Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Bell Potter raises Life360's target price to $19 from $17.75 ahead of the publication of its June half result on Friday, as it rolls over its forecast base to 2025, assuming a 6.0x multiple to revenue, compared with 6.5x previously.

The broker expects a 17% jump in revenue and a statutory earnings (EBITDA) loss before listing costs of -US$9.6m.

EPS forecasts are steady. Buy rating retained.

Target price is $19.00 Current Price is $16.42 Difference: $2.58
If 360 meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $17.64, suggesting upside of 8.9% (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: 0.8

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

Ord Minnett rates ACF as Upgrade to Buy from Accumulate (1) -

Ord Minnett raises its earnings estimates for Acrow to reflect "strong" new hire contract momentum reflected in the July 2 trading update.

The broker's target is increased to $1.31 from $1.25 (which includes a valuation-roll-forward) and the rating upgraded to Buy from Accumulate.

New hire contracts grew by around 16% to $78.3m in FY24, providing a strong base for growth in FY25, in the analyst's view.

Target price is $1.31 Current Price is $1.12 Difference: $0.19
If ACF meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.36, suggesting upside of 19.6% (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

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group is one of Morgan Stanley's key small/mid cap ideas heading into the reporting season in the expectation of ongoing structural market share gains, particularly as the Video opportunity takes shape.

Video adoption trends over the past 12-24 months have been robust across the industry, and the analysts expect this to continue. More generally, positive revenue trends are highlighted for the audio/video industry.

The Overweight rating and $22 target are retained. Industry view: In-Line.

Target price is $22.00 Current Price is $15.07 Difference: $6.93
If AD8 meets the Morgan Stanley target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $20.72, suggesting upside of 32.8% (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

Ord Minnett rates AWC as No Rating (-1) -

Shareholders of Alumina Ltd have voted to accept the takeover from Alcoa, its partner in the Alcoa World Alumina and Chemicals (AWAC) joint venture.

As a result, Alumina Ltd will no longer trade on the ASX from July 23, points out the broker. 

No rating or target.

Current Price is $1.56. Target price not assessed.

Current consensus price target is $1.55, suggesting upside of 2.6% (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: 0.0

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

Morgan Stanley rates AX1 as Overweight (1) -

Accent Group's trading update revealed a 5% beat against the consensus forecast for FY24 underlying earnings (EBIT), and Morgan Stanley now believes a margin recovery is possible. FY25 tax cuts may provide a further tailwind, suggest the analysts.

Management noted strong momentum across the board including Skechers, TAF, Hype, Stylerunner, Nude Lucy, and Hok.

Overweight. Target $2.45. Industry view: In-Line.

Target price is $2.45 Current Price is $2.16 Difference: $0.29
If AX1 meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.38, suggesting upside of 6.7% (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

UBS rates AX1 as Neutral (3) -

Accent Group's now expects FY24 underlying earnings (EBIT) of between $123.2-125.2m, beating forecasts by consensus and UBS of $117.8m and $115.1m, respectively.

Reported earnings will include a -$14.2m charge relating to the closure of 17 Glue stores that were not meeting required return metrics, explains the analyst.

Management noted trading conditions were improving with like-for-like sales rising by 4.1% for the 2H.

The Neutral rating is maintained and the broker's target rises to $2.20 from $2.05 on a higher assumed multiple and a new valuation approach.

Target price is $2.20 Current Price is $2.16 Difference: $0.04
If AX1 meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.38, suggesting upside of 6.7% (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

Macquarie rates AZJ as Neutral (3) -

Macquarie observes coal volumes slowed noticeably in the 4Q for Aurizon Holdings due to weather impacts in Q3, though FY24 volumes still grew moderately, and the analyst expects similar for FY25. The Network segment exceeded the broker's expectation.

The outlook for Bulk volumes is mixed, according to the broker. Grain in Western Australia is likely to see some pressure from a second year of soft crops, partly offset by the first full year of container services, and a ramp up of high-value iron ore in the central line.

