Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Life360's June-half result outpaced Bell Potter's forecasts, earnings (EBITDA) landing at nearly three times the broker's forecasts. Management upgraded EBITDA guidance to US$9m-US$14m from US$5-10m.

June-quarter metrics also outpaced, with total paying circles, monthly active uses and annualised monthly revenue all running hot.

Average revenue per paying circle was the only miss and the company attributed this to FX impacts.

The company finished the half with US$64.2m in cash, compared with the broker's forecast US$55m.

Buy rating retained. Target price rises 14% to $10.50 from $9.25.

Target price is $10.50 Current Price is $9.01 Difference: $1.49
If 360 meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

First half revenue from Life360 was in line while operating leverage beat estimates. The company has already hit 2023 guidance at the EBITDA line within six months of trading.

Morgan Stanley notes expectations had risen as the stock rallied into the second quarter and yet the company appears to have left room for more positive revisions going forward.

Given volatility in hardware sales and a softer macro outlook, the broker is not surprised guidance is unchanged, with the exception of EBITDA, which has been upgraded to a range of US$9-14m.

Overweight rating reiterated. Target is raised to $10.50 from $9.50. Industry view: In Line.

Target price is $10.50 Current Price is $9.01 Difference: $1.49
If 360 meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgans rates ACF as Add (1) -

The FY23 result for Acrow Formwork and Construction Services came in at the top end of management guidance and was slighlty above Morgans forecasts.

The broker's highlights include a growth capex return on investment (ROI) of 57.9%, which significantly exceeded management’s hurdle rate of 40%, while the pipeline of tenders and quotes is up 70% to $142.3m.

On the flipside, bad debts of $3m now represent 1.8% of sales, up from 1.5% in H1, though management believes a peak has been reached.

Morgans raises its target to $1.15 from $1.10. Add.

Target price is $1.15 Current Price is $0.89 Difference: $0.26
If ACF meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 24.2% (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

Morgans rates AKE as Hold (3) -

While lithium prices have softened faster than Morgans was expecting, they are still at levels to allow strong earnings for producers. It's felt prices will continue to soften which means there is less leeway for businesses without free cash flow.

Under these circumstances, the broker prefers larger stocks under its coverage that are already in production.

Morgans notes Allkem nearly trebled its estimated spodumene resource at James Bay recently, and an extended mine life forecast partly offsets reduced forecast volumes of hydroxide produced from Naraha. The target falls to $14.60 from $14.80. Hold.

Target price is $14.60 Current Price is $13.56 Difference: $1.04
If AKE meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.93, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Shaw and Partners rates AZY as Buy (1) -

Antipa Minerals has published results for the first 4,200m of the Phase1 Minyari Dome RC drill program, 35km from Newcrest's Telfer mine. 

Shaw and Partners says the result reveals high-grade, near-surface gold mineralisation, and that the mineralisation is open in most directions, suggesting it could prove a strong maiden resource.

Diamond drill testing at the Tetris and Pacman targets is also being prepared. Buy recommendation and 6c target price retained.

Target price is $0.06 Current Price is $0.02 Difference: $0.04
If AZY meets the Shaw and Partners target it will return approximately 200% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates BAP as Neutral (3) -

Upon reflection after a conference call with management at the company, Citi analysts believe low-to-mid single digit downgrades are likely to follow for consensus FY24 EBITDA estimate of $334m.

In what seems to be the trend this month, Bapcor's FY23 net profit released earlier today missed market consensus by -1%, comment Citi analysts in an initial assessment of today's market update.

The broker finds cash conversion was "strong" and the 22c final dividend beat forecasts of 20c. Among the negatives are no growth for the network in Thailand and management's anticipation FY24 will be weighted to the second half.

While guiding to "solid" underlying performance for the business, management has also flagged ongoing margin pressures, higher D&A and interest.

Citi is of the view today's H2 skew guidance is raising questions about Bapcor's ability to achieve its targets for FY25. Target $6.49. Neutral.

Target price is $6.49 Current Price is $6.42 Difference: $0.07
If BAP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.28, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates CAR as Outperform (1) -

Carsales reported adjusted FY23 earnings up 57% year on year due to acquisitions (mainly Trader Interactive in the US and partly Webmotors in Brazil). This was largely in line with Macquarie's expectations.

Management's FY24 outlook has been upgraded across private (Australia), Trader Interactive, due to the yield outlook, and Webmotors, partially offset by more capex. Macquarie considers guidance to be conservative.

The strong result has negated market concerns over the US and LatAm. Target rises to $29.00 from $27.40, Outperform retained.

Target price is $29.00 Current Price is $27.10 Difference: $1.9
If CAR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.73, suggesting upside of 3.7% (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

Citi rates CGF as Sell (5) -

FY23 results beat Citi's estimates. On further analysis the broker expects Challenger should deliver greater book growth in FY24 as retail sales momentum appears strong.

Growth will bring the need for capital and the cut to the dividend payout ratio appears to reflect this.

Asset risk may seem benign but Citi assesses there is a risk this worsens as credit conditions continue to tighten and commercial property values come under further pressure. As a result the broker retains a Sell rating and lifts the target to $6.25 from $6.00.

Target price is $6.25 Current Price is $6.76 Difference: minus $0.51 (current price is over target).
If CGF meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates CGF as Neutral (3) -

Challenger continued the trend of disappointment with the final dividend, Macquarie suggests, while also reducing the FY24 payout ratio to 30%-50% from 45%-50%.

As annuity sales continue to grow, the cost-to-income ratio is improving, but management is already flagging a negative return on equity outlook in FY24.

Ongoing Defined Benefit sales, and the newly-renegotiated MS Primary contract in Japan, pose upside risk to earnings in FY24, the broker notes.

Target falls to $6.10 from $6.70, Neutral retained.

Target price is $6.10 Current Price is $6.76 Difference: minus $0.66 (current price is over target).
If CGF meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

FY23 net profit was ahead of Morgan Stanley's estimates. Net book growth in the life business disappointed the broker and, while the tenor improved, domestic annuity sales fell -10.5%.

Morgan Stanley assesses Challenger is taking longer to earn the benefit of higher rates compared with both insurers and banks, which is a negative.

FY24 guidance of $555-605m for normalised pre-tax profit appears a little soft yet, at the top end this would deliver 14.2% pre-tax return on equity. Albeit still short of the 16% target, this signals to Morgan Stanley the tilt to a more capital-light model is the right one.

Equal-weight rating retained. Target is reduced to $6.80 from $7.10. Industry view: In-Line.

Target price is $6.80 Current Price is $6.76 Difference: $0.04
If CGF meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates CGF as Add (1) -

Morgans assesses a mixed FY23 result for Challenger with benefits to margin and return on equity (ROE) from rising interest rates, yet FY24 guidance missed consensus expectations and 2H annuity book growth fell by -3%.

The broker reduces its cost of equity (COE) forecasts for the company, which reduces its FY24 and FY25 EPS forecasts by -2% and -5%, respectively, and the target falls to $7.37 from $7.79. 

The analyst points out the impact from rising interest rates is yet to fully flow through for Challenger and the current share market valuation for the company is undemanding. Add.

