Australian Broker Call

Credit Suisse rates ABP as Outperform (1) -

Credit Suisse revises estimates for FY21-23, making minor positive earnings changes since the acquisition of the balance of the Storage King operating platform and other assets.

The company's update provided no commentary on rent collection in the first quarter and FY21 guidance is still missing.

Nevertheless, Credit Suisse is increasingly comfortable regarding the capital position and expectations for an FY21 distribution of 18.2c.

A lack of liquidity in the stock remains a key consideration for investors, the broker adds. Outperform retained. Target rises to $3.12 from $2.90.

Target price is $3.12 Current Price is $2.96 Difference: $0.16
If ABP meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates AGL as Accumulate (2) -

Spot electricity prices have been recovering in recent weeks, leading broker Ord Minnett to re-run its scenarios for AGL Energy. 

The broker believes the increase in spot electricity prices is led by higher gas prices. Even so, the analysis points to downside risk to AGL's earnings. The analysis also suggests the current electricity prices are unsustainable.

Accumulate rating is maintained while the target is trimmed to $17.20 from $17.30.

Target price is $17.20 Current Price is $12.81 Difference: $4.39
If AGL meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $14.71, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Citi rates ALL as Buy (1) -

The September quarter for Aristocrat Leisure presented a mixed picture. The gaming machine manufacturer did well in Class II and the regional casinos but lost in terms of ship share which fell to 19% from 27% in the second quarter FY20.

Going ahead, Citi believes the company will encounter a challenging market with casinos expected to replace 5.3% of their floor over the next 12 months, well below pre-covid levels.  

Citi thinks the second wave of covid-19 cases in the US has put a question mark around the land-based recovery, which is likely to remain volatile.

On the bright side, Aristocrat’s balance sheet is strong. Buy rating is retained with a target price of $34.60.

Target price is $34.60 Current Price is $30.81 Difference: $3.79
If ALL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $32.89, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates APE as Buy (1) -

Eagers Automotive has acquired three sites in Western Australia for a consideration of $30.3m from Automotive Properties & APPL. The company has also acquired a strategic site in NSW (Castle Hill) for $76.3m from Charter Hall ((CHC)).

UBS suggests both the deals will provide an immediate profit before tax benefit of circa $8m on account of lower occupancy costs. Furthermore, these deals will strengthen Eagers' tangible asset base.

The broker advises Eagers Automotive remains highly leveraged to the current robust trading conditions and the broker sees more opportunities for upside across the business.

The Buy rating is unchanged with a target price of $13.

Target price is $13.00 Current Price is $11.61 Difference: $1.39
If APE meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $11.80, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates BSL as Accumulate (2) -

Ord Minnett notes an increase in the North Star spread by 4% with the Australian Steel Products spread mostly flat. Hot-rolled coil (HRC) prices for both the US and East Asia have also been rising.

Overall for BlueScope Steel, Ord Minnett expects FY21 operating earnings to be in-line with consensus. With capex peaking in FY21 due to the North Star expansion, free-cash-flow is expected to accelerate over the coming years.

Ord Minnett retains its Accumulate rating with a target of $19.20.

Target price is $19.20 Current Price is $14.92 Difference: $4.28
If BSL meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates CSL as Buy (1) -

UBS observes CSL's clotting factor agent, Kcentra, used in many clinical settings has grown strongly in the US since it was launched in 2013. UBS estimates Kcentra represents about 6% of CSL's group revenue and circa 9% of its group operating income.

Due to the low production costs, UBS considers Kcentra to be an infra-marginal product and a key driver of the specialty product basket. The broker believes going forward, high-single-digit revenue growth for US-based Kcentra sales looks sustainable.

The Buy rating and $346 price target are unchanged.

Target price is $346.00 Current Price is $291.58 Difference: $54.42
If CSL meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $309.96, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates DMP as Sell (5) -

Domino's Pizza Enterprises' latest trading update noted same-store sales growth of 8.4% for the first 17 weeks of FY20, indicating a slowdown to 6.6% for the last 10 weeks.

The sales slowdown was more pronounced in Japan while Australia noted steady growth, surprising the broker who is keen to know how sales in Australia will fare as the country re-opens more.

