Australian Broker Call

Ord Minnett rates ABC as Hold (3) -

At first glance, Adbri's FY21 result fell -5.8% shy of the broker as covid hit operating cash flow, while the dividend provided a 5% beat.

No guidance was provided, management citing too much uncertainty surrounding the Delta covid strain.

July and August sales are meeting or beating expectations in all jurisdictions save NSW and SA and the cost-out program is forecast to impress.

Target price is $3.50 Current Price is $3.65 Difference: minus $0.15 (current price is over target).
If ABC meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.32, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in December.

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 AMA as Neutral (3) -

FY21 operating results were in line with UBS estimates. There was no meaningful update on cost pressures, the broker notes, and the outlook remains challenging. The BASF paint integration has been completed.

Impacts from the pandemic are expected to continue in the first half of FY22. Banking covenant waivers are extended to December 2021, a positive in the broker's view. Neutral rating and $0.56 target maintained.

Target price is $0.56 Current Price is $0.45 Difference: $0.11
If AMA meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates AMX as Add (1) -

The FY21 result was at the top end of guidance and ahead of Morgans expectations, with promising growth in the MetroMap subscription product. Despite revenue downgrades from cessation of project work, the target price only falls to $1.31 fom $1.36. Add rating retained. 

After a bumpy first half, the analyst points out second half revenue came roaring back. The US market for 3D is thought to have around 10x the potential of the Australian market, with the company likely to continue to invest ahead of the curve to break into this market.

Target price is $1.31 Current Price is $0.80 Difference: $0.51
If AMX meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates ANN as Buy (1) -

Citi raises its target to $46.50 from $46 and retains its Buy rating as as the benefit from covid is expected to last longer than previously anticipated. The ungeared balance sheet is considered to provide further upside potential from either M&A and/or share buybacks.

There remains upside risk beyond FY22 if permanently higher use of PPE occurs in some healthcare and industrial settings, points out the analyst. Guidance was in-line with consensus forecasts at the mid-point.

The Healthcare segment grew on strong growth in Exam/Single Use gloves, driven by price increases, notes Citi. Growth in other healthcare sub-segments was mainly driven by volume and is thought more sustainable. 

Target price is $46.50 Current Price is $36.78 Difference: $9.72
If ANN meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Credit Suisse rates ANN as Neutral (3) -

Driven by a weaker Industrial result with Industrial earnings -6% in second half FY21 versus first half FY21, Ansell reported
FY21 earnings per share (EPS) of US$1.92 at the low end of guidance range and -4% below consensus.

While demand for some products has remained strong, growth in surgical and industrial disappointed. Ansell provided an FY22 EPS guidance range of US$1.75-1.95, representing -9% to 1.5% growth versus FY21.

While management remains confident it can deliver earnings growth into the medium term despite the strong FY21 performance, Credit Suisse is more cautious. The broker is forecasting FY23 EPS of US$1.55, 35% higher versus pre-covid levels aided by the higher volumes and operational efficiencies, but -20% below peak FY21 EPS.

Neutral rating is unchanged and the target is reduced to $40 from $44.

Target price is $40.00 Current Price is $36.78 Difference: $3.22
If ANN meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Macquarie rates ANN as Neutral (3) -

Ansell's earnings per share of US192c was at the lower end of the guidance range and a -3% miss on Macquarie's forecast. The company is guiding to FY22 earning per share of US175-195c, which the broker notes implies growth of between -9% and 1%.

Macquarie anticipates covid benefits to reduce in FY22, but increased demand is expected for Mechanical, Surgical and Life Sciences products.

Earnings per share forecasts are updated by -1%, -2% and -2% through to FY24. The Neutral rating is retained and the target price decreases to $39.00 from $40.30.

Target price is $39.00 Current Price is $36.78 Difference: $2.22
If ANN meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Morgan Stanley rates ANN as Overweight (1) -

Ansell's FY21 result broadly met Morgan Stanley's estimate albeit on the soft side, but after three upgrades and the undemanding price-earnings multiple, the broker's not complaining.

Guidance outpaced by 5%.

Covid remains the main demand driver in different segments and territories.

Broker retains an Overweight rating citing better-than-expected market retention; balance-sheet flexibility; and given the company is trading at a -50% discount to industry peers, compared with its five-year average discount of -22%.

Target price edges up to $51.35 from $51. Industry View: In-line.

Target price is $51.35 Current Price is $36.78 Difference: $14.57
If ANN meets the Morgan Stanley target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Morgans rates ANN as Add (1) -

While FY21 results were in-line with guidance they were below Morgans forecasts. Record organic sales and underlying earnings growth were considered driven via unprecedented PPE demand.

The gross margin increased 120bps to 35.7% on higher production volumes, manufacturing efficiencies/pricing, with SG&A expenses tightly controlled, explains the analyst. FY22 guidance is thought to be wide on risks including vagaries in inputs costs and logistics.

By division, Healthcare increased scale on covid gains, high efficiency new manufacturing and account wins, while Industrial captured market share on multi-range products. Morgans retains its Add rating and lowers its target price to $43.64 from $46.66.

Target price is $43.64 Current Price is $36.78 Difference: $6.86
If ANN meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Ord Minnett rates ANN as Accumulate (2) -

Ansell's FY21 profit was well above that of FY20 but below forecast, with the dividend missing as well. However FY22 guidance suggests the covid boost to earnings in FY21 can be maintained, with the broker's forecast towards the bottom end of the range.

The broker is being conservative due to uncertainty around ongoing PPE demand and pricing, while at the same time  lockdowns in SE Asia are disrupting supply.

Target falls to $44.00 from $46.60, Accumulate retained.

Target price is $44.00 Current Price is $36.78 Difference: $7.22
If ANN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $43.84, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Ord Minnett rates AOF as Accumulate (2) -

At first glance, Australian Unity Office Fund's FY21 result is broadly in line with Ord Minnett's forecast and at the top end of guidance.

Occupancy rose.

Net tangible assets fell to $2.71 from $2.77 a share in the second half, courtesy a -$10.7m reduction across the property portfolio.

Guidance disappointed and details on the proposed merger and its timing were cursory.

Target price is $2.43 Current Price is $2.53 Difference: minus $0.1 (current price is over target).
If AOF meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

UBS rates APA as Buy (1) -

At a glance, APA Group's FY21 result missed UBS and consensus estimates by a decent clip as operations came under pressure.

The company reports softer contract renewals, lower volume and higher corporate costs in NSW and QLD.

Capital expenditure guidance rose to $1.3bn over the next 2-3 years. The broker expects gas should receive support as the transition gains pace. 

Buy rating retained. Target price steady at $11.20.

Target price is $11.20 Current Price is $9.96 Difference: $1.24
If APA meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.55, suggesting upside of 9.1% (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 APT as Buy (1) -

Owing to higher fixed cost investment and slightly higher bad debts, Afterpay's FY21 earnings were slightly below expectations.

In an initial response, Ord Minnett notes FY22 consensus revenue estimates are likely to be flat on the back of this, although the broker expects earnings forecasts to be lower from a consensus perspective.