Funds Management earnings (EBIT) of $62m largely met market expectations, explains the broker, while Life profit (NBPT) of $541m was a slight beat.

Target price is $7.37 Current Price is $6.76 Difference: $0.61
If CGF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates CGF as Hold (3) -

Challenger's FY23 result outpaced Ord Minnett's forecasts by roughly 2% thanks to a beat on cash operating earnings margins and lower operating costs.

But this was offset by a higher share count and lower cash balance, observes the broker.

Ord Minnett believes the outlook is good, and appreciates the company's pivot to underlying annuities which improves compounding, strengthens yields and protects against margin compression arising from selling shorter-dated products.

The broker observes a decline in market share and attributes it to competition in the shorter-dated product space, but expects Challenger will hold share from here on as it focuses on annuities.

Hold rating and $7.30 target price retained.

Target price is $7.30 Current Price is $6.76 Difference: $0.54
If CGF meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates CGF as Neutral (3) -

Challenger's FY23 result appears to have met UBS forecasts, thanks to the affect of high rates on volumes and margins, but FY24 guidance disappointed, management advising cost inflation was likely.

UBS believes retail tailwinds are winding down and expects the company will eye growth options in Institutional business.

The Life division had a good run with annuities in FY23 although the broker expects post-covid demand has most likely unwound.

Funds proved the major disappointment, earnings (EBIT) slumping -18% in the second half and costs rose. While management forecasts a recovery in Funds return on equity, the broker is not so sure.

UBS perceives better returns elsewhere. EPS forecasts are shaved up to -1% over FY24-FY25 to reflect cost inflation.

Neutral rating and $6.80 target price retained.

Target price is $6.80 Current Price is $6.76 Difference: $0.04
If CGF meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.77, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates CIP as Hold (3) -

Solid growth in property income helped offset higher interest costs for Centuria Industrial REIT in FY23, explains Morgans. Results were in line with guidance. 

FY24 management guidance, which assumes an average BBSW rate of 4.6%, is for flat growth on the previous corresponding period for funds from operations (FFO) and dividends.

The broker notes around 80% of the REIT's portfolio is located in infill markets (built out markets) and has potential to benefit from growing market rents.

The target falls to $3.36 from $3.45. Hold.

Target price is $3.36 Current Price is $3.05 Difference: $0.31
If CIP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting upside of 11.9% (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

Ord Minnett rates CKF as Initiation of coverage with Accumulate (2) -

Ord Minnett intiates coverage on Collins Foods with an Accumulate rating and $14 target price, advising the company screens as undervalued.

The broker expects the company's Australian KFC network will continue to drive profits long-term, and that it is likely to exit the struggling Taco Bell business.

High cost inflation and wage rises hit gross margins in FY23 but Ord Minnett expects industry-wide price rises will kick in over the medium term to restore profitability.

The broker appreciates the company's solid balance sheet and shareholder distribution, but spies a growing tendency to overpay for acquisitions.

Target price is $14.00 Current Price is $10.25 Difference: $3.75
If CKF meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $11.33, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in May.

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

Macquarie rates COH as Underperform (5) -

Cochlear's FY23 revenue was ahead of Macquarie's forecast, but with earnings and profit largely in line due to investments in growth initiatives. Management expects FY24 profit to be 6% above the broker's forecasts, albeit partly supported by FX and lower cloud computing expenses.

Macquarie's longer-term forecasts imply high-single digit CI revenue growth and a profit margin of 19%. In order to justify the current share price, CI sales growth would need to increase to 13.5%pa over FY25-30 or profit margins would need to rise to 23% by FY30 (current target 18%).

Target rises to $215 from $198, Underperform retained.

Target price is $215.00 Current Price is $246.47 Difference: minus $31.47 (current price is over target).
If COH meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $235.73, suggesting downside of -4.3% (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

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

Cochlear's FY23 revenue beat estimates while EBIT missed. Morgan Stanley highlights implant unit growth, up 16% and supported by the N8 launch. Unit growth is expected to moderate in FY24 to the high single-digit range as share gains slow and the benefits of the launch are realised.

FY24 guidance of $355-375m in underlying net profit is ahead of expectations and reveals strong momentum. The company is experiencing increased referrals from hearing aid channels along with direct-to-consumer marketing that the broker asserts will give confidence to investors that long-duration high single-digit growth can be achieved.

Equal-weight rating maintained on valuation. Target is raised to $240 from $222. Industry view: In-line.

Target price is $240.00 Current Price is $246.47 Difference: minus $6.47 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $235.73, suggesting downside of -4.3% (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

Morgans rates COH as Add (1) -

Following strong sales growth across all geographies and business segments, explains Morgans, FY23 results for Cochlear landed at the top end of guidance.

The broker anticipates a solid earnings trajectory for the company as fundamentals continue to improve and covid becomes but a memory.

Ongoing solid revenue growth and improving profitability are expected, as Cochlear Implant (CI) trading conditions and demand for upgrades remains strong.

Over FY23, Cochlear Implants benefited from improved clinical capacity, market growth/share and covid catch-up surgeries. At the same time, Services leveraged the Nucleus 8 launch and a strong product offering in Acoustics.

The target rises to $269.40 from $250.60. Add.

Target price is $269.40 Current Price is $246.47 Difference: $22.93
If COH meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $235.73, suggesting downside of -4.3% (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

Ord Minnett rates COH as Lighten (4) -

Cochlear's FY23 result fell -1% shy of Ord Minnett's forecasts as rising operating costs pipped a beat on sales.

FY24 guidance appears to have pleased the broker, suggesting 16% to 23% growth on FY23 in response to higher profit margins and growth in adult cochlear implant sales and a clearing in surgical backlogs. FY24 EPS forecasts are raised accordingly.

The broker forecasts a five-year group-revenue compound annual growth rate of 9% and a 10-year dividend CAGR of 11%.

But Ord Minnett believes the shares are overvalued. Lighten rating retained. Target price rises to $200 from $193.

Target price is $200.00 Current Price is $246.47 Difference: minus $46.47 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $235.73, suggesting downside of -4.3% (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 COH as Neutral (3) -

Cochlear's FY23 sales outpaced consensus forecasts by 6%, with most metrics and divisions outperforming or in line. Underlying net profit after tax was in line due to a -20% jump in deliberate operating expenditure (for growth not cost inflation), according to management.

Management's FY24 guidance has outpaced UBS and consensus forecasts, and UBS expects the bulk of growth will be driven by margin guidance.

None-the-less, the broker remains concerned about the company's lack of pricing power in an inflationary enivronment given its 40x price-earnings multiple

UBS observes the cost of goods rose in line with sales growth and is hoping to see more information as to how the company plans to raise margins in this environment.

The broker believes a rerate to Buy would require a long-term shift in demand through higher penetration of implants in older adults but raises FY24 EPS forecasts to match guidance.

Neutral rating retained. Target price edges up to $260.00 from $255.00.

Target price is $260.00 Current Price is $246.47 Difference: $13.53
If COH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $235.73, suggesting downside of -4.3% (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

Citi rates CPU as Buy (1) -

At first glance, Citi observes the FY23 result from Computershare delivered on guidance yet was soft in terms of composition.