The Neutral rating and $3.73 target are maintained.

Target price is $3.73 Current Price is $3.71 Difference: $0.02
If AZJ meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 8.0% (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

Citi rates BPT as Sell (5) -

At first glance, Beach Energy's June-quarter revenue met consensus forecasts but disappointed Citi by -7% due to cargo timings.

The broker attributes the recent rally after the company's strategy day to a broader sector rally, not sentiment regarding the company's initiatives.

Rather, the strategy day revealed the lower quality nature of Beach Energy's portfolio will likely require better acquisition to reign in capital expenditure increases, observes the broker.

Citi is holding its horse, waiting for proof of execution and better quality cash flows.

Sell rating and $1.40 target price retained.

Target price is $1.40 Current Price is $1.56 Difference: minus $0.16 (current price is over target).
If BPT meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.68, suggesting upside of 7.4% (ex-dividends)

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

Ord Minnett rates CAR as Accumulate (2) -

Ord Minnett updates for the impact of currency movements, pricing changes and volumes for CAR Group's overseas online vehicle classifieds players.

These exposures include Webmotors in Brazil, and operations in South Korea (Encar), the US (Trader Interactive) and Chile (Chileautos).

The Accumulate rating and $39 target are maintained.

Target price is $39.00 Current Price is $34.35 Difference: $4.65
If CAR meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 8.9% (ex-dividends)

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

Ord Minnett rates COE as Hold (3) -

In line with forecasts by Ord Minnett and consensus, Cooper Energy produced 950,000 barrels of oil equivalent in Q4, leaving the total for FY24 in the middle of management's guidance range.

Management noted the Sole pipeline was now functioning at its regular pressure level, and operations will return to normal within a
fortnight. Next quarter, the company is expecting an increase in production at Orbost following recent plant enhancements.

The Hold rating and 22c target are maintained.

Target price is $0.22 Current Price is $0.22 Difference: $0
If COE meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.26, suggesting upside of 18.2% (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

Morgans rates DMP as Hold (3) -

Morgans has downgraded forecasts for Domino's Pizza Enterprises after the company announced the closure of -110 stores in Japan and France amid continuing post-covid normalisation and unfavourable FX movements.

Domino's now concedes it will not reach its long-term target of 7,100 stores in existing markets by 2033 (Morgans estimate is 2040).

Morgans doubts the company will return to its same-store sales target of 3% to 5% until FY26, or that network growth can return to 7% to 9% before FY28. EPS forecasts for FY24 and FY25 fall sharply.

Hold rating retained. Target price falls to $37 from $45.

Target price is $37.00 Current Price is $33.12 Difference: $3.88
If DMP meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $40.33, suggesting upside of 19.4% (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

Ord Minnett rates DMP as Buy (1) -

Ord Minnett praises the decision, though belated, by management at Domino's Pizza Enterprises to shut down underperforming stores in Japan and France.

The decision will likely boost like-for-like sales growth via the redirection of marketing expenditure, and improve individual store economics, in the analyst's view.

The target eases to $42 from $43. Buy. Given management did not allude to FY24 earnings, Ord Minnett assumes the consensus EBIT forecast for $212m is broadly accurate.

Target price is $42.00 Current Price is $33.12 Difference: $8.88
If DMP meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $40.33, suggesting upside of 19.4% (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 DUR as Initiation of coverage with Buy (1) -

Bell Potter has initiated coverage on specialist engineering contractor Duratec with a Buy rating and $1.52 target price.

The company is well known Australia-wide for its asset protection and special construction business, particularly with problematic existing structure.

Bell Potter says this translates into a secure position with existing customers and strong repeat business and growth opportunities with those customers.

The broker observes recent weakness in the share price due to project delays and a lower order book triggered a cut in guidance but expects the defence projects in question should still materialise and observes the company's pipeline is strong.

