. Main detraction was an emerging legal claim relating to a former client.

The company is likely to increase its debt load to settle the matter. Assuming the issue is resolved in the second half Ord Minnett expects FY22 to shape up as a very strong year. Buy rating and $1.40 target retained.

Target price is $1.40 Current Price is $1.06 Difference: $0.34
If MAI meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MGX as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Mount Gibson Iron is one of the preferred small caps in the space. Outperform and $1.15 target retained.

Target price is $1.15 Current Price is $0.88 Difference: $0.27
If MGX meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Mineral Resources is one of the preferred small caps in the space. Outperform and $47.50 target retained.

Target price is $47.50 Current Price is $37.79 Difference: $9.71
If MIN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $40.23, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates NAB as Neutral (3) -

In a review of the bank sector, Macquarie expects banks to continue to re-rate though medium-term challenges will likely limit the upside. First quarter performance was underpinned by low (or negative) impairment charges, leading to around 10-25% upgrades.

Underlying results were also generally better than expected as banks surprised on margins and the broker expects deposit pricing to provide further upside risk to margins. However, looking beyond FY21  the impact of low rates and competition are expected to remain.

A key standout for Macquarie in the reporting season was a material improvement in banks’ CET1 ratios, providing the broker with more confidence to raise dividend expectations across the sector. 

National Australia Bank mentioned that greater than 90% of customers exiting deferral are able to meet repayments. The Neutral rating and $26.50 target are retained, while Macquarie ranks the bank third of the majors in order of preference.

Target price is $26.50 Current Price is $25.11 Difference: $1.39
If NAB meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $26.38, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates NHC as Underperform (5) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Another theme highlighted by the broker is trade data showing that more Australian coal is flowing to ex-China markets, particularly to India, where coking coal import growth has far outpaced that of pig iron production, pointing to some inventory building.

No changes made to forecasts for New Hope Corp though Macquarie remains cautious on thermal coal exposure . Target $1.20. Rating Underperform.

Target price is $1.20 Current Price is $1.25 Difference: minus $0.05 (current price is over target).
If NHC meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.41, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates NHF as Neutral (3) -

Macquarie’s Initial impressions of nib Holdings 1H21 result released today are mixed, with the headline result a beat for the Australian Residents Health Insurance (arhi) division and investment income, yet a -$25.6m provision release as covid-19 claims catch-up, came through slower than budget.

Excluding this item, arhi’s operating margin missed consensus by around -30bps. Underlying operating profit from the division at $89m, exceeded Macquarie ($69m), and consensus ($68m).

While the post-covid-19 claims environment makes for a cautious CY21 outlook, Macquarie expects a gradual return of international students in FY22 and less restriction on international workers.

The broker is also expecting strong sales and improved retention in NZ throughout FY21, and the slow return to travel over the course of FY22, with FY24 normalisation expectations unchanged.

Neutral, and the price target of $6.10 remain.

Target price is $6.10 Current Price is $5.39 Difference: $0.71
If NHF meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates NXT as Neutral (3) -

NextDC will release its first-half results on 25 February. Credit Suisse expects FY21 guidance to be maintained.

The broker expects NextDC to deliver operating income of $60.7m, up 19.5% versus last year and a net loss of -$3.5m on account of higher finance costs.

Neutral retained with a target of $11.70.

Target price is $11.70 Current Price is $11.74 Difference: minus $0.04 (current price is over target).
If NXT 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 $14.00, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates OGC as Outperform (1) -

OceanaGold Corp's net loss for 2020 was -US$150m, less than the -US$160m expected by Credit Suisse. No dividend as was expected. Operating cash flow was US$199m, boosted by receipts of US$77m of 40koz pre-sales to support liquidity.

The broker is more assured on the liquidity front in 2021 with US$179m cash and US$250m in committed debt facilities.

The company has guided to 2021 production budget of 340-380koz at costs between US$1,050-1,200/oz with allowance for ongoing productivity impacts at Haile operations from covid and bad weather.

Outperform retained with a $2.60 target.

Target price is $2.60 Current Price is $1.98 Difference: $0.62
If OGC meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $2.45, 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: 0.3

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

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

Ord Minnett downgrades to Hold from Accumulate. 2020 operating earnings were reported at US$57.7m. 2021 production guidance of 340-380,000 ounces is below expectations.

Ord Minnett reduces production forecasts for the Haile operation and lifts expectations for group costs. Earnings forecasts are lowered significantly. Value drivers include delivery on Haile and Waihi projects. Target is reduced to $2.00 from $3.60.

Target price is $2.00 Current Price is $1.98 Difference: $0.02
If OGC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.45, 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: 0.3

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

Macquarie rates OML as Outperform (1) -

Macquarie downgrades oOh!media EPS forecasts heading into the results.