Stating more momentum is needed to impress the broker, Citi decides to retain its Sell rating with a target of $67.40.

Target price is $67.40 Current Price is $86.99 Difference: minus $19.59 (current price is over target).
If DMP meets the Citi target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates DMP as Underperform (5) -

The first 17 weeks of FY21 revealed comparable store sales growth slowed to 6-7% towards the end of the period while new store openings are running ahead of forecasts.

Credit Suisse assumes it will be more difficult to open stores in Europe over the next few months while upgrading expectations for Japan.

The broker still struggles to find valuation support at the current price and retains an Underperform rating. Target is reduced to $58.71 from $61.32.

Target price is $58.71 Current Price is $86.99 Difference: minus $28.28 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates DMP as Neutral (3) -

Domino's Pizza posted same store sales growth in the September quarter of 8.4% to the broker's forecast 6.6%, underscoring the company as a virus winner.

A new store count of 74 is below the guidance run-rate, but deferral of store openings is sensible in the current climate, the broker suggests.

Neutral retained as the stock is fully valued on its PE re-rate, unless M&A is on the cards. Target rises to $84.30 from $77.30.

Target price is $84.30 Current Price is $86.99 Difference: minus $2.69 (current price is over target).
If DMP meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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 DMP as Equal-weight (3) -

Sales growth for the first 17 weeks of FY21 was 8.4%, implying a slowdown at the end of the period and tracking slightly below Morgan Stanley's forecasts.

The company has signalled Japan and Germany continue to outperform and franchisee profitability is at record levels in several countries.

A resurgence in coronavirus cases outside of Australasia heightens the short term uncertainty and provides upside and downside risk depending on the region and extent of lockdowns, in the broker's view.

Equal-weight. Target is $70. Industry view is Cautious.

Target price is $70.00 Current Price is $86.99 Difference: minus $16.99 (current price is over target).
If DMP meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates DMP as Hold (3) -

Domino’s Pizza Enterprises' trading update for the first 17 weeks of FY21 saw same-store sales (SSS) and network sales grow by 8.4% and 14.9%. 74 new stores were opened versus 42 stores last year.

Ord Minnett notes trading for the first 17 weeks of FY21 was strong yet has slowed since the first 7 weeks. Net new store openings remain strong with Japan, Australia and New Zealand (ANZ) operating above the broker's forecasts.

Franchisee profitability was at record levels in many countries.

Ord Minnett maintains its Hold rating with the target price increasing to $85 from $77.50.

Target price is $85.00 Current Price is $86.99 Difference: minus $1.99 (current price is over target).
If DMP meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates DMP as Sell (5) -

Domino's Pizza Enterprises' first 17 weeks of FY21 were in line with UBS's expectations on network sales although like for like sales slowed down in September-October. Regionally, Japan and Germany were the outperformers. 

UBS has reduced its like for like sales estimates for FY21 to circa 8%. While UBS considers Domino's Pizza Enterprises to be a covid-19 beneficiary, the broker also believes the upside from this has already been priced in. 

Although UBS retains its Sell rating, the broker is pleased to note limited downside catalysts in the near term. Target is raised to $72 from $70.

Target price is $72.00 Current Price is $86.99 Difference: minus $14.99 (current price is over target).
If DMP meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.10, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates EXP as Buy (1) -

Ord Minnett highlights Experience Co managed to retain stability amid an uncertain environment with the bulk of its customer base evaporated.

The company’s domestic skydiving and adventure divisions are expected to benefit from the state border openings. Ord Minnett does not think this will be enough to offset the absence of inbound visitors, expected to be allowed to return to Australia in 2022.

As a result, earnings are expected to pick up from the second half of FY22.

Noting the company appears well-positioned to trade through the current crisis, the broker retains its Buy rating with the target rising to $0.27 from $0.21.

Target price is $0.27 Current Price is $0.23 Difference: $0.04
If EXP meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates FDV as Add (1) -

Third quarter results for Frontier Digital Ventures show a good rebound from the second quarter, assesses Morgans. The combined  portfolio became earnings (EBITDA) positive (ex corporate costs) in the period. Momentum in September encourages the broker.

The analyst sees recent acquisitions reducing reliance on one business (Zameen) and likely to enhance medium to long-term returns.The two main businesses being acquired were Fincaraiz in Colombia and Avito in Morocco.

