Australian Broker Call

Ord Minnett rates A1M as Speculative Buy (1) -

Ord Minnett saw a soft result from AIC Mines with volumes and grade due to lack of ore source optionality and truck availability. The broker does believe the outlook profile is improving on the back of the DRM acquisition.

With H2 anticipated to show big improvement, it is the broker's view the share price provides a "value" opportunity for investors to gain exposure to a simple leveraged copper producer in a space that is starved of producing opportunities.

Earnings estimates have received the chainsaw treatment (-39%). Further out, forecasts have received a boost because of revised copper price forecasts.

Speculative Buy retained, target declines to 75c from 80c.

Target price is $0.75 Current Price is $0.50 Difference: $0.255
If A1M meets the Ord Minnett target it will return approximately 52% (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 AKE as Buy (1) -

UBS expects lithium markets will remain in deficit over the near and medium term, before a structural deficit develops in the longer term. Price estimates are upgraded by 50% across the forecast period.

The broker maintains its Buy rating for Allkem.

No target price update is revealed by UBS. On January 19, a target of $17.50 was set.

Target price is $17.50 Current Price is $13.34 Difference: $4.16
If AKE meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $16.56, suggesting upside of 20.0% (ex-dividends)

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 ANN as Downgrade to Neutral from Outperform (3) -

Macquarie has downgraded its rating on Ansell given a moderation of global manufacturing performance in recent months. December marked the fourth consecutive month that performance of manufacturing index data tracked below 50, suggesting contractionary activity. 

While Ansell's November trading update did indicate positive growth year-to-date for industrial divisions, Macquarie has moderated growth assumptions for these divisions based on what it sees as a reasonable indicator for industrial activity. 

The broker continues to see a favourable outlook for Ansell over the medium to long-term. The rating is downgraded to Neutral from Outperform and the target price increases to $29.20 from $28.85.

Target price is $29.20 Current Price is $29.43 Difference: minus $0.23 (current price is over target).
If ANN meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.55, suggesting downside of -0.7% (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: 0.3

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

Citi rates ASB as Buy (1) -

Austal's downgrade relating to its salvage ship (T-ATS) contract for the US navy is disappointing, Citi suggests, and a reminder of the risks involved when a new vessel build commences.

The implications from T-ATS issues on Austal’s prospects to win the more complicated T-AGOS construction contract, which has been delayed to this year, remain unclear.

While Citi has cut its FY23 profit forecast by -45%, in line with guidance, Buy retained given the strong order book with increased diversification, a number of shipbuilding opportunities which the company could bid for, and strong  net cash balance sheet.

Target falls to $2.32 from $3.70.

Target price is $2.32 Current Price is $1.74 Difference: $0.585
If ASB meets the Citi target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $2.47, suggesting upside of 39.7% (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 AX1 as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley prefers retailers with potential for global expansion, levers to adjust margins and a track record of beating market expectations. A high level of insider ownership and a strong balance sheet are also viewed positively.

The broker downgrades its rating for Accent Group to Equal-weight from Overweight on increasing apparel exposure and margin headwinds, along with the tough economic backdrop.

The target rises to $1.95 from $1.85. Industry View: In-Line.

Target price is $1.95 Current Price is $1.90 Difference: $0.05
If AX1 meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 1.3% (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 BBN as Buy (1) -

Baby Bunting's market updates continue to trigger downgrades to forecasts and the latest has been no exception, leaving Ord Minnett no other choice than to conclude FY23 has been rather "challenging" for the company.

The broker also believes H2 should show minor improvements. Profitable growth is expected to resume in FY24.

On this basis, that Buy rating remains in place. Lower forecasts have pulled back the price target to $3.30 from $4.75. DPS estimates have been noticeably reduced too.

Target price is $3.30 Current Price is $2.61 Difference: $0.69
If BBN meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in July.

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

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

Shares in Bendigo & Adelaide Bank have mostly known but one direction, up, since December last year and UBS finds they are now trading above its own calculation of what seems to be "fair value".

The broker has downgraded to Neutral from Buy. Target price remains unchanged at $10.

UBS remains of the view Australia's regional lenders face more headwinds than the Majors in the years ahead, even though Bendelaide remains the favourite among the regionals.

