Australian Broker Call

Bell Potter rates AIS as Buy (1) -

In an important milestone, according to Bell Potter, Aeris Resources has released an updated resource for the Jaguar deposit.

Significantly, suggests the analyst, 88% of the updated resource is in the higher confidence measured and indicated categories and available for conversion to reserves.

The new estimate stands at 840kt @ 2.28% copper, 4.66% zinc and 61g/t silver for 19kt copper, 39kt zinc and 1.65Moz silver contained.

The Buy rating is unchanged and the target climbs to 91c from 89c.

Target price is $0.91 Current Price is $0.49 Difference: $0.42
If AIS meets the Bell Potter target it will return approximately 86% (excluding dividends, fees and charges).

Current consensus price target is $0.84, suggesting upside of 104.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates AKE as Buy (1) -

A general update on the sector has generated a $19 price target for Allkem, up from $17.40 previously. Buy rating retained.

Target price is $19.00 Current Price is $16.24 Difference: $2.76
If AKE meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.50, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates ALU as Neutral (3) -

Citi upgrades the revenue outlook for Octopart to reflect better-than-expected web traffic although lowers EBITDA to reflect higher costs as Altium steps up hiring activity for cloud and SaaS roles.

The broker expects the top end of guidance will be achieved in FY23. The main issue for the broker is whether meaningful monetisation of A365 could come through in FY24 and this represents upside to forecasts. Neutral maintained. Target is reduced to $39.30 from $39.75.

Target price is $39.30 Current Price is $36.33 Difference: $2.97
If ALU meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $40.52, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.0

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

Morgan Stanley rates APE as Overweight (1) -

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results.

While near-term upside catalysts are lacking for auto dealers, the broker retains Overweight ratings for Eagers Automotive and Peter Warren Automotive, with a preference for the former on clearer electric vehicle alignment.

The target rises to $16 from $15.00 after the analyst increases Eagers Automotive's multiple. Industry view: In-Line.

Target price is $16.00 Current Price is $14.41 Difference: $1.59
If APE meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.71, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates ASX as Outperform (1) -

Macquarie notes futures volumes were stable and up 3.4% in the fourth quarter of FY23. Equities trading volumes were weak and the broker expects interest income will grow sequentially amid higher cash rates.

ASX provides relative stability against a more difficult macro economic backdrop although a lack of catalysts for the rest of 2023 remains a concern for the broker.

Target is reduced to $65.00 from $66.50 and an Outperform rating is maintained.

Target price is $65.00 Current Price is $62.00 Difference: $3
If ASX meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $65.22, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Morgans rates AVH as Add (1) -

Morgans increases its cost base assumptions for Avita Medical and lowers its target to $5.41 from $5.53 given the ramp-up in sales force and increased selling efforts for the launch of Recell (and later Recell Go) in the soft tissue repair market.

Management announced (on June 29) submission to the FDA of the pre-market approval supplement for the automated device Recell Go. Approval by January 2024 is expected.

Recell Go can save a clinician around 30 minutes on manual disaggregation of cells.

The Add raing is unchanged.

Target price is $5.41 Current Price is $4.69 Difference: $0.72
If AVH meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 26.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Shaw and Partners rates BML as Buy (1) -

Boab Metals has optimised the FEED for the Sorby Hills lead-silver project ahead of the award of an EPC contract.

Shaw and Partners observes strong demand for lead is not matched by the supply outlook and the concentrate from Sorby Hills is likely to be highly sought by global smelters.

The company is advancing financing plans, including funding from the Northern Australia Infrastructure Facility. A number of positive catalysts are expected over coming months including offtake agreements, the funding package and a final investment decision.

The broker retains a Buy rating and $0.52 target.

Target price is $0.52 Current Price is $0.18 Difference: $0.34
If BML meets the Shaw and Partners target it will return approximately 189% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates BPT as Buy (1) -

UBS refines forecasts for Waitsia stage 2 and Vic Otways, which together should mean Beach Energy's production lifts by 50% from FY23-25, also pointing out higher costs and modest delays are not material to its valuation or investment thesis.

Estimates for EPS are reduced over FY23-25 primarily because of a lower forecasts for average Brent crude over 2023 and 2024. 

UBS reduces price forecasts for Brent oil, to US$80/bbl and US$85/bbl in the third and fourth quarter of 2023, respectively, and 2024 to US$80/bbl.

