Australian Broker Call

Citi rates ACL as Neutral (3) -

Upgraded first half guidance reflects elevated covid testing, and hence, Citi upgrades its FY22 EPS forecast by 22%. While forecasts for FY23 and FY24 are unchanged (assuming no covid contribution), it's thought these years may provide upside.

Post vaccination, the levels of testing should decrease materially as the focus will switch to  hospitalisation, thinks the analyst. The broker retains its Neutral rating. The target rises to $4.50 from $4.45.

Target price is $4.50 Current Price is $4.68 Difference: minus $0.18 (current price is over target).
If ACL meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates ALK as Buy (1) -

Ord Minnett now includes the Tomingley gold mine expansion, noting production is expected to double to around 100,000 ounces by FY25. The project capital expenditure of $90m is higher than the broker anticipated albeit still low, while unit costs are around 8% higher.

Exploration results at Boda have revealed high-grade service mineralisation and, while still early days, the broker ascertains this could involve service mining and underground combination. Ord Minnett reiterates a Buy rating and raises the target to $1.50 from $1.30.

Target price is $1.50 Current Price is $0.79 Difference: $0.71
If ALK meets the Ord Minnett target it will return approximately 90% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates AWC as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and considers Alumina Ltd a top pick. The stock has rallied recently but upside is envisaged with the business likely to benefit from improvement in margins in an inflationary environment.

Overweight rating retained. Industry view: In-Line. Target rises to $2.35 from $2.10.

Target price is $2.35 Current Price is $2.17 Difference: $0.18
If AWC meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.2

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

Morgan Stanley rates BBN as Overweight (1) -

Morgan Stanley highlights the stock has been sold off in the first six weeks of FY22 in response to negative comparables. Still, the broker believes demand is strong and market share is concentrating with Baby Bunting, as a leader in the category.

The broker suggests the trends are under appreciated by the market because of the pandemic. An update on comparables and online sales growth is expected at the AGM on October 5.

Overweight. Target is $6.90. Industry view: In-line.

Target price is $6.90 Current Price is $5.58 Difference: $1.32
If BBN meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $6.34, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates BPT as Buy (1) -

Citi lifts its target price to $1.56 from $1.27, after key growth projects in the Perth and Cooper basins were outlined. Despite recent price strength, the analyst believes investors still have a free option on growth. The Buy rating is retained.

Management gave FY24 production guidance for 28mmboe (excluding unsanctioned growth), representing a 13% compound annual growth rate (CAGR) from FY22 guidance.

Target price is $1.56 Current Price is $1.37 Difference: $0.19
If BPT meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates BPT as Outperform (1) -

Beach Energy has reset expectations with a FY24 production target of 28mmboe, which is around -7.6mmboe below the low end of the prior guidance range, estimates Credit Suisse. The Outperform rating is unchanged and the target price eases to $1.55 from $1.57.

The broker sees more upside beyond the recent material share price rally, especially once Otway and Waitsia come online from later in 2022. It's thought, however, there are limited positive catalysts over the next six months, which could temper enthusiasm.

Target price is $1.55 Current Price is $1.37 Difference: $0.18
If BPT meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BPT as Neutral (3) -

Beach Energy has rebased production growth and now revamped the outlook, expecting 28mmboe in FY24, which is better than Macquarie had anticipated.

The revamped outlook includes a faster ramp up at Waitsia and the inclusion of Enterprise in the Otway. The company also plans to drill up to 15 exploration wells in the Western Flank in FY22 and 3-6 wells in the Perth Basin in FY23.

An LNG contract has also been signed with BP for all of the allowable Waitsia exports. Macquarie raises the target to $1.25 from $1.12 and maintains a Neutral rating.

Target price is $1.25 Current Price is $1.37 Difference: minus $0.12 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

The strategy briefing provided guidance, with FY24 production forecasts now 28mmboe. Morgan Stanley notes this guidance assumes no exploration success and, as there are a number of wells that are planned in the Cooper Basin, it is possible the number will be exceeded.

The broker notes, across global energy markets, investors have rewarded companies with higher cash and/or shareholders returns and expects Beach Energy's free cash yields will increase significantly in FY25 as Waitsia reaches full production.

The broker retains an Equal-weight rating, noting Beach Energy is entering a heavy investment phase, and raises the target to $1.40 from $1.25. Industry view: Attractive.

Target price is $1.40 Current Price is $1.37 Difference: $0.03
If BPT meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates BPT as Add (1) -

Morgans believes Beach Energy has set a conservative benchmark (28MMboe) for FY24 production from committed growth projects only, which also excludes any exploration success. The analyst's production forecast exceeds the company's base case by 18%.

The broker maintains its Add rating, even after yesterday's 11% rally in share price, and inches up its target price to $1.68 from $1.65. Exploration is continuing in the Western Flank and it's thought there's potential for further upside with even modest oil discoveries.

Target price is $1.68 Current Price is $1.37 Difference: $0.31
If BPT meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates BPT as Buy (1) -

Beach Energy has reset its FY24 production target to 28mmboe. Growth is anticipated from the Otway Basin and Waitsia.