Good cost control was evident but revenue was softer in US mortgage servicing while there was a strong recovery in second half register maintenance.

The broker welcomes the capital initiative in the form of the $750m buyback along with the strong rise in the final dividend. FY24 margin income guidance has increased to around US$840m, slightly below Citi's previous forecasts.  Buy rating retained. Target is $25.90.

Target price is $25.90 Current Price is $24.93 Difference: $0.97
If CPU meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $25.63, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

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

It appears Computershare's FY23 management earnings missed Morgan Stanley's estimates at first view. Revenues were also light versus the broker. The balance sheet is strong and the company is looking at strategic options for US mortgage services.

Morgan Stanley believes FY24 guidance for management earnings per share of 7.5% is "modestly light". This will benefit by 5% from the new $750m buyback on a full-year basis, the broker points out.

Equal-weight. Target is $23.80. Industry view: In-line.

Target price is $23.80 Current Price is $24.93 Difference: minus $1.13 (current price is over target).
If CPU 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 $25.63, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Citi rates CQR as Buy (1) -

The Charter Hall Retail REIT FY23 results were in line with forecasts although FY24 operating earnings guidance of around 27.4c per unit is lower than expected.

Citi reduces FY24 and FY25 earnings estimates by -4.0% and -1.1%, respectively, because of higher funding costs as hedges roll off and amid higher underlying operating cost inflation. Buy rating maintained. Target is reduced to $4.10 from $4.30.

Target price is $4.10 Current Price is $3.52 Difference: $0.58
If CQR meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 16.4% (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

Macquarie rates CQR as Neutral (3) -

Charter Hall Retail REIT's FY23 result and FY24 guidance were broadly in line with Macquarie's expectations. But the broker estimates the benefit from the purchase of an interest rate swap is a 2% tailwind, implying guidance was below expectations on an underlying basis.

Re-leasing spreads were 2.5% in FY23, which implies a moderation in spreads to 2.1% in the second half versus 3.0% in first half, the broker notes.

Despite upcoming headwinds to the consumer, Macquarie does not expect a material decline in re-leasing spreads in FY24 given the
group's skew to discretionary tenants. Target falls to $3.61 from $3.71, Neutral retained.

Target price is $3.61 Current Price is $3.52 Difference: $0.09
If CQR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 16.4% (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

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

Charter Hall Retail REIT's FY23 results were broadly in line with Morgan Stanley's estimates while FY24 guidance appears "a touch soft" at just 27.4c per security.

The company has provided more disclosure on debt hedging for FY24/25 and the broker also notes it paid -$5m upfront for an interest rate swap locking in 3% for two years. FY25 debt hedging at present is 50%.

Morgan Stanley retains an Equal-weight rating and $4.30 target. Industry view is In-Line.

Target price is $4.30 Current Price is $3.52 Difference: $0.78
If CQR meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 16.4% (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 CQR as Accumulate (2) -

Charter Hall Retail REIT's FY23 result largely met consensus', and Ord Minnett's forecasts, although FY24 operating EPS guidance fell -1.4% shy of consensus.

Management advised it has no intention of increasing gearing, and will seek capital recycling opportunities to fund acquisitions instead.

The broker appreciates the company's strong operating metrics and its 88% CPI-linked Long WALE leases (which could offset rising cap rates), not to mention the 7% distribution yield); and observes improved supermarket and specialty tenant growth.

The company raised its hedging to 70% in FY24 and 50% in FY25 at a cost of -$4.6m and raised its debt facility to $150m, observes the broker.

Ord Minnett notes the company is trading a -25% discount to net tangible assets (which decreased -5.6% to $4.73 a share in the June half).

Accumulate rating retained. Target price eases -1.3% to $3.96 from $4.01.

Target price is $3.96 Current Price is $3.52 Difference: $0.44
If CQR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 16.4% (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 CQR as Neutral (3) -

Charter Hall Retail REIT's FY23 result met UBS's forecasts and FY24 guidance also proved a slight beat (albeit -3.5% below consensus).

UBS appreciates the company's exposure to long WALE convenience retail assets that enjoy CPI-linked income and triple net leases.

But the broker warns this is insufficient to combat rising debt costs (an issue also dogging peers), although the broker admits that forecasting debt costs is no easy task due to changing interest rate hedge profile through FY23.

As a result, the broker forecasts a three-year operating EPS compound annual growth rate of -0.2% between FY24 to FY26.

Neutral rating retained. Target price eases to $3.70 from $3.86.

Target price is $3.70 Current Price is $3.52 Difference: $0.18
If CQR meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 16.4% (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

Citi rates CSL as Buy (1) -

Further to the FY23 results, which were pre-released, Citi notes CSL has maintained net profit guidance for FY24 of US$2.9-3.0bn and expects strong sales growth. Immunoglobulin sales are expected to grow over the long-term despite new competition.

Citi observes, over the company's longer term horizon for immunoglobulin, FY27, it looks to be targeting yield improvement of 7-12% within existing regulatory approvals. An additional 10% improvement is targeted by FY30, which will require regulatory approvals.

The improvements will be targeted at litres used to produce albumin and immunoglobulin, not inframarginal product.

Given the number of variables, Citi finds it unclear if the yield improvements will allow the company to expand CSL Behring gross margins and at this stage assumes 58% in FY27 and beyond. Buy rating retained. Target is reduced to $325 from $340.

Target price is $325.00 Current Price is $272.80 Difference: $52.2
If CSL meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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) -

CSL's FY23 profit was in line with Macquarie. For FY24, CSL expects revenue growth of 9-11% and profit growth of 13-17% in constant currency terms.

Management expects a 5% improvement in Immunoglobulin (Ig) yields from FY23 levels as part of its "Horizon 1" strategy, which includes operational improvement and data analytics, expected within the next five years.

An additional 10% improvementis expected under "Horizon 2" on process improvements, expected towards the end of the decade. Modest gross margin improvement is expected for CSL Behring in FY24 and FY25, with a return to pre-covid levels in subsequent years.

Outperform and $326 target retained.

Target price is $326.00 Current Price is $272.80 Difference: $53.2
If CSL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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

Morgan Stanley rates CSL as Overweight (1) -

CSL's FY23 net profit was broadly in line with guidance and, between the lines, Morgan Stanley finds the results mixed. CSL Behring margins were disappointing for the broker, indicating continued cost pressure.

The positive surprise was Vifor while Seqirus revenue and profit were in line. FY24 net profit guidance has been reiterated and the company expects any FX impact will be immaterial if current rates are unchanged for the remainder of the year.

Morgan Stanley still believes the margin recovery in CSL Behring will be gradual because of the cost of collections remaining above historical averages and the time needed to adjust to physician and prescriber behaviours, which have been altered during periods of immunoglobulin supply constraint.

Overweight maintained. Target is raised to $334 from $325. Industry View: In-Line.

Target price is $334.00 Current Price is $272.80 Difference: $61.2
If CSL meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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

Morgans rates CSL as Add (1) -

FY23 results for CSL were in line with pre-released results and at the top end of guidance. Underlying net profit rose by double-digits on strong sales growth across all segments.