UBS asserts that Beach Energy is the only energy exposure under coverage that offers a clear path to a free cash flow yield of more than 20% in just over 12 months. Buy rating and $1.75 target maintained.

Target price is $1.75 Current Price is $1.39 Difference: $0.365
If BPT meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 33.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Bell Potter rates BUB as Speculative Hold (3) -

After a strategic review presentation by Bubs Australia, Bell Potter feels progress in the US remains encouraging and insulates against weaker results in China.

Revenue targets suggest to the broker growth will largely come from the US where revenues are expected to more than double in FY24.

The broker likes management's moves on opex and monthly cash burn reductions. Management anticipates being cash flow positive in FY25.

The Speculative Hold rating is unchanged and the target rises to 22.5c from 20c.

Target price is $0.23 Current Price is $0.22 Difference: $0.005
If BUB meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgan Stanley rates CSL as Overweight (1) -

Around US$1.9bn or 12% of CSL's group revenue could be at risk of disruption from Netherlands-based Argenx's "FcRn inhibitor", Vyvgart, suggests Morgan Stanley.

However, the broker notes CSL's revenues from treatment of Primary & Secondary Immune Deficiency (PID & SID) in the neurology market is not at risk.

There is headroom for the company to drive greater penetration rates for PID/SID, according to the analyst, to absorb any associated loss of market share from Argenx.

The $325 target and Overweight rating are unchanged. Industry View: In-Line.

Target price is $325.00 Current Price is $272.49 Difference: $52.51
If CSL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $328.17, suggesting upside of 22.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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 CWY as Hold (3) -

Morgans believes the market is underestimating the impact of higher interest rates and impact on the cost of debt for Cleanaway Waste Management. Accordingly, the target is lowered to $2.45 from $2.49.

Consensus has the company's interest costs declining to $82m in FY24 and then $78m in FY25 whereas the broker forecasts $104m and $99m, respectively.

The analyst also highlights not only the capital intensity and cost of capital for the business but also the finite nature of the infrastructure assets which, again, is underestimated by the market. Hold.

Target price is $2.45 Current Price is $2.54 Difference: minus $0.09 (current price is over target).
If CWY meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.75, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates CXO as Sell (5) -

A general review of the sector has pushed up Core Lithium's price target to 80c from 75c. Sell rating retained.

Target price is $0.80 Current Price is $0.96 Difference: minus $0.155 (current price is over target).
If CXO meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.02, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Bell Potter rates DRE as Speculative Buy (1) -

Dreadnought Resources has updated its mineral resource estimate (MRE) for the Yin deposit to 20.06Mt @ 1.03% Total Rare Earth Oxides (TREO) from 14.63Mt @ 1.13% TREO.

The broker's investment thesis for the company is partly based on further expansion of the MRE.

The Speculative Buy rating is retained. Target is reduced to 15c fom 17c. The broker feels the Gascoyne region in WA is ripe for consolidation and alludes to the complementary strengths of Hastings Technology Metals ((HAS)).

Target price is $0.15 Current Price is $0.06 Difference: $0.093
If DRE meets the Bell Potter target it will return approximately 163% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates EVN as Upgrade to Neutral from Sell (3) -

UBS believes Evolution Mining presents a copper option given the lack of alternatives on the ASX, as more than 20% of near-term earnings are from copper.

Having recently eased back on forecast for copper output, UBS now adds some incremental growth for the medium term and includes Bert at Ernest Henry into its base case, which adds $0.10 to valuation.

The stock appears inexpensive compared to gold peers although Sandfire Resources ((SFR)) remains the broker's preferred stock for copper leverage. 

Rating is upgraded to Neutral from Sell and the target lifted to $3.40 from $3.30. UBS expects a tighter copper market in 2024 before moving into a more protracted deficit from 2025 and beyond.

Target price is $3.40 Current Price is $3.33 Difference: $0.07
If EVN meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.34, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates FPR as Downgrade to Equal-weight from Overweight (3) -

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results.

In the area of fleet management, Morgan Stanley is constructive on such matters as demand resilience, fleet growth and used price normalisation, but suggets fears of other market participants will be easier to address over 2024.

The broker lowers its rating for FleetPartners Group to Equal-weight from Overweight on valuation, but retains the $2.70 target. Industry View: In-line. 

Target price is $2.70 Current Price is $2.47 Difference: $0.23
If FPR meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.62, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Citi rates IGO as Downgrade to Neutral from Buy (3) -

Citi has used a general sector update to downgrade IGO to Neutral from Buy, while leaving the price target unchanged at $16.80.

