Australian Broker Call

Credit Suisse rates 29M as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Neutral rating maintained for 29Metals. Target is now $2.90, up from $2.70.

Target price is $2.90 Current Price is $2.85 Difference: $0.05
If 29M meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates A2M as Neutral (3) -

In a closer look at a2 Milk Co's Chinese market, Credit Suisse notes births in China are likely to decline year-on-year in 2022 and drive reduced demand for infant formula. The broker decreases net profit forecasts -10-16% for FY23-25 accordingly. 

With covid lockdowns looking to have impacted a2 Milk's online sales in key cities Shanghai, Shenzhen, and Hangzhou, Credit Suisse looks to how recovery may unfold when restrictions ease and holds off on adjusting full year earnings forecasts. 

a2 Milk also continues to increase marketing expenditure in China to displace daigou marketing. The broker expects this could drive volume share gains to 4.1% in FY25 from 2.7% in FY21.

The Neutral rating is retained and the target price decreases to $5.15 from $5.75.

Target price is $5.15 Current Price is $5.04 Difference: $0.11
If A2M meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.2

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

Citi rates ANZ as Upgrade to Buy from Neutral (1) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Citi now prefers the 'cheaper' majors such as Westpac ((WBC)) and ANZ Bank. For ANZ Bank the rating is increased to Buy from Neutral and the target rises to $30.75 from $29.25. 

Target price is $30.75 Current Price is $27.50 Difference: $3.25
If ANZ meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $30.26, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates ASB as Hold (3) -

While Ord Minnett maintains its $2.10 target price for Austal, it views negatively recent press reports that the company has entered into sub-contracting arrangements with competitor shipyards.

The broker believes these arrangements highlight near-term work challenges (shipbuilding programs delayed) and notes the margins of a subcontractor are materially lower than for a prime contractor. Hold.

Target price is $2.10 Current Price is $1.93 Difference: $0.17
If ASB meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates AWC as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Outperform rating retained for Alumina Ltd as well as the $2.30 target.

Target price is $2.30 Current Price is $1.95 Difference: $0.35
If AWC meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates BEN as Neutral (3) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Among the regional banks, Citi maintains its Neutral rating for Bendigo & Adelaide Bank and raises its target price to $11 from $9.75.

Target price is $11.00 Current Price is $10.37 Difference: $0.63
If BEN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.56, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates BHP as No Rating (-1) -

BHP Group and Woodside Petroleum ((WPL)) have advised that BHP shareholders will be entitled to one Woodside share for every 5.534 BHP shares; and the in-specie dividend is an implied US$4.62 with US$1.98 franking credits per BHP share (Record Date for franking credits is May 26).

On completion, BHP will receive a cash payment for cash dividends paid by Woodside since July 1 and BHP will make a reciprocal cash payment for net cash flow yielded by BHP Petroleum.

Morgan Stanley notes that only NOPTA approval remains and that BHP trades ex in-specie dividend on May 25. Completion is set for June 1, 2022.

Morgan Stanley is on rating restriction. EPS and dividend forecasts have increased sharply.

Current Price is $51.94. Target price not assessed.

Current consensus price target is $49.56, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Citi rates BOQ as Buy (1) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Among the regional banks, Citi maintains its Buy rating for Bank of Queensland though lowers its target price to $10.25 from $10.50 after an adjustment to the broker's risk free rate.

Target price is $10.25 Current Price is $8.40 Difference: $1.85
If BOQ meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.13, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates BOQ as Hold (3) -

In anticipation of 1H results for Bank of Queensland due on Thursday April 14, Ord Minnett forecasts a cash net profit of $240m and an interim dividend of 23cps.

The analyst expects areas of focus to include a potential upgrade to cost synergies at ME Bank, and the short-term net interest margin outlook, with signs emerging of increased term deposit competition.

The Hold rating and $8.90 target are retained.

Target price is $8.90 Current Price is $8.40 Difference: $0.5
If BOQ meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.13, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates CBA as Sell (5) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Citi now prefers the 'cheaper' majors such as Westpac ((WBC)) and ANZ Bank ((ANZ)) and CommBank now ranks last among the four majors with a Sell rating. The $90.75 target price is maintained.

Target price is $90.75 Current Price is $105.38 Difference: minus $14.63 (current price is over target).
If CBA meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $92.45, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Citi rates CCX as Buy (1) -

While Citi maintains its Buy rating for City Chic Collective and expects multi-year growth, the target falls by -8% to $3.70 due to weaker-than-expected 3Q website visits. 

More positively, in light of the recent China lockdowns, the broker estimates the company's significant investment in inventory may result in market share gains from smaller players.

Target price is $3.70 Current Price is $3.21 Difference: $0.49
If CCX meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 63.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates DRR as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Neutral rating maintained for Deterra Royalties. Target lifts to $4.90 from $4.20.

Target price is $4.90 Current Price is $4.78 Difference: $0.12
If DRR meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.90, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates EVN as Underperform (5) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Underperform rating retained for Evolution Mining with a price target of $3.80, up from $3.60.