The Add rating is maintained. The target price is increased to $1.47 from $1.34.

Target price is $1.47 Current Price is $1.24 Difference: $0.23
If FDV meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates IFM as Buy (1) -

Infomedia has signed a pan-European contract with Ford Europe to provide the Next Gen Microcat EPC solution.

In UBS's view, the contract is strategically important since it suggests channels for new business discussions with the original equipment manufacturers (OEMs) are open. Also, the contract is a validation of the new Next Gen EPC product.

UBS expects softer revenue growth in the first half. Anticipating improving business activity, the broker expects a better second half.

Maintain Buy with the target price rising to $2.20 from $2.15.

Target price is $2.20 Current Price is $1.69 Difference: $0.51
If IFM meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

Isentia Group announced a -$7.0m to -$8.5m profit (PBT) impact from a recent cybersecurity incident. The estimated impact relates to remediation costs and foregone revenue for services effected by the outage.

The incident is now largely under control with the company progressively restoring services.

Morgans believes how professionally the company handles the incident and interacts with its client base will determine whether significant reputational damage is caused. If handled well the company could emerge stronger, as a result of reinforced systems and processes.

The broker expects management to handle the situation well. Investors are considered likely to wait and see how the business and the competitive environment evolve before buying stock.

The rating is downgraded to Hold from Add and the target price decreased to $0.15 from $0.36.

Target price is $0.15 Current Price is $0.13 Difference: $0.02
If ISD meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates JHX as Accumulate (2) -

Ord Minnett looks at a key competitor of James Hardie in the US siding market - Louisiana Pacific - and its second-quarter result.

Louisiana Pacific’s SmartSide siding volumes grew 8%, which Ord Minnett believes is the best metric to use when comparing to James Hardie’s preliminary second-quarter FY21 exterior volume growth of 11%. 

The broker concludes from the above that James Hardie exteriors are growing slightly faster.

Accumulate rating retained with a target price of $39.

Target price is $39.00 Current Price is $37.10 Difference: $1.9
If JHX meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $39.56, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in March.

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: 0.8

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

Morgans rates MX1 as Add (1) -

Micro-X has secured a US$4m funding package to complete a prototype for a self-service baggage scanner and a security portal. The project is expected to be completed within 20 months. Morgans believes this is significant validation for the technology.

Early market size estimates provided by the company imply an opportunity of over US$1.5bn in the US alone. The commercial opportunity is at least two years away.

The broker reiterates a pre-Christmas catalyst is the outcome of the Australian Stroke Alliance grant funding application.

The Speculative Buy rating and the target price of $0.32 are unchanged.

Target price is $0.32 Current Price is $0.26 Difference: $0.06
If MX1 meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates NAB as Buy (1) -

Upon first glance, today's FY20 release missed Citi's underlying profit estimate by some -14%, but the analysts explain this away by referencing the notable increase in BDD expenses.

Hence, their view remains this was a solid performance by the bank. Declared dividend of 30c was in-line, while CET1 at 11.5% was pretty much in line too (Citi at 11.6%).

NAB has guided for flat housing system growth in FY21 with 2% business credit growth and Citi believes this volume guidance should be well received given the Majors are expected to take share in mortgages.

Buy. Target $23.50.

Target price is $23.50 Current Price is $18.70 Difference: $4.8
If NAB meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $20.24, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates NAB as Buy (1) -

In an immediate response to National Australia Bank's FY20 release today, analysts at UBS use descriptions like "solid result", "better revenue", and "dividend in line".

A little bit surprising, maybe, the ultimate verdict still seems to be this is a rather mixed result, but with the added expectation investors will give bank management the benefit of the doubt, on the basis of a better-than-peers NIM performance combined with a solid CET1 position.

Buy. Target $20.50.

Target price is $20.50 Current Price is $18.70 Difference: $1.8
If NAB meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.24, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates NAN as Sell (5) -

Citi observes Nanosonics' update for the first four months of FY21 implies a partial recovery. While Citi expects more improvements throughout the rest of FY21, management believes a second wave of covid-19 will be disruptive, especially in North America.