The valuation, relative to the sector, is "moderate", assesses the broker, plus there's a 6% dividend yield on offer. Both observations prevent the rating from falling below Neutral.

Target price is $10.00 Current Price is $10.15 Difference: minus $0.15 (current price is over target).
If BEN meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.23, suggesting upside of 1.9% (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

Macquarie rates BOE as Outperform (1) -

Boss Energy has now committed half of the expenditure required for the restart of its Honeymoon asset, with the project currently on time and budget with 40% of initial drilling work complete. 

Macquarie highlights total required capital expenditure for the project looks to total $105.4m, with Boss Energy having currently committed $55.1m. The company is targeting start up and first production in the December quarter. 

The Outperform rating and target price of $3.20 are retained.

Target price is $3.20 Current Price is $2.46 Difference: $0.74
If BOE meets the Macquarie target it will return approximately 30% (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 CCX as Neutral (3) -

Despite the excitement about an experienced long-term retail investor recently becoming a City Chic Collective shareholder, Citi notes the trading update revealed first half sales and margins were below market expectations. 

In Citi's the company remains in the midst of a high-risk turnaround given increasing downside risks to the consumer outlook, particularly in the Northern Hemisphere (56% of FY22 sales), with headwinds to earnings unlikely to abate any time soon.

The broker has cut its FY23-25 profit expectations but confusingly raised its target price to 72c from 50c, "as lower earnings are more than offset by the removal of our PE-relative valuation methodology given FY24 earnings are marginal given the turnaround the company is undergoing".

Neutral retained.

Target price is $0.72 Current Price is $0.72 Difference: $0
If CCX meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.73, suggesting upside of 4.0% (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

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

Morgan Stanley prefers retailers with potential for global expansion, levers to adjust margins and a track record of beating market expectations. A high level of insider ownership and a strong balance sheet are also viewed positively.

For City Chic Collective, despite being in an earnings downgrade cycle, the broker still likes long-term growth possibilities. Cyclical headwinds are expected to linger into FY24.

The Equal-weight rating is retained though the target is slashed to 70c from $1.20 due to lower forecast long-term cash flows. Industry view: In-Line.

Target price is $0.70 Current Price is $0.72 Difference: minus $0.02 (current price is over target).
If CCX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.73, suggesting upside of 4.0% (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

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

Ord Minnett reinitiates on Fineos Corp, noting investors in the company gain exposure to a leading software provider for the life, accident and health insurance industry. 

The broker sees ample growth headroom for the company given many insurers continue to use legacy systems, while the company's migration to the cloud supports more recurring income and operating leverage. 

The broker had previously interrupted coverage and has now returned with an Accumulate rating with a target price of $2.11. This Accumulate rating (from whitelabeling Morningstar research) is a downgrade from a prior more positive rating by Morningstar.

Target price is $2.11 Current Price is $2.11 Difference: $0
If FCL meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in EUR. 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 GDG as Add (1) -

Following a 2Q update by Generation Development, Morgans lowers its EPS estimates over the forecast period by -2-5% and reduces its target to $1.50 from $1.65. 

Investment Bond sales were softer than expected though funds under management (FUM) rose by 10% for the 2Q due to a strong market recovery, explains the analyst.

Morgans remains a believer in the long-term compound growth story and retains its Add rating.

Target price is $1.50 Current Price is $1.30 Difference: $0.205
If GDG meets the Morgans target it will return approximately 16% (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

Morgans rates GQG as Add (1) -

Morgans marks-to-market forecasts for ASX-listed fund managers under its coverage following strength in global equities and the Australian dollar in the 4Q of 2022.

In order, the broker prefers GQG Partners, Pinnacle Investment Management and Magellan Financial.

Add-rated GQG Partners has an attractive valuation in relation to its quality of earnings and growth alternatives, according to the analysts.

The target slips to $1.91 from $1.93.

Target price is $1.91 Current Price is $1.53 Difference: $0.385
If GQG meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $2.02, suggesting upside of 33.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Citi has used a general sector update on ASX-listed retailers to downgrade Harvey Norman to Neutral from Buy. Target price has gained 10c to $4.80.