The stock's valuation is labeled "reasonable" but the broker does see headwinds for H2, while positive catalysts remain absent.

Target price is $16.80 Current Price is $15.52 Difference: $1.28
If IGO meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.68, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgan Stanley rates JIN as Overweight (1) -

Morgan Stanley highlights a stronger finish to FY23 with an improving May/June due to a moderation in the decline in total jackpot games from the update in early-May. An attractive setup into FY24 is anticipated.

However, Powerball ticket sales were still down around -27% year-on-year in H2 and Jumbo Interactive over-indexes in Powerball with the game accounting for around 60% of the portfolio, the broker highlights.

The Overweight rating and $20.80 target are maintained. Industry view is In-Line.

Target price is $20.80 Current Price is $13.63 Difference: $7.17
If JIN meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates JLG as Hold (3) -

For a cash outlay of -$61.8m (and potential earn-out of -$17.3m), Johns Lyng has announced the acquisition of Smoke Alarms Australia and a 70% equity interest in Link Fire Holdings.

The transactions are being funded via a successfully completed $65m institutional placement at $5.15/share and management is targeting an additional $5m via a non-underwritten share purchase plan to existing shareholders.

The broker notes the acquisitions are consistent with the group's existing strategy to gain share of wallet in strata and management noted the purchases will help found the company's fifth strategic growth pillar, named Essential Home Services.

The target rises to $6.00 from $5.90. Hold.

Target price is $6.00 Current Price is $5.43 Difference: $0.57
If JLG meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.00, suggesting upside of 31.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates LTR as Downgrade to Sell from Neutral (5) -

Citi has used a general sector update to downgrade Liontown Resources to Sell from Neutral, while retaining the $2.80 price target.

The broker remains positive on Kathleen Valley as a long-term project, but seems less convinced about the valuation or sustainability behind the recent share price rally.

In the near term, the broker suggests, the key will be opex updates for Kathleen Valley, and funding.

Target price is $2.80 Current Price is $2.75 Difference: $0.05
If LTR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates MGR as Neutral (3) -

Citi observes rising cash rates and falling affordability could affect demand for new residences although a bounce in demand is expected in 2024 given a tougher rental market and strong population growth.

The broker assesses affordable dwellings such as land lease and apartments could come to the fore. The broker downgrades FY24 settlement volumes to reflect the challenging sales environment.

While Mirvac Group's apartment pipeline will benefit from supply shortages, Citi points out the whole industry is likely to experience a greater number of apartments being built, potentially capping the price benefits that arise from an undersupply.

Neutral maintained. Target is reduced to $2.40 from $2.50.

Target price is $2.40 Current Price is $2.30 Difference: $0.1
If MGR meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates MIN as Neutral (3) -

A general update on the lithium sector has left Citi's price target for Mineral Resources untouched at $76.50, accompanied by a Neutral rating, equally unchanged.

EPS forecast has been slightly increased for FY23 and slightly decreased for FY24. Larger downward adjustments have been made for DPS forecasts.

Current forecasts still imply a 59% jump in EPS next year from the now assumed FY23 outcome.

Target price is $76.50 Current Price is $70.00 Difference: $6.5
If MIN meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $82.00, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Heading into Q4 results for Mineral Resources, Morgan Stanley sees potential risks for iron ore costs exceeding FY23 guidance at Utah Point and Yilgarn.

Across the company, due to an increased sensitivity to the broker's higher operating cost and lower mine production scenarios, the target falls to $70.50 from $78.50.

The Equal-weight rating is unchanged. Industry view: Attractive.

Target price is $70.50 Current Price is $70.00 Difference: $0.5
If MIN meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $82.00, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates MMS as Overweight (1) -

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results with a stable demand profile, order backlogs and structural growth from electric vehicles (EV).

Morgan Stanley prefers McMillan Shakespeare over Smartgroup Corp on valuation, stronger execution and greater EV/supply alignment.

The Overweight rating is retained and the target rises to $20.60 from $17.50. Industry view: In-line.

Target price is $20.60 Current Price is $17.77 Difference: $2.83
If MMS meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.50, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Heading into Q4 results for Northern Star Resources, Morgan Stanley lowers its target to $12.25 from $13.15 after adjusting estimates for the KCGM mill expansion.

A  key areas of focus for the broker in the results relates to the Thunderbox (gold mine) mill delivering 6Mtpa rates in Q4.

The Equal-weight rating is unchanged.

