Australian Broker Call

Macquarie rates AGL as Neutral (3) -

Macquarie highlights three of the last four quarters have experienced growth in demand in the national electricity market (NEM), supporting prices.

This trend is expected to be maintained, the broker expects, with EV adoption, and data centre growth exceeding solar energy generation and increased generation/utilisation efficacy.

AGL Energy is anticipated to benefit from higher forward prices and strong Large-scale Generation Certificate (LGC) prices at $50/MWh, which leads Macquarie to adjust EPS forecasts by -1.4% for FY24 and 4.2% for FY25.

The target price is lifted to $11.28 from $10.26 and a Neutral rating is maintained.

Target price is $11.28 Current Price is $10.75 Difference: $0.53
If AGL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.91, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Ord Minnett rates AMP as Accumulate (2) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for AMP is now $1.25 with an Accumulate rating.

Target price is $1.25 Current Price is $1.09 Difference: $0.165
If AMP meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 3.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Citi rates ANN as Neutral (3) -

Citi sees downside risk to the FY25 consensus forecast for Ansell due to a significant degree of uncertainty around the sustainability of the restructuring/cost-out benefits.

While the multi-year, -$85-90m productivity investment program is expected to generate $50m in pre-tax annualised benefits by FY26, the broker expects the majority of improvements will be offset by the rebuild of incentive accruals.

The Neutral rating and $27.25 target are retained.

Target price is $27.25 Current Price is $25.97 Difference: $1.28
If ANN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.43, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Morgans rates APA as Hold (3) -

Yesterday, APA Group announced a -$145m pre-tax impairment for the Moomba Sydney Ethane Pipeline (MSEP) for FY24, fully writing off the current book value of the asset, highlights Morgans. There was no impact upon FY24 underlying EBITDA guidance.

The broker adjusts its forecasts for this write-down and the target falls to $7.44 from $7.48. Hold.

FY24 results are due on August 28.

Target price is $7.44 Current Price is $7.90 Difference: minus $0.46 (current price is over target).
If APA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.80, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates APE as Neutral (3) -

June new car delivery data reinforce the cautious view held by UBS on new car sales over the next 12 months. New car deliveries for the month fell by -4% year-on-year, the first negative comparative since March 2023.

The broker sees 9% 1H year-on-year volume growth for Eagers Automotive and a fall of -3% half-on-half, implying only modest upside to management's 1H guidance, according to the broker.

The Neutral rating and $11.20 target are maintained.

Target price is $11.20 Current Price is $10.32 Difference: $0.88
If APE meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.28, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

UBS rates ARB as Sell (5) -

June new car delivery data reinforce the cautious view held by UBS on new car sales over the next 12 months. New car deliveries for the month fell by -4% year-on-year, the first negative comparative since March 2023.

In the aftermarket, the broker continues to believe the FY25 consensus revenue forecast for ARB Corp looks optimistic.

Sell rating. $34 target price.

Target price is $34.00 Current Price is $37.81 Difference: minus $3.81 (current price is over target).
If ARB meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.48, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates ASG as Buy (1) -

June new car delivery data reinforce the cautious view held by UBS on new car sales over the next 12 months. New car deliveries for the month fell by -4% year-on-year, the first negative comparative since March 2023.

For Autosports Group, the broker sees some modest downside versus the current consensus estimate.

The $3.10 target and Buy rating are unchanged.

Target price is $3.10 Current Price is $2.05 Difference: $1.05
If ASG meets the UBS target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 48.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates ASX as Hold (3) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for ASX is now $59.50 with a Hold rating.

Target price is $59.50 Current Price is $60.74 Difference: minus $1.24 (current price is over target).
If ASX meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $58.76, suggesting downside of -4.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Ord Minnett rates CGF as Accumulate (2) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for Challenger is now $7.80 with an Accumulate rating.

Target price is $7.80 Current Price is $6.87 Difference: $0.93
If CGF meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.47, suggesting upside of 8.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates CHN as Speculative Buy (1) -

Chalice Mining has entered into a memorandum of understanding with Mitsubishi Corporation to collaborate on the Gonneville Pre-Feasibility Study for its 100%-owned Gonneville Project (nickel) in Western Australia.