The broker doesn't expect the share price to be impacted, owing to the Square transaction which the company expects to complete in the March 2022 quarter.

Buy rating and $150 target.

Target price is $150.00 Current Price is $135.10 Difference: $14.9
If APT meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $122.23, suggesting downside of -8.6% (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

UBS rates APT as Sell (5) -

At a glance, Afterpay's FY21 result broadly met pre-announced results.

Below the revenue line, transaction margins fell shy of consensus and UBS; and operating costs and expenses were higher than forecast.

UBS plans to review EPS forecasts but Sell rating is retained and the target price is steady at $42.00.

Target price is $42.00 Current Price is $135.10 Difference: minus $93.1 (current price is over target).
If APT meets the UBS target it will return approximately minus 69% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $122.23, suggesting downside of -8.6% (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 ASB as Buy (1) -

After FY21 results Citi maintains its Buy rating and lowers its target price to $3.10 from $3.35, accounting for higher corporate costs and lower Australasian margins. This is thought to be partially offset by higher US margins and an improvement in FX rates.

The analyst feels the order book wind-down and an absence of major contract wins are behind the material discount the shipbuilding business is trading at compared to peers.

However, the analyst sees multiple opportunities in the US to replenish the pipeline and estimates the company will have $23m net cash at the end of FY22.

Target price is $3.10 Current Price is $2.18 Difference: $0.92
If ASB meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

Austal's FY21 result was in line with expectations, with margin improvement in the US offset by margin deterioration in Australasia, mainly due to low margin emergent support work in second half FY21.

While management guided to $1.5bn, tracking lower on FY21, Credit Suisse views this as conservative, with near-term opportunities that the broker thinks could be crystallised in second half FY22: Notably, the Offshore Patrol Cutter (OPC) program that Austal is bidding for which is expected to be awarded in fourth quarter FY22.

The broker has cut FY22 earnings estimates -16%, on lower US revenue contribution and lower margin in Australasia due to reduced throughput and low margin emergent work.

Credit Suisse downgrades Austal to Neutral from outperform and the target price is lowered to $2.25 from $2.75.

Target price is $2.25 Current Price is $2.18 Difference: $0.07
If ASB meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates ASB as Hold (3) -

For Ord Minnett's initial response on FY21 results: see yesterday's Report.

The broker raises its target price to $2.35 from $2.30, retains the Hold rating and notes the major challenge remains the visibility of Austal's longer-term pipeline of work, particularly in the US shipbuilding business.

An unfranked final dividend of 4cps, was declared, in line with the analyst's expectation.

Target price is $2.35 Current Price is $2.18 Difference: $0.17
If ASB meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates ATL as Upgrade to Add from Hold (1) -

The FY21 earnings (EBIT) loss was in line with expectations and Morgans believes the liquidity position looks set to see the company through to other side of covid. The rating rises to Add from Hold and the target increases to $0.539 from $0.351.

Assuming key markets open up with increasing vaccination rates, the analyst can increasingly see the path to vastly improved earnings. The company has $48m in available liquidity currently.

Morgans highlights even just a freely operating domestic environment would lift earnings materially versus FY21.

Target price is $0.35 Current Price is $0.31 Difference: $0.041
If ATL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates ATL as Lighten (4) -

Ord Minnett believes the FY21 result shows going concern issues have been staved-off over the last 12 months. This is considered due to abnormally high RV used vehicle prices, access to Government loans and the successful listing of Camplify Holdings ((CHL)).

Happily, the timing of the RV price increases corresponded with the need to reduce the size of the RV rental fleet due to covid and use the proceeds to reduce net debt, notes the analyst. The price target rises to $0.31 from $0.28 and the rating rises to Hold from Lighten.

With little confidence, the broker assumes a gradual re-opening of International borders from March/April 2022.

Target price is $0.31 Current Price is $0.31 Difference: $0
If ATL 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 FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Citi assesses a modest first half beat though second half dividends will likely be lower on higher capex and downgrades its rating to Neutral from Buy. The target price falls to $1.80 from $1.90 on higher assumed costs.

The analyst feels the recent resource sector correction sees improved relative valuation elsewhere in the sector. Management expects ex-China aluminium production to increase in the second half 2021 and this will be positive for alumina prices, notes the broker. 

Target price is $1.80 Current Price is $1.68 Difference: $0.12
If AWC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 9.8% (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

Credit Suisse rates AWC as Outperform (1) -

Due primarily to the bauxite price for third party shipments of US$26/t FOB being around US$10/t higher than Credit Suisse estimates, Alumina Ltd reported underlying earnings of US$69m, ahead of the broker (US$55m), and in-line with consensus.

The company guided that alumina costs should be flat in the December half – with reductions in Australia following completion of the Willowdale crusher move – fully offset by increases at Alumar and San Ciprian on oil-linked prices and bauxite.

Alumina Ltd undertakes a cash sweep and pays out all its free cash flow as fully franked dividends.

Outperform rating is unchanged and the target price increases to $1.90 from $1.85.

Target price is $1.90 Current Price is $1.68 Difference: $0.22
If AWC meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 9.8% (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 AWC as Underperform (5) -

According to Macquarie, Alumina Ltd's first half results were a mixed bag, with earnings a -6% miss but an interim dividend of US3.4c beating the broker's forecast by 3%. 

The company also reported a 4% beat on both revenue and underlying earnings, but aluminum production guidance has decreased by -4%.

Given mixed results, Macquarie has updated earnings per share forecasts by -9% for 2021. The Underperform rating is retained and the target price decreases to $1.30 from $1.40. 

Target price is $1.30 Current Price is $1.68 Difference: minus $0.38 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.83, suggesting upside of 9.8% (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

Morgan Stanley rates AWC as Overweight (1) -

Alumina Ltd's first half 2020 result largely outpaced Morgan Stanley's estimates by roughly 6%, save for the dividend. Guidance was in line.

Strong earnings, lower capital expenditure and higher depreciation offset by lower tax, drove a 26% beat on cash flow. The broker spies cost pressures arising from shipping disruptions, higher freight costs, and lower alumina prices.

Global refining business costs rose nearly US$20 a tonne and China recorded a loss. Overweight rating retained. Industry view: Attractive. Target slips to $2.10 from $2.15.

Target price is $2.10 Current Price is $1.68 Difference: $0.42
If AWC meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 9.8% (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 AWC as Hold (3) -

Alumina Ltd posted first half profit and dividend above the broker's forecast. The AWAC joint venture beat by 15% thanks to lower costs and higher aluminium earnings.

Full year capex guidance has been increased but should be buffered by the lower Aussie, although persistently elevated freight rates are keeping alumina prices at bay, the broker notes.

A lack of material catalysts keeps the broker on Hold. Target rises to $1.90 from $1.80.

Target price is $1.90 Current Price is $1.68 Difference: $0.22
If AWC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 9.8% (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

Citi rates BLD as Neutral (3) -

While the upcoming sale of fly ash bodes well for more capital management, Citi believes this is factored-in to the current share price. The Neutral rating is unchanged after FY21 results and the target price falls to $7.15 from $7.40.