Consumables, forming about 70% of Nanosonics' revenue were up 4% versus last year. Citi expects this to keep improving for the rest of FY21. On the flip side, new devices installed were down -9%. This segment is considered more vulnerable by Citi to a second wave.

Citi expects the overall revenue to rise by 5% in the first half of FY21. 

Sell rating retained with a target price of $4.15.

Target price is $4.15 Current Price is $5.76 Difference: minus $1.61 (current price is over target).
If NAN meets the Citi target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.80, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates NAN as Add (1) -

Nanosonics has provided an update for the first four months of the financial year. This shows consumables volumes and installed base growth are heading back towards more normal levels, notes Morgans.

Unit purchases of consumables by end customers were up 4% on the previous corresponding period (pcp) and up 25% compared with the last four months of FY20.

The number of new trophon units installed was at 91% on the pcp - with North America at 90% and Europe, Middle East and Africa (EMEA) at 119%. Also, installed units were up 16% compared with the last four months of FY20 (with North America up 14% and EMEA up 64%).

These are positive developments and an upgrade on prior management commentary, explains the broker. The key catalyst for the broker is the commercial launch of a new product, which management expects in FY22.

Morgans makes no changes to forecasts, that were previously above consensus, and as a result the target price of $6.86 is unchanged.

The Add rating is also maintained. 

Target price is $6.86 Current Price is $5.76 Difference: $1.1
If NAN meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates NAN as Lighten (4) -

Nanosonics' latest business update confirms a clear recovery with the impact of the pandemic moderating and allowing elective procedures to return.

While conceding the health system has become better at treating covid-19 patients, Ord Minnett fears the rapid rise in cases, especially in Europe, could see elective procedures come under pressure. This risk leads the broker to lower its FY21 capital sales estimate.

Lighten recommendation is maintained with the target price trimmed to $5 from $5.05.

Target price is $5.00 Current Price is $5.76 Difference: minus $0.76 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.80, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates NAN as Buy (1) -

Nanosonics noted a better than expected recovery in the first four months of FY21. Purchase of consumables was up 4% versus last year, a recovery of 25% from the last quarter.

While the recovery in new Trophon units installed was ahead of expectations, the broker expects revenue to be under pressure in the first half. 

Even so, UBS views Nanosonics as a high-quality, structural growth story. The broker is of the view the infection prevention thematic poses tailwinds post covid-19, which Nanosonics looks well-positioned to capitalise on.

UBS maintains its Buy rating with a target of $7.20.

Target price is $7.20 Current Price is $5.76 Difference: $1.44
If NAN meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates PDL as Neutral (3) -

Led by institutional mandates, Pendal Group's first-half performance fees were above expectations. Despite robust operating trends from the FY20 result, Citi expects Pendal Group’s near-term profit growth to be subdued as the group continues to invest over the coming years.

With retail flows from JO Hambro still soft, the broker feels a sustainable rebound in fund flows is not on the cards in the near term.

Citi maintains its Neutral stance with a target price of $6.40.

Target price is $6.40 Current Price is $6.34 Difference: $0.06
If PDL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates PDL as Neutral (3) -

FY20 earnings missed Credit Suisse estimates, largely related to costs. Higher compensation expenses appear permanent.

Pendal Group is investing in the business to drive the next leg of growth and this will require additions to the distribution team, improved technology and a broadening of product.

FY21 guidance is for 8-10% growth in fixed costs while cost savings from the global operating model are long dated and small, the broker notes.

The company has issued a 50% growth target for funds under management by FY25. The broker highlights the target is highly reliant on markets.

Credit Suisse reiterates a Neutral rating and reduces the target to $5.90 from $6.10.

Target price is $5.90 Current Price is $6.34 Difference: minus $0.44 (current price is over target).
If PDL meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates PDL as Outperform (1) -

Pendal Group's FY20 result included an outlook of better performance fees in FY21 but also an increased expense profile, which has led the broker to downgrade outer-year forecasts.

The fund manager intends to invest now to achieve 50% funds under management growth over the next 5 years.

If they can pull it off, the broker sees material upside, but at this stage the call is "ambitious". Target falls to $6.80 from $7.00, Outperform retained.