Bell Potter notes the agreement covers technical, financing, marketing, and offtake aspects, with both parties aiming to negotiate a potential binding partnership after the pre-feasability study is completed around mid 2025.

Mitsubishi’s involvement is viewed by the broker as a strong endorsement of the project, potentially adding value through its technical expertise and access to low-cost funding.

The target price is lifted to $5.15 from $5 with the Speculative Buy rating unchanged.

Target price is $5.15 Current Price is $1.22 Difference: $3.93
If CHN meets the Bell Potter target it will return approximately 322% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 130.7% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates CPU as Accumulate (2) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for Computershare is now $29.15 with an Accumulate rating.

Target price is $29.15 Current Price is $26.38 Difference: $2.77
If CPU meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $29.92, suggesting upside of 11.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Citi rates CSL as Upgrade to Buy from Neutral (1) -

Citi upgrades CSL to Buy from Neutral on the basis of less headline risks going into the 2H of 2024. This follows the CSL112 trial failure, a downgrade of Vifor expectations, and approval of Vyvgart in Chronic Inflammatory Demyelinating Polyneuropath (CIDP) for argenx.

The broker anticipates double digit EPS growth and a 14% NPATA compound annual growth rate (CAGR) between FY23 and FY27, in-line with the consensus forecast.

The target rises to $335 from $305.

Target price is $335.00 Current Price is $294.90 Difference: $40.1
If CSL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $321.73, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Macquarie rates CSL as Outperform (1) -

Yet again currency movements are driving earnings forecast adjusts for CSL.

Macquarie makes minor adjustments to its EPS forecasts of -1% and -3% for FY24 and FY25, with the analyst pointing to expected circa 15% earnings growth p.a. over the next five years, driven by CSL Behring.

The broker notes its forecasts are at the upper end of the FY24 guidance for USD constant currency and around -2% below consensus for the AUD equivalent forecast.

The Outperform rating and $330.00 target are retained for CSL.

Target price is $330.00 Current Price is $294.90 Difference: $35.1
If CSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $321.73, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Bell Potter rates CYC as Buy (1) -

Bell Potter forecasts Cyclopharm will have cash on hand of around $30m post the recent $24m capital raising and the continued commercialisation of Technegas, its proprietary lung imaging agent, in the US market.

The company has received positive feedback from the FDA, which the analyst believes opens the way for potential market approval by early 2025.

The broker adjusts EPS forecasts by 8% in FY24 and -35% in FY25, with a downward revision in the target price to $3.10 from $3.40.

Buy rating unchanged.

Target price is $3.10 Current Price is $1.65 Difference: $1.455
If CYC meets the Bell Potter target it will return approximately 88% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates DMP as Neutral (3) -

According to the company's website, Citi observes net new store openings for Domino's Pizza Enterprises over FY24 have potentially fallen -46% below the consensus expectation for 111 new stores.

While the number of 60 net new store openings is adversely impacted by -18 closures in the 1H, the analysts still believe the consensus FY25 rollout estimates for 146 net additions may be optimistic.

Neutral rating. $44.50 target.

Target price is $44.50 Current Price is $34.92 Difference: $9.58
If DMP meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $44.08, suggesting upside of 27.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates EBO as Upgrade to Neutral from Sell (3) -

Citi upgrades its rating for Ebos Group to Neutral from Sell on valuation after a share price decline.

The key near-term risk remains the unwind of the Chemist Warehouse contract, suggests the broker, and its impact on top-line growth and margin.

The target falls to $31.50 from $33 as the analysts cut the company's mid-term growth rate to 4% from 5% and roll-forward the financial model.

Target price is $31.50 Current Price is $28.96 Difference: $2.54
If EBO meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $35.38, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

UBS rates GUD as Buy (1) -

June new car delivery data reinforce the cautious view held by UBS on new car sales over the next 12 months. New car deliveries for the month fell by -4% year-on-year, the first negative comparative since March 2023.

In the aftermarket, the broker continues to believe the FY25 consensus revenue forecast for G.U.D. Holdings looks optimistic.

The $12.80 target and Buy rating are unchanged.