Target price is $13.15 Current Price is $12.71 Difference: $0.44
If NST meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.39, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates PLS as Buy (1) -

Citi's general sector update has generated an increased price target for Pilbara Minerals; to $5.40 from $4.60. Buy rating retained.

Target price is $5.40 Current Price is $5.07 Difference: $0.33
If PLS meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.41, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates PNI as Outperform (1) -

Pinnacle Investment Management has an attractive organic growth outlook, in Macquarie's view, with potential to add accretive M&A. The company posted $54.8m in performance fees in the second half which beat estimates. 

Business conditions remain challenging, particularly in retail, which the company has noted has affected financial outcomes within certain affiliates. Macquarie retains an Outperform rating and $10.95 target.

Target price is $10.95 Current Price is $9.75 Difference: $1.2
If PNI meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.89, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates PNI as Hold (3) -

Ord Minnett observes the second half update from Pinnacle Investment Management beat estimates on performance fees and delivered a stronger-than-expected return on principal investments. This has resulted in a 7% upgrade to FY23 earnings forecasts.

The flow outlook remains challenging, the broker assesses, and the Horizon 2 investment may constrain margins. In sum, Ord Minnett believes the value/growth balance is difficult to negotiate and a Hold rating is maintained. Target is raised to $9.20 from $9.00.

Target price is $9.20 Current Price is $9.75 Difference: minus $0.55 (current price is over target).
If PNI meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.89, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates PWR as Overweight (1) -

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results.

While near-term upside catalysts are lacking for auto dealers, the broker retains Overweight ratings for Eagers Automotive and Peter Warren Automotive, with a preference for the former on clearer electric vehicle alignment.

The target for Peter Warren Automotive remains at $3.20. Industry view: In-Line.

Target price is $3.20 Current Price is $2.56 Difference: $0.64
If PWR meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 31.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates RIO as Sell (5) -

UBS notes Rio Tinto will host a four-day site visit to Oyu Tolgoi, having recently bought out the Turquoise Hill Resources minorities. Copper production at Oyu Tolgoi is expected to lift to 175,000t in 2023, and to 500,000t by 2028 as the block cave ramps up.

UBS estimates the copper share of group EBITDA will lift to 24% in 2025 and 28% by 2028, largely because the contribution from iron ore will fall. Sell rating retained for Rio Tinto and the target is steady at $95.

Target price is $95.00 Current Price is $112.58 Difference: minus $17.58 (current price is over target).
If RIO meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $113.17, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.2

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

Bell Potter rates RPL as Buy (1) -

Bell Potter expects an update by asset manager Regal Partners on mid-year funds under management (FUM) - in mid-to-late-July - will show a weak Q2. FUM of 5.3bn is expected, up from $5.2bn at 31 December, but down from the $5.5bn reported at 31 March.

The negative movement for the quarter will be the result of negative investment returns on the main funds during Q2 and some distributions, explains the analyst.

Nonetheless, Bell Potter's opinion won't be altered by one bad quarter and expects future fund performance and inflows will be strong. Buy. The target falls to $3.45 from $3.71.

Target price is $3.45 Current Price is $2.58 Difference: $0.87
If RPL meets the Bell Potter target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates SFR as Buy (1) -

Ahead of June quarterly and FY23 financial reports, UBS notes delivery and growth remains challenging for the resources sector and while cost pressures are easing a "step down" in forward-looking guidance is not expected.

The focus for Sandfire Resources is shifting to copper equivalent growth of around 150,000tpa. The stock remains the broker's preferred copper stock and a Buy rating and $7 target are maintained.

Target price is $7.00 Current Price is $5.85 Difference: $1.15
If SFR meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.76, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

Morgan Stanley rates SGF as Overweight (1) -

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results.

In the area of fleet management, Morgan Stanley is constructive on such matters as demand resilience, fleet growth and used price normalisation, but suggets fears of other market participants will be easier to address over 2024.

The broker's Overweight rating and $2.90 target are maintained for SG Fleet. Industry View: In-line. 

Target price is $2.90 Current Price is $2.25 Difference: $0.65
If SGF meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates SGP as Buy (1) -

Citi observes rising cash rates and falling affordability could affect demand for new residences although a bounce in demand is expected in 2024 given a tougher rental market and strong population growth.

The broker assesses affordable dwellings such as land lease and apartments could come to the fore. The broker downgrades FY24 settlement volumes to reflect the challenging sales environment, now expecting a decline of -12% for Stockland in FY24.