Target price is $6.80 Current Price is $6.34 Difference: $0.46
If PDL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Overweight (1) -

Morgan Stanley notes the "ambitious" target to grow funds under management by 50% by FY25 and suspects Pendal Group can deliver, given the strong product range and increased investment.

Less uncertainty in the UK should help JO Hambro flows in late FY21, the broker adds. Pendal Group is also investing in distribution and making a one-off -$15-18m investment in a new operating platform.

Overweight rating retained as the broker considers the valuation undemanding. Target reduced to $7.30 from $7.80. Industry view: In-line.

Target price is $7.30 Current Price is $6.34 Difference: $0.96
If PDL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates PDL as Hold (3) -

Pendal Group reported FY20 cash profit (NPAT) down -10.2% on the previous corresponding period and in-line with Morgans expectations.

The company outlined higher investment (one-off -$18m) over FY21-24 to realise $4m per annum in cost savings and support the group's FUM growth target of over 50% in five years.

The broker highlights the outlook for performance fees has improved. Meaningful investment underperformance across JOHCM's UK/EU funds prevents the analyst from being more positive. 

The Hold rating is unchanged. Target is increased to $7.02 from $6.90.

Target price is $7.02 Current Price is $6.34 Difference: $0.68
If PDL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates PDL as Accumulate (2) -

Pendal Group's FY20 net profit was down -10.2% versus FY19 and below Ord Minnett’s forecast. Total fee revenue also fell -3% with higher performance fees offset by lower base management fees. Costs were on the higher side. 

A 10% final dividend (franked) of 22c was declared, below the broker's 28c forecast.

The group has guided to higher-than-expected fixed cost growth in FY21 along with a one-off investment to support an estimated 50% growth in funds under management (FUM) over the next five years.  

Ord Minnett considers the near-term flow outlook uncertain but believes the current share price presents an attractive risk-reward ratio. Accumulate rating is retained with the target falling to $7.40 from $7.50.

Target price is $7.40 Current Price is $6.34 Difference: $1.06
If PDL meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates PPH as Outperform (1) -

First half results were strong with the company's share of wallet now above 60% from 40% before the pandemic, which highlights for Credit Suisse the significant structural acceleration that has occurred.

Subscription revenue grew 57%. FY21 operating earnings (EBITDAF) guidance has been raised to US$54-58m.

The broker finds the investment case attractive because of a large market opportunity. Outperform retained. Target is reduced to NZ$9.20 from NZ$9.30.

Current Price is $7.63. Target price not assessed.

Current consensus price target is $4.45, suggesting downside of -41.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

UBS rates PPH as Neutral (3) -

UBS observes a strong first half for Pushpay Holdings with beats on revenue, gross margins and operating income.

With no growth in the total number of churches, the slowdown in the front book was greater than the broker expected. UBS is concerned and not sure if it’s due to covid-19 or something more structural.

On the assumption the front book growth resumes in FY22-23, UBS retains its Neutral rating with the target rising to NZ$8.35 from NZ$8.

Current Price is $7.63. Target price not assessed.

Current consensus price target is $4.45, suggesting downside of -41.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Citi rates TWE as Neutral (3) -

In an initial update, Citi notes heightened concerns around China's actions against Treasury Wine. The stock is expected to remain volatile till there is some clarity, which the broker expects over the next four weeks.

The company announced China is asking for retrospective tariffs which could include 2-3 months of tariffs (August onwards). The broker also highlights media reports suggesting China will not allow Australian wines to clear customs from November 6.

The broker expects a slow November. Neutral/High Risk rating is retained, awaiting clarity on the tariffs. Target is $10.40.

Target price is $10.40 Current Price is $8.67 Difference: $1.73
If TWE meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

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

Credit Suisse has decided to downgrade to Neutral from Outperform, reflecting the political risk and uncertainty associated with the China export market.

The broker's channel checks indicate distributors may have become hesitant to order. Target is reduced to $8.50 from $12.30 to account for the temporary and short-term risk.

Target price is $8.50 Current Price is $8.67 Difference: minus $0.17 (current price is over target).
If TWE meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.82, suggesting upside of 35.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates WOW as Buy (1) -

Woolworths' first-quarter sales were broadly in line with Citi's expectations. The broker upgrades its earnings forecasts for FY21-22, led by operating leverage and lower covid-19 fixed costs. 