No changes were made to forecasts.

All in all, it is the broker's view that consumer spending most likely will beat benign expectations in FY23, albeit while acknowledging there are risks to this view.

Target price is $4.80 Current Price is $4.49 Difference: $0.31
If HVN meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.31, suggesting downside of -4.0% (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

UBS rates IGO as Neutral (3) -

UBS expects lithium markets will remain in deficit over the near and medium term, before a structural deficit develops in the longer term. Price estimates are upgraded by 50% across the forecast period.

As a result of these new forecasts, the broker raise its rating for IGO to Buy from Neutral.

No target price update is revealed by UBS. On December 6, a target of $15.70 was set.

Target price is $15.70 Current Price is $15.16 Difference: $0.54
If IGO meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting downside of -2.5% (ex-dividends)

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

Macquarie rates JIN as Outperform (1) -

Macquarie reviews its forecasts for Jumbo Interactive ahead of the company's first half result release, finding jackpot activity supportive of upgrades. The broker's tracker indicates lottery volumes were up 8% in the half, underpinned by a material turnaround in the second quarter with three Powerball jackpots at or above $100m. 

The broker now anticipates volumes increase 6% over the full fiscal year, previously 3%, spurred by 4% growth in the second half. Macquarie forecasts a 10% three-year earnings annual compound growth rate for Jumbo Interactive through to FY25, with some potential for upside from acquisition activity. 

The Outperform rating is retained and the target price decreases to $17.55 from $18.05.

Target price is $17.55 Current Price is $15.69 Difference: $1.86
If JIN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.29, suggesting upside of 11.6% (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

Morgans rates KAR as Add (1) -

Morgans was surprised by the jump in Karoon Energy's shares following what the broker considered in-line news on reserves and production at the Bauna operations. It's now thought the share rally may continue as the company continues to deliver.

The upgrade at Bauna was the logical result of a successful intervention program, suggests the analyst, while better-than-expected drilling results were also forthcoming at Patola.

Morgans keeps its Add rating and $3.75 target.

Target price is $3.75 Current Price is $2.32 Difference: $1.43
If KAR meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 25.1% (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: 0.7

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

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

Morgan Stanley prefers retailers with potential for global expansion, levers to adjust margins and a track record of beating market expectations. A high level of insider ownership and a strong balance sheet are also viewed positively.

The broker downgrades its rating for KMD Brands to Equal-weight from Overweight on potential margin headwinds and a tough economic backdrop.

More positively, the analyst likes the global expansion opportunities for Rip Curl, Oboz and Kathmandu and the leverage that arises from reopening/more outdoor activities.

The target falls to $1.05 from $1.25. Industry View: In-line.

Target price is $1.05 Current Price is $0.99 Difference: $0.065
If KMD meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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

Macquarie rates MCR as Downgrade to Neutral from Outperform (3) -

Despite base metal pricing having a strong start to the year, Macquarie has downgraded on Mincor Resources following share price strength. The company has reported drilling results that indicate potential upside at both its Durkin North and Golden Mile assets. 

The broker considers the company's second quarter production report, expected in late January, to be an upcoming catalyst. Production ramp-up and costs are the key risks to the broker's forecasts. 

The rating is downgraded to Neutral from Outperform and the target price of $1.80 is retained.

Target price is $1.80 Current Price is $1.85 Difference: minus $0.045 (current price is over target).
If MCR meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Morgans rates MFG as Hold (3) -

Morgans marks-to-market forecasts for ASX-listed fund managers under its coverage following strength in global equities and the Australian dollar in the 4Q of 2022.

In order, the broker prefers GQG Partners, Pinnacle Investment Management and Magellan Financial.

Hold-rated Magellan Financial is least preferred by the analysts due to the risk on ongoing retail outflows and retail fee cuts in the medium term.

The target falls top $9.54 from $10.94.

Target price is $9.54 Current Price is $9.29 Difference: $0.25
If MFG meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.20, suggesting upside of 11.0% (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

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

UBS expects lithium markets will remain in deficit over the near and medium term, before a structural deficit develops in the longer term. Price estimates are upgraded by 50% across the forecast period.