Target price is $1.52 Current Price is $1.24 Difference: $0.28
If DUR meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 17.1% (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

Macquarie rates EVN as Outperform (1) -

Evolution Mining's 4Q gold production of 212koz fell -4% short of Macquarie's forecast and costs (AISC) were also a -9% miss. Both production and costs were in line with consensus estimates.

Copper production of 20.3kt was 10% better-than-expected by the broker.

The Outperform rating is maintained. After modest long-term EPS upgrades and a valuation roll-forward, the broker's target rises by 7% to $4.40.

Target price is $4.40 Current Price is $4.09 Difference: $0.31
If EVN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 2.5% (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

Morgan Stanley rates EVN as Overweight (1) -

Evolution Mining's 4Q production, cash and costs were all in line with forecasts by consensus and Morgan Stanley. No FY25 guidance was provided.

Management has pre-flagged weaker production with underperformance driven by Red Lake (lower grades) and Mungari, with Cowal providing a partial offset.

Target $4.15. Overweight. Industry View: Attractive.

Target price is $4.15 Current Price is $4.09 Difference: $0.06
If EVN meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 2.5% (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

UBS rates EVN as Neutral (3) -

Evolution Mining's 4Q production and costs (AISC) slightly beat forecasts by UBS, and while FY25 guidance is still pending, the broker anticipates further shocks should be now over.

Growth capex guidance of between -$200-230m per year over the next five years exceeded expectations held by the analyst and consensus but should have largely cleansed the outlook, UBS suggests.

The Neutral rating and $3.70 target are unchanged.

Target price is $3.70 Current Price is $4.09 Difference: minus $0.39 (current price is over target).
If EVN 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 $4.08, suggesting upside of 2.5% (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

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

UBS raises its target for Flight Centre Travel to $27.80 from $21.30 after raising FY25-28 EPS forecasts by between 19-21%, and the rating is upgraded to Buy from Neutral.

According to the broker's proprietary airfare tracker, Australian international airfares continue to fall which should result in growing volume.

A UBS consumer survey also indicates consumers continue to prioritise travel. Further, Flight Centre's Leisure demographic is skewed towards older customers with lower mortgages and higher deposits, while Corporate is still delivering new business wins.

Target price is $27.80 Current Price is $22.19 Difference: $5.61
If FLT meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $26.28, suggesting upside of 15.8% (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

UBS rates FMG as Sell (5) -

UBS welcomes the capital discipline implied in the narrowing and slowing of Fortescue's push into green hydrogen given a host of uncertainties facing the sector.

The broker feels market concerns will ease around a re-leveraging of the balance sheet for projects with opaque economics.

Next potential catalysts for the share price, suggests the analyst, are FY24 production results on July 25 and FY24 financial results on August 28.

The Sell rating and $18.90 target are retained.

Target price is $18.90 Current Price is $22.04 Difference: minus $3.14 (current price is over target).
If FMG meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.28, suggesting downside of -6.4% (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: -0.6

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

Shaw and Partners rates GMD as Buy (1) -

Genesis Minerals' June-quarter production met the mid-point of upgraded FY24 guidance.

The fully-funded Laverton mill restart is under way, promising to cut all-in-sustaining costs to $1600oz observes the broker.

Shaw and Partners has upgraded its gold price forecasts for 2025 and 2026 to US$3000oz.

Buy rating and $2.75 target price retained.

Target price is $2.75 Current Price is $2.15 Difference: $0.6
If GMD meets the Shaw and Partners target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 4.2% (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 GMD as Downgrade to Neutral from Buy (3) -

Fourth quarter gold production and costs (AISC) for Genesis Minerals were in line with the forecasts by UBS. The mid-point of management's FY24 production guidance is set to be achieved, believes the analyst.

The analyst's target rises to $2.25 from $2.15 on higher volume assumptions for the latter half of this decade. The rating is downgraded to Neutral from Buy after the recently strong share price performance.

Target price is $2.25 Current Price is $2.15 Difference: $0.1
If GMD meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 4.2% (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

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

Ord Minnett raises its target to $4.20 from $3.98 based on a rising market (and higher bank multiples) but downgrades the rating for Mystate to Accumulate from Buy.