Compared to Coles ((COL)), Citi expects the supermarket like for like sales growth to be higher for Woolworths. 

Noting the grocery landscape remains favourable, Citi reaffirms its Buy rating with a $44.50 target price.

Target price is $44.50 Current Price is $38.55 Difference: $5.95
If WOW meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates WOW as Neutral (3) -

Woolworths produced another "solid" quarter and Credit Suisse finds marginal difference in the operating performance between the two major supermarkets.

While it remains too early for e-commerce to differentiate competitively, Woolworths' lead in penetration is worth noting in the broker's view.

Estimates for first half Australian food earnings are marginally lowered based on expectations of higher costs.

Estimates for Endeavour Drinks and Big W are upgraded, although for the latter the broker has some concern regarding the sustainability of the 22% sales growth in the first quarter.

Credit Suisse retains a Neutral rating and raises the target to $40.80 from $40.43.

Target price is $40.80 Current Price is $38.55 Difference: $2.25
If WOW meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates WOW as Outperform (1) -

Woolworths posted comparable food sales growth of 11.5% in the quarter to Coles' ((COL)) 9.7%, thanks to future landfill (ooshies) and online growth. Management is expecting a strong Christmas.

Grog sales were up 20% as the locked-in became alcoholics and the broker notes pub sales are set to recover in Victoria. The recession is proving beneficial for discount stores, with Big W sales up a surprisng 28.5% outside shuttered Melbourne stores.

The broker suggests this Christmas could be the biggest in years (no one OS) and the stock is not expensive. Outperform retained, target rises to $42.50 from $42.00.

Target price is $42.50 Current Price is $38.55 Difference: $3.95
If WOW meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates WOW as Overweight (1) -

First quarter sales growth in Australian food was ahead of expectations. Morgan Stanley also notes liquor growth remains elevated.

While comparisons for hotels are challenging, the business remains profitable and the broker envisages further scope for improvement with the re-opening of Victoria.

Growth has slowed in the second quarter but remains strong, the broker adds, and this highlights a favourable setting heading into Christmas.

Morgan Stanley retains an Overweight rating and raises the target to $44.00 from $43.50. Industry view: Cautious.

Target price is $44.00 Current Price is $38.55 Difference: $5.45
If WOW meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates WOW as Hold (3) -

Woolworths reported strong first sales growth across all businesses, except Hotels. Compared to Morgans' forecasts, Australian Food and Big W sales growth were ahead of expectations. Endeavour Drinks was broadly in-line and New Zealand Food was weaker than expected.

Management advised that Australian Food like-for-like sales growth in October was in the high single-digits, moderating over the month. Growth in New Zealand slowed relative to the first quarter, while Endeavour Drinks and Big W have continued to perform strongly.

The Hold rating is maintained as Morgans continues to prefer Coles Group ((COL)). The target price is increased to $39 from $38.6.

Target price is $39.00 Current Price is $38.55 Difference: $0.45
If WOW meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

Woolworths' first-quarter sales beat Ord Minnett’s forecast with falling covid-19 costs. Australian food like-for-like sales growth at 11.5% was above the broker's 9.7% forecast.

Big W's like for like sales growth was also above the broker's estimate, a solid result, suggests the broker, considering 22 Big W stores were closed to in-store customers in Victoria during the quarter.

Overall, sales growth was well ahead of Coles ((COL)). Ord Minnett is currently restricted and cannot provide a rating or target at present.

Current Price is $38.55. Target price not assessed.

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates WOW as Buy (1) -

Woolworths' first-quarter sales were up 12% versus last year led by the strong and better than expected performance by its Australian foods division. Liquor and Big W also beat the broker's estimates with like for like sales up 20% and 22%.

Covid-19 related costs were a disappointment at about $176m, forming about 1% of the sales versus Coles's ((COL)) circa 0.7%. UBS expects the operating leverage to improve in FY21 with Woolworths' eco-system strategy providing long term upside.

Earnings estimates remain broadly unchanged and sit about 4% ahead of consensus.

The Buy rating is unchanged with a target price of $44.

Target price is $44.00 Current Price is $38.55 Difference: $5.45
If WOW meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $42.47, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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