As a result of these new forecasts, the broker raise its rating for Mineral Resources to Buy from Neutral.

No target price update is revealed by UBS. On December 23, a target of $83.30 was set.

Target price is $83.30 Current Price is $91.45 Difference: minus $8.15 (current price is over target).
If MIN meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $91.45, suggesting downside of -4.7% (ex-dividends)

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

Credit Suisse rates MP1 as Neutral (3) -

Megaport is scheduled to release December quarter trading numbers on January 31 and Credit Suisse is positioned for an improvement in revenue to $36.8m with EBITDA of $1.2m.

The broker suggests investors' attention will be focused on growth in ports. The company has previously suggested it had a strong pipeline to start the quarter, the analyst points out.

Credit Suisse is also watching cash burn. Only minor changes have been made to forecasts. Neutral rating retained. Target price unchanged at $7.10.

Target price is $7.10 Current Price is $6.98 Difference: $0.12
If MP1 meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.23, suggesting upside of 46.3% (ex-dividends)

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

Morgan Stanley rates MQG as Overweight (1) -

Energy volatility is aiding Macquarie Group's commodity revenues and Morgan Stanley increases its forecasts for these by around 9%. Bank volumes and margins are also growing, note the analysts. A partial offset arises from lower M&A related fees.

The broker's Overweight rating is maintained and the target rises to $218 from $215.

Investors may have to wait until market conditions improve into mid-2023, before the market rewards initiatives on Green Energy and other growth alternatives, suggests Morgan Stanley. Industry View: In-Line. 

Target price is $218.00 Current Price is $182.12 Difference: $35.88
If MQG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $190.38, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in March.

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 PLS as Upgrade to Neutral from Sell (3) -

UBS expects lithium markets will remain in deficit over the near and medium term, before a structural deficit develops in the longer term. Price estimates are upgraded by 50% across the forecast period.

As a result of these new forecasts, the broker raise its rating for Pilbara Minerals to Neutral from Sell.

No target price update is revealed by UBS. On January 23, a target of $3.40 was set.

Target price is $3.40 Current Price is $4.83 Difference: minus $1.43 (current price is over target).
If PLS meets the UBS target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.88, suggesting downside of -3.5% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates PMT as Outperform (1) -

 Latest exploration results from Patriot Battery Metals' Corvette asset have expanded the projects potential according to Macquarie. The latest drill results have revealed high grade intersections around the CV5 Pegmatite, allowing the company to define a high-grade zone over at least a 250 metre stretch containing at least four significant intersections. 

Assays from 24 holes drilled in the last year are yet to be received, and drilling is ongoing with the winter drilling program set to focus on testing for further extensions. Increasing its tonne and grade inventory for CV5 sees Macquarie's long-term production rate for the company lift 11%, 

The Outperform rating is retained and the target price increases to $1.60 from $1.20.

Target price is $1.60 Current Price is $1.24 Difference: $0.365
If PMT meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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

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

Morgan Stanley prefers retailers with potential for global expansion, levers to adjust margins and a track record of beating market expectations. A high level of insider ownership and a strong balance sheet are also viewed positively.

Premier Investments fulfills many of the broker's requirements including the expansion opportunity for Smiggle and a strong management track record.

The company is considered best positioned among stocks under Morgan Stanley's coverage to deal with the tough economic backdrop.

The rating is upgraded to Overweight from Equal-weight, while the target rises to $30.50 from $23.25. Industry view: In-Line.

Target price is $30.50 Current Price is $26.63 Difference: $3.87
If PMV meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $26.62, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates PNI as Hold (3) -

Morgans marks-to-market forecasts for ASX-listed fund managers under its coverage following strength in global equities and the Australian dollar in the 4Q of 2022.

In order, the broker prefers GQG Partners, Pinnacle Investment Management and Magellan Financial.

The analysts would like to pick up shares in Hold-rated Pinnacle Investment Management at a lower valuation should some market volatility occur.

The $10.95 target is unchanged.

Target price is $10.95 Current Price is $10.35 Difference: $0.6
If PNI meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.41, suggesting downside of -2.1% (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

Macquarie rates RMS as Neutral (3) -

Ramelius Resources has made the decision to defer its Edna May project on economic grounds, with cost inflation driving up operational and capital expenditure for the project. Macquarie notes environmental permitting will continue, allowing for a quick restart should a better cost environment emerge. 