The analyst expects dividends to resume in the 1H22 at 5 cents though an on-market buyback is also likely, given a lack of franking credits and low cost of debt.

Results showed volume volatility for the core construction materials businesses as lockdowns continue to disrupt, explains the broker. Infrastructure and major project work continues to face delays, with a broader pick up now expected for FY23.

Target price is $7.15 Current Price is $6.47 Difference: $0.68
If BLD meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Credit Suisse rates BLD as Neutral (3) -

Boral's FY21 Australian earnings were inline. As yet there is no buyback but there's an indication that one could be announced at the AGM, suggests Credit Suisse.

Credit Suisse notes with the infrastructure boom again proving to be illusory, there appears little basis for an FY22 upside volume surprise, with Boral noting the small exposure to detached housing (11% revenue), and confirming that a pickup in infrastructure is now likely in the second half FY22 or even FY23, rather than first half FY22.

The Neutral rating is retained and the target price increases to $6.90 from $6.60.

Target price is $6.90 Current Price is $6.47 Difference: $0.43
If BLD meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

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

According to Macquarie, Boral has reported a soft FY21 result in Australia, with the broker expecting covid to continue to impact on FY22 results. 

Group earnings were at the upper end of the guidance range, but Australia was impacted by volume falls and soft pricing. The broker expects a slow, gradual recovery, and notes markets are unlikely to get worse although covid impacts could linger.   

The broker has updated earnings per share forecasts by -34.3%, -12.7% and -5.6% through to FY24. 

The rating is upgraded to Outperform from Neutral and the target price decreases to $7.30 from $7.80. 

Target price is $7.30 Current Price is $6.47 Difference: $0.83
If BLD meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Morgan Stanley rates BLD as Underweight (5) -

Boral's FY21 result missed Morgan Stanley's estimate, the broker noting comparisons were difficult given divestments and accounting changes clouded the result.

Generally, there was little to get excited about. The company announced no capital management initiatives, no guidance and no final dividend. 

Australian continuing operations fell -10% (the broker had been tipping a small beat), and the company estimates the quarterly impact of the lockdown costs will be -$50m.

Underweight rating and $6.80 target price retained. Industry view: In-line.

Target price is $6.80 Current Price is $6.47 Difference: $0.33
If BLD meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Ord Minnett rates BLD as Lighten (4) -

For Ord Minnett's initial response, see yesterday's report.

Boral reports FY21 earnings of $445m in-line with Ord Minnett's forecast ($439m) and consensus ($441m), and earnings guidance of $430-450m was provided with the release of the target statement in June.

Lighten rating and target price of $6.70.

Target price is $6.70 Current Price is $6.47 Difference: $0.23
If BLD meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

UBS rates BLD as Neutral (3) -

North American business beat expectations while Australia was weighed down by exposure to major projects in FY21. As a result, with volume outlook subdued and pricing anaemic, transformation initiatives are expected to drive earnings growth.

Other than a potential surprise surrounding the fly ash sale, UBS considers the current performance and transformation largely in the price. Neutral retained. Target is reduced to $6.80 from $7.35.

Target price is $6.80 Current Price is $6.47 Difference: $0.33
If BLD meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Morgan Stanley rates BTH as Overweight (1) -

Morgan Stanley upgrades Bigtincan Holdings' target price to $2.10 from $1.50 after crunching the numbers on the company's Brainshark acquisition, which was struck on a "surprisingly modest multiple".

The broker notes Brainshark's annual recurring revenue (ARR) should grow at 15% in FY22,  margins are good, R&D is fully expensed. The deal will be funded via a placement and rights issue at $1.05.

Add that to Bigtincan's scaling ARR and the broker predicts the time-line to profitability has been shortened.

The broker has questions over the cheap multiple and the founders' choice to sell and suspects covid may have taken a toll and the founders' holdings are small.

Overweight rating retained. Industry view: In-line.

Target price is $2.00 Current Price is $1.20 Difference: $0.8
If BTH meets the Morgan Stanley target it will return approximately 67% (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 BTH as Buy (1) -

Ord Minnett considers the acquisition of sales coaching and readiness competitor Brainshark for -$116m is needed to scale-up in order to not get left behind. It's expected to enhance the company’s Learning Hub and adds 180 personnel with sector experience.

Guidance is for proforma FY22 revenue of  $109m (the broker includes 10 months of Brainshark and is positioned for $102m) and for annual recurring revenue (ARR) of $119m at the end of FY22. Ord Minnett raises its target to $1.48 from $1.08 and retains its Buy rating.

Target price is $1.48 Current Price is $1.20 Difference: $0.28
If BTH meets the Ord Minnett target it will return approximately 23% (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

Credit Suisse rates COE as Neutral (3) -

Due to Orbost performance, and with future opex appearing higher too, Cooper Energy's FY22 earnings guidance appears a material miss versus both Credit Suisse and consensus.

Credit Suisse believes near-term catalyst outlook is skewed negative, with OP3D final investment decision no longer having a firm timeline (previous target second half 2022), waiting on Athena plant performance confirmation, and moreover funding resolution.

But the broker sees ample upside should Orbost performance improve, growth proceed with debt funding, and cost structures return more in line with consensus.

Neutral rating is unchanged and the target is lowered to $0.21 from $0.34.

Target price is $0.21 Current Price is $0.21 Difference: $0
If COE meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.29, suggesting upside of 33.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates EHE as Outperform (1) -

Estia Health has delivered a better-than-expected FY21 result, according to Macquarie, with mature homes underlying earnings of $62m ahead of the broker's expected $49m. 

The company reported occupancy rates of 91.8% in the second half, which Macquarie notes is an improving trend given occupancy rates of 90.6% in the first half. 

The broker updates underlying earnings forecasts by -10% and -8% for FY22 and FY23 respectively, larelgy reflecting higher operating cost forecasts. 

The Outperform rating is retained and the target price decreases to $2.70 from $3.05.

Target price is $2.70 Current Price is $2.32 Difference: $0.38
If EHE meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

UBS rates GEM as Buy (1) -

First half results were well ahead of UBS estimates. Occupancy has improved yet the broker estimates NSW, Victoria and ACT make up 70% of revenue and therefore lockdowns will still affect the second half earnings.

The broker believes investors should look through the second half and focus on the recovery trajectory. Valuation is undemanding and UBS retains a Buy rating. Target is reduced to $1.20 from $1.30.

Target price is $1.20 Current Price is $1.01 Difference: $0.19
If GEM meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates HUB as Outperform (1) -

Hub24 reported FY21 underlying net profit of $15.0m, up 48% on FY20 but due to higher non-cash charges was -12% below Credit Suisse and -17% below the consensus.

The company recast its funds under advice (FUA) target to FY23 (from FY22), upgrading it in the process to $63-70bn.

Credit Suisse views the strong FUA guidance as indicative of management’s confidence in the opportunity ahead with upside risk from large transitions or sizeable institutional flows.

The broker has lowered earnings -7%, -4%, and -2% in FY22, FY23, and FY24 respectively. Outperform and target of $31.00 are both unchanged.