The downgrade follows a strong share price rise and a lower forecast total return over the next 12-months of 9%, explains the analyst.

The FY24 profit result is due on August 22 and Ord Minnett is forecasting a profit of $35.2m, which would be a fall of -9% on the previous corresponding period.

Target price is $4.20 Current Price is $4.04 Difference: $0.16
If MYS meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

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

UBS rates NWH as Buy (1) -

As part of a trading update, management at NRW Holdings now expects FY24 underlying earnings (EBITA) of $187m compared to the prior consensus forecast for $183m, explains UBS.

The analyst attributes the upgraded guidance to better-than-anticipated project delivery across all segments. A strong balance sheet position enables management to be highly opportunistic in the M&A space, suggests the analyst.

Buy rating. The broker's target rises to $3.50 from $3.30 due to minor EPS upgrades and greater cash generation forecasts which lowers the net debt estimate.

Target price is $3.50 Current Price is $3.18 Difference: $0.32
If NWH meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting downside of -5.8% (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

Ord Minnett rates RHC as Accumulate (2) -

Bringing research in-house and not relying upon Morningstar results in a $49.40 target, down from $68, while the Accumulate rating remains for Ramsay Health Care.

The new $49.40 target was reached after adjusting down by -50c when the broker updated forecasts following a trading update from 53%-owned Ramsay Generale de Sante group in Europe (part of a business refinancing).

The analyst suggests selling the French business may be difficult given first half FY24 losses and an immaterial net profit.

Target price is $49.40 Current Price is $47.63 Difference: $1.77
If RHC meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $54.42, suggesting upside of 16.4% (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

Citi rates STO as Neutral (3) -

On closer examination of Santos' June-quarter pre-released result, Citi observes Santos is nearing free cash-flow lift-off after free cash flow posted a solid beat.

The broker expects this should result in a cut in gearing and higher distributions for shareholders (a June-half dividend of 13cps is implied, says Citi, a beat on consensus and the broker).

Angore drilling is now delivered after lengthy delays, mitigating future volumes risks for PNG LNG as Hides declines. Barossa looks like it will comfortably meet March Q FY25 first gas, and may possibly move forward to late Dec Q, in Citi's view.

Updates on Pikka and Dorado are important to give more confidence on monetising growth assets, either through higher production or farming down working interest, the broker suggests. This then facilitates both de-gearing and dividend growth.

Target price is steady at $8.00 following yesterday's upgrade from $7.75. Neutral rating retained.

Target price is $8.00 Current Price is $8.00 Difference: $0
If STO meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.29, suggesting upside of 3.6% (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: 0.4

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

Macquarie rates STO as Outperform (1) -

Macquarie suggests the growth profile for Santos is materially de-risking after reviewing 2Q operational results. First half free cash flow (FCF) of US$1.1bn was considered "solid" while other metrics were broadly in line with the broker's forecasts.

While the realised LNG price for the period of US$11.47/MMBtu beat the broker's US$11/MMBtu forecast, it fell short of the consensus estimate.

Macquarie forecasts an unfranked dividend yield of 5.9% in 2024, followed by 4.8% in 2025.

Outperform rating retained. The broker's target eases to $8.95 from $9.00 due to higher-than-forecast cash costs, partly offset by near-term tax changes.

Target price is $8.95 Current Price is $8.00 Difference: $0.95
If STO meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.29, suggesting upside of 3.6% (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: 0.4

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

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

June quarter production for Santos beat forecasts by Morgan Stanley and consensus by 1% and 2%, respectively, due to higher contributions from Western Australia.

Sales revenue disappointed with realised LNG prices of US $11.47mmbtu, a fall of -10% quarter-on-quarter because of lagged oil-linked contracts and lower spot prices, explains the broker.

Management guides to1H free cash flow (FCF) of circa US$1.06bn, a -36% miss against the forecasts by the analysts and consensus.