According to Ramelius Resources, the increased cost of the project would outweigh the assumed increase in gold prices. The project was not included in Macquarie's base case, but the broker highlights development of the Rebecca asset now becomes key to Ramelius Resources maintaining production rates. 

The Neutral rating and target price of $1.20 are retained.

Target price is $1.20 Current Price is $1.08 Difference: $0.125
If RMS meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.29, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in June.

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 S32 as Buy (1) -

South32's Dec quarter production outpaced the Sep quarter significantly but still fell short of Citi's forecast. FY23 guidance has nonetheless been maintained with costs to be in line with or lower than guidance.

The broker has revised up its 2023 price forecasts for copper, aluminium, zinc and coking coal, leading to FY23-24 earnings forecast upgrades of 5% and 3%. Target rises to $5.00 from $4.50, Buy retained.

Target price is $5.00 Current Price is $4.63 Difference: $0.37
If S32 meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 2.3% (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

Credit Suisse rates S32 as Neutral (3) -

Neutral rating retained while the price target loses -10c to $4.40 as Credit Suisse incorporates South32's latest production report in its outlook and modeling.

All in all, realised prices for the December half were either in line or better than what the broker had expected, with exception of manganese, while widening TC/RCs weighed on zinc and copper.

Lower cost guidance has led to higher forecasts.

Target price is $4.40 Current Price is $4.63 Difference: minus $0.23 (current price is over target).
If S32 meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.95, suggesting upside of 2.3% (ex-dividends)

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

Macquarie rates S32 as Neutral (3) -

Macquarie describes a mixed second quarter result from South32, with strong coal production result dragged down by slower than expected ramp up at the company's Cannington asset. 

Production from Cannington has been downgraded accordingly, while more positively the company now expects unit costs to be in line with or below full year guidance. 

The Neutral rating is retained and the target price increases to $4.60 from $4.50.

Target price is $4.60 Current Price is $4.63 Difference: minus $0.03 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.95, suggesting upside of 2.3% (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 S32 as Overweight (1) -

In the face of weather setbacks, 2Q production for South32 still managed a 4% beat versus Morgan Stanley's forecast. Sales were also a 1.5% beat though offset by -3% lower price realisations than expected.

Management made only small changes to production guidance, while flagged costs were in line with the analyst's forecast.

The company remains the broker's key pick in the Resources space. The Overweight rating and $4.95 target are unchanged. Industry View: In-line.

Target price is $4.95 Current Price is $4.63 Difference: $0.32
If S32 meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 2.3% (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

Morgans rates S32 as Add (1) -

Within South32's 2Q operational result, Morgans notes most segments either beat or were in line with production expectations and unit costs were contained, outside of Cannington, which was impacted by lower volumes.

The broker raises its thermal and hard coking coal price forecasts from FY24 onwards (FY23 dips in both cases) and the target rises to $5.60 from $5.30.

Morgans sees potential for South32 to make further acquisitions and exit coal completely.

Target price is $5.60 Current Price is $4.63 Difference: $0.97
If S32 meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 2.3% (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

Citi rates SKO as Buy (1) -

Serko’s trading update highlights a stronger than expected start to 2023, with Citi's analysis showing strong web traffic to Booking.com for Business. This is positive, the broker suggests, when considering that the user interface refresh is still in development/early testing.

While the broker sees a slowing macro outlook as a risk, this could be offset by higher conversion rate once the new interface is in place, and the trading update provided signs things are tracking in the right direction and with hiring slowing, Citi expects strong operating leverage to come through.

An increase in forecast earnings leads to a target increase to $4.00 from $3.65, Buy retained.

Target price is $4.00 Current Price is $2.03 Difference: $1.97
If SKO meets the Citi target it will return approximately 97% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 109.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates SKO as Buy (1) -

Share price weakness may have suggested Serko was cum downgrade and that pivotal deal with Booking.com was not living up to expectations, but Ord Minnett kept the faith and has seen its confidence being rewarded with the company lifting its FY23 guidance.