Following covid, plasma collections have recovered to record levels though the analysts point out the Behring cost-per-litre remains elevated. Despite this, management is confident of near-term gross margin improvement and a medium-term return to pre-covid levels.

There was strong constant currency sales growth over FY23 for Behring, Seqirus and Vifor of 12%, 9% and 14%, respectively, though profitabilty was mixed, with the broker highlighting Seqirus as the standout.

The target edges up to $328.20 from $323. Add.

Target price is $328.20 Current Price is $272.80 Difference: $55.4
If CSL meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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

Ord Minnett rates CSL as Accumulate (2) -

On second take, CSL's FY23 result appears to have comprised a series of narrow misses on Ord Minnett's forecasts.

Management reiterated FY24 guidance, which implies -13% to 17% constant currency growth on FY23, thanks to a forecast recovery in CSL Behring's gross margins post-covid (growth was modest in FY23), and single to double digit group revenue growth, thanks to immunoglobulins.

The broker says the shares screen as undervalued given CSL Behring is yet to complete its covid recovery.

Ord Minnett believes margins will keep growing as the company cycles out its higher cost inventory, and says the 31% jump in plasma collections in FY23 to record levels should cause high donor compensation costs to normalise. Add stronger operating leverage to the picture and the margin view becomes rosier advises the broker.

The broker appreciates the company's 10% franked final dividend of $1.29. Accumulate rating retained. Target price rises 5% to $330 from $315.

Target price is $330.00 Current Price is $272.80 Difference: $57.2
If CSL meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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

UBS rates CSL as Buy (1) -

CSL's FY23 result outpaced consensus and UBS forecasts as Behring continued its covid recovery; and the broker observes the company is experiencing stronger plasma yields.

With Vifor visibility growing, the broker gains confidence and now awaits the top-line result from the CSL112 AEGIS-II trial in 2024 for post-heart-attack patients.

The broker believes current prices represent good value given the demonstrated growth trajectory.

Buy rating reiterated and $340 target price retained. 

Target price is $340.00 Current Price is $272.80 Difference: $67.2
If CSL meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $330.53, suggesting upside of 21.8% (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

Morgans rates CXO as Hold (3) -

While lithium prices have softened faster than Morgans was expecting, they are still at levels to allow strong earnings for producers. It's felt prices will continue to soften which means there is less leeway for businesses without free cash flow.

Under these circumstances, the broker prefers larger stocks under its coverage that are already in production.

The analysts believe it’s premature to look for value in Core Lithium while management seeks to understand how to process its ore at the Finniss project.

The target drops to 72c from 75c on the broker's lower spodumene forecasts. Hold.

Target price is $0.72 Current Price is $0.55 Difference: $0.17
If CXO meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $0.71, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates DRR as Neutral (3) -

Deterra Royalties' FY23 net profit was in line with Citi's estimates. No material changes are made to forecasts.

The company's unchanged strategy is providing shareholders with cash generated by existing assets in order to build a portfolio of bulk, base and battery metal royalties, the broker notes. Neutral rating and $4.70 target maintained.

Target price is $4.70 Current Price is $4.57 Difference: $0.13
If DRR meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting downside of -1.6% (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

Macquarie rates DRR as Outperform (1) -

Deterra Royalties' FY23 revenue was in line with Macquarie's expectations, albeit -14% down year on year as iron ore prices offset MAC volume growth. The dividend was in line.

The South Flank ramp-up and iron ore prices continue to underpin free cash flow and dividend yields of more than 6% on the broker's forecasts and at spot prices.

The debt facility has been increased from $350m to $500m and remains undrawn. Deterra has stated that the facility will be used for value accretive transactions, however no royalty transactions have occurred to date.

Outperform and $4.80 target retained.

Target price is $4.80 Current Price is $4.57 Difference: $0.23
If DRR meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting downside of -1.6% (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

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

The FY23 result from Deterra Royalties was in line with expectations. Morgan Stanley notes the underlying fundamentals are unchanged as MAC continues to generate solid cash flow while the ongoing progress and ramp up at South Flank remain key.

The broker retains an Equal-weight rating and $4.65 target. Industry View: Attractive.

Target price is $4.65 Current Price is $4.57 Difference: $0.08
If DRR meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting downside of -1.6% (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

Ord Minnett rates DRR as Lighten (4) -

Deterra Royalties weaker FY23 result met Ord Minnett's forecasts, as stronger sales volumes from MAC offset the lower average iron-ore price.

A final dividend of 16.85c a share resulted in a fully franked FY23 dividend of 28.85c a share, in line with the payout ratio.

The broker appreciates the company's debt-less balance sheet and its discipline towards acquisitions (none in FY23) given the current environment, in the broker's view, is not conducive to buying royalties.

Lighten rating retained, the broker observing the company is trading at a 17% premium to fair value. Target price is steady at $3.90.

Target price is $3.90 Current Price is $4.57 Difference: minus $0.67 (current price is over target).
If DRR meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.43, suggesting downside of -1.6% (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

Citi rates DXS as Neutral (3) -

Upon first glance, Citi believes today's FY23 release by Dexus was either slightly below forecast or broadly in line, depending on what financial metric to focus on.

NTA dropped by -11.4% to $10.88 per share, and the broker points out this places the stock at a -26% discount to NTA, closer to peer group averages.

Investors are likely to remain cautious towards Office exposure, says the analyst, adding management guidance for FY24 is for DPS of 48cps and AFFOps broadly in line with FY23.

Neutral. Target $8.

Target price is $8.00 Current Price is $8.01 Difference: minus $0.01 (current price is over target).
If DXS meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.99, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates EDV as Neutral (3) -

Judging from UBS's initial response to today's FY23 release, Endeavour Group missed expectations on EBIT and net profits, despite recording strong sales. Management has responded by announcing more cost cuts.

While the 21.8c in dividend narrowly missed UBS's 22c forecast, it was smack bang on the mark for market consensus.

The broker also notes trading to start 1Q FY24 remains strong in Hotels while improving in Retail versus 4Q FY23. Neutral. Target $6.15.

Target price is $6.15 Current Price is $6.00 Difference: $0.15
If EDV meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Citi rates FBU as Buy (1) -

In an initial response to today's release of FY23 financials, Citi comments Fletcher Building's EBIT was in line with the pre-guided NZ$800m, on higher margins and softer revenues.

The Australian operations delivered a better-than-anticipated margin, but softer sales in Residential negated the impact.

Volume guidance for FY24 has been maintained at circa -8% below FY23, but management commentary is seen as a first signal the housing market might just turn around sooner than expected.

Buy. Target NZ$5.80.

Current Price is $5.07. Target price not assessed.

Current consensus price target is $5.30, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

Citi rates FCL as Buy (1) -

In a first response to today's FY23 update, which came with a fresh capital raising, Citi analysts state the raising is not a genuine surprise and it addresses any concerns about Fineos Corp's balance sheet.

However, a negative reaction is anticipated (correctly) following a disappointing revenue guidance provided for FY24. Clearly, macro dynamics remain "soft", argues the broker.