EPS forecasts fall -348% for FY20, -83% for FY21 and -52% for FY22.

Free cash flow is expected to fall -88%.

Target price falls -8.4% to $1.91. Outperform rating, but guidance will be critical.

Target price is $1.91 Current Price is $1.49 Difference: $0.42
If OML meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates ORA as Hold (3) -

Ord Minnett found the first half results solid and ahead of estimates, justifying the market reaction on the day as the stock jumped 5.5%. The broker is more comfortable that the North American business has returned to growth after a challenging few years.

The main issue is with the domestic wine business, being affected by a poor 2020 vintage and the collapse in exports to China. This results in Australasian earnings forecasts easing back for the second half and FY22. Hold maintained. Target is $2.90.

Target price is $2.90 Current Price is $2.95 Difference: minus $0.05 (current price is over target).
If ORA meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.01, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates ORG as Buy (1) -

First half results were ahead of UBS estimates, largely because of a strong operating performance from APLNG. The board will now consider on-market buybacks to supplement dividends. UBS believes this will be accretive.

Headwinds continue in the energy markets business from re-pricing of retail and in gas and electricity. UBS lowers FY22-23 estimates to reflect continued margin pressure. Buy rating retained. Target is reduced to $5.50 from $5.75.

Target price is $5.50 Current Price is $4.45 Difference: $1.05
If ORG meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

Noting Pact Group Holdings' share price has rallied and reached its target price, Credit Suisse lowers the rating to Neutral from Outperform with a target price of $2.95.

Beyond the FY21 recovery, the broker models low-single-digit earnings growth in the forecasts with not much upside risk.

Pact Group Holdings is in the middle of selling its contract manufacturing businesses. The broker values the businesses at $150m and considers the risk of surpassing that price low given the earnings are two-thirds of where they were at the time of acquisition.

Target price is $2.95 Current Price is $3.06 Difference: minus $0.11 (current price is over target).
If PGH meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.87, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates PPT as Hold (3) -

First half net profit was below Ord Minnett's forecast. The main focus is on increased cost guidance, attributed to an acceleration in the global distribution strategy in order to take advantage of opportunities and further growth in Perpetual Corporate Trust.

Ord Minnett believes the acquisition of Barrow Hanley transforms the business, re-establishing the importance of the Perpetual Investments segment.

The broker retains a Hold rating and awaits signs of the acceleration in investment and fund performance manifesting in the outlook for flows. Target is reduced to $32 from $33.

Target price is $32.00 Current Price is $30.74 Difference: $1.26
If PPT meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $35.49, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates PWH as Add (1) -

The first half result was ahead of Morgans expectations and management’s guidance provided in December. Divisional sales rose for Motorsports (MS) by 14%, OEM 40%, Automotive Aftermarket 27% and Emerging Technologies (EM) by 72%.

Strategic diversification reflects the change in group revenue mix towards the higher growing EM and OEM sectors and away from the historically dominant MS industry.

Add rating and target lifts to $5.50 from $5.05. Morgans concludes the business is of high-quality with dominant market positions and a strong track record of growth.

Target price is $5.50 Current Price is $4.79 Difference: $0.71
If PWH meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates QBE as Buy (1) -

Citi observes market conditions continue to support QBE as premium rates are expanding a lot faster than claims inflation. The broker believes meaningful top-line growth will occur, while acknowledging the track record of disappointments.

Citi continues to envisage value in the stock and retains a Buy rating, raising the target to $10.95 from $10.40. The broker nudges up 2021 estimates just 1%.

Target price is $10.95 Current Price is $8.99 Difference: $1.96
If QBE meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

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

QBE Insurance Group's FY21 half-year result pleased Macquarie.

Management failed to provide guidance but the broker notes the FY23 Expense Ratio target of roughly 13% (combined with restructuring costs of about $150m over three years) is attainable and provides clarity around underlying combined operating ratios. 

Given the positive foreign exchange environment, the broker upgrades to Neutral from Underperform. 

EPS upgraded 68% for FY21 and 56% for FY22 to reflect strong gross written premiums, FX tailwinds and the new expense ratio target.

Target price rises to $9.40 from $7.70.

Target price is $9.40 Current Price is $8.99 Difference: $0.41
If QBE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance Group's current accident year (CAY) combined ratio (COR) improved by almost 4.5% in FY20. Morgan Stanley looks for circa 91% combined ratio in FY21.

FY21-22 cash earnings estimates have been increased by 4-5% on stronger pricing and better margins, partly offset by lower investment yields.

The group has allowed for severe Australian business interruption scenarios while is confident about the US and UK interruptions being contained. 

While more optimistic on margin expansion in FY21, the broker thinks QBE needs to demonstrate earnings growth with lower volatility to drive a re-rating.

Overweight rating with the target price rising to $11 from $10.30. Industry view: In-line.