As the Booking.com deal is all-important for Ord Minnett's Buy rating, the broker is pleased the deal appears a key driver underneath the upgrade.

The broker reiterates if the deal with Booking.com delivers, the Serko share price will be worth multiples of where it is currently trading.

Buy. Target $5.19.

Target price is $5.19 Current Price is $2.03 Difference: $3.16
If SKO meets the Ord Minnett target it will return approximately 156% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 109.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Morgans rates SMR as Add (1) -

Sales for Stanmore Resources in the 4Q exceeded Morgans expectation and net debt at the close of the calendar year was a material beat. Strong de-gearing is expected, resulting in a net cash position by the 2H of 2023.

Hard coking coal prices and realisations are outweighing the impact from January flooding at the port operations, explains the analyst.

The broker estimates a more than 25% free cash flow yield and nearly 30% potential capital upside. Add. The target rises to $4.45 from $3.90.

Target price is $4.45 Current Price is $3.42 Difference: $1.03
If SMR meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates SZL as Buy (1) -

Ord Minnett highlights Sezzle has now shown two consecutive months of cash profitability. This is seen as a "significant turning point".

The broker is positive, expecting management to continue its conservative and disciplined new approach, and generating more positive news flow.

Ord Minnett highlights among the Nth American ‘Buy Now, Pay Later competitors, Sezzle stands out as the only business to be generating cash flow positivity.

Buy. Target $1.10.

Target price is $1.10 Current Price is $0.75 Difference: $0.35
If SZL meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates TLC as Outperform (1) -

Macquarie reviews its forecasts for Lottery Corp ahead of the company's first half result release, finding jackpot activity supportive of upgrades. The broker's tracker indicates lottery volumes were up 8% in the half, underpinned by a material turnaround in the second quarter with three Powerball jackpots at or above $100m. 

The broker now anticipates volumes increase 6% over the full fiscal year, previously 3%, spurred by 4% growth in the second half. Macquarie forecasts a 5% three-year earnings annual compound growth rate for Lottery Corp through to FY25, finding the company to be one of the most defensive stocks on the ASX. 

The Outperform rating is retained and the target price increases to $5.10 from $4.90.

Target price is $5.10 Current Price is $4.75 Difference: $0.35
If TLC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 5.9% (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

Morgans rates TLS as Add (1) -

While relatively small, Morgans believes Telstra Health could be worth $1-1.5bn (8-13cps) by FY25. It is the largest e-health business in A&NZ and allows seamless flow of information across the continuum of care for healthcare providers and governments.

Telstra Health is currently reported under 'other' and the broker feels is often overlooked. It combines MedicalDirector (practice management software), PowerHealth (hospital management software) and Telstra's existing e-health businesses.

The broker maintains its Add rating and $4.60 target.

Target price is $4.60 Current Price is $4.08 Difference: $0.52
If TLS meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.45, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates TWE as Overweight (1) -

Following a strong performance in 2022, Morgan Stanley retains Treasury Wine Estates as a key pick for 2023, highlighting the growth potential from the build-out of a multi country of origin (COO) wine portfolio.

This portfolio includes the "One by Penfolds" range extension available domestically in China, where the broker expects the early removal of tariffs will create further upside risk.

The analyst's Overweight call is based not only on growth for the multi COO portfolio, but also improving margins, and a repositioning of the Americas business.

The target rises to $15.70 from $13.80. Industry view is In-Line.

Target price is $15.70 Current Price is $14.34 Difference: $1.36
If TWE meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $14.49, suggesting upside of 1.0% (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

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

UBS downgrades its rating for Whitehaven Coal to Neutral from Buy on valuation, despite a lift in target to $9.80 from $9.20 following a strong 2Q production report.

A strong run of mine (ROM) result beat the broker's expectation with the undergound performance offsetting weather impacts at open cuts, explains the analyst.

Currently strong thermal coal prices have eased for several reasons including a warmer winter in Europe, and a pick up in nuclear/renewables supply, explains the broker.

UBS forecasts prices will trend lower over the next 12-18 months.

Target price is $9.80 Current Price is $9.35 Difference: $0.45
If WHC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.75, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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