The broker continues to prefer Stockland over Mirvac Group and retains a Buy rating. Target is reduced to $4.60 from $4.70.

Target price is $4.60 Current Price is $4.06 Difference: $0.54
If SGP meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

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

In reaction to shifting sentiment around earnings for autos, Morgan Stanley updates its sector preferences. While the broker concedes the writing of orders has deteriorated, it's felt earnings are more reslient than the market believes.

Overall, the analysts suggest novated leasing is best placed leading into FY23 results with a stable demand profile, order backlogs and structural growth from electric vehicles (EV).

Morgan Stanley prefers McMillan Shakespeare over Smartgroup Corp on valuation, stronger execution and greater EV/supply alignment. The Equal-weight rating is unchanged and the target rises to $8.30 from $6.00. Industry view: In-line.

Target price is $8.30 Current Price is $7.70 Difference: $0.6
If SIQ meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates SLR as Outperform (1) -

Silver Lake Resources achieved record sales in the June quarter, and 10% above Macquarie's estimate. The performance was driven by Defector and Mount Monger while Sugar Zone was affected by forest fires.

FY23 sales of 260,400 ounces were within the guidancce range. The broker notes output growth from Sugar Zone remains important over the longer term while higher grades at Deflector south-west and Tank remain important for the short term.

Outperform maintained. Target is steady at $1.70.

Target price is $1.70 Current Price is $1.10 Difference: $0.605
If SLR meets the Macquarie target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates SND as Buy (1) -

Saunders International has been awarded a $9.3m contract from Ampol ((ALD)) to deliver a new fuel storage tank at Lytton refinery. The refinery will continue to operate throughout the construction phase and the contractt is part of the future fuels desulphurisation project.

Shaw and Partners welcomes the contract which reinforces its positive view of both the company and the broader engineering & construction sector. Buy rating reiterated. Target is $1.35.

Target price is $1.35 Current Price is $1.13 Difference: $0.225
If SND meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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) -

UBS remodels Papua LNG as it approaches final investment decision in the first quarter of FY24. The project is now expected to generate a 14.5% post-tax IRR, with the broker now conservatively assuming $11.2bn of growth capital expenditure to first gas in 2028.

Accordingly, the broker de-risks the project valuation to 75% lifting the contribution from Santos' 17.7% share to $0.23.

UBS continues to believe a material supply deficit of almost -2mb/d will emerge over the second half of 2023, pushing oil prices higher.

That said, the broker reduces price forecasts for Brent oil, to US$80/bbl and US$85/bbl in the third and fourth quarter of 2023, respectively, and 2024 to US$80/bbl.

The broker also incorporates lower global GDP growth for 2023 and cuts North Asian LNG prices over 2023-25 by -8-13%.

UBS anticipates weaker sales in the second quarter and suspects DLNG has sold its last LNG cargo until Barossa comes online, and the remaining Bayu-Undan gas supply will play an important role in topping up supply to industrial users in Northern Territory and Queensland.

Buy rating and $8.20 target maintained.

Target price is $8.20 Current Price is $7.57 Difference: $0.63
If STO meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.37, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.9

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

Morgan Stanley rates TLC as Downgrade to Equal-weight from Overweight (3) -

While improved Jackpot sequencing has de-risked upcoming FY23 results for Lottery Corp, Morgan Stanley downgrades its rating to Equal-weight from Overweight on valuation.

Based on leverage metrics, the broker suggests the company may surprise with capital management initiatives though this would be more likely in the longer-term, given a recent update to the capital management strategy.

The target rises to $5.50 from $5.20 after the broker rolls forward its valuation measures ahead of FY23 results. Industry view: In-Line.

Target price is $5.50 Current Price is $5.19 Difference: $0.31
If TLC meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates WDS as Neutral (3) -

UBS reduces price forecasts for Brent oil, to US$80/bbl and US$85/bbl in the third and fourth quarter of 2023, respectively, and 2024 to US$80/bbl.

Oil prices are still expected to lift in the second half because of a material supply deficit emerging and expected inventory drawdown. That said, oil supply has actually surprised to the upside.

The broker also incorporates lower global GDP growth for 2023 and cuts North Asian LNG prices over 2023-25 by -8-13%. Woodside Energy's Neutral rating is maintained while the target is reduced to $34.80 from $35.90.

Target price is $34.80 Current Price is $34.50 Difference: $0.3
If WDS meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $36.67, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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