Target price is $11.00 Current Price is $8.99 Difference: $2.01
If QBE meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

Morgans rates QBE as Add (1) -

QBE Insurance Group’s FY20 statutory loss of –US$1.5bn was in-line with the company’s December market update. FY20 underlying gross written premium (GWP) growth was up 10% on pcp and included 4% real volume growth.

Regarding guidance, management has indicated its exit combined operating ratio (COR) was 95% and expects margin expansion in FY21. A further efficiency program will be undertaken to help reduce the expense ratio to 13% by 2023.

Add rating and target is reduced to $10.08 from $10.37, as Morgans lowers FY21-22 EPS forecast by -8% and -1%, mainly reflecting lower investment income assumptions.

Target price is $10.08 Current Price is $8.99 Difference: $1.09
If QBE meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

Ord Minnett rates QBE as Accumulate (2) -

The 2020 net loss of -US$1.52bn was slightly larger than Ord Minnett's forecast. The combined operating ratio of 107.4% was broadly in line with estimates.

The broker notes premium rate momentum in the fourth quarter was exceptionally strong and believes any reinsurance risks relating to business interruption are manageable.

Underlying trends are expected to be much better in 2021 and Ord Minnett retains an Accumulate rating. Target price is $11.

Target price is $11.00 Current Price is $8.99 Difference: $2.01
If QBE meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

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

The 2020 result headline was pre-announced while underlying trends were slightly better than UBS expected.

While the -US$1.5bn loss justifies a -40% underperformance in the share price over the last 12 months, the broker believes the provisions taken by QBE are for currently unreported claims.

With the earnings hit and negative news flow now captured in the share price UBS upgrades to Buy from Neutral. Target is raised to $10.25 from $9.00.

Target price is $10.25 Current Price is $8.99 Difference: $1.26
If QBE meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $10.67, suggesting upside of 12.3% (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: 0.8

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

Macquarie rates RIO as Outperform (1) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

Another theme highlighted by the broker is trade data showing that more Australian coal is flowing to ex-China markets, particularly to India, where coking coal import growth has far outpaced that of pig iron production, pointing to some inventory building.

The broker views Rio Tinto's 2020 result as solid, with in-line earnings boosted by stronger cash flow and higher returns to shareholders. FX headwinds are pushing unit costs higher, with group capex also expected to remain around -US$7.5bn through to 2023.

Macquarie retains the Outperform rating and $135 target.

Target price is $135.00 Current Price is $123.26 Difference: $11.74
If RIO meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $127.71, suggesting downside of -0.3% (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 S32 as Neutral (3) -

In a review of bulk commodity miners, Macquarie highlights a key reporting theme has been strong dividend payments and sees earnings upside for miners with iron ore exposure, in a spot price scenario.

The first half result for South32 was better than Macquarie had expected, which delivered higher cash generation and a larger
dividend. Stabilising operations have delivered improved costs and the broker upgrades the earnings outlook by 3-7%.

With recent upside risk across its portfolio of assets but subdued free cash flow, Macquarie maintains a Neutral rating and the $2.90 target.

Target price is $2.90 Current Price is $2.68 Difference: $0.22
If S32 meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Morgan Stanley rates SHL as Overweight (1) -

Sonic Healthcare's revenue of $4,432m was circa -4% below Morgan Stanley's estimate driven by a lower than expected share of US covid testing and slightly better base business performance. Operating income was in line with the broker's forecast.

Morgan Stanley is positive on Sonic Healthcare with the risk/reward comparing favourably to the Australian Healthcare industry.

Overweight rating. Target falls to $39.70 from $40.10. Industry view: In-line.

Target price is $39.70 Current Price is $34.22 Difference: $5.48
If SHL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $37.36, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates SHL as Hold (3) -

First half net profit was below Ord Minnett's forecast. The result was strong, amid a large contribution from coronavirus testing. A lower-than-expected interim dividend has signalled a desire to use the proceeds to fund expansion of the global business, in the broker's view.

Ord Minnett expects the earnings levels will drop beyond the first half of FY22 as the pandemic recedes. Hold rating retained. Target rises to $36.00 from $35.50.

Target price is $36.00 Current Price is $34.22 Difference: $1.78
If SHL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $37.36, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

SkyCity Entertainment's interim report provided enough evidence for UBS to see further profitability improvement with the path ultimately taking profits well above pre-covid level, reports the broker.

Note: the stock was upgraded on Friday, but due to our oversight on the day, this is only being reported today.

As the valuation has increased, so too has UBS's price target, now at NZ$3.35 from NZ$3.05 prior. The released financials proved below forecasts, Adelaide in particular, but additional covid trading restrictions were to blame, according to the broker.

Both EPS and DPS forecasts have been lowered (from November), but nothing to stop this broker from getting more excited.