Target price is $31.00 Current Price is $27.90 Difference: $3.1
If HUB meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $29.79, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates HUB as Neutral (3) -

Hub24 has released its FY21 result, reporting earnings largely in line with consensus but net profit a -17-20% miss on forecasts. 

It is Macquarie's view that funds under administration growth was the highlight of Hub24's report, and that FY23 funds under administration guidance of $63-70bn demonstrates that momentum has continued into FY22. 

The company plans to reinvest recent growth dividends, limiting near term underlying earnings margin expansion but supporting growth of funds under management, according to Macquarie.

The Neutral rating is retained and the target price increases to $26.50 from $25.75.

Target price is $26.50 Current Price is $27.90 Difference: minus $1.4 (current price is over target).
If HUB 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 $29.79, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates HUB as Upgrade to Add from Hold (1) -

Morgans assesses an in-line overall FY21 result, with the Platform revenue margin a slight miss on the back of revenue margin compression. Management stated the Administration fee pricing environment is stable and operating margin expansion is expected.

In moving back to a long-term view, the analyst upgrades the rating to Add from Hold. It's felt scale benefits will deliver a step-change in earnings over the next three years, with long-term growth supported by the entrenched nature of the platform within the adviser base.

Morgans lifts its target price to $31.65 from $28.05.

Target price is $31.65 Current Price is $27.90 Difference: $3.75
If HUB meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.79, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates HUB as Accumulate (2) -

For Ord Minnett's initial response see yesterday's Report. All in all, the broker found the financial performance in-line with expectations.

Ord Minnett highlights the company provided a "strong" trading update alongside a two-year funds under administration (FUA) target of $63-70bn, plus recent acquisitions are integrating well.

The broker believes Hub24 is the top rated platform on the ASX whose market opportunity remains "significant". The Accumulate rating has been retained while the target price has lfted to $30 from $27.00.

Target price is $30.00 Current Price is $27.90 Difference: $2.1
If HUB meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $29.79, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates IFL as Overweight (1) -

Morgan Stanley's restriction on IOOF Holdings has ended and it resumes coverage with an Overweight Rating and $5.60 target price.

The broker believes the company can become the lowest cost retail wealth play in Australia now the MLC deal is finalised and it has the space to upgrade technology and monetise the vacuum vacated by the banks. 

IOOF is now the country's largest wealth manager, ahead of AMP. Morgan Stanley expects the company's diversified wealth earnings, platform relationships and multi-boutique distribution assets, combined with scale and a compelling valuation, could deliver a re-rating.

Industry view: In-line.

Target price is $5.60 Current Price is $4.95 Difference: $0.65
If IFL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.09, suggesting upside of 0.3% (ex-dividends)

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

Credit Suisse rates IFM as Outperform (1) -

Infomedia's FY21 revenue of $97.4m was in line with guidance, and Credit Suisse believes FY22 revenue guidance of $117-123m appears conservative.

The broker believes only a minority of the $35m new total contract value (TCV) needs to be realised in FY22 to achieve the low end of guidance.

Credit Suisse's revenue forecasts are roughly unchanged. However, the broker has moderated earnings margins due to lingering development requirements and amortisation increases following a higher than expected FY21.

Outperform rating is unchanged and the target is lowered to $2.20 from $2.40.

Target price is $2.20 Current Price is $1.63 Difference: $0.57
If IFM meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates IFM as Buy (1) -

FY21 results were largely in line with expectations. UBS believes the nature of the subscription-based model means Infomedia should exit FY22 with solid revenue momentum.

The broker estimates revenue guidance of $117-123m implies organic growth of 8-14% from FX and incremental contracts. This will be complemented by the contribution of the SimplePart acquisition. Buy retained. Target is raised to $2.20 from $2.15.

Target price is $2.20 Current Price is $1.63 Difference: $0.57
If IFM meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates KGN as Outperform (1) -

Kogan.com's temporary pause in dividends to conserve cash surprised the market and overshadowed an overall positive sales trading update for the first 7-weeks of FY22.

Credit Suisse continues to factor in a year-on-year decline in sales ex-Mighty Ape for the first half FY22 and has moderated previously forecast margin improvement resulting in earnings downgrades.

While there is some risk with respect to how quickly Kogan.com can normalise its cost base, the broker remains positive on the strong value proposition of private label product and on the medium-term growth opportunity for online retail.

Outperform rating is unchanged and the target is lowered to $14.06 from $15.21.

Target price is $14.06 Current Price is $11.06 Difference: $3
If KGN meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates LNK as Hold (3) -

Ord Minnett has updated it's modelling and slightly reduces forecasts while keeping its Hold rating and $5.75 target price.

The broker feels the shares offers greater than 10% upside versus the target price and is much cheaper than Computershare ((CPU)), which had a very strong result, and is a similar business (sort of).

Target price is $5.75 Current Price is $5.11 Difference: $0.64
If LNK meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.63, suggesting upside of 9.4% (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

Credit Suisse rates MMS as Outperform (1) -

McMillan Shakespeare delivered a low-surprise FY21 result with a key indicator of future earnings, being the novated lease order book, back above pre-covid levels.

Credit Suisse notes while covid restrictions pose some short-term uncertainty and car supply constraints continue to impact lease settlement times, the outlook for normalised earnings remains attractive.

The broker ascribes a negative share price reaction to the financials (P&L) impact from establishing a securitisation warehouse. While this will have a short-term impact (mainly FY22-23), Credit Suisse notes it is only a timing difference and believes warehouse economics are superior strategically and hence make very good sense.

The broker's net changes to underlying assumptions were modest, with most of the headline earnings per share (EPS) negative changes due to the new securitisation warehouse.

The broker retains an Outperform rating and raises the target to $14.55 from $14.10.

Target price is $14.55 Current Price is $12.22 Difference: $2.33
If MMS meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.48, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates MMS as Neutral (3) -

McMillan Shakespeare has reported FY21 results in line with Macquarie's expectations, and the broker notes FY22 performance should be boosted as supply constraints ease. 

Macquarie highlighted the GRS segment, where novated lease supply issues were reflected in an order book five times the level of FY19.

The broker updates earnings per share forecasts by -7.1%, -7.2% and -1.6% through to FY24, largely on supply chain issue risks. 

The Neutral rating is retained and the target price decreases to $12.76 from $13.32. 

Target price is $12.76 Current Price is $12.22 Difference: $0.54
If MMS meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.48, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates MMS as Overweight (1) -

McMillan Shakespeare's FY21 result missed Morgan Stanley's estimates by -3% as supply constraints deferred otherwise robust earnings.

The company breached pre-covid levels on most metrics.

The UK business returned to profit post restructuring and the broker spies tailwinds.

No guidance was provided other than that supply constraints will remain into mid-2022.

Overweight rating retained. Target price steady at $14.30. Industry view: In-line.

Target price is $14.30 Current Price is $12.22 Difference: $2.08
If MMS meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.48, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates MMS as Hold (3) -

For Ord Minnett's initial response to FY21 results: see yesterday's Report.