Ord Minnett notes this should offset what appears to be significant declines in Western Flank production amid the absence of exploration success.

The broker believes the market is satisfied with the update, which should go some way to recovering any credibility that has been lost.

Buy rating reiterated. Target is $1.70.

Target price is $1.70 Current Price is $1.37 Difference: $0.33
If BPT meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates CHN as Outperform (1) -

The latest drilling has extended several high-grade zones. Macquarie is encouraged by the results, noting the wide zones of mineralisation.

The broker downgrades mining inventory assumptions by -9% after incorporating all the latest assay results yet continues to envisage upside potential at Julimar. Outperform maintained. Target is reduced to $9.00 from $9.70.

Target price is $9.00 Current Price is $6.70 Difference: $2.3
If CHN meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates DRR as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Morgan Stanley's recommendation to avoid low-grade iron ore producers is unchanged, although selective exposure could be warranted for Deterra Royalties by those with a bullish view on iron ore. Overweight maintained. Target is reduced to $4.55 from $4.85. Industry view: In-Line.

Target price is $4.55 Current Price is $3.68 Difference: $0.87
If DRR meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 34.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates DXS as Outperform (1) -

Dexus will acquire $900m in industrial assets, which largely involves a 66.7% interest in the industrial precinct of Jandakot airport. Macquarie considers the capital recycling will lead to upgrades to earnings estimates over time.

The broker also notes office asset values are resilient and there is upside risk to industrial development assets. Outperform rating retained. Target is raised to $11.90 from $11.67.

Target price is $11.90 Current Price is $10.67 Difference: $1.23
If DXS meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $11.15, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates EVN as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley increases gold price forecasts (slightly) and thus FY22-24 estimates for earnings per share. Evolution Mining has some shorter life mines but the broker finds there is exploration and expansion upside potential at multiple sites.

The broker changes analysts and, with the stock trading around its new price target, upgrades to Equal-weight from Underweight. Target is reduced to $3.70 from $3.90. Industry view: In-Line.

Target price is $3.70 Current Price is $3.34 Difference: $0.36
If EVN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgan Stanley rates FMG as Underweight (5) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Morgan Stanley's recommendation to avoid low-grade iron ore producers is unchanged. Hence, Underweight is retained. The target price is reduced to $12.50 from $17.75. Industry view: In-Line.

Target price is $12.50 Current Price is $14.87 Difference: minus $2.37 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.88, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates FPH as Neutral (3) -

Macquarie suspects there will be no endgame for covid-19, rather it will circulate akin to seasonal influenza.

The broker includes a proprietary US hospital stress test metric which suggests stress in the US hospital system is still meaningful at 86% of the peak achieved in December-January 2021.

Hence, the broker envisages modest upside risk to current hospital revenue. The stock is still considered expensive and a Neutral rating is maintained. Target is raised to NZ$32.30 from NZ$31.84.

Current Price is $29.96. Target price not assessed.

Current consensus price target is $32.50, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.5

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

Morgan Stanley rates IGO as Underweight (5) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Increases to spodumene, lithium hydroxide and nickel price forecasts mean the broker lifts FY22-23 estimates.

Underweight maintained. Target is reduced to $8.25 from $8.40, amid lower bull-case weighting. Industry view: In-Line.

Target price is $8.25 Current Price is $8.81 Difference: minus $0.56 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.89, suggesting downside of -9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

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

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Equal-weight maintained. Target is raised to $8.40 from $8.35. Industry view: In-Line.

Target price is $8.40 Current Price is $9.10 Difference: minus $0.7 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.58, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates MIN as Underweight (5) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Morgan Stanley's recommendation to avoid low-grade iron ore producers is unchanged. Hence, Underweight is retained. The target price is reduced to $41.00 from $46.10. Industry view: In-Line.

Target price is $41.00 Current Price is $45.90 Difference: minus $4.9 (current price is over target).
If MIN 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 $57.50, suggesting upside of 32.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates NCM as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

As a result pressure on the gold price is expected to continue. In this environment the focus for the broker is on value and low production costs. Hence, Newcrest Mining screens well.

Overweight rating retained. Industry view: In-Line. Target is reduced to $30 from $32.

Target price is $30.00 Current Price is $22.21 Difference: $7.79
If NCM meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $29.96, suggesting upside of 32.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

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

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Increases to gold price forecasts (slightly) lift the broker's FY22-24 estimates. Equal-weight maintained. Target is reduced to $10.05 from $10.80, amid a reduction in the bull-case weighting. Industry view: In-Line.

Target price is $10.05 Current Price is $8.26 Difference: $1.79
If NST meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.84, suggesting upside of 39.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates NWS as Outperform (1) -

In a preview of the September 30 Foxtel strategy day, Credit Suisse feels any positive news will likely lift market estimates. It's suspected the market is ascribing no, or even negative value at present, given the over $900m of debt at Foxtel.

Any indication that the business can stabilise (or grow) presents upside to both the broker's and market estimates. The Outperform rating and $40 price target are unchanged.