Target price is $12.80 Current Price is $10.68 Difference: $2.12
If GUD meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 19.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates IAG as Buy (1) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

Ord Minnett's in-house target for Insurance Australia Group remains at $8.10 with a Buy rating.

Target price is $8.10 Current Price is $7.01 Difference: $1.09
If IAG meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting upside of 0.9% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates MPL as Accumulate (2) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for Medibank Private is now $4.15 with an Accumulate rating.

Target price is $4.15 Current Price is $3.62 Difference: $0.53
If MPL meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 6.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates NHF as Hold (3) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

As part of the ongoing transition away from whitelabeled Morningstar research, Ord Minnett's in-house target for nib Holdings is now $8.65 with a Buy rating.

Target price is $8.65 Current Price is $7.11 Difference: $1.54
If NHF meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $8.19, suggesting upside of 15.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates PLS as Hold (3) -

Bell Potter highlights the targeted production capacity expansion of Pilbara Minerals' Pilgangoora operation with a final investment decision expected for the December 2025 quarter.

The broker cuts its lithium price outlook due to demand/supply imbalances although it remains upbeat around the longer-term growth for the EV market.

Adjusting for changes in lithium price forecasts, the EPS estimate declines by -19% for FY25, with FY24 unchanged.

The Hold rating is retained due to poor sentiment on lithium prices and the target price decreases to $3.40 from $3.60.

Target price is $3.40 Current Price is $3.00 Difference: $0.4
If PLS meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.32, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Citi rates PME as Sell (5) -

While Citi forecasts significant revenue and EPS growth to the end of the decade for Pro Medicus and a tripling of market share, the current share price implies even higher growth.

The broker's Sell rating is retained on valuation and the target rises to $95 from $80. Since July 1, 2023, management has signed nine new contracts (five in H2) with implied revenue of $30m/year, note the analysts.

Target price is $95.00 Current Price is $136.39 Difference: minus $41.39 (current price is over target).
If PME meets the Citi target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $108.50, suggesting downside of -16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Bell Potter rates PMV as Buy (1) -

Dissecting the Myer ((MYR)) proposal for an all-script offer of the non-core apparel brands of Premier Investments, Bell Potter postulates there is potential $3 per share upside to the price target of Premier Investments.

The potential uplift is predicated on improving margins for Myer, states the broker, which would warrant a re-rating in the stock of which Premier Investments would hold a larger equity stake.

For now, forecasts remain unchanged, and Bell Potter awaits the divestment of Smiggle in January 2025 and the shape of the proposal and its success.

The Buy rating and $35 target for Premier Investments are maintained.

Target price is $35.00 Current Price is $29.83 Difference: $5.17
If PMV meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $32.20, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates QBE as Hold (3) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

The Hold rating and $19.00 target for QBE Insurance are maintained.

Target price is $19.00 Current Price is $16.82 Difference: $2.18
If QBE meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $19.50, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.6

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

Citi rates RHC as Neutral (3) -

Citi sees downside risk to the FY25 consensus forecast for Ramsay Health Care because the operating environment remains challenging as cost (and particularly wage) inflation remains elevated.

Cost inflation is higher than funding growth in both the EU and the UK, highlights the broker.

The Neutral rating is retained but the target falls to $50 from $56.50 on the broker's lower EPS forecasts.

Target price is $50.00 Current Price is $46.42 Difference: $3.58
If RHC meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $57.52, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates RMD as Neutral (3) -

Citi forecasts EPS of US206cps when ResMed reports 4Q results (normally a month after quarter-end). The broker's forecast is around -1.5% below the consensus estimate of US209cps.

The analysts will be monitoring any impact on sales and shipping costs from the red sea conflict, and updated views on the potential impact of GLP-1s on the market for CPAP therapy.

The Neutral rating and $30 target are maintained.

Target price is $30.00 Current Price is $28.38 Difference: $1.62
If RMD meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.23, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Ord Minnett rates SDF as Hold (3) -

Rising bond yields in the June quarter tempered expectations for interest rate cuts, notes Ord Minnett, and helped reduce the impact of weaker equity markets for insurers.

The analyst also highlights Diversified financials experienced slight earnings downgrades over the quarter, due to the underperformance of equity markets.

The Buy rating and $6.95 target for Steadfast Group are maintained.