The broker lowers its target price to $12.30 from $12.90 and leaves its Hold rating unchanged. Caution is felt over the impact of the
warehouse funding facility in FY22, a -$4-5m profit (NPATA) headwind, and ongoing covid-19/supply disruptions.

Management continues to see supply issues remaining throughout most of FY22.

Target price is $12.30 Current Price is $12.22 Difference: $0.08
If MMS meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $13.48, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates MND as Neutral (3) -

Labour shortages saw Monadelphous Group deliver a weak FY21 result, and the company has guided to softer revenue in FY22.

Despite a favourable business mix with a higher proportion of revenue in E&C, the group missed at earnings level, primarily due to a shortage of skilled labour resulting in higher labour costs and lower productivity.

Management expects FY22 revenue to be lower than FY21 before improving in FY23 citing the timing of award and commencement of new major projects.

Credit Suisse's FY22 earnings estimate is lowered by -13.5% as the broker expects industry pressures pertaining to labour shortage to persist across the year.

Neutral retained. Target is lowered to $10.50 from $12.15.

Target price is $10.50 Current Price is $10.09 Difference: $0.41
If MND meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates MND as Outperform (1) -

Monadelphous Group has reported net profit of $47m for FY21, a miss on Macquarie's forecast of $51m. The broker explains the difference was largely tax-related.

A second half earnings margin of 5.1% was also a miss on Macquarie's expected 5.4%, and reflected the impact of labour cost pressures. Macquarie notes these pressures are expected to be ongoing in the near term. 

Macquarie decreases earnings per share forecasts by -15%, -9% and -6% through to FY24 to account for lower margins driven by labour costs and productivity impacts and higher depreciation and amortisation.

The Outperform rating is retained and the target price decreases to $11.04 from $12.39.

Target price is $11.04 Current Price is $10.09 Difference: $0.95
If MND meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Monadelphous Group's FY21 result missed Morgan Stanley's estimate by a decent clip courtesy covid.

The broker expects input inflation and labour shortages will dog the stock and the company has guided to lower FY22 revenue. 

Morgan Stanley believes these pressures will abate by FY23 and the longer term prognosis is respectable, pending the outlook for the iron ore price.

Equalweight rating retained. Target price falls to $11.20 form $13. Industry view: In-line.

Target price is $11.20 Current Price is $10.09 Difference: $1.11
If MND meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

For Ord Minnett's initial response, see yesterday's report. Monadelphous Group's FY21 result fell shy of the broker and consensus by -4% and -5% and the company guided to lower FY22 revenue.

On closer inspection, the broker upgrades to Buy from Hold. Target price eases to $11.50 from $12.

Ord Minnett expects headwinds to continue this year (noting the unprecedented shortfall of skilled labour) but appreciates the company's operational history, its strong market position in WA and healthy net cash balance.

As conditions normalise, the broker expects the company will expand margins and profit, so given the recent sell-off, it favours buying now, spying 14% upside to its revised target price despite steady margins and a -16% fall in construction revenue.

Target price is $11.50 Current Price is $10.09 Difference: $1.41
If MND meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates MND as Neutral (3) -

FY21 earnings growth of 18% was below UBS expectations. Labour shortages and Western Australian border closures hit the company's productivity in the second half. This has resulted in a reduction in project productivity.

An inability to fully recover costs has meant a substantial reduction in operating margins. Revenue is also expected to be lower in FY22 because of the completion of major iron ore construction projects, before new contracts ramp up into FY23.

UBS remains attracted to the company's leading position in WA resource construction and retains a Neutral rating. Target is reduced to $10.60 from $12.45.

Target price is $10.60 Current Price is $10.09 Difference: $0.51
If MND meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.97, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates MNF as Overweight (1) -

MNF Group's FY21 result outpaced guidance, triggering a market re-rating. Morgan Stanley cuts FY22 and FY23 EPS estimates by -23% and -26%, and believes the market is simply exercising patience and going for the long game.

M&A opportunities and a forecast ramp-up in the Singapore business present upside catalysts. The broker considers the company's offering as compelling and rare.

Price target rises to $7.30. Overweight rating retained. Industry view: In-line.

Target price is $6.30 Current Price is $6.40 Difference: minus $0.1 (current price is over target).
If MNF meets the Morgan Stanley 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 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 MPL as Hold (3) -

At first glance, Medibank Private's FY21 result fell -2.9% shy of the broker, thanks to a profit drag from Health.

The dividend proved a 4.1% beat and health insurance operating margins also outpaced.

On the guidance front, the company is returning $103m of covid support to customers, the productivity target in health insurance management expenses has been lowered, and flags a deterioration in the overseas insurance segment.

The company expects to hold margins against claims inflation of 2.4%.

The broker expects consensus adjustments.

Target price is $3.15 Current Price is $3.53 Difference: minus $0.38 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.21, suggesting downside of -9.5% (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 MVF as Outperform (1) -

Monash IVF Group has reported FY21 earnings largely in-line with Macquarie's expectations, supported by a 40% increase in new patient volumes.

Total Australian cycles were around 1% ahead of the broker's expectations, implying around 17.9% market share for Monash IVF Group for FY21. Macquarie expects the company to increase this to around 18.2% over the medium-long term.

It is Macquarie's view that the company's strong new patient pipeline and scope for market share gains is positive for FY22. 

The Outperform rating and target price of $1.10 are retained. 

Target price is $1.10 Current Price is $0.99 Difference: $0.11
If MVF meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.04, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates MVF as Add (1) -

Following FY21 results, Morgans makes only minor changes to forecasts and uses higher market multiples to set the target price at $1.06, up from $0.91. Market share growth was thought to be driven by continued spend on marketing, new fertility specialists and clinics.

The analyst highlights top line growth has derived from 2-3% price increases across the group's markets. Management reiterated confidence in continued growth with more detail expected at the AGM in November.

Target price is $1.06 Current Price is $0.99 Difference: $0.07
If MVF meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.04, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates NAN as Sell (5) -

It is Citi's assessment that Nanosonics' FY21 performance beat forecasts because of a combination of higher sales and a higher margin.

The first half had been markedly impacted by covid, observes the analyst. Citi believes the company remains well-capitalised carrying $96m in cash with zero debt.

Company management's FY22 guidance implies ultrasound procedures return to pre-covid levels but Citi maintains covid is still a risk.

Sell rating retained (it's a valuation thing). Price target $4.30 is made up of $2.80 for the core business and $1.50 for new products yet to be launched, explains the broker.

Target price is $4.30 Current Price is $7.18 Difference: minus $2.88 (current price is over target).
If NAN meets the Citi target it will return approximately minus 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.24, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Morgans sees a significant improvement in the second half and expects momentum to continue after the release of FY21 results. As a result of a strong share price the broker lowers its rating to Hold from Add while increasing its target price to $7.26 from $6.57.

Unit sales were up 3,030 units with the second half up 20% on the first, which reflects business opening up and likely to continue in FY22, thinks the analyst. Management updated on its next major product a “flexible endoscope”, potentially due for commercial launch in 2023.