Target price is $40.00 Current Price is $33.14 Difference: $6.86
If NWS meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $40.13, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

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

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Increases to spodumene, lithium hydroxide and nickel price forecasts mean the broker lifts estimates. Morgan Stanley also updates its model for the merger with Galaxy Resources.

Equal-weight maintained. Target is raised to $8.50 from $6.60. Industry view: In-Line.

Target price is $8.50 Current Price is $8.77 Difference: minus $0.27 (current price is over target).
If ORE 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 $9.00, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates OZL as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Increases to copper and gold forecasts lift the broker's 2021-23 estimates.

Equal-weight maintained. Target is steady at $23.50. Industry view: In-Line.

Target price is $23.50 Current Price is $22.75 Difference: $0.75
If OZL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $24.55, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Morgan Stanley notes press speculation that Rio Tinto has declared force majeure on certain contracts for copper cathode after Kennecott was shut down. The incident occurred on September 21 and the company has not commented.

The complex contributes around 2% of group attributable enterprise value, the broker points out. At this point, Morgan Stanley suspects the financial impact of a short smelter outage is likely to be minimal as the mine can presumably continue to produce copper in concentrate.

Still, the broker believes this highlights the need to address the recurring operating challenges at Kennecott.

Meanwhile, Morgan Stanley has highlighted a preference for mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Equal-weight maintained. Target is reduced to $110 from $127. Industry view is In-Line. 

Target price is $110.00 Current Price is $97.47 Difference: $12.53
If RIO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $125.29, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates RRL as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Overweight maintained. Target is reduced to $2.65 from $3.40. Industry view: In-Line.

Target price is $2.65 Current Price is $1.90 Difference: $0.75
If RRL meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 53.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates S32 as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes support for South32, which is enjoying revenue exposure to aluminium, metallurgical coal and alumina.

The issues centre on growth versus inflation and, over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Overweight rating retained. Industry view: In-Line. Target rises to $4.20 from $3.45.

Target price is $4.20 Current Price is $3.40 Difference: $0.8
If S32 meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.81, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates SFR as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Overweight maintained. Target is reduced to $6.60 from $7.43. Industry view: In-Line.

Target price is $6.60 Current Price is $5.34 Difference: $1.26
If SFR meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates SFR as Add (1) -

Morgans feels any upside will likely be due to higher metals pricing, operating improvements and life extensions, as the price paid for MATSA appears 'full-ish'. However, the acquisition is thought strategically sound and attractive for production/cashflow continuity.

The company has agreed to acquire 100% of the “MATSA” mining complex in Andalusia, Spain for -$2,572m, funded by $1,248m in new equity (placement, entitlement at $5.40), $1.1bn in debt (new and existing) and around -$300m in cash.

The broker retains its Add rating and reduces its target price to $6.85 from $7.61.

Target price is $6.85 Current Price is $5.34 Difference: $1.51
If SFR meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates SM1 as Buy (1) -

Following up on the FY21 results, UBS believes the poor outcome was largely stemming from lower infant formula sales. Importantly, the broker expects a recovery in a2 Milk's infant formula manufacturing requirements will underpin the business over the next three years.

Adult nutritional volume expansion should also help offset the fact that a2 Milk is taking some of its manufacturing in house. UBS lowers net profit estimates by -35% and -24% for FY22 and FY23, respectively. Buy rating unchanged. Target is reduced to NZ$4.90 from NZ$5.35.

Current Price is $3.51. Target price not assessed.

Current consensus price target is $2.55, suggesting downside of -28.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Morgan Stanley rates SYR as Underweight (5) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Underweight maintained. Target is raised to $1.10 from $1.00. Industry view: In-Line.

Target price is $1.10 Current Price is $1.13 Difference: minus $0.03 (current price is over target).
If SYR 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 $1.33, suggesting upside of 25.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Morgans rates TCL as Hold (3) -

Morgans recommends investors take-up the company's entitlement offer at $13 per share, given an around 10% total potential return. The offer will part fund the company's 50% share of the acquisition of the remaining 49% equity stake in WestConnex. 

Separately, the broker downgrades the traffic recovery profile for Melbourne and Sydney and upgrades for Brisbane. The target price falls to $13.99 from $14.26. The Hold rating is unchanged, with potential share price weakness during the retail entitlement offer.

Target price is $13.99 Current Price is $13.85 Difference: $0.14
If TCL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.91, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates WHC as Overweight (1) -

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

The broker increases estimates for FY22-24 on the back of thermal and metallurgical coal price forecasts.

Overweight rating retained. Industry view: In-Line. Target rises to $3.80 from $3.00.

Target price is $3.80 Current Price is $3.27 Difference: $0.53
If WHC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.11, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Morgan Stanley prefers mid-late cycle commodities and notes the issues are centring on growth versus inflation. Over the short term, the broker considers growth will win, despite accelerating inflation, as central banks remain accommodative.

Equal-weight maintained. Target is raised to $2.90 from $2.80. Industry view: In-Line.

Target price is $2.90 Current Price is $2.91 Difference: minus $0.01 (current price is over target).
If WSA meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.96, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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