Australian Broker Call

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

3P Learning's 1H results missed Morgan Stanley's sales forecast and there was a much more meaningful 2H skew to earnings (EBITDA) than expected. A material year-on-year improvement for cash flow was noted.

The broker suggests a meaningful acceleration is required to get to the lower-end of management's revenue guidance of between $112-115m.

Earnings guidance was lowered by -$2m to allow for additional costs associated with the Edmentum transaction.

Target $1.20. Equal-weight. Industry view: In-Line.

Target price is $1.20 Current Price is $1.10 Difference: $0.1
If 3PL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

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

Bell Potter rates ADA as Buy (1) -

As per Bell Potter, Adacel Technologies delivered a beat at the revenue line but a miss on earnings in the first half. The company reported revenue of US$13.6m, and a loss of -US$1.1m.

The broker had anticipated a positive profit result, and explains the discrepancy as a result of delays in ramping up recent contract wins. Bell Potter also points out cash flow was unexpectedly negative.

While the second half revenue result should benefit from an uplift from a new US Federal Aviation Administration contract, the company has lowered its full year guidance to a loss of -US$1.8-2.0m, implying a second half result only slightly better than the first.

The company has stated it has secured a contract pipeline providing a strong baseline of recurring revenue from FY25.

The Buy rating is retained and the target price decreases to 80 cents from 90 cents.

Target price is $0.80 Current Price is $0.62 Difference: $0.18
If ADA meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates ANN as Neutral (3) -

Upon further analysis of yesterday's H1 release, Citi notes the 'miss' was caused by weaker-than-projected revenue and margin for the healthcare division.

Management has narrowed guidance for FY24 and expressed its view that destocking should end in H2, which should allow this divison to start growing again.

All in all, amendments to future estimates remain rather benign (though positive). Citi's price target remains at $26. Neutral.

Target price is $26.00 Current Price is $23.63 Difference: $2.37
If ANN meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Macquarie rates ANN as Neutral (3) -

First half earnings were below Macquarie's estimates and Ansell has narrowed FY24 guidance slightly, with EPS now expected in the range of US94-110c.

Despite the potential for an improved performance over the medium term and a favourable balance sheet, Macquarie asserts the short-term outlook is uncertain. Neutral retained. Target is raised to $24.75 from $24 35.

Target price is $24.75 Current Price is $23.63 Difference: $1.12
If ANN meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

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

De-stocking continued to impact Ansell in the 1H, notes Morgan Stanley, with the effect of price reductions implemented in mid-FY23. Group revenue missed the consensus forecast by -3%, driven by a -7% miss for Healthcare.

The Healthcare earnings (EBIT) margin of 6.8% was a material miss against forecasts by the broker and consensus of 11.2% and 9.4%, respectively.

Management explained COGS for Healthcare was higher from reducing inventory, and there were lower sales in Surgical and Life Sciences.

The Equal-weight rating is retained on a full valuation, according to the analysts, and the target falls to $24.14 from $25.38. Industry view In-Line. Morgan Stanley now forecasts basic underlying EPS of US0.94cps, at the bottom of the guidance range.

Target price is $24.14 Current Price is $23.63 Difference: $0.51
If ANN meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Ord Minnett rates ANN as Accumulate (2) -

While Ansell's first half underlying EPS fell by -13% this was close to Ord Minnett's expectations. The broker believes the shares are undervalued, noting the productivity program is progressing well.

EBIT margins are forecast to become better than pre-pandemic levels and expand to 15% by FY28, from 10% in the first half of FY24. The  broker has no issues with the board targeting a 40-50% payout ratio.

Accumulate rating and $30 target price retained.

Target price is $30.00 Current Price is $23.63 Difference: $6.37
If ANN meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Citi rates ANZ as Neutral (3) -

The Australian Competition Tribunal has comprehensively rejected the ACCC’s view that ANZ Bank should not be allowed to acquire Suncorp Group's bank operations and Citi analysts believe the combination of rulings opens the door for further smaller bank mergers.

Citi analysts had assumed the deal would ultimately be approved.

As far as the acquirer, ANZ Bank is concerned, Citi expresses the view any earnings changes are not expected to be material in first full year of ownership.

Target $26. Neutral.

Target price is $26.00 Current Price is $27.88 Difference: minus $1.88 (current price is over target).
If ANZ meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.50, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Overweight (1) -

The Australian Competition Tribunal has granted authorisation for ANZ Bank's proposed acquisition of the banking division of Suncorp Group ((SUN)).

 Morgan Stanley suggests its earnings estimates for ANZ Bank could rise by around 7% on a full-year basis.

The proposed acquisition still requires legislative amendments by the Queensland Parliament and approval by the Federal Treasurer.

The Overweight rating and target price of $27.40 are retained. Industry view: In-Line.

Target price is $27.40 Current Price is $27.88 Difference: minus $0.48 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.50, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Accumulate (2) -

ANZ Bank's acquisition of Suncorp Bank is "almost over the line", Ord Minnett remarks, as Australian Competition Tribunal approval has been granted and the ACCC's earlier rejection overturned.

The broker believes the deal is good for both parties with the acquisition adding scale to areas where ANZ Bank trails the other majors.

Ord Minnett suspects the market remains lukewarm on the acquisition because of integration risk, with the cost synergies not expected for around five years.

Accumulate and $31 target retained.

Target price is $31.00 Current Price is $27.88 Difference: $3.12
If ANZ meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $26.50, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Neutral (3) -

The Australian Competition Tribunal has rejected the ACCC’s view that ANZ Bank should not be allowed to acquire Suncorp Group's bank operations.

UBS analysts report the completion of the deal remains subject to legislative amendments by the Queensland Parliament and approval by the Federal Treasurer. If received, completion is expected around mid-2024.

For ANZ Bank, the deal implies more scale, plus geographic and product diversification for an all-around marginally positive outcome, the broker suggests.

Neutral and $25 target retained.

Target price is $25.00 Current Price is $27.88 Difference: minus $2.88 (current price is over target).
If ANZ meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.50, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in September.

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 APM as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley concedes it was wrong on its Overweight rating for APM Human Services International and downgrades to Equal-weight. The target is also slashed to $1.22 from $2.60. Industry view: In-Line.

The broker underestimated the complexity of APM, which operates across multiple jurisdictions, with various programs and nuances, as well as the impacts from low unemployment rates.

Given recent speculation around interest from private equity, the analysts believe the stock will trade according to potential deal probabilities as opposed to fundamentals.

Target price is $1.22 Current Price is $1.27 Difference: minus $0.05 (current price is over target).
If APM meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.60, suggesting upside of 27.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates ARB as Buy (1) -

ARB Corp remains Buy-rated at Citi with the broker taking a 'stronger-for-longer' approach, at least as far as the Australian market is concerned, while prospects in the US should continue to improve.

There's one caveat: Citi analysts' focus is also on the new vehicle efficiency standards which could come into effect in Australia from 1 January 2025.

As SUVs and 4x4 models are likely to be negatively impacted, Citi believes this represents one key risk that needs to be monitored closely.

Also noteworthy, Citi's forecasts do not incorporate much additional growth from the Ford relationship or the company's store rollout.

On increased expectations, the price target jumps to $44.90 from $35.18.

Target price is $44.90 Current Price is $39.42 Difference: $5.48
If ARB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $37.50, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Macquarie rates ARB as Underperform (5) -

ARB Corp's earnings beat Macquarie's estimates for the first half, with the pre-tax profit margin of 21.2% the main driver. Aftermarket sales surprised to the upside despite the headwinds from port disruptions in November and December.