The company also highlighted an increase in the total addressable market for Trophon2 to 60,000 units from 40,000 in the US. Other regions of Europe and ROW remain at 40,000 units each. The latter is likely understated, according to the broker.

Target price is $7.26 Current Price is $7.18 Difference: $0.08
If NAN meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.24, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates NAN as Hold (3) -

Nanosonic's FY21 result outpaced Ord Minnett's forecast, thanks to an uptick in revenue.

Capital devices and consumables sales posted a strong recovery as the operating environment normalised and the announcement of the Coris platform pleased the broker.

Lower-than-expected operating expenses supported an 86% beat on the profit line but the company provides higher than expected cost guidance for FY22.

Target price rises to $6.40 from $5.40. Hold rating retained.

Target price is $6.40 Current Price is $7.18 Difference: minus $0.78 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.24, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates NEC as Buy (1) -

Nine Entertainment's FY21 earnings and net profit were in line with Ord Minnett's estimates.

While revenue was slightly softer than the broker's estimates, due to lower-than-expected digital and publishing revenues, DPS was a beat.

At first glance, Ord Minnett notes 9Now margins are a standout, along with record FTA (free-to-air) margins in over 10 years.

The broker notes while 9Now revenues are ahead of expectations, Stan FY22 earnings could be downgraded due to earnings guidance of low-double-digit $millions. 

Buy rating and $3.50 target price. 

Target price is $3.50 Current Price is $2.98 Difference: $0.52
If NEC meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.35, suggesting upside of 23.6% (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 NHF as Equal-weight (3) -

Further to the initial reaction, see yesterday's Report, Morgan Stanley notes the company has guided to 2-3% policyholder growth in FY22 and reiterated the 6% net margin outlook for the ARHI business.

The broker suspects potential sources of disappointment are the absence of profit guidance for FY22 along with a reiteration of the net margin outlook for ARHI and an anticipated slower recovery in international and travel.

The broker remains encouraged by the top line growth but envisages claims will normalise and retains an Equal-weight rating. Target is reduced to $6.45 from $6.75. Industry view: In-line.

Target price is $6.45 Current Price is $6.59 Difference: minus $0.14 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.74, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Ord Minnett rates NST as Buy (1) -

Northern Star Resources' FY21 result was broadly in line with Ord Minnett forecasts; while net profit of $372m was a 5% beat against the broker's number but a -7% miss against consensus on higher D&A.

At first glance, Ord Minnett notes there were no changes to guidance or material updates on projects.

The dividend was ahead of the broker's forecast (9.5cps versus 8cps) due to an updated dividend policy, which now sees 20-30% of cash earnings returned to shareholders (formerly 6% of revenue).

Buy rating and target of $11.

Target price is $11.00 Current Price is $9.76 Difference: $1.24
If NST meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.14, suggesting upside of 25.3% (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

Morgan Stanley rates NTO as Overweight (1) -

First half results were in line with guidance. 2021 guidance is reiterated, for recurring revenue in the range of US$39-42m and an EBITDA loss of -US$9-11m.

Morgan Stanley retains an Overweight rating. Target is $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $3.33 Difference: $0.37
If NTO meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates OGC as Neutral (3) -

OceanaGold Corporation has announced that New Zealand Level 4 lockdowns are affecting the Macraes and Waihi operations.

For now the broker trims third-quarter forecast production and is adopting a wait-and-see approach, noting the company will have to improve production post lockdowns to compensate.

Should the lockdowns extend beyond two weeks, it might be another story.

Neutral rating retained. Price target eases to $2.50 from $2.70.

Target price is $2.50 Current Price is $2.44 Difference: $0.06
If OGC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.30, suggesting downside of -3.8% (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

Credit Suisse rates OSH as Neutral (3) -

Oil Search delivered a solid earnings result beating Credit Suisse and consensus by 2% and 7% respectively, and provided no major updates on guidance.

Management indicated it has not explored alternative avenues to the Santos ((STO)) proposal such as company breakup/asset sales.

Credit Suisse thinks a merger is likely but given 75% of votes cast is required, the broker believes a rejection cannot be ruled out.

Credit Suisse sees upside risk in early September when the merger is due to be announced post due diligence, which the broker suspects may be accompanied by more details on merger upside and synergies, potentially providing price support for Oil Search and Santos.

The broker maintains a Neutral rating, increasing its target to $3.89 from $3.82.

Target price is $3.89 Current Price is $3.81 Difference: $0.08
If OSH meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates OSH as No Rating (-1) -

Oil Search's 2021 first-half result fell just shy of Macquarie's forecast.

The Pikka oil sale is awaiting funding completion, and the potential to monetise US$500m to US$1bn of midstream infrastructure could improve break-even prospects. The Papua LNG project is on track.

The company reports continued debt reduction, triggering a beat on free cash flow, and refinancing is nearing completion.

EPS forecast fall -4% for FY21 but FY22 and FY23 forecasts rise 4% on lower non-cash corporate costs.

Macquarie is under rating restriction.

Current Price is $3.81. Target price not assessed.

Current consensus price target is $4.59, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

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

First half results were in line with Morgan Stanley's estimates. Due diligence is currently being conducted by both Santos and Oil Search on the merger, so broker notes the market awaits an outcome.

The market is also awaiting news on Papua LNG as commercial agreements need to be agreed to use existing infrastructure from PNG LNG.

Equal-weight. Target is $4.50. Industry view: Attractive.

Target price is $4.50 Current Price is $3.81 Difference: $0.69
If OSH meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Ord Minnett rates OSH as Buy (1) -

Oil Search reported operating earnings 14% above the broker's forecast, with the highlight being strong cash flow. Full year cost guidance has been maintained.

The focus is nonetheless on the Santos ((STO)) merger expected to be completed in November. The broker sees mutual benefit in the combination, and value in both stocks.

Buy retained, target rises to $5.55 from $5.50.

Target price is $5.55 Current Price is $3.81 Difference: $1.74
If OSH meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

UBS rates OSH as Buy (1) -

First half net profit beat forecasts amid lower interest expense, favourable inventory and lower royalties.

The main focus of the company's commentary was the update on P'nyang gas field development and how the proposed merger with Santos has slowed down the sale process in Alaska.

On the merger, UBS expects an update on estimated synergies along with a binding merger implementation agreement in the first week of September. Buy rating and $4.65 target maintained.

Target price is $4.65 Current Price is $3.81 Difference: $0.84
If OSH meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates PPM as Outperform (1) -

Pepper Money reported a strong first half FY21 result with an underlying net profit of $66m, 11% above Credit Suisse. The company stated it expects to ‘exceed’ the prospectus FY21 net profit forecast of $121m.

Mainly driven by lower bad and doubtful debts (BDD) and partially offset by lower net interest income estimates, Credit Suisse has increased net profit estimates by 1-5% across the forecast period.

The broker forecasts earnings growth in FY22 and FY23 supported by further loan origination growth and positive leverage from the company's platforms and cost base.

The broker retains an Outperform rating and increases the target to $3.35 from $3.25.