Current Price is $2.69. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates SO4 as Outperform (1) -

General sector update. No changes to forecasts.Target $0.8. Rating Outperform.

Target price is $0.80 Current Price is $0.49 Difference: $0.31
If SO4 meets the Macquarie target it will return approximately 63% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates SSG as Buy (1) -

Net profit in the first half was in line with guidance. The main news was continued momentum, Ord Minnett assesses, with like-for-like sales growth of 17.6% and ongoing strength in the online channel.

While difficult comparables are emerging, the broker suggests the investments made in developing an omni channel strategy are paying dividends and there are long-term opportunities. Buy rating retained. Target rises to $1.53 from $1.38.

Target price is $1.53 Current Price is $1.17 Difference: $0.36
If SSG meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates STO as Buy (1) -

2020 underlying earnings were below UBS estimates because of higher corporate costs and a change in inventory. Nevertheless, the final dividend surprised to the upside with 34% of free cash flow being paid out in the second half.

Amid near-term growth catalysts, Santos remains the broker's preferred energy exposure. Buy rating retained. Target is raised to $7.90 from $7.70.

Target price is $7.90 Current Price is $6.82 Difference: $1.08
If STO meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.52, suggesting upside of 11.0% (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: 0.5

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

Ord Minnett rates SUL as Accumulate (2) -

Ord Minnett observes the 2019/20 bushfires and early coronavirus pressures weighed on revenue and earnings yet the company has recovered rapidly since May 2020. First half net profit was slightly ahead of forecasts and in line with the January trading update.

The broker has greater confidence that management can leverage its attractive business mix, anchored by the resilient, low growth but consistent, Supercheap Auto business. Accumulate retained. Target rise to $14.00 from $12.75.

Target price is $14.00 Current Price is $11.94 Difference: $2.06
If SUL meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.29, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Transurban Group announced the Accelerate Maryland Partners (AM Partners) consortium has been selected as the preferred developer for the American Legion Bridge relief plan.

The group will hold 60% of the consortium with the remainder held by Macquarie Group ((MQG)). The negotiation appointment is subject to approval by the Maryland Transportation Authority (MDTA) and the Maryland Board of Public Works, anticipated by the end of FY21.

If the project proceeds, Transurban estimates a project cost of -US$3-4bn for this phase with the overall project cost over -US$9bn.

Morgan Stanley is under research restriction and cannot provide a rating or target. Industry view: Cautious.

Current Price is $12.77. Target price not assessed.

Current consensus price target is $14.28, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates TLS as No Rating (-1) -

After reviewing the latest ACCC NBN wholesale report, Macquarie concludes NBN economics remain challenging for all operators, given the competitive backdrop.

NBN Co’s incentivisation of higher speed tiers appears to have had an impact, with the share of 100 megabits (Mbps) per second  plans growing 63% quarter-on-quarter. The broker expects this trend to continue and believes it will impact market shares of key players.

With 45.5% share overall, Telstra Corp continues to be the dominant provider of NBN services though securing only 37.9% of December quarter additions. The ongoing shift to Metro has continued to impact Telstra’s market share as it has the greatest share in regional.

The broker is now on research restriction, because Macquarie Capital has been hired for the TowerCo sell-down, and hence Macquarie cannot provide a recommendation or target price.

Current Price is $3.31. Target price not assessed.

Current consensus price target is $3.53, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates TLS as Hold (3) -

Utilising an ACCC fixed-line market share report, Morgans concludes the NBN is 90% complete and there have been no material changes among the listed telcos in market share.

While the NBN has brought higher speed broadband to Australian households, the economies of scale required to operate, combined with thin profit margins means competition remains stifled.

Also, on average, NBN prices are largely unchanged over the last two years but 100 megabits per second prices are falling.

From cumulative market share figures across the operators Telstra Corp has 46% from a pre-NBN market share position of 48%.

The Hold rating and $3.33 target are unchanged.

Target price is $3.33 Current Price is $3.31 Difference: $0.02
If TLS meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates TPG as Outperform (1) -

After reviewing the latest ACCC NBN wholesale report, Macquarie concludes NBN economics remain challenging for all operators, given the competitive backdrop.

NBN Co’s incentivisation of higher speed tiers appears to have had an impact, with the share of 100 megabits (Mbps) per second  plans growing 63% quarter-on-quarter. The broker expects this trend to continue and believes it will impact market shares of key players.

TPG Telecom's share of additions declined marginally to 23.7% in the quarter, below its total rollout share (post-merger) of 24.4%. However, the company competed aggressively in the 100Mbps per second tier, increasing its market share by 18.4% in one quarter.

The Outperform and target of $9.00 are unchanged.

Target price is $9.00 Current Price is $6.91 Difference: $2.09
If TPG meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $8.35, suggesting upside of 20.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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