Macquarie retains an Underperform rating, asserting a sustained acceleration in top-line growth is required in the aftermarket and export businesses to drive valuation. Target is $32.30, up 20%.

Target price is $32.30 Current Price is $39.42 Difference: minus $7.12 (current price is over target).
If ARB meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.50, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Morgans rates ARB as Hold (3) -

Morgans makes EPS upgrades across FY24-26 of 8.4%, 5.0% and 4.8%, respectively, following  ARB Corp's 1H results. A $51.3m profit beat the broker’s $48.3m forecast as sale price increases combined with reduced input costs and freight.

The 1H gross margin rose by more than 400bps on the previous corresponding period to 57.5%, the strongest level since the peak-covid margin of 57.7% for the 1H of FY22, point out the analysts.

The Hold rating is kept due to both valuation and the current headwinds facing the consumer. Morgans target rises to $38.30 from $31.15.

Flat revenues in the 1H may also be a harbinger for upcoming operating deleverage, given the current peak gross margin level, suggests the broker.

Target price is $38.30 Current Price is $39.42 Difference: minus $1.12 (current price is over target).
If ARB 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 $37.50, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Ord Minnett rates ARB as Upgrade to Accumulate from Hold (2) -

ARB Corp's 12.3% increase in first half underlying net profit was ahead of Ord Minnett's forecast. This was driven by gross profit margin improvement, lower input and freight costs.

The broker finds the outlook promising amid accelerating aftermarket sales in Australia and a return to growth in the export division. Gross margins are expected to remain at current levels in the near term.

Rating is upgraded to Accumulate from Hold and the target lifted to $41 from $36.

Target price is $41.00 Current Price is $39.42 Difference: $1.58
If ARB meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $37.50, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Macquarie rates AUB as Outperform (1) -

Macquarie observes the growth outlook for AUB Group is being underpinned by supportive industry conditions, with first half underlying net profit representing 42.3% of upgraded guidance.

FY24 guidance has been upgraded by 4.4% and the medium term margin targets are on track for all segments, the broker noting these imply 10% upside to its FY26 EBIT forecast if achieved.

Outperform rating maintained. Target rises to $33.34 from $32.40.

Target price is $33.34 Current Price is $30.50 Difference: $2.84
If AUB meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $34.82, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgan Stanley rates AUB as Overweight (1) -

AUB Group remains Morgan Stanley's top pick among the insurance brokers following 1H results showing a 1% beat for underlying profit compared to forecasts by the broker and consensus.

While the 20cps interim dividend and gearing were softer/higher than the analysts expected, the overall result was considered solid.

Management upgraded FY24 profit guidance to $161-171m from $154-164m, or 4.5% at the mid-point, which compares to a $164m forecast by the analysts and consensus.

Morgan Stanley feels there is material upside earnings risk to consensus if the group can deliver on its targets.

More negatively, earnings for Tysers missed by -22%, with both revenues and margin softer, while the broker considers the dividend was light at 20cps

Morgan Stanley retains an Overweight rating and lowers the target price to $37.25 from $38.30. Industry view is In-Line.

Target price is $37.25 Current Price is $30.50 Difference: $6.75
If AUB meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $34.82, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates AUB as Buy (1) -

First half results from AUB Group were better than Ord Minnett expected. FY24 guidance has been upgraded and the company expects business momentum will continue.

The broker expects the premium rate cycle will remain supportive while the company's operating leverage is intact and should deliver extra growth relative to peers. Buy rating is reiterated and the target raised to $34.20 from $32.20.

Target price is $34.20 Current Price is $30.50 Difference: $3.7
If AUB meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $34.82, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates AUB as Buy (1) -

AUB Group's H1 performance proved strong, and underlying profit and FY24 guidance were upgraded by management, but acquired Tysers missed expectations and proved the stand-out disappointment, UBS highlights.

All in all, the broker found it a "messy" result. It has now emerged there might be need for additional investment into Tysers, the broker comments.

Tysers' disappointment effectively spoiled stronger results in Agency and New Zealand, though lack of tangible improvement in Australian margins also sits on the disappointment side of the H1 report.

Target left intact at $34.50. Buy.

Target price is $34.50 Current Price is $30.50 Difference: $4
If AUB meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $34.82, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates B4P as Buy (1) -

Shaw and Partners reviews coverage of Beforepay Group with a Buy rating and $1 target price. The company makes short-term funds available to customer, guaranteed by their paycheck for a -5% fee. 

The broker observes the company has posted positive earnings (EBITDA) for three quarters thanks largely to better credit quality.

The problem is, top line metrics have remained static and need to rise.

Shaw and Partners believes investors can afford to take a punt that value creation will kick in, noting the stock is trading below net tangible assets of 58c a share.

The broker also appreciates the company's transparent fee structure, which excludes late fees, penalties and accrued interest.

The fact the company has survived the interest-rate driven rout among payments companies reflects the company's strong management and efficient business model, says the broker.

Target price is $1.00 Current Price is $0.49 Difference: $0.51
If B4P meets the Shaw and Partners target it will return approximately 104% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates BBN as Downgrade to Neutral from Buy (3) -

The deterioration in sales as reported through Baby Bunting's trading update, which accompanied the release of H1 financials, has made Citi analysts more cautious.

Maybe this turnaround story will occur at a slower pace, and prove more difficult to achieve than initially thought? The broker has thus downgraded to Neutral from Buy.

To turn more positive, Citi analysts state they need more insight around how much investment will be required, the expected returns and associated timing.

In line with tough conditions, Citi has also scaled back the anticipated new stores rollout, to zero. Target price falls to $1.70 from $2.15.

Target price is $1.70 Current Price is $1.67 Difference: $0.03
If BBN meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 12.2% (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 BBN as Neutral (3) -

With the first half result pre-reported Macquarie envisages ongoing cost pressures and an increasingly competitive operating environment will prevail for Baby Bunting. Sales were down -2.5% in the first half.

The company asserts cost cutting will drive efficiencies over FY24 yet the broker suspects this will be more than offset by reinvestment in marketing and store expenses. Neutral rating retained. Target is steady at $1.75.

Target price is $1.75 Current Price is $1.67 Difference: $0.08
If BBN meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 12.2% (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 BBN as Equal-weight (3) -

Positive signs from Baby Bunting's 1H, according to Morgan Stanley, are good cost discipline, strong cash conversion and strong online sales, though same store sales growth slipped into the negative in early-2H.

Management had pre-released 1H earnings numbers in January. The broker suspects the market will be disappointed by the -1.4% fall in 2H year-to-date sales growth since Boxing Day.

The company didn't issue FY24 guidance but alluded to "cost of living pressures" and the 2H as a "transition period", observe the analysts.

Equal-weight. Target $1.75. Industry view: In Line.

Target price is $1.75 Current Price is $1.67 Difference: $0.08
If BBN meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 12.2% (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 BBN as Add (1) -

Morgans makes no material changes to forecasts after yesterday’s pre-released 1H results for Baby Bunting.

Earnings were in line with the pre-release, but a -3% like-for-like sales decline since Boxing Day indicates to the analysts a challenging and highly promotional trading environment.

The $2.00 target is unchanged, while the broker’s Add rating is retained in the expectation of a greater focus by management on value to drive revenues.

Cost-out initiatives are largely completed, and now the story revolves around leveraging sales, suggest the analysts.

Target price is $2.00 Current Price is $1.67 Difference: $0.33
If BBN meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 12.2% (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 BBN as Accumulate (2) -

First half underlying net profit of $3.5m was in line with the trading update provided in January. Ord Minnett notes trading conditions for Baby Bunting remain challenged, although it has achieved a "very modest improvement" in the rate of sales decline.