Target price is $3.35 Current Price is $2.80 Difference: $0.55
If PPM meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 PRN as Outperform (1) -

FY21 results were better than Macquarie expected. Guidance for FY22 EBITA of $165-185m and a margin of 8-9% is also better-than-expected.

The broker notes the significant amount of work in hand and large order book which should support cash flow and an attractive dividend yield. Outperform retained. Target is $0.95.

Target price is $0.95 Current Price is $0.81 Difference: $0.14
If PRN meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PRU as Outperform (1) -

Updated reserves and resources at Yaoure are broadly in line with Macquarie's estimates. Changes to overall resources and reserves are largely driven by depletion, along with additions at Sissingue.

Macquarie expects the outlook for production growth and reduced costs should provide positive momentum in the share price. Outperform rating and $1.70 target retained.

Target price is $1.70 Current Price is $1.52 Difference: $0.18
If PRU meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 19.9% (ex-dividends)

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 RDY as Outperform (1) -

FY21 results beat Macquarie's estimates. In FY22 organic revenue growth in the mid teens is expected with a further $13m in incremental growth for a full contribution from Open Office. Margins are in the 36-38% range.

Macquarie observes the main downside risk is if cost guidance is not achieved, which would reduce confidence in the company's FY26 target of 15% sales growth. Outperform maintained. Target rises to $3.30 from $2.85.

Target price is $3.30 Current Price is $2.85 Difference: $0.45
If RDY meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates REH as Sell (5) -

Reece delivered FY21 underlying earnings (EBIT) 1% ahead of Citi forecasts, with Australian earnings ahead of estimates, while the US was below. A fully franked final dividend of 12 cents was declared. The broker retains its sell rating and $13.50 target price.

Management highlighted uncertainty associated around the underlying market conditions. The analyst highlights Reece Australia delivered 12% sales growth and 21% earnings (EBITDA) growth in the second half, driving 130 bps of earnings margin expansion.

Target price is $13.50 Current Price is $25.00 Difference: minus $11.5 (current price is over target).
If REH meets the Citi target it will return approximately minus 46% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.68, suggesting downside of -30.1% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Morgan Stanley rates REH as Underweight (5) -

Morgan Stanley observes Reece is a good business that is performing well in a favourable environment albeit trading at an expensive multiple.

FY21 results were broadly in line and Australasian earnings surpassed expectations. The broker believes the strong share price performance over the past year has been driven predominantly by technical factors and finds the premium hard to justify.

Hence, Morgan Stanley retains an Underweight rating. Target is reduced to $16.00 from $16.40. Industry view: In-line.

Target price is $16.00 Current Price is $25.00 Difference: minus $9 (current price is over target).
If REH meets the Morgan Stanley target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.68, suggesting downside of -30.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Ord Minnett rates REH as Hold (3) -

Ord Minnett acknowledges the FY21 result was slightly better-than-expected, to the tune of 2-3%, and the underlying result was an even bigger beat (11%), while the final dividend of 12c compares with Ord Minnett's 7c forecast.

The 4% increase in sales was below forecast, and the analyst suggests the 'beat' (see above) can be traced back to lower interest charges.

The key question Ord Minnett asks is whether an otherwise good result is good enough to warrant the share price valuation for what is regarded a high-quality business.

Hold. Valuation/price target $16.

Target price is $16.00 Current Price is $25.00 Difference: minus $9 (current price is over target).
If REH meets the Ord Minnett target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.68, suggesting downside of -30.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto has resumed operations at Richards Bay Minerals. The security situation has stabilised, although guidance is yet to be reinstated.

Macquarie is encouraged by the re-start of operations which, when production is ramped up to capacity, should enable the company to maintain a titanium dioxide production rate of around 1.0mtpa.

Iron ore prices continue to dominate the earnings outlook and these are trading broadly in line with the broker's second half forecasts. Outperform rating and $153 target maintained.

Target price is $153.00 Current Price is $108.10 Difference: $44.9
If RIO meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $133.43, suggesting upside of 20.3% (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: 0.4

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

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

UBS notes, following a strong FY21 result, top line growth has started to moderate. Several factors suggest to the broker that Reliance Worldwide is unlikely to experience above-normal volume growth going forward.

Combined with declining margins this results in the broker's forecast for net profit to decline -9% in FY22. After a strong share price performance UBS downgrades to Neutral from Buy. Target is reduced to $5.90 from $6.16.

Target price is $5.90 Current Price is $5.64 Difference: $0.26
If RWC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates S32 as Outperform (1) -

South32 delivered FY21 underlying earnings in-line with consensus estimates of US$489m and a beat on net cash of US$406m; the final dividend was US5.5cps.

Credit Suisse notes, a more detailed view of the outlook from the company's sell-side meeting indicated that mine life and back-ended production are likely to be stronger than the broker initially expected.

Incremental investment and mine plan revisions have lifted production and efficiency, modestly extending mine lives. The outlook guidance was broadly for incremental production increases, but also increasing cost inflation.

Credit Suisse assesses the net earnings impact as modest and notes South32 continues to invest modest capex in current operations to maximise efficiencies, which is a driver for higher production, but a lack of near-term growth projects means cash generation is largely returned to shareholders.

Outperform rating maintained. Target is $3.80.

Target price is $3.80 Current Price is $2.88 Difference: $0.92
If S32 meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Citi rates SCG as Sell (5) -

Citi reiterates its Sell rating after leaving forecasts largely unchanged following first half results. The group reported funds from operations (FFO) of 8.94c, which was below consensus estimates and no FY21 FFO guidance was provided.

The analyst expects downgrades to consensus forecasts though notes the market seemed to view favourably the confirmed guidance for a 14c dividend. Citi lowers its target price to $2.11 from $2.12.

Target price is $2.11 Current Price is $2.72 Difference: minus $0.61 (current price is over target).
If SCG meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Upgrade to Outperform from Neutral (1) -

Scentre Group's first-half FY21 result was in line with Credit Suisse, with funds from operations (FFO) up 28% over the previous period to $463.4m, aided by lower credit loss provisions, partially offset by higher net interest costs, with no reversal of FY20 provisions boosting the result.

With restrictions impacting the portfolio, as well as mandated rent relief in NSW and Victoria, Credit Suisse expects second-half FY21 to be weaker.

The Group has not disclosed its expectations for likely rent relief.

The broker has revised FY21-FY23 FFOps estimates by -12.8% and 1.1% respectively but sees scope for earnings recovery over the medium term, albeit not to pre-covid levels.

Credit Suisse upgrades the group to Outperform from Neutral. Target is raised to $3.01 from $2.97.

Target price is $3.01 Current Price is $2.72 Difference: $0.29
If SCG meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Underperform (5) -

First half results were less negative than Macquarie had feared. 2021 distributions of $0.14 per security have been reaffirmed. Yet Macquarie notes this is dependent on a re-opening of retail in October.

Looking further afield the broker forecasts a distribution yield in FY23 of 6.3%.

With limited earnings growth anticipated once covid has passed, structural headwinds combined with elevating gearing loom, and the broker retains an Underperform rating. Target is unchanged at $2.60.