Target price is $6.95 Current Price is $6.09 Difference: $0.86
If SDF meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates SHL as Neutral (3) -

Citi sees downside risk to the FY25 consensus forecast for Sonic Healthcare in the belief finance expenses are being underestimated by
consensus.

The broker also sees risks for M&A integration and cost-out benefits.

The Neutral rating and $25 target are maintained.

Target price is $25.00 Current Price is $25.48 Difference: minus $0.48 (current price is over target).
If SHL meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.83, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Shaw and Partners rates SLH as Buy (1) -

Shaw and Partners assesses the recent May port container data which it views as supporting its investment case for Silk Logistics.

The broker notes challenging conditions in the 1H24 have transcended to a recovery in container volumes from December 2023 to May 2024, with full year to date total volumes surpassing the prior corresponding period.

Freight costs have doubled since early May 2024, partly due to geopolitical conflicts, but this impact is expected to be temporary, the analyst highlights.

Buy rating, High Risk and $2.10 target price remain unchanged.

Target price is $2.10 Current Price is $1.25 Difference: $0.85
If SLH meets the Shaw and Partners target it will return approximately 68% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SRG as Buy (1) -

Ord Minnett raises its target for SRG Global to $1.06 from 96c following yesterday's news the company had secured more than $500m of major contracts in the 4Q, across a wide range of sectors.

The broker believes FY24's strong momentum will flow through to FY25 and forecasts around 10% EBITDA growth, ahead of the consensus estimate.

Recent share price weakness is largely due to the closure of a major shareholder’s fund, rather than fundamental reasons, suggests the analyst. Buy.

Target price is $1.06 Current Price is $0.87 Difference: $0.195
If SRG meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.19, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates SRG as Buy (1) -

Shaw and Partners emphasises the sequential contract wins for SRG Global with another $225m secured in the start of FY25 across the health, building and resource sectors, following $776m in FY24 and $1.2bn in FY23, bringing the pipeline to $6.5bn.

Importantly, the broker forecasts EBITDA growth of 22.7% in FY24 compared to its peer companies at 15.4%, yet the stock is trading at a discounted valuation around 4.5x compared to peer's at circa 6.9x.

Buy rating, High risk and $1.20 target retained.

Target price is $1.20 Current Price is $0.87 Difference: $0.335
If SRG meets the Shaw and Partners target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.19, suggesting upside of 38.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Macquarie points to the -20% retracement in Strike Energy shares this week, which drives an upgrade in the rating.

The analyst believes the market has adjusted to a more accurate reflection of the growth opportunities for Strike Energy including the potential South Erregulla gas peaking plant.

While exploration outcomes could drive upside to the share price, Macquarie emphasises the potential delays in the final investment decision for West Erregulla as a potential downside risk.

The stock is upgraded to Neutral from Underweight with the 22c target price unchanged.

No changes in the analyst's earnings forecasts.

Target price is $0.22 Current Price is $0.23 Difference: minus $0.005 (current price is over target).
If STX meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.26, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

While strong jackpot sequencing and cost guidance de-risks FY24 results, in Morgan Stanley's opinion, the FY25 cost outlook remains a key area of uncertainty post the de-merger from Tabcorp holdings ((TAH)).

The broker's Equal-weight rating is maintained on flat earnings growth in FY25, but there is potential for capital management upside. The $5.35 target is unchanged. Industry View: In-line.

Target price is $5.35 Current Price is $4.92 Difference: $0.43
If TLC meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Shaw and Partners rates TYR as Buy (1) -

Shaw and Partners retains a positive view on Tyro Payments post a management briefing, with the broker stating the company appears to be on track to report a "solid" FY24 result.

The company highlighted the health sector as a growth lever, as is the banking division as Tyro Payments continues to evolve to a cloud-based platform.

The analyst addresses the Lightspeed churn event with the risks largely adressed by management and surcharging has expanded to 15-20% of the Tyro Payments' book versus 15% in June 2023.

Shaw and Partners retains its earnings forecasts. Buy rating and $1.60 target retained. High Risk.

Target price is $1.60 Current Price is $0.94 Difference: $0.66
If TYR meets the Shaw and Partners target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 57.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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