The Equal-weight rating and $8.00 target are maintained. Industry view: Attractive. 

Target price is $8.00 Current Price is $8.00 Difference: $0
If STO meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.29, suggesting upside of 3.6% (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: 0.4

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

Ord Minnett rates STO as Accumulate (2) -

June quarter production and sales revenue for Santos were broadly in line with forecasts by Ord Minnett and consensus. The company experienced softer prices for LNG in the period.

First half free cash flow (FCF) was US$1.06bn which implies to the analyst an interim dividend of US12.4cps (based on a 40%
payout ratio of FCF).

The broker trims the target to $8.00 from $8.50 and maintains an Accumulate rating.

Target price is $8.00 Current Price is $8.00 Difference: $0
If STO meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.29, suggesting upside of 3.6% (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: 0.4

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

UBS rates STO as Buy (1) -

June quarter production for Santos was in line with forecasts by consensus and UBS. Sales revenue fell slightly below expectations as the sales mix was skewed more to domestic gas and less to LNG.

The broker suggests the focus for management should be on project execution and delivering a step-change in production and free cash flow (FCF) from late 2025.

The Buy rating is maintained, and the broker's target falls to $9.00 from $9.20 following 2024-26 EPS forecast cuts of between -5-9% on lower near-term production.

Target price is $9.00 Current Price is $8.00 Difference: $1
If STO meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $8.29, suggesting upside of 3.6% (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: 0.4

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

Bell Potter rates TLX as Buy (1) -

Telix Pharmaceuticals' June-quarter revenue met Bell Potter's forecasts and management upgraded revenue guidance by roughly 10% at the midpoint.

Management also reaffirmed a 40% to 50% increase in research and development expense.

Bell Potter estimates the PSMA PET imaging market to be more than 340,000 scans a year, of which Illuccix holds 30%.

Zircaix and Pixclara regulatory submissions are on track and progress on Illuccix in the EU and UK will be updated at the June-half result.

Buy rating retained. Target price rises to $22.60 from $19.

Target price is $22.60 Current Price is $19.47 Difference: $3.13
If TLX meets the Bell Potter target it will return approximately 16% (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 WHC as Buy (1) -

At a glance: Whitehaven Coal's June-quarter production and sales met guidance. Production outpaced Citi's forecasts by 5%. Costs were toppish, just outpacing guidance.

 The company closed the quarter with net debt of $1.3bn.

Product mix for the quarter was: 59% metallurgical and 41% thermal coal.

Management advised the possible sale of 20% of South Blackwater to steel producers is continuing.

Buy rating and $9.20 target price retained for now.

Target price is $9.20 Current Price is $8.43 Difference: $0.77
If WHC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Citi rates ZIP as Buy (1) -

Zip Co's June-quarter result appears to have pleased Citi, customer spend in the US rising 43% year on year, helping the company contain bad debts to below target in a tough market.

Add to that the repayment of expensive corporate debt through the company's recent equity raising and forecast customer growth, and Citi sharply raises its forecasts, the broker expecting net debt will stay low.

Buy rating retained; target price rises to $1.90 from $1.40.

Target price is $1.90 Current Price is $1.79 Difference: $0.11
If ZIP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 13.4% (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 ZIP as Buy (1) -

Ord Minnett raises its target for Zip Co to $1.95 from $1.55 following a 4Q trading update showing a strong finish to FY24. The US division was considered a highlight, generating total transaction value (TTV) growth of 40.7% versus the previous corresponding period. 

Cash earnings (EBITDA) for the 4Q of between $22-25m compares to the broker's $19.4m forecast.

In a highly accretive move for cash earnings per share, according to the broker, management simultaneously announced (and then completed) a $217m equity placement. Proceeds will be used to retire a $130m corporate debt facility, along with associated exit fees.

Over the last six months, the analysts highlight most metrics have been towards the better end of management's medium-term guidance.

The Buy rating is maintained.

Target price is $1.95 Current Price is $1.79 Difference: $0.16
If ZIP meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 13.4% (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