The broker expects comparables will become less challenging as the year progresses and a return to sales growth late in the second half is likely, capturing the benefits of recent new store openings. Accumulate rating and $2 target retained.

Target price is $2.00 Current Price is $1.67 Difference: $0.33
If BBN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 12.2% (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 BHP as Neutral (3) -

BHP Group's result did not contain any surprises (the write-downs had been pre-announced) with underlying EBITDA surprising Citi and consensus by 2% and 1% respectively.

The US72c dividend declared proved slightly better-than-expected. Costs remain one key challenge, points out the broker, but so too is growth.

Citi highlights future growth through Jansen (potash) will only compensate for the lower output in Escondida (copper) throughout FY27/28. Elsewhere, growth options remain longer dated.

Minor increases to estimates have ensued, after also incorporating troubles at WA Nickel. Price target drops to $46 from $49. Neutral.

Target price is $46.00 Current Price is $45.54 Difference: $0.46
If BHP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $45.73, suggesting upside of 2.8% (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: 0.2

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

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

Underlying profit and earnings (EBITDA) in the 1H for BHP Group were in line with consensus forecasts, while operating cash and the dividend of US72cps were beats of 12% and 5%, respectively.

The broker's focus remains on lower growth prospects, with the Escondida financial investment decision delayed and the unresolved Samarco claim.

Equal-weight rating and target price of $45.75 are retained. Industry view: Attractive.

Target price is $45.75 Current Price is $45.54 Difference: $0.21
If BHP meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $45.73, suggesting upside of 2.8% (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: 0.2

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

Morgans rates BHP as Hold (3) -

Morgans assesses another "solid" underlying (first) half for BHP Group with strong volumes for WA Iron Ore and a 27% year-on-year increase in earnings (EBITDA) at the division.

While there was inflation of 6.3% during the period, the broker highlights the group only experienced an around 2% increase in its unit costs on average.

Management had a more bearish take on the Nickel West operation than the analysts expected. The company expects a surplus in nickel supply until the late 2020's. Also, medium-term production guidance for Escondida (copper) was below the consensus forecast.

The Hold rating is unchanged and the target falls to $47.60 from $49.

Target price is $47.60 Current Price is $45.54 Difference: $2.06
If BHP meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $45.73, suggesting upside of 2.8% (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: 0.2

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

Ord Minnett rates BHP as Hold (3) -

Although BHP Group has reiterated guidance, Ord Minnett raises forecasts for FY24 unit cash costs for the Western Australian iron ore operations to US$19 per metric time, roughly around the top end of guidance. Unit cash costs of US$1.70/lb are also forecast at the 57.5%-owned Escondida copper mine in Chile.

Increased costs resulting from the Samarco dam failure have led the broker to reduce its target to $42 from $43. The fully franked interim dividend of US$0.72 is down -20% and Ord Minnett expects this will disappoint some shareholders. Hold rating.

Target price is $42.00 Current Price is $45.54 Difference: minus $3.54 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.73, suggesting upside of 2.8% (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: 0.2

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

UBS rates BHP as Neutral (3) -

BHP Group had already flagged -US$5.7bn in post-tax impairments and the H1 release pretty much showed financial metrics in line with forecasts, comment analysts at UBS.

The broker sums the outlook up as follows: disciplined growth will be pursued, shareholder returns to moderate.

The Jansen potash project is progressing well. BHP still expects capex to lift to US$10b in FY24/25 from US$7b in FY23 and further to US$11b medium-term; but management also stated it has flexibility to adjust.

The Neutral rating is retained alongside an unchanged target price of $44.00. Forecasts have slightly risen.

Target price is $44.00 Current Price is $45.54 Difference: minus $1.54 (current price is over target).
If BHP meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.73, suggesting upside of 2.8% (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: 0.2

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

Ord Minnett rates BLD as Lighten (4) -

Ord Minnett notes Seven Group is pursuing an off-market mop up of the 28.4% of Boral it does not own. Based on the broker's fair value estimates for both Seven Group and Boral, shareholders of Boral are recommended to accept the offer.

Ord Minnett estimates they would get between $4.90 and $5.10 of value per share. Target is increased to $4.70 and a Lighten rating is retained.

Target price is $4.70 Current Price is $6.08 Difference: minus $1.38 (current price is over target).
If BLD 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 $5.57, suggesting downside of -6.6% (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 BSL as Underweight (5) -

While BlueScope Steel delivered a strong result, in Morgan Stanley's opinion, maiden FY24 guidance for earnings reflected continued low Asian spreads and the recent sharp correction in US spreads. Guidance was in the range of $620-690m.

Earnings in the 1H came in 8% ahead of forecasts by the broker and consensus.

Management's guidance for a realised 2H spread in the US of US$510/t suggests to Morgan Stanley further declines are to come.

The Underweight rating is retained and the target falls to $20 from $21 on lowered EPS forecasts. Industry view: In-Line.

Target price is $20.00 Current Price is $22.50 Difference: minus $2.5 (current price is over target).
If BSL 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 $21.86, suggesting downside of -1.7% (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

Ord Minnett rates BSL as Lighten (4) -

First half earnings were broadly in line with expectations and down -16%, which Ord Minnett suggests partly reflects BlueScope Steel's Asian hot rolled coil spreads. Spreads were also weaker in the US, related to the United Auto Workers strikes.

The North Star Mill, around 30% of earnings, is proving more resilient than the broker expected and 10-year revenue forecast are modestly raised to reflect higher volumes.

The company is hoping to increase sales of painted steel in the US, where roofing is predominantly asphalt shingle, and due to the massive scale the broker suggests even small market share gains would equate to large demand for volumes.

The Lighten rating and target price of $16.50 are retained.

Target price is $16.50 Current Price is $22.50 Difference: minus $6 (current price is over target).
If BSL meets the Ord Minnett target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.86, suggesting downside of -1.7% (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

Macquarie rates BVS as Neutral (3) -

First half results from Bravura Solutions were materially ahead of Macquarie's expectations. The company realised faster cost reductions that were also larger than expected. This has driven earnings upgrades of up to 50% across the broker's forecast horizon.

Macquarie lauds management for doing a "great job to stabilise the business". Increased client activity levels/wins and the pushing through of price rises are required now for the next leg of earnings upgrades. Neutral retained. Target is raised to $1.30 from $0.83.

Target price is $1.30 Current Price is $1.25 Difference: $0.055
If BVS meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Shaw and Partners rates BVS as Buy (1) -

Shaw and Partners had only initiated coverage on Bravura Solutions with a Buy rating and a target price of $1.00 in December.

This week's H1 release, in the broker's view, has marked a "remarkable turnaround". One year ago the company burned -$11m of cash, this time around it is making $13m, states the report.

Cost outs have proved larger and arrived sooner. Management's FY24 EBITDA upgrade represents an upgrade of circa 60%, explains the broker.

Estimates have received an upward boost (of a magnitude seldom witnessed outside of small cap resources). The price target jumps to $1.70 from $1. Buy rating reiterated.

Target price is $1.70 Current Price is $1.25 Difference: $0.455
If BVS meets the Shaw and Partners target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates CNI as Neutral (3) -

Centuria Capital posted a first half result that was ahead of Macquarie's estimates. The operating metrics from the first half update signal to the broker the environment remains challenging, with gearing in the unlisted platform now 45% and capital inflows remaining subdued.

As a result, the recovery in funds under management is likely to be limited in the near term. That said, Macquarie acknowledges there is upside risk via material growth in new sub-sectors such as credit and agriculture. Neutral retained. Target edges up 3% to $1.68.

Target price is $1.68 Current Price is $1.74 Difference: minus $0.06 (current price is over target).
If CNI 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 $1.66, suggesting upside of 1.0% (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

Morgan Stanley rates CNI as Overweight (1) -

Morgan Stanley detects no stand-out negatives or positives from 1H results for Centuria Capital. The EPS metric of 7.4cpu beat the broker's 5.9cpu estimate, and management reiterated FY24 EPS guidance of 11.5-12.0cpu.

Property assets under management (AUM) increased to $20.3bn from $20.2bn at the end of June 2023, despite asset
devaluation of -1.38% over the past six months, as well as some disposals, observe the analysts.

Overweight rating. Target $1.77. Industry view: In-Line. 

Target price is $1.77 Current Price is $1.74 Difference: $0.03
If CNI meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

UBS rates CNI as Neutral (3) -

Better core property income helped Centuria Capital beating UBS's forecast by 9% in an overall tough environment, acknowledges the broker.

UBS has positioned itself at the top of management's guidance range for FY24. That guidange implies a weaker H2, explains the broker, believing it to be "likely conservative".

UBS argues to become more positive the broker needs to see activity levels (transactions and new fund raisings) demonstrably improve from current low levels.

Other reasons to remain cautious towards property fund managers, as cited by the broker, are ongoing devaluations, lack of equity inflows, reducing performance fees, and stretched balance sheets.

Neutral. Target $1.53.

Target price is $1.53 Current Price is $1.74 Difference: minus $0.21 (current price is over target).
If CNI 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 $1.66, suggesting upside of 1.0% (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

Bell Potter rates CRN as Buy (1) -

With net profits of US$156m and underlying earnings of US$382m, Coronado Global Resources reported an in line 2023 result, but production guidance for the coming year has fallen short for Bell Potter.

The company has guided to saleable production of 16.4-17.2m tonnes in the coming year, at mining costs of US$95-99 per tonne.

The broker had been anticipating a stronger production guidance given significant investment in Curragh's waste movement and commencement of mining at Buchanan's southern district.

The company remains on track to achieve its production target of 20.5m tonnes per annum by mid-2025, with Curragh expected to provide an additional 1.5-2.0m tonnes per annum of saleable production from late 2024.

The Buy rating is retained and the target price decreases to $1.85 from $1.95.

Target price is $1.85 Current Price is $1.40 Difference: $0.45
If CRN meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 38.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates CRN as Outperform (1) -

The 2023 results from Coronado Global Resources were softer than Macquarie expecced amid lower realised metallurgical coal pricing and higher costs. Guidance for 2024 highlights growth, but is also softer than the broker anticipated.

Saleable coal production is guided at 16.4-17.2mt. The company paid the minimum dividend rate with a final of US$0.50. Macquarie downgrades EPS estimates for 2024 by -28% amid the softer guidance and reduces the target by -12% to $2.20. Outperform retained.

Target price is $2.20 Current Price is $1.40 Difference: $0.8
If CRN meets the Macquarie target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 38.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Ord Minnett rates CRN as Hold (3) -

The 2023 results from Coronado Global Resources were slightly below Ord Minnett's forecasts. This largely stemmed from higher costs.

2024 guidance for production costs is broadly in line with the broker's numbers, although the longer-term outlook for capital expenditure is softer as the additional hoisting skips for the Buchanan expansion are now expected to be completed mid 2025.

The broker assumes saleable production of 16.8mt in 2024. Hold rating retained. Target edges down to $1.60 from $1.80.

Target price is $1.60 Current Price is $1.40 Difference: $0.2
If CRN meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 38.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

UBS rates CRN as Buy (1) -

Coronado Global Resources' 2023 release revealed better-than-forecast financial metrics, with UBS pointing towards lower costs as the explanation.

However, 2024 guidance proved weaker-than-expected and the broker suspects management might be too conservative.

Forecasts have reduced with the broker stating the focus remains on growth and delivery of the Curragh underground project which remains on track for first coal in late 2024, subject to approvals.

Target falls to $1.85 from $2. Buy rating retained as UBS retains a positive view on the outlook for coal prices, as well for improving free cash flows for the company into H2 2024.

Target price is $1.85 Current Price is $1.40 Difference: $0.45
If CRN meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 38.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley's proprietary Plasma Collection Centre Data for February show plasma volumes for the industry continued to grow.

Only January industry centre rollout data is available, showing an increase of 5.6% year-on-year.

The broker notes plasma collection volumes are accelerating for CSL and sees potential upside from yield initiatives.

The Overweight rating and $318 target are unchanged. Industry view: In-Line.

Target price is $318.00 Current Price is $282.28 Difference: $35.72
If CSL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $314.73, suggesting upside of 10.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Bell Potter rates EVS as Buy (1) -

EnviroSuite's first half result disappointed Bell Potter at both the revenue and earnings lines. Lower than expected recurring revenue saw the company report revenue of $29.6m, -2% below the broker's forecast, and earnings of $0.1m.

For the broker, it was the weak operating cash flow of -$1.8m that was the negative surprise of the result. The company reiterated a target of positive adjusted earnings during FY24.

The broker downgrades revenue forecasts -3%, -4% and -6% through to FY26.

The Buy rating is retained and the target price decreases to 10 cents from 13 cents.

Target price is $0.10 Current Price is $0.07 Difference: $0.033
If EVS meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates GPT as Accumulate (2) -

GPT Group's 2023 results were in line with estimates. Ord Minnett also assumes a lower distribution in 2024 of $0.24, in line with guidance as free cash flow is likely to be weighed down by higher office incentives.

The broker believes the distribution yield of 5.5% offers an appealing premium to the current Australian 10-year bond yield of 4.2% and reaffirms its $5.55 target. The stock screens as undervalued and an Accumulate rating is retained.

Target price is $5.55 Current Price is $4.41 Difference: $1.14
If GPT meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates HMC as Neutral (3) -

HMC Capital has provided guidance for FY24 for the first time that is broadly in line with Macquarie's prior expectations. Pre-tax operating earnings per share are expected to be no less than $0.33.

More information has been provided on growth initiatives including the energy transition, digital infrastructure and global health care.

Further detail on the progress of growth initiatives provides the broker with a greater line of sight for achieving the $20m target, which is forecast to be achieved in FY28.

Macquarie needs continued execution before becoming comfortable around the valuation and therefore retains a Neutral rating. Target is raised to $6.76 from $5.12.

Target price is $6.76 Current Price is $6.86 Difference: minus $0.1 (current price is over target).
If HMC meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.30, suggesting downside of -10.1% (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

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

HMC Capital's 1H profit of $58m profit exceeded forecasts by Morgan Stanley and consensus for $44m and $45m, respectively, largely driven by a strong fund performance by HMC Capital Partners Fund I.

Management provided inaugural FY24 EPS guidance of at least 33cps (ie $115m), compared to the $89m expected by the broker and consensus.

Group assets under management (AUM) now stands at $8.5bn post the acquisition of StratCap, explain the analysts.

The target is increased to $6.60 from $5.80. Equal-weight. Industry view: In-Line. 

Target price is $6.60 Current Price is $6.86 Difference: minus $0.26 (current price is over target).
If HMC meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.30, suggesting downside of -10.1% (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

UBS rates HMC as Neutral (3) -

HMC Capital's H1 performance has been labelled a "low quality beat" by analysts at UBS. Key drivers underneath an apparent 41% 'beat' have been identified as non-cash gains, derivative gains on HCW investment, and lower tax.

The broker reminds investors management at the helm has the ambition to transition to a global diversified alternative asset manager.

Zooming in on the recurring revenue streams, UBS has upgraded its forecasts by some 4% for FY25-28, and by 21% for FY24.

Price target increases to $6.95 from $5.51. Neutral.

Target price is $6.95 Current Price is $6.86 Difference: $0.09
If HMC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting downside of -10.1% (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

Macquarie rates HUB as Neutral (3) -

Hub24 beat Macquarie's expectations in the first half, primarily through revenue. The broker was disappointed with both Class and myprosperity, although acknowledges it is still early days for the latter acquisition, noting management is confident with the initial interest being generating from licensees.

The update on funds under administration signals a "reasonable" start of the year for flows, the broker observes, while retaining a Neutral rating and assessing the current valuation leaves little margin for error. Target is raised to $37.20 from $34.10.

Target price is $37.20 Current Price is $39.37 Difference: minus $2.17 (current price is over target).
If HUB meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.44, suggesting upside of 8.5% (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 HUB as Overweight (1) -

First half results from Hub24 were broadly in line with expectations. Guidance has been reiterated for FY25 platform FUA of $92-100bn and the EQT Holdings ((EQT)) transition is on track.

The $50m buyback is expected to be completed by September. Morgan Stanley retains an Overweight rating. Target is $41. Industry View: In-Line.

Target price is $41.00 Current Price is $39.37 Difference: $1.63
If HUB meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.44, suggesting upside of 8.5% (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 HUB as Hold (3) -

Hub24's 1H underlying earnings (EBITDA) and profit were in line with Morgans forecasts, while 2H growth for funds under administration (FUA) has begun strongly with around $1.2bn of implied net inflows.

FUA stands at $74.8bn, up 3.3% from 31 December 2023. Management reaffirmed its FUA target of $92-100bn by the end of FY25, which the broker notes has been assisted by recent market strength and ‘transition’ wins, including the recent Equity Trustees ((EQT)) migration.

The Hold rating is unchanged as Morgans awaits a market-led pullback for a cheaper entry point, and the target rises to $39.25 from $37.20.

Target price is $39.25 Current Price is $39.37 Difference: minus $0.12 (current price is over target).
If HUB meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.44, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates HUB as Buy (1) -

First half results were in line with estimates and Ord Minnett notes the third quarter has started well for Hub24. The broker estimates $1.3bn in net flows, representing a strong start for the third quarter given January is usually seasonally quiet.

Ord Minnett believes the business is well-placed to increase market share and returns to shareholders and reiterates a Buy rating. Target rises to $42 from $39.

Target price is $42.00 Current Price is $39.37 Difference: $2.63
If HUB meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $40.44, suggesting upside of 8.5% (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 HUB as Neutral (3) -

UBS believes the outlook for Australian Wealth Platforms has improved on the back of rising equities and greater visibility over interest rates.

Within this context, UBS notes both Netwealth Group and competitor Hub24 have released better-than-expected H1 updates.

Digging deeper into the finer details, UBS argues underlying earnings from Hub24 were actually a minor 'miss' by -2% as costs grew quicker, but it is not seen as a genuine disappointment.

Costs are expected to fall in H2. Margins are expected to grow above 40% by FY26. And while EPS estimates in the near term are reduced (costs to blame), they rise in FY25/26.

Target lifts to $41 from $37.50. Neutral.

Target price is $41.00 Current Price is $39.37 Difference: $1.63
If HUB meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.44, suggesting upside of 8.5% (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 IDX as Outperform (1) -

Macquarie observes a better-than-expected EBITDA margin is driving upside to Integral Diagnostics' underlying net profit and further margin expansion is likely to continue in the second half.

After a strong start to the second half, the broker expects domestic revenue growth of 10% as the ageing population and increased prevalence of chronic diseases drive demand for diagnostic services.

Macquarie transfers coverage to another analyst and retains an Outperform rating, raising the target to $2.65 from $2.45.

Target price is $2.65 Current Price is $2.24 Difference: $0.41
If IDX meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.26, suggesting upside of 1.9% (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 IDX as Underweight (5) -

First half revenue growth from Integral Diagnostics was below Morgan Stanley's estimates, while margin recovery appears to be slow despite Medicare indexation. This highlights the ongoing cost pressures. EBITDA was in line with estimates.

No FY24 numerical guidance was provided although the broker suspects leverage will trend down gradually. Morgan Stanley revises EPS estimates up by 7% for FY24 and 5% for FY25 as lower tax and interest offset lower EBITDA outcomes.

The broker retains an Underweight rating, believing the discount in the stock is warranted until a more positive margin outlook becomes  evident. Target is raised to $1.85 from $1.70. Industry view is In-Line.

Target price is $1.85 Current Price is $2.24 Difference: minus $0.39 (current price is over target).
If IDX meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.26, suggesting upside of 1.9% (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 IDX as Buy (1) -

First half results were in line and Ord Minnett notes operating leverage has returned for Integral Diagnostics. Significantly, the company is set for sustained operating margin expansion as organic revenue growth is accelerating and underlying staff costs are moderating.

The broker expects net debt/EBITDA to reduce to 2.4x in FY25 as free cash flow margins recover, which should be a key catalyst for re-rating. Buy rating maintained. Target rises to $2.60 from $2.50.

Target price is $2.60 Current Price is $2.24 Difference: $0.36
If IDX meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.26, suggesting upside of 1.9% (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

Bell Potter rates IFM as Buy (1) -

A close to in line first half result from Infomedia, says Bell Potter, with revenue of $69.6m 2% ahead of the broker's forecast and underlying earnings of $26.6m -1% below.

Strong free cash flow following lease payments of $8.4m were a positive surprise for the broker, particularly compared to the -$0.1m cash flow result a year prior. Full year revenue guidance of $137-142m was retained.

The Buy rating and target price of $1.75 are retained.

Target price is $1.75 Current Price is $1.53 Difference: $0.225
If IFM meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates IFM as Buy (1) -

Infomedia's December-half result revenue and earnings (EBITDA) outpaced Shaw and Partners' forecasts by 3% and 10% respectively. Management reiterated revenue guidance.

Cash margins rose to 22.6% from 17.8% and gross free cash flow outpaced, thanks to lower than forecast development costs. 

The company closed the half with $65m in cash and zero debt.

The share price appears to be undervalued, observes the broker, suggesting not only a buying opportunity, but potential for a takeover bid, and recalls the multiple bids received in 2022.

Buy rating retained. Target price rises to $2 from $1.90.

Target price is $2.00 Current Price is $1.53 Difference: $0.475
If IFM meets the Shaw and Partners target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates IFM as Buy (1) -

UBS saw Infomedia releasing a strong H1 report, with stronger-than-expected revenues and -above anything- net profit beating by 17%. Strong growth in APAC and cost control proved the two magic ingredients.

Disappointments were located in EMEA and the Americas, with UBS arguing any real progress in these regions will take time.

Management has reaffirmed FY24 total revenue guidance of $137-142m and UBS amendments have left forecast EPS unchanged for FY24, with increases kicking in between 5%-8% for the years thereafter.

Buy rating retained while the target price moves to $2.05 from $2.

Target price is $2.05 Current Price is $1.53 Difference: $0.525
If IFM meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 15.1% (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

Citi rates ILU as Neutral (3) -

In an initial response to the 2023 result, Citi notes Iluka Resources posted a full year net profit of $343m, beating its estimates by 17%.

Market commentary is unchanged and the SR1 kiln is likely to stay off-line in 2024, although the broker notes the company has the ability to restart quickly if demand recovers.

The company's customers have demonstrated strong production discipline and recently reported improving sales volumes, Citi adds. Neutral rating and $7.50 target.

Target price is $7.50 Current Price is $7.21 Difference: $0.29
If ILU meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.89, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Citi rates IMD as Buy (1) -

On further analysis, Citi's target price has crept up to $2.25 from $2.20 with the Buy rating retained. The broker has labeled Imdex's interim performance as "strong".

In an earlier response, Citi  had commented flat December-half revenue outpaced consensus and Citi forecasts, thanks to a strong performance from all regions save Australia-Pacific, suggesting resilience. Underlying earnings (EBITDA) also outpaced (excluding Devico and MAGHAMMER's one-offs).

Devico's revenue jumped 18% year on year and the transition from sales to recurring rentals was completed.

No formal guidance was issued (standard) but management did advise it expected demand to remain steady across all regions.

Citi suspected the result could prove an inflection point for market sentiment.

Target price is $2.25 Current Price is $2.01 Difference: $0.24
If IMD meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.18, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates INA as Buy (1) -

First half revenue and EBIT beat Ord Minnett's forecasts, driven by a higher number of settlements and higher average settlement price as well as continued strength in the holidays business. Ingenia Communities has maintained its guidance and expects EBIT growth of 10-15% in FY24.

Despite the challenging macro economic backdrop, the broker continues to believe there is value in the stock and retains a Buy rating. Target is raised to $5.22 from $5.10.

Target price is $5.22 Current Price is $4.81 Difference: $0.41
If INA meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates JDO as Sell (5) -

Banking analysts at Citi had been ultra-sceptical of Judo Capital before the February results season, and this has not changed one iota post the release of non-surprising H1 financials, as they were largely pre-announced.

The broker's scepsis revolves around the bank's growth ambition for FY15 (15% profit growth) which to Citi looks ambitious given new loan originations may not go as smoothly as predicted in a slowing environment.

Don't bank on it (pun intended) seems to be the implicit warning from Citi. The Sell rating remains in place while the target jumps to $1.04 from 87c on higher forecasts.

Target price is $1.04 Current Price is $1.20 Difference: minus $0.16 (current price is over target).
If JDO meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.20, suggesting downside of -0.7% (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 JDO as Downgrade to Underperform from Neutral (5) -

Macquarie suspects Judo Capital will now take longer than previously anticipated to achieve returns above the cost of capital.

The business has been a beneficiary of lower interest rates and cheaper funding but, as deposit costs rise and the TFF benefits roll off, margins are likely to normalise.

The broker considers the company's response to a more challenging revenue outlook by targeting higher-margin business lending is sensible, yet points out there is no such thing as a "free lunch".

Given the large variability in potential margin outcomes, the stock is expected to trade at a discount to net tangible assets and the rating is downgraded to Underperform from Neutral. Target is lowered to $1.00 from $1.05.

Target price is $1.00 Current Price is $1.20 Difference: minus $0.2 (current price is over target).
If JDO meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.20, suggesting downside of -0.7% (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 JDO as Equal-weight (3) -

First half results from Judo Capital were pre-announced and guidance is unchanged. Morgan Stanley asserts the additional disclosure on FY25 margin drivers is indicative of a more stable margin outlook.

Yet a more positive view requires an upgrade to FY25 earnings and more visibility regarding the path to double-digit returns on equity.

The broker lowers estimates for FY24 and FY25 by -3% and -9%, respectively.

An Equal-weight rating is maintained, with Morgan Stanley noting the company is confident it can achieve its medium-term metrics at scale. Target is raised to $1.25 from $1.21. Industry View: In-Line.

Target price is $1.25 Current Price is $1.20 Difference: $0.05
If JDO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting downside of -0.7% (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 JDO as Add (1) -

Prior to the release of yesterday’s audited financials, Judo Capital had released unaudited 1H results, detailed FY24 guidance and FY25 growth forecasts.

The net interest margin (NIM) for the 1H declined by -47bps on the prior period to 3.02% and the broker assumes a further decline in the 2H towards the top-end of management’s 2.7-2.8% guidance range.

The broker believes the 2H will be the trough for the margin which should exit FY25 at around 3%.

For now, no dividends will be paid as capital is utilised to achieve management’s loan growth goals, explains the analyst.

The target rises to $1.52 from $1.50. Add.

Target price is $1.52 Current Price is $1.20 Difference: $0.32
If JDO meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting downside of -0.7% (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 JDO as Hold (3) -

Ord Minnett notes strong loan growth, weakening margins and a material slowdown in operating expense growth in the first half.

Full year guidance from Judo Capital is slightly weaker than the broker expected, because of higher operating costs and bad debt expenses, but is not expected to have any implications for the long-term.

The broker retains a Hold rating and $1.20 target, believing the shares are fairly valued.

Target price is $1.20 Current Price is $1.20 Difference: $0
If JDO meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.20, suggesting downside of -0.7% (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 KMD as Neutral (3) -

The sales update from KMD Brands missed estimates and Macquarie is cautious about the tough comparables, along with the need to execute on a recovery in the top line given a soft macro environment.

Macquarie suggests this may overhang the outlook commentary at the upcoming interim result on March 19. In the trading update for the first half sales were down -14.5% and were weaker across all brands.

Macquarie retains a Neutral rating, reducing the target to $0.47 from $0.62.

Target price is $0.47 Current Price is $0.54 Difference: minus $0.065 (current price is over target).
If KMD meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

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 KMD as Equal-weight (3) -

The trading update from KMD Brands signals to Morgan Stanley that consumer weakness prevails, with first half EBITDA guidance of NZ$14-16m -39% below consensus expectations.

The broker notes the shares have already declined -18% in the year to date, signalling this earnings downgrade was not unexpected. Gross margins appear resilient at 58.8%. Equal-weight. Target 80c. Industry view is In-Line.

Target price is $0.80 Current Price is $0.54 Difference: $0.265
If KMD meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

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

Ord Minnett rates LLC as Buy (1) -

Ord Minnett observes the first half results from Lendlease Group reflected tougher real estate markets and slower activity as well as lower property valuations.

Expectations of a second-half skew in development completions underpins the broker's FY24 estimate for $257m in operating profit. Full year construction revenue is expected to remain broadly flat.

No improvement in margins is also on the cards although the broker assumes Lendlease achieves EBITDA margins in the longer term at the lower end of its target range of 2-3%.

Buy rating maintained. Target is reduced by -8% to $13.30, given short-term headwinds in development.

Target price is $13.30 Current Price is $6.20 Difference: $7.1
If LLC meets the Ord Minnett target it will return approximately 115% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 54.2% (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 LNK as No Rating (-1) -

Link Administration's December-half result appears to have met or edged out Macquarie's forecasts and guidance was retained.

The broker observes the sale of the company to Mitsubish is running to schedule, the LFSL Creditors Scheme having been approved by the UK courts and should close in May, assuming no appeals or hiccoughs with global regulatory approvals.

EPS forecasts rise 2.5% in FY24; 4.4% in FY25; and 5.1% in FY26.

Macquarie is on research restriction.

Current Price is $2.19. Target price not assessed.

Current consensus price target is $2.15, suggesting downside of -2.7% (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

Ord Minnett rates LNK as Hold (3) -

Link Administration's operating EBIT in the first half was generally in line with Ord Minnett's expectations, although margin income exceeded forecasts, up 20%, while EBIT from the core retirement services missed, down -26%. The broker does not expect the latter weakness will persist.

In time, Ord Minnett expects investments will better scale the services offering and this will support customer acquisition and retention. Hold rating maintained. Target is steady at $2.10.

The broker ascribes a 75% probability that Link will be successfully acquired by The Trust Bank at the proposed $2.26/share consideration.

Target price is $2.10 Current Price is $2.19 Difference: minus $0.09 (current price is over target).
If LNK meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.15, suggesting downside of -2.7% (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

Bell Potter rates MAD as Buy (1) -

Mader Group reported first half revenue of $374m, up 34% year-on-year, and underlying earnings of $48.5m, up 43% year-on-year. Net profits of $24.3m were up 38% year-on-year, and a fully franked interim dividend of 3.8 cents per share represented a 31% payout ratio.

The company's North American operations delivered a 20.6% earnings margin, beating Bell Potter's expectations. The broker explains the result was driven by scaling and maturation of the Canadian operations, and anticipates further margin improvement over the second half.

The Buy rating is retained and the target price increases to $7.60 from $7.30.

Target price is $7.60 Current Price is $6.29 Difference: $1.31
If MAD meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates MAH as Outperform (1) -

Macmahon's "solid" December-half result proved a mixed bag, revenue missing Macquarie's forecasts, with net profit after tax and earnings (EBITA) in line.

Operating cash flow fell sharply short of the broker's estimate, while free cash flow outpaced, resulting in a 19% beat on net debt and a dividend beat.

Margins rose to 18.2% from 15.1% as covid effects continue to unwind, observes Macquarie. Management upgraded FY24 revenue guidance, but EBITA guidance was steady.

Outperform rating and 25c target price retained.

Target price is $0.25 Current Price is $0.20 Difference: $0.05
If MAH meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates MLG as Speculative Buy (1) -

Turnaround momentum continued for MLG Oz in the 1H, according to Morgans, with results beating expectations. The highlight were rebounding margins, according to the broker.

Compared to the previous corresponding period, revenue and earnings (EBITDA) rose by 29% and 72%, respectively. The earnings margin jumped to 12.8% from 9.7% on optimisation of existing contracsts and rates renewed at higher levels.

The broker upgrades FY24-26 EPS forecasts by 15-30% and highlights the company has grown revenue run-rates by 75% (in the less than three years since IPO) amid tough markets.

The target rises to $1.05 from 98c, and the analyst changes the rating for MLG OZ to Speculative Buy from Add, without further explanation.

Target price is $1.05 Current Price is $0.65 Difference: $0.4
If MLG meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates MMS as Buy (1) -

Citi has lifted its target price for McMillan Shakespeare, seeing a continued runway for novated volume growth ahead.

The broker notes the loss of the South Australian government contract will impact on earnings margins within its group remuneration services margins in FY25, but sees potential for a broadening of the customer base and increased awareness of novated leasing to offset the loss.

Citi points out strong growth in novated leasing has been driven by the private segment, which remains a largely new customer cohort for the company.

The Buy rating is retained and the target price increases to $21.80 from $19.50.

Target price is $21.80 Current Price is $19.50 Difference: $2.3
If MMS meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $21.76, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Macquarie rates MMS as Outperform (1) -

McMillan Shakespeare's December-half result appears to have sharply outpaced Macquarie's forecasts, earnings jumping 42.9% on an expanded margin of 33.3%.

EV demand and strong growth in customers led to a 25.7% jump in novated volumes and a 14.9% increase in yields. Management guided to a similar performance in the June half.

The company closed the half with net cash of $79.3 and cash conversion sat at 113%. EPS forecasts rise 22% in FY24; 24% in FY25; and 23% in FY26.

Outperform rating retained. Target price rises 19% to $22.63 from 19.02.

Target price is $22.63 Current Price is $19.50 Difference: $3.13
If MMS meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $21.76, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Morgan Stanley rates MMS as Overweight (1) -

McMillan Shakespeare's first half result substantially beat Morgan Stanley's estimates given solid novated volumes and yields.

The broker suspects investors will push back given the re-rating and year-to-date performance of the stock, yet notes it historically trades on the novated trajectory and outlook which remain very strong.

Hence, the Overweight rating is maintained. Target is raised to $21.50 from $18.50. Industry view: In-line.

Target price is $21.50 Current Price is $19.50 Difference: $2
If MMS meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $21.76, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Ord Minnett rates MMS as Upgrade to Accumulate from Hold (2) -

McMillan Shakespeare's first half earnings result was 7% ahead of Ord Minnett, with the performance of the novated leasing business the standout contributor. EV sales continue to climb, leading to an increase in total novated lease sales of 25.7% year on year.

The broker also considers the performance of the Group Remuneration Services segment a standout, with revenue up 29.2% year on year.

Due to the company's strong operational momentum, and attractive valuation, Ord Minnett upgrades to Accumulate from a Hold. Target rises to $21.10 from $20.50.

Target price is $21.10 Current Price is $19.50 Difference: $1.6
If MMS meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $21.76, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Citi rates MND as Buy (1) -

Despite a headline earnings miss from Monadelphous Group, Citi finds room for optimism within the result. The broker points to higher tax as the main driver of the miss.

The company is guiding to 10% revenue growth for the full year, and Citi notes any potential upside to guidance is limited by the ongoing skilled labour shortage, despite Monadelphous Group being able to successfully increase headcount over the last six months.

The Buy rating and target price of $16.20 are retained.

Target price is $16.20 Current Price is $13.80 Difference: $2.4
If MND meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates MND as Outperform (1) -

Monadelphous Group's December-half result appears to have roughly met Macquarie's forecasts, cash proving the highlight, the company posting cash conversion of 260%.

The company closed the half with record net cash of $250m and the broker expects the company is likely to deploy its strong balance sheet in service of bolt-on acquisitions. Management reaffirmed guidance.

The broker observes the company's bidding pipeline has been backfilled and remains strong and steady although tender competition is rising. Macquarie says this should cushion Monadelphous Group from recent commodity price volatility.

EPS forecasts rise 0.1% in FY24; fall -3% for FY25; and fall -2% in FY26.

Outperform rating retained. Target price edges up to $15.10 from $15.05.

Target price is $15.05 Current Price is $13.80 Difference: $1.25
If MND meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates MND as Hold (3) -

Monadelphous reported strong demand for maintenance services in resources and energy in the first half, Ord Minnett notes, and increasing expenditure related to decarbonisation.

The company secured more than $1.8bn of new and extended contracts over the period, nearly double a year ago. This accords with Ord Minnett's expectation for strengthening group revenue in the near to mid term.

The broker expects major project award delays of the recent past to translate to stronger awards growth in the future. There is a robust pipeline of of prospects in resources and energy, including renewable opportunities.

Hold and $14.25 target retained.

Target price is $14.25 Current Price is $13.80 Difference: $0.45
If MND meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates MND as Neutral (3) -

Monadelphous Group's H1 performance proved smack in line with forecasts, comment analysts at UBS. This included securing some $750m in new contracts from lithium companies thus far in FY24.

Management's guidance for FY24 was equally in line with forecasts and UBS is of the view the share price too is already pricing in as much.

The Neutral rating is retained and the target price remains at $15.00. Estimates have been reduced, slightly.

Target price is $15.00 Current Price is $13.80 Difference: $1.2
If MND meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates MP1 as Outperform (1) -

Given Megaport's strong December-half result was pre-reported, Macquarie shifts its focus to guidance, which was reiterated.

The broker observes an acceleration in building momentum, citing strong cash conversion, logo wins and management communication.

The reinstatements of the Employee Share Scheme and incentives for key executives is likely to underpin high share-based payments for at least three years, observes Macquarie.

EPS forecasts rise 13% for FY24; fall -1% for FY25; and rise 2% for FY26.

Outperform rating retained, the broker forecasting a strong double-digit free-cash-flow compound annual growth rate over the forecast period. Target price rises to $15.90 from $15.50.

Target price is $15.50 Current Price is $13.78 Difference: $1.72
If MP1 meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.46, suggesting upside of 1.7% (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 MP1 as Hold (3) -

Morgans retains its $13.50 target and Hold rating for Megaport, given 1H results had largely been pre-released.

The free cash flow (FCF) improvement of $30m year-on-year is the biggest intra-year turnaround the broker ever witnessed, with cost control the highlight.

Only a year ago, the analysts were anticipating a capital raise. Now, capital allocation is back on the table in the form of an acquisition, a buyback, or dividends (the least likely in Morgans view). 

Target price is $13.50 Current Price is $13.78 Difference: minus $0.28 (current price is over target).
If MP1 meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.46, suggesting upside of 1.7% (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 MP1 as Buy (1) -

Megaport had largely pre-reported its interim performance, hence, no surprise, the half-yearly numbers proved broadly in line. UBS was still negatively surprised by the extent of the share-based payments, taken below the line.

FY24 guidance has been reaffirmed and UBS sees potential for upside surprise. Ultimately, the broker argues, the investment case for the company relies on proving the ROI on recent sales hires, though it will take time to build momentum.

UBS continues to view the long term opportunity as "compelling". Strong demand for the company's services should continue on the back of the structural shift to multi-cloud and AI.

The Buy rating is retained and the target price remains at $14.50.

Target price is $14.50 Current Price is $13.78 Difference: $0.72
If MP1 meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.46, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates NWL as Neutral (3) -

Netwealth Group's market update showed the financial platform operator is off to a good start in Q3, Citi analysts point out. They foresee revenue growth to pick up in combination with strong operating leverage to come through.

Margins seem poised for upside surprise, the broker suggests, while share market gains could continue for longer.

The overall positive picture is only blurred by the shares' current valuation, which keeps Citi's rating on Neutral. Price target has jumped 14% on increased forecasts.

Target price is $18.35 Current Price is $18.60 Difference: minus $0.25 (current price is over target).
If NWL meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.02, suggesting downside of -2.3% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates NWL as Underperform (5) -

Netwealth Group's December-half result broadly met consensus and Macquarie's forecasts, the broker describing it as a clean result, higher revenue being offset by lower costs.

Lower cash balances were only partly offset by improved trading activity, eroding margins by -0.8 basis points, observes the broker.

Funds Under Administration are up 3.6% in the June-half to February 16, sharply outpacing the ASX200 average of 0.9%, observes Macquarie.

EPS forecasts rise 1.6% in FY24; 2.3% in FY25; and 2% to 3% thereafter.

Underperform rating retained given the company is trading at a strong premium. Target price increases 3% to $15.30 (up from $14.80 in January).

Target price is $15.30 Current Price is $18.60 Difference: minus $3.3 (current price is over target).
If NWL meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.02, suggesting downside of -2.3% (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 NWL as Overweight (1) -

The first half results beat expectations while the outlook commentary from Netwealth Group suggests to Morgan Stanley that net inflow momentum has been sustained into the second half.

No guidance was provided, yet new business and conversion rates are flagged to remain strong across all segments.

The broker retains an Overweight rating with a $17.50 target. Industry view is In-Line.

Target price is $17.50 Current Price is $18.60 Difference: minus $1.1 (current price is over target).
If NWL 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 $18.02, suggesting downside of -2.3% (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 NWL as Hold (3) -

Netwealth Group's 1H results were in line with Morgans' forecasts. Underlying profit rose by 28% on the previous corresponding period, driven by 18% revenue growth and a 275bps margin expansion.

Funds from administration at February 16 was $80.8bn, a 3.6% rise half-on-half due to market performance and a positive start to flows, explain the analysts.

Morgans notes ongoing product and revenue stream development, while management expressed confidence in improving net inflows.

The target rises to $18.15 from $16.10 after the broker raises EPS forecasts for FY25 and FY26 by 4% and 7%, respectively. The Hold rating is maintained.

Target price is $18.15 Current Price is $18.60 Difference: minus $0.45 (current price is over target).
If NWL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.02, suggesting downside of -2.3% (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 NWL as Hold (3) -

Netwealth Group’s result was in line with Ord Minnett's forecasts and showed "excellent" growth across most metrics. Overall, the broker believes the new business environment is improving and Netwealth is well placed to increase its share of flows.

Earnings were up 27% year on year, profit up 28% and the dividend up 27%. While costs increased by 14% but the earnings margin still ticked up to 48.9%.

Ord Minnett believes the growth outlook remains very good, forecasting a 21% earnings compound growth rate over the next three years, but on an FY24 PE ratio of 54.3x, valuation is viewed as fair. Hold retained, target rises to $17.50 from $16.50.

Target price is $17.50 Current Price is $18.60 Difference: minus $1.1 (current price is over target).
If NWL meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.02, suggesting downside of -2.3% (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 NWL as Buy (1) -

UBS believes the outlook for Australian Wealth Platforms has improved on the back of rising equities and greater visibility over interest rates.

Within this context, UBS notes both Netwealth Group and competitor Hub24 have released better-than-expected H1 updates. Netwealth Group's operations are benefitting from investments made in recent years, argues the broker.

Buy rating retained, while the price target lifts to $21.30 from $18.40.

Target price is $21.30 Current Price is $18.60 Difference: $2.7
If NWL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.02, suggesting downside of -2.3% (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 NXL as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley assesses Nuix remains a turnaround story although recent updates have been stronger than expected and amid positive industry feedback this provides more confidence. Legacy legal issues have also been progressively dealt with.

Investor sentiment remains mixed, but the broker suspects the thesis can now be revisited, noting the strategic re-launch is gaining momentum. While expecting share price volatility, an improved risk/return outlook is still envisaged.

Rating is upgraded to Overweight from Equal-weight and the target lifted to $2.50 from $1.25. Industry view is Attractive.

Target price is $2.50 Current Price is $1.95 Difference: $0.55
If NXL meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates NXL as Buy (1) -

Nuix's December-half result proved a 3% beat of Shaw and Partners's forecasts, with top-line metrics falling above or near the top end of guidance.

The broker believes the company's legal issues are largely finalised and the broker's confidence in Nuix Neo is rising thanks to a kickstart from early adopters and more product launches scheduled for the June half.

The company has secured a $30m debt faciility with HSBC, positioning it well for acquisitions.

Buy rating retained. Target price rises to $2.40 from $2.20.

Target price is $2.40 Current Price is $1.95 Difference: $0.45
If NXL meets the Shaw and Partners target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates PRN as Buy (1) -

Citi highlights, subsequent to the first half briefing, that Perenti has been improving its balance sheet through disciplined capital management and this is paying off. With improving cash generation the board has reinstated a two cents dividend.

This is also supported by the ramp up at Motheo A4. Revenue and earnings guidance is unchanged for the full year, which the broker asserts is understandable in the current market.

The  stock is considered undervalued and a Buy rating is maintained along with the $1.25 target. Estimates have been trimmed.

Target price is $1.25 Current Price is $0.91 Difference: $0.34
If PRN meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates PRN as Outperform (1) -

Perenti's December-half result delivered large earnings (EBITA), cash and dividend beats on consensus' and Macquarie's forecasts. FY24 guidance was retained and the company declared a surprise 2c interim dividend.

The broker appreciates Perenti's strong orderbook and pipeline, agreeing that its 2025 margin expansion targets are on track.

Cash conversion hit 79% and the company has reinstated its buyback.

After accounting for Perenti's DDH! acquisition; EPS forecasts fall -9% in FY24; -4% in FY25; and -5% in FY26.

Outperform rating and $1.70 target price retained (the earnings beat being offset by share dilution).

Target price is $1.70 Current Price is $0.91 Difference: $0.79
If PRN meets the Macquarie target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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