Target price is $2.60 Current Price is $2.72 Difference: minus $0.12 (current price is over target).
If SCG 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 $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Equal-weight (3) -

Scentre Group's first half earnings missed Morgan Stanley's estimates. The broker suspects underlying rent revenue may stagnate, even adjusted for pandemic-related relief.

Yet leasing spreads were better than in 2020 and overall portfolio sales were up 0.9%, so the broker assesses some degree of "snapback" prior to the current lockdowns.

The Equal-Weight rating is retained. Target is lowered to $2.90 from $2.98. Industry view: In-line.

Target price is $2.90 Current Price is $2.72 Difference: $0.18
If SCG meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Upgrade to Buy from Hold (1) -

Scentre Group's first half FY21 funds from operations were up 28% from a year ago but shy of Ord Minnett's forecast. The result was nevertheless of better than expected quality, with property net operating income stabilising at a higher level than assumed.

Retail conditions broadly improved within the portfolio in the period, although new lockdowns cloud the second-half outlook, the broker notes. But sales and visitation data show that the centres rebound quickly once restrictions are eased.

Current valuation implies a further drop in asset values, with no value for funds management and development. Hence the broker upgrades to Buy from Hold. Target rises to $3.20 from $3.00.

Target price is $3.20 Current Price is $2.72 Difference: $0.48
If SCG meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SCG as Neutral (3) -

First half results were in line with UBS estimates. Distribution guidance for 2021 has been maintained at $0.14. UBS is cautious, yet notes leasing deals, re-leasing spreads are all better than expected. Neutral maintained. Target is raised to $2.74 from $2.65.

The company continues to invest in an aggregated click and collect service called Westfield Direct which will be launched in the second half of 2021 and remains on the lookout for assets where the business is under represented.

Target price is $2.74 Current Price is $2.72 Difference: $0.02
If SCG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

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 SEK as Outperform (1) -

Both Seek's FY21 earnings and net profit were negatively impacted by the reclassification of accounting for cloud computing configuration costs into opex and hence below guidance.

The outlook into FY22 was better than Credit Suisse forecasts, with guidance for earnings of $425-450m based on assumed revenue of $950m to $1bn. Guidance for FY22 net profit of $190-200m was also ahead of the broker's forecasts.

While the FY22 guidance drives mid-single-digit upgrades to Credit Suisse estimates, the broker's forecasts for FY23 and beyond are largely unchanged. 

The broker retains an Outperform rating and $35 price target.

Target price is $35.00 Current Price is $31.30 Difference: $3.7
If SEK meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $31.44, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates SEK as Outperform (1) -

FY21 results were lower than Macquarie's forecasts. The company has quantified unification costs across its Asia-Pacific platform at -$125m over three years, of which -$35m will be recognised in FY22.

The broker flags competition is increasing, from the likes of Facebook and LinkedIn, with the company's share of Australian placements declining to 29.8%.

The broker's investment thesis is based on successful execution of the price-to-value strategy which is not fully captured by the market. Outperform. Target is reduced to $37 from $40.

Target price is $37.00 Current Price is $31.30 Difference: $5.7
If SEK meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.44, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates SEK as Hold (3) -

The FY21 core business performance was in-line with May’s guidance at the revenue and profit lines, highlights Morgans. Strong domestic conditions were considered to offset weakness in Asia and Latin America. Hold retained and target price rises to $29.64 from $27.14.

The broker estimates FY22 guidance implies 28% and 32% revenue and earnings (EBITDA) core business growth. The around 120bps implied margin expansion comes despite continuing heavy investment in product and marketing, notes the analyst.

Target price is $29.64 Current Price is $31.30 Difference: minus $1.66 (current price is over target).
If SEK meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.44, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates SEK as Hold (3) -

For Ord Minnett's initial response, see yesterday's Report.

Seek reported FY21 revenues in line with Ord Minnett's estimate at the group level, while A&NZ performance was a beat.

In terms of outlook, the initial recovery should be sharp but the broker expects SME business sentiment will be shaken and is unlikely to recover until the second half of FY22.

Cost and labour inflation are also likely to take a toll and the broker is unsure as to whether investors are looking up or down the employment wave. 

Caution abounds given high multiples in comparison with industry peers. Hold rating and $31 price target retained.

Target price is $31.00 Current Price is $31.30 Difference: minus $0.3 (current price is over target).
If SEK meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.44, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates SEK as Buy (1) -

FY21 earnings were slightly ahead of guidance. Strength in Australasia was the highlight, and UBS believes the company is well on its way to an aspirational $1bn in revenue from the region.

Cost guidance implies a strong level of reinvestment in all businesses. UBS retains a Buy rating and $35 target.

Target price is $35.00 Current Price is $31.30 Difference: $3.7
If SEK meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $31.44, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates SKI as No Rating (-1) -

Underlying operating earnings were down -7% in the first half, lower than Macquarie expected. The broker notes the growth path is the same, coming from Transgrid initially.

Distribution growth is a longer-term theme amid the demand that is emerging from batteries and electric vehicles. The broker is unable to provide a rating or target at present.

Current Price is $2.83. Target price not assessed.

Current consensus price target is $2.67, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in December.

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

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

First half operating earnings were slightly below Morgan Stanley's forecast. The broker notes the proportional contracted and regulated asset base has increased 3% since December 2020.

Full year distribution guidance has been reaffirmed to 12.5c with a five-year growth target that is "at or around CPI". This is absent a change of control transaction before the end of the year, Morgan Stanley points out.

Equal-weight rating and $2.68 price target. Industry view is Cautious.

Target price is $2.68 Current Price is $2.83 Difference: minus $0.15 (current price is over target).
If SKI meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.67, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as Hold (3) -

Morgans suggests the first half result was a sideshow to the main game, being the takeover bid accepted by Spark Infrastructure Group's Board yesterday. It's though investors may either hold (capital certainty and return) or exit and seek higher potential returns elsewhere.

The analyst estimates the potential return based on the bid price is 1.9%, or 3.7% including franking credits that may be distributed attached to a special dividend. The broker maintains its Hold rating and $2.89 target price.

Target price is $2.89 Current Price is $2.83 Difference: $0.06
If SKI meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates SKI as Hold (3) -

Spark Infrastructure Group reported first half earnings down -9% on last year but 3% ahead of the broker on regulatory resets. Otherwise the numbers were broadly in line, but focus is on the takeover process.

Regulatory and FIRB approvals await, but the broker sees the risk of rejection as low. Hold retained. Target rises to $2.89 from $2.73, matching the takeover offer net of dividend. The downside risk is substantial if the bid fails, the broker warns.

Target price is $2.89 Current Price is $2.83 Difference: $0.06
If SKI meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as No Rating (-1) -

First half net profit was in line with UBS estimates. Distribution guidance is reiterated for at least 12.5c per security.

At first glance, UBS notes growth expenditure over 2021-25 has increased 3%, with most of the spending pushed out to 2024-25 and largely for renewables. The broker is restricted on rating and target at present.

Current Price is $2.83. Target price not assessed.