Target price is $3.80 Current Price is $4.32 Difference: minus $0.52 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.42, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Credit Suisse rates GNC as Neutral (3) -

Following another upgrade from GrainCorp, Credit Suisse notes the company's new earnings guidance of $590-670m in the current financial year is $390m above its normalised FY24 target of $240m. 

According to Credit Suisse, elevated earnings in the current year look to equate to around $1.20 per share that will likely be returned to shareholders, while further potential exists in the persistence of grain trade disruption. 

The broker does highlight that earnings upgrades have been attributed to elevated export margins rather than export volumes, and that persisting tightness into FY23 would likely see more of the export margin upside passed through to growers.

The Neutral rating is retained and the target price increases to $7.54 from $7.17.

Target price is $7.54 Current Price is $9.19 Difference: minus $1.65 (current price is over target).
If GNC meets the Credit Suisse target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.36, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates GNC as Outperform (1) -

GrainCorp has issued its second earnings upgrade in two months on the back of strong global demand for Australian grain and oilseeds. Macquarie notes the company is now guiding to earnings of $590-670m and net profit of $310-370m.

With revised earnings and profit respectively a 21% and 27% beat on Macquarie's forecasts, at the midpoint, the broker has updated forecasts to $639m in earnings and $352m in profit.

GrainCorp continues to capture benefit from uncertainty in global grain markets and supply shortage in the northern hemisphere that is driving increased demand for Australian product. Macquarie expects momentum to continue into the next financial year.

The Outperform rating is retained and the target price increases to $10.28 from $9.48.

Target price is $10.28 Current Price is $9.19 Difference: $1.09
If GNC meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates GNC as Overweight (1) -

GrainCorp has upgraded FY22 guidance for the second time in two months as the Ukraine War, combined with a bumper crop conspire to deliver massive margins.

Morgan Stanley notes management has pointed to excellent planting conditions for planting the 2022 winter crop, and the broker's FY23 earnings (EBITDA) forecasts outpace consensus by 17%.

The broker expects GrainCorp will finish FY22 in a net cash position and return capital to shareholders. The target price rises to $10.70 from $10. Overweight.

Target price is $10.70 Current Price is $9.19 Difference: $1.51
If GNC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates GNC as Hold (3) -

GrainCorp has provided FY22 guidance for underlying earnings (EBITDA) and underlying profit, 26.5% and 24% in excess of previous forecasts by consensus, estimates Morgans. Further capital management is anticipated.

The analyst assumes the upgrade has largely come from Grain Marketing and Processing.

While the broker feels the upgrade cycle is largely intact, and lifts its target price to $9.36 from $8.06, conditions are expected to normalise over time and the Hold rating is maintained. 

Target price is $9.36 Current Price is $9.19 Difference: $0.17
If GNC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates GNC as Neutral (3) -

GrainCorp has upgraded guidance to materially above consensus for the second time in roughly two months.

UBS says the upgrade stems from the Grain Marketing and Processing division and that the company is enjoying near perfect conditions - a large grain crop on the east coast coupled with high grain prices courtesy the Ukraine War yielding massive margins.

UBS upgrades FY22 earnings (EBITDA) forecasts accordingly but notes the cyclical nature of the earnings means they are unlikely to be repeated once the war ends - a bumper winter crop has been planted but visibility to harvest in November is poor. The broker increases FY23 and FY24 forecasts 14% and 11%, which represents a -44% year-on-year decline in FY23 and -25% in FY24.

UBS says the bumper year should reinforce the company's capital position and expects more capital-management initiatives may follow the company's $50m buyback announced earlier this year.

Neutral rating retained. Target price rises 7% to $8.90.

Target price is $8.90 Current Price is $9.19 Difference: minus $0.29 (current price is over target).
If GNC 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 $9.36, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates GUD as Buy (1) -

Following G.U.D. Holdings' investor day, Citi was further impressed by the recent AutoPacific Group acquisition and believes the business in now the jewel in the company's crown.

A potential downside for that business is the more discretionary nature of its products, compared to many of the company's legacy businesses, leaving more overall exposure to a consumer slowdown.

FY22 guidance was maintained by management. The Buy rating and $15.60 target price are maintained.

Target price is $15.60 Current Price is $11.75 Difference: $3.85
If GUD meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $15.65, suggesting upside of 33.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates GUD as Buy (1) -

G.U.D. Holdings has reiterated guidance at its investor day as the rebound in the core automotive business and March continued.

UBS says management's update on its supply-chain management was promising given supplier costs and stock availability have all met expectations despite Chinese lockdowns and the Ukraine crisis, the company's recent inventory-build cushioning the disruption.

Management signalled an opportunistic moderation of inventories in the June quarter, which UBS expects will support cash generation and the company's deleveraging ambitions. The company also plans to raise prices in the FY23 first half to offset inflation.

Buy rating retained. Target price steady at $14.40.

Target price is $14.40 Current Price is $11.75 Difference: $2.65
If GUD meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $15.65, suggesting upside of 33.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates IGO as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 and IGO are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

For IGO, the Outperform rating