Citi is happy to stick with a Buy rating on the back of recent new client wins. Weaker guidance has triggered reductions to Citi's FY24/FY25 EBITDA forecasts by -37%/-31%.

Also, it appears management is still expecting to become free cash flow break-even in H2 FY24, but Citi sees negative numbers again re-appearing in H1 FY25, with FY25 positive as a whole.

Target price is $2.95 Current Price is $2.65 Difference: $0.3
If FCL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting upside of 49.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates FCL as No Rating (-1) -

Fineos Corp's -1.7% year on year fall in FY23 revenues was in line with guidance. Services revenue was down -14.8% due to a partnership with a large client to build product features in place of services, Macquarie notes.

Low to mid-teens percentage subscription revenue growth, and low single digit percentage services revenues growth, are expected in FY24. Management confirmed its expectation of achieving positive free cash flow in the second half.

A capital raising has been announced at an -11.8% discount to the last close. As Macquarie is involved, it is restricted on making a recommendation or target.

Current Price is $2.65. Target price not assessed.

Current consensus price target is $3.22, suggesting upside of 49.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Citi rates GUD as Buy (1) -

FY23 results from G.U.D. Holdings were better than Citi expected, given the supply-constrained environment, and further upside is expected in FY24. The broker is becoming more confident the EBITA target of $80-84m can be achieved in FY25.

A Buy rating is maintained on the basis the legacy automotive business is relatively resilient and there is improving momentum in new car sales.

The main swing factor heading into FY24 is foreign exchange for the second half, as the first half is largely hedged in the high US60c region.

At current FX rates additional price rises will likely be required in the seccond half, Citi adds. Target is raised to $13.30 from $12.79.

Target price is $13.30 Current Price is $11.74 Difference: $1.56
If GUD meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $13.16, suggesting upside of 16.1% (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

Macquarie rates GUD as Outperform (1) -

GUD Holdings' FY23 earnings were in line with Macquarie. AutoPacific Group was a key highlight, with second half earnings of $30m providing a clear path to meet FY24 consensus of $64m.

It was a solid result, the broker declares, hitting targets across the board, removing any remaining balance sheet concerns and raising confidence in the earnings outlook, including APG's path back to in excess of $80m in earnings.

July sales were strong year on year and forward indicators for August are in line with improving supply constraints. Target rises to $14.25 from $11.75, Outperform retained.

Target price is $14.25 Current Price is $11.74 Difference: $2.51
If GUD meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $13.16, suggesting upside of 16.1% (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

Ord Minnett rates GUD as Accumulate (2) -

G.U.D. Holdings' strong FY23 result missed Ord Minnett's forecasts by -3%. 

High single-digit organic growth for the company's key automotive business, combined with a full-year earnings contribution from AutoPacific Group and Vision X drove a 27% jump in underlying earnings (EBITDA).

The company announced a 22c per share final dividend, taking the FY23 dividend to 39c, the payout ratio falling to 53% from 68% in FY22, due to higher earnings, says the broker. 

Ord Minnett says the reduced payout opens the door for bolt-on acquisitions without impacting the balance sheet. The $65m sale of Davey (the water business) will cut $56m from debt, observes the broker.

The result triggered a jump in the share price, bringing it close to fair value. Hence the rating is lowered to Hold from Accumulate. Target price is steady at $12.

Target price is $12.00 Current Price is $11.74 Difference: $0.26
If GUD meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $13.16, suggesting upside of 16.1% (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

UBS rates GUD as Buy (1) -

G.U.D. Holdings' FY23 earnings met UBS forecasts, while strong cash conversion led to a 2x beat on the broker's gearing target, triggering a jump in the company's share price.

UBS expects continued strong cash generation over FY24 amid further margin upside.

No group guidance was provided. The broker expects APG will be the main driver of earnings in the medium term.

After removing the Davey business (sale to be completed in September), and increasing underlying earnings, EPS forecasts ease -2% in FY24; and -1% in FY25.

Buy rating retained. Target price rises to $13.10 from $10.50.

Target price is $13.10 Current Price is $11.74 Difference: $1.36
If GUD meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.16, suggesting upside of 16.1% (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

Macquarie rates HCW as Outperform (1) -

HealthCo Healthcare & Wellness REIT's FY23 funds from operations of 6.9c per share was directly in line with Macquarie and guidance. FY24 guidance of 8.0cps is marginally ahead of the broker's 7.9c.

The REIT will recognise the benefit of the full period of the Healthscope acquisition but will face higher interest expense. Macquarie expects HealthCo to continue with its asset recycling program through FY24.

While this may be marginally dilutive to earnings initially, the choice of assets for divestment may result in marginal upside.

Outperform and $1.48 target retained.

Target price is $1.48 Current Price is $1.35 Difference: $0.13
If HCW meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 17.5% (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 HCW as Equal-weight (3) -

HealthCo Healthcare & Wellness REIT posted FY23 earnings of $25.5m, slightly ahead of Morgan Stanley's estimates. Rental income was in line. First time FY24 distribution guidance is 8c.

The broker notes capital recycling is progressing, with $125m settled or contracted in the past two months and another $105m in due diligence or being targeted.

The $1.70 target and Equal-weight rating are unchanged. Industry view: In-Line.

Target price is $1.70 Current Price is $1.35 Difference: $0.35
If HCW meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 17.5% (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 IPH as Buy (1) -

UBS cuts IPH's target price to $9.80 from $10.40 heading into the company's result tomorrow, to account for weaker Australian filing volumes in the second half, and a softer performance in Asia.

EPS forecasts fall -3% in FY24 and -4% in FY25 to reflect a slow unwinding of the cyber incident in FY24 and a forecast fall in revenue in FY25 (based on US filings).

The broker sits -2% below consensus. Buy rating retained.

Target price is $9.80 Current Price is $7.69 Difference: $2.11
If IPH meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $10.59, suggesting upside of 45.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Bell Potter rates LKE as Buy (1) -

Lake Resources has published a Preliminary Assessment of its Kachi Lithium Brine Project in Argentina and it's not good news.

The assessment follows major management and board resets, which Bell Potter says, in combination with the assessment,  have negatively affected the size and timing of the project.

The Definitive Feasibility Study, now due by the end of this year, will address a 25ktpa Lithium Carbonate project, down from 50ktpa, prior to the preliminary assessment (with potential for a later 25ktpa stage); and first production has been postponed to 2027 from 2024.

The capital expenditure bill has blown out to -US$1.1-US$1.5bn, compared with -US$544m in March 2021; and operational expenditure forecasts have increased to US$4,700 to US$7,100/t, from US$41.78/t.

Bell Potter ascribes no value to the aired second stage but appreciates the company's value leverage to medium-term lithium markets, and the success of its potentially disruptive emerging lithium processing technology, which the broker says brings ESG benefits.

Buy rating retained. Target price cut to 36c from $2.52.

Target price is $0.36 Current Price is $0.25 Difference: $0.11
If LKE meets the Bell Potter target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates LLC as Buy (1) -

Ord Minnett found Lendlease Group's FY23 report "underwhelming", but also acknowledges the operational recovery is finally showing momentum.

Underlying, the broker argues, management's progress is "respectable", while the balance sheet remains solid. The broker believes gearing can remain within the 10%-20% range.

While Lendlease's operations are lumpy, Ord Minnett is backing management in predicting roughly 8% return on equity will be achieved on the back of improvements in development volumes and margins.

Fair value remains at $14.45. Buy.

Target price is $14.45 Current Price is $8.32 Difference: $6.13
If LLC meets the Ord Minnett target it will return approximately 74% (excluding dividends, fees and charges).

Current consensus price target is $10.19, suggesting upside of 27.8% (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

Morgans rates LTR as Hold (3) -

While lithium prices have softened faster than Morgans was expecting, they are still at levels to allow strong earnings for producers. It's felt prices will continue to soften which means there is less leeway for businesses without free cash flow.

Under these circumstances, the broker prefers larger stocks under its coverage that are already in production.

The analysts maintain a Hold rating and $2.50 target for Liontown Resources though believe risks are potentially skewed to the downside given shares continue to trade at a premium after a rejected takeover offer earlier this year.

Target price is $2.50 Current Price is $2.71 Difference: minus $0.21 (current price is over target).
If LTR meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.91, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates MGR as Neutral (3) -

Upon first glance, Citi finds Mirvac Group's FY23 EPS was in line with expectations, as well as with previously provided guidance.

It's the FY24 guidance that is below both the broker's and market forecast; 14.0-14.3c versus 14.5c and 14.6c, respectively.

Higher apartment settlements have helped the company with beating forecasts in this segment. Citi points out management expects -$1.2bn of disposals in FY24.

The NTA has declined by -5% to $2.64. Target $2.40. Neutral.

Target price is $2.40 Current Price is $2.28 Difference: $0.12
If MGR meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates MIN as Add (1) -

While lithium prices have softened faster than Morgans was expecting, they are still at levels to allow strong earnings for producers. It's felt prices will continue to soften which means there is less leeway for businesses without free cash flow.

Under these circumstances, the broker prefers larger stocks under its coverage that are already in production.

The analysts see material share price upside for Mineral Resources with a total shareholder return (TSR) of more than 30%. 

The company is Morgans preferred large cap exposure in the space and is immune (in the analysts' view) to the swing in lithium prices given its forward organic growth profile.

The Add rating is maintained, while the target slips to $84 from $86.

Target price is $84.00 Current Price is $65.67 Difference: $18.33
If MIN meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $78.29, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates NAB as Neutral (3) -

National Australia Bank's June quarter update was broadly consistent with Macquarie's expectations, leading to minor earnings changes. The key surprise was more subdued credit growth, as mortgage and business growth were largely offset by reduced institutional balances.

Margins continued to decline from peak levels, but the rate of decline appears to have moderated. Reduced impact from mortgage
competition will provide some margin support ahead, but the broker continues to expect normalisation in term deposit spreads and deposit switching to drive margins lower.

Target rises to $27.50 from $26.50, Neutral retained.

Target price is $27.50 Current Price is $28.70 Difference: minus $1.2 (current price is over target).
If NAB 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 $27.23, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Morgan Stanley rates NAB as Underweight (5) -

National Australia Bank posted a third quarter trading update that was better than Morgan Stanley forecast, as margins and total revenue did not drop as much as expected.

The bank has announced a new buyback of $1.5bn earlier and smaller than the broker expected. Cash profit fell -6.5% compared with the first half, but this was better than Morgan Stanley envisaged. No outlook was provided.

The Underweight rating and $25.50 target are maintained. Industry View: In-Line.

Target price is $25.50 Current Price is $28.70 Difference: minus $3.2 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.23, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Morgans rates NAB as Hold (3) -

Home lending competition and higher deposit costs in the 3Q for National Australia Bank were partly offset by the higher interest rate environment, explains Morgans. The net interest margin (NIM) declined by -5bps to 172bps.

The bank reported a -5% decline in pre-provision operating profit in Q3, mild asset quality deterioration and a strong CET1 capital ratio. The risk is the NIM continues to decline further into Q4, notes the broker.

A new $1.5bn buyback was announced. The Hold rating is unchanged and the target falls to $27.88 from $28.02.

Target price is $27.88 Current Price is $28.70 Difference: minus $0.82 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.23, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Ord Minnett rates NAB as Hold (3) -

National Australia Bank's Q3 cash profit proved broadly in line, as expected, comments Ord Minnett. Operating expenses proved higher than forecast.

Combining the announced $1.5bn buyback with higher costs still results in lower short term forecasts. The broker finds the shares are probably modestly undervalued, as also indicated by the near 6% dividend yield.

Hold. Fair value unchanged at $30.

Target price is $30.00 Current Price is $28.70 Difference: $1.3
If NAB meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.23, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Citi rates NWL as Neutral (3) -

Upon first glance, it appears Netwealth Group's FY23 net profit slightly missed Citi's forecast (by -1%) though it did grow by 20% from the year prior.

The broker adds market consensus was also positioned a little higher than today's result. Same seems to be the case with EBITDA, held back by lower-than-forecast transaction revenue.

Management has abstained from including concrete guidance on funds flows and the broker sees this as a negative.

Target $14. Neutral.

Target price is $14.00 Current Price is $14.75 Difference: minus $0.75 (current price is over target).
If NWL meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.01, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates PLS as Add (1) -

While lithium prices have softened faster than Morgans was expecting, they are still at levels to allow strong earnings for producers. It's felt prices will continue to soften which means there is less leeway for businesses without free cash flow.

Under these circumstances, the broker prefers larger stocks under its coverage that are already in production.

While average realised pricing in Q4 for Pilbara Minerals fell by -33% quarter-on-quarter, the analysts see material share price upside with a total shareholder return (TSR) of more than 20%. 

The target falls to $5.80 from $5.90 and the Add rating is maintained. The broker sees potential for gains beyond its base case forecasts if the company's FY24 exploration program yields successes.

Target price is $5.80 Current Price is $4.82 Difference: $0.98
If PLS meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.56, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Bell Potter rates PME as Hold (3) -

Pro Medicus' FY23 result outpaced consensus forecasts as revenue grew 34%, and earnings (EBIT) rose 34% on a steady margin of 67%.

Management advises margins will likely remain at these levels and pointed to a strong pipeline and a multitude of opportunities.

Bell Potter observes the company completed eight installations, a record, and that the drivers for growth remain in place, and adds that it will take years before AI tools can replace radiologists.

Hold rating retained. Target price rises to $70 from $67.

Target price is $70.00 Current Price is $72.51 Difference: minus $2.51 (current price is over target).
If PME meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -19.3% (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

Morgans rates PME as Upgrade to Hold from Reduce (3) -

In the wake of FY23 results, Morgans upgrades its rating for Pro Medicus to Hold from Reduce and raises its target to $66 from $61.35. Profit of $60.6m beat forecasts by the analyst and consensus for $55.8m and $58.4m, respectively.

The broker points out being efficient from contract win to go-live at the customer end is extremely valuable. It's felt the main surprise in the result stemmed from these integration efficiencies rather than a step-change to organic volume or study pricing.

Morgans considers Pro Medicus one of the highest quality businesses on the ASX with earnings support via high margins and a long contracted revenue base.

Target price is $66.00 Current Price is $72.51 Difference: minus $6.51 (current price is over target).
If PME meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -19.3% (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 REA as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley assesses REA Group is one of the highest quality digital businesses in Australia with a dominant market position in a large and growing vertical. It is also highly profitable with multiple options for growth.

After 12-18 months of falling volumes/listings the broker believes an inflection point has been reached and a recovery is now underway.

In what may be a differing view, Morgan Stanley considers the real driver of earnings growth is the company's track record of significant and repeatable double-digit price//yield increases.

The broker believes the market spends too much time debating volumes and it is pricing power which is far more critical.

Rating is upgraded to Overweight from Equal-weight and the target is raised to $200 from $130. Industry View: Attractive.

Target price is $200.00 Current Price is $158.85 Difference: $41.15
If REA meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $160.32, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates RGN as Buy (1) -

In the wake of the FY23 result, which was largely in line, Citi reduces FY24 and FY25 earnings estimates by -4.9% and 2.0%, respectively, because of the impact of higher funding costs.

The broker highlights the strong underlying tenant base and believes Region Group is well-positioned as a consolidator in a fragmented convenience retail market.

In the short term earnings growth is under pressure from rising interest cost and operating cost inflation that is higher than the predominantly fixed lease escalations in the portfolio. Buy rating retained. Target is reduced to $2.60 from $2.80.

Target price is $2.60 Current Price is $2.27 Difference: $0.33
If RGN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 14.4% (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

Macquarie rates RGN as Neutral (3) -

Region Group's FY23 funds from operations were broadly in line with Macquarie's forecast and guidance. FY24 guidance was -4% below the broker's prior forecast, given rising property expenses.

While the broker is cautious on the outlook for retail spend, it remains attracted to the tenant base of given significant exposures to the big two supermarkets (40%) and non-discretionary speciality tenants (36%).

A soft earnings outlook nonetheless limits total returns. Neutral retained, target falls to $2.28 from $2.30.

Target price is $2.28 Current Price is $2.27 Difference: $0.01
If RGN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 14.4% (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

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

Morgan Stanley found both positives and negatives from the Region Group FY23 results. On the positive side sales momentum was strong and arrears across specialty tenants are now 1-1.5%, so the health of tenancies is less of a concern. Leasing spreads were also positive.

FY24 FFO guidance of 15.6c is lower than expected, reflecting a -8% decline versus FY23. Occupancy has edged down slightly in the past six months, which Morgan Stanley considers a negative having expected this would pick up after the pandemic.

While guidance is disappointing, the broker welcomes the strong discipline as the company has indicated there will be minimal acquisition opportunities in the short term given current market pricing.

Equal-weight and $2.70 target maintained. Industry view is In-Line.

Target price is $2.70 Current Price is $2.27 Difference: $0.43
If RGN meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 14.4% (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 RGN as Neutral (3) -

Region Group's FY23 result met UBS forecasts but FY24 guidance missed the broker and consensus by -4%, due mainly to rising debt costs as the company raised its hedging to 90%.

While the broker appreciates the company's defensive profile, it says rising debt and property costs took the shine off.

UBS's preferred sector pick is HomeCo Daily Needs REIT ((HDN)). The broker observes a slowing in supermarket trading during July.

Neutral rating retained. Target price falls -3% to $2.39 from $2.46.

Target price is $2.39 Current Price is $2.27 Difference: $0.12
If RGN meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 14.4% (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

Macquarie rates RNU as Outperform (1) -

Renascor Resources has released an updated optimised battery anode material (BAM) study, which delivers an integrated project matching mine production to purified spherical graphite (PSG) production, Macquarie notes, which rises 50-100ktpa from 28ktpa.

The broker has incorporated a staged development and production ramp-up with first concentrate production from stage 1 in the second half 2025 and fully ramping up to stage 2 capacity by 2030. Capex has increased materially from the prior study, the broker notes.

Target falls to 25c from 30c, Outperform retained.

Target price is $0.25 Current Price is $0.16 Difference: $0.09
If RNU meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates RWC as Neutral (3) -

Taking guidance from an overseas competitor's update recently, Citi notes same-store sales were down -2% in the second quarter, better than cconsensus expected.

Inventory was down -10% year-on-year despite inflation, which the broker suspects may make investors nervous regarding destocking.

Generally the broker assesses sales declines are moderating. Neutral rating and $4.05 target.

Target price is $4.05 Current Price is $4.32 Difference: minus $0.27 (current price is over target).
If RWC meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.17, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

Ord Minnett rates SEK as Lighten (4) -

Ord Minnett argues Seek is more vulnarable to competitive pressures because its local market share is nowhere near the percentages the likes of REA Group ((REA)) and Carsales ((CAR)) can leverage off from.

Seek's operations in A&NZ represent 70% of group revenue, the broker highlights, and FY23 has revealed sooner-than-expected weakness.

The offsett, the analyst predicts, will be an increase in listings. One assumption to underpin this forecast is because employees will attempt to seek out better working arrangements.

Lighten rating and $19 fair value assessment left intact, but estimates have been lowered.

Target price is $19.00 Current Price is $24.66 Difference: minus $5.66 (current price is over target).
If SEK meets the Ord Minnett target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.30, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates SGM as Sell (5) -

Sims' FY23 results largely met forecasts. Citi notes Australian scrap demand held up well in the second half and, in the US, SA Recycling surprised on the upside amid higher domestic ferrous scrap pricing compared with exports.

On further analysis the broker is increasingly cautious, noting Chinese steel production cuts are likely to mean iron ore prices move lower in the second half of 2023, limiting the scrap price upside.

The broker also notes ongoing weakness in European scrap demand amid weak steel output. Estimates for FY24 and FY25 EBIT are revised up by 11% and 16%, respectively, as Citi reviews its assumptions. Sell retained. Target is raised to $15.00 from $14.50.

Target price is $15.00 Current Price is $15.85 Difference: minus $0.85 (current price is over target).
If SGM meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.05, suggesting downside of -2.6% (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

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

Sims reported FY23 results that beat Macquarie's expectations. A&NZ and the SA Recycling joint venture were both meaningfully more resilient than expected.

The group continues to pivot its US exposure to provide domestic/export flexibility, a key driver of the resilience, the broker notes. Sims made another acquisition in the form of Baltimore Scrap Corp.

Yet the North American Metal business saw the full impact of negative operating leverage, the UK operation continues to struggle, and  Lifecycle Solutions printed another soft result, owing to the slow Chinese economy and its impact on price dynamics.

Market conditions remain murky, Macquarie suggests, but the risks to earnings are less pronounced than concerns. Target rises to $16.20 from $12.95, upgrade to Neutral from Underperform.

Target price is $16.20 Current Price is $15.85 Difference: $0.35
If SGM meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.05, suggesting downside of -2.6% (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

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

The FY23 results from Sims were below Morgan Stanley's estimates at both the EBIT and net profit lines. No FY24 guidance was provided although the company pointed to a range of factors that may influence earnings.

These include expectations for subdued global steel demand and soft scrap inflows which will be offset by infrastructure and EAF demand for ferrous scrap. Sims also expects a stable zorba price with the rebuilding of Turkey following the earthquake.

Management has announced the acquisition of Baltimore Scrap for -US$177m, and while the multiples may look attractive, the broker cautions they are "flattered" by record FY22 numbers.

Equal-weight retained. Target is reduced to $15.00 from $15.50. Industry view is In-Line.

Target price is $15.00 Current Price is $15.85 Difference: minus $0.85 (current price is over target).
If SGM 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 $15.05, suggesting downside of -2.6% (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

UBS rates SGM as Sell (5) -

Sims FY23 result appears to have pleased the broker, thanks to a strong performance from operations in Australia and New Zealand in the face of cost inflation and downward volume pressure.

Management advised the company was experiencing a "structurally higher bottom" and said pricing suggested conditions were nearing the bottom of the cycle.

The broker is not so sure, believing it is closer to mid cycle, and observes commentary does not appear to align with performance for the first six months of FY24 trading. Scrap prices have fallen -20% since March, observes UBS.

EPS forecasts fall -2% in FY24 and -1% in FY25 to reflect higher interest costs but rise in outer years.

Sell rating retained. Target price rises to $14 from $13.60.

Target price is $14.00 Current Price is $15.85 Difference: minus $1.85 (current price is over target).
If SGM meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.05, suggesting downside of -2.6% (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

Shaw and Partners rates SLX as Buy (1) -

Silex Systems has completed and tested its second full-scale laser system for its laser isotope separation technology at Lucas Heights, advises Shaw and Partners, and it is ready to be shipped to the US commercial demonstration facility.

The broker advises the company is accelerating commercialisation to three years earlier than planned in 2028.

Shaw expects Silex stands to benefit from a US bill to ban the importation of unirradiated low-enriched uranium from Russia (which currently supply 20% of US demand).

Buy recommendation and $5.80 target price retained.

Target price is $5.80 Current Price is $3.15 Difference: $2.65
If SLX meets the Shaw and Partners target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates STA as Add (1) -

Strandline Resources has raised $33.8m at 18cps via a placement with a further pending share purchase plan (SPP).

Morgans  explains the funds will support the slower-than-planned Coburn ramp-up and progress the Tanzanian projects/approvals.

The analyst points out Q1 production/cashflows, due in late October, are critical for market confidence.

The target falls to 50c from 70c. The Add rating is retained. The broker suggests management must deliver on rectification works and the revised ramp-up at Coburn.

Target price is $0.50 Current Price is $0.18 Difference: $0.32
If STA meets the Morgans target it will return approximately 178% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates TPW as Overweight (1) -

Initially, Morgan Stanley notes the FY23 results from Temple & Webster beat expectations although suspects the first half trading update may disappoint.

The broker observes net cash continues to grow despite the buying back of $12.3m in stock while the long-term outlook remains intact.

FY24/25 EBITDA margin guidance of 1-3% has been provided, lower than expected, on higher marketing reinvestment. The long-term margin of 15% was reiterated.

Overweight rating. Target price is $5.60. Industry view: In-Line.

Target price is $5.60 Current Price is $6.57 Difference: minus $0.97 (current price is over target).
If TPW meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.15, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates TWE as Sell (5) -

FY23 results were ahead of expectations and Citi observes Treasury Wine Estates continues to execute well on its Penfolds brand.

On further analysis the broker envisages greater uncertainty around the medium-term outlook for the Americas, seemingly reliant on a successful 19 Crimes relaunch in FY24 along with easing of the headwinds from distributor destocking.

The broker, as a result, will wait until the second half of FY24 to assess whether consumers have gravitated towards the relaunched product.

China's decision to lift Australian barley tariffs remains a positiive for the prospects of wine tariffs although the company has emphasised its guidance does not factor in lifting of these tariffs. Sell rating retained. Target rises to $10.50 from $10.25.

Target price is $10.50 Current Price is $11.71 Difference: minus $1.21 (current price is over target).
If TWE 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 $12.79, suggesting upside of 9.3% (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

Macquarie rates TWE as Outperform (1) -

Treasury Wine Estates posted another strong result from the Penfolds division, Macquarie declares, with net selling revenue up 14.3% year on year, driven by volume growth of 7.1%, and NSR ("sales growth") per case growth of 6.7%.

This reflects the continued demand in the brand, the broker notes, despite price rises being pushed through over the period. The potential reopening of China provides further upside to earnings.

The rate of volume decline for Treasury America was steeper than Macquarie expected (-16%) with a shift away from commercial wine exacerbated by destocking from retailers and distributors.

The company is looking to invest further in the 19 Crimes brand to drive sales growth over FY24. Outperform and $13.50 target retained.

Target price is $13.50 Current Price is $11.71 Difference: $1.79
If TWE meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 9.3% (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

Morgan Stanley rates TWE as Overweight (1) -

FY23 results from Treasury Wine Estates were in line with expectations, being pre-released. Growth was driven by Penfolds and Treasury Americas, partially offset by declines in premium brands.

Morgan Stanley expects high single-digit volume growth for Penfolds in FY24 while noting EBITS is expected to be skewed to the second half because of the company's decision to hold back first half shipments.

The broker forecasts relatively flat Treasury Americas FY24 EBITS because of lower margins and increased brand investment.

The company will restructure premium brands to mitigate the impact of declining commercial volumes which will involve rationalisation of winery assets and the transition of commercial wine production to a third-party model.

Overweight rating maintained. Target is reduced to $14.50 from $14.70. Industry view: In-line.

Target price is $14.50 Current Price is $11.71 Difference: $2.79
If TWE meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 9.3% (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

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

Morgans upgrades its rating for Treasury Wine Estates to Add from Hold in the wake of FY23 results on an undemanding valuation compared to other luxury brand owners.

The broker expects earnings will accelerate from the 2H of FY24 as Penfolds is outperforming expectations. It's also felt there is a clear strategy to improve performance at Treasury Americas and Treasury Premium Brands, where growth slowed materially in the 2H of FY23.

Management is targeting high single digit earnings (EBITS) growth in FY24.

The target rises to $13.00 from $12.80. Add.

Target price is $13.00 Current Price is $11.71 Difference: $1.29
If TWE meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 9.3% (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

UBS rates TWE as Buy (1) -

Treasury Wine Estates's FY23 result met guidance and significant items came in as expected and FY24 guidance was reiterated, management advising growth would be skewed to the second half to reflect annualisation of the low growth in the FY23 June half and a shift in Penfolds shipments to the second half (Penfolds comprises 60% of the company's EBIT).

Management trimmed margin targets for Premium Brands to mid teens from high teens and the America's earnings (EBIT) margin is set at 22% to 23% in FY24 (down from 24.8% in FY23) but management maintains the long-term forecast of 25%.  

UBS observes Penfolds is forecast to enjoy multi-year double-digit EBIT growth. EPS forecasts rise 2% in FY24 and 2% in FY25.

Buy rating and $13.75 target price retained.

Target price is $13.75 Current Price is $11.71 Difference: $2.04
If TWE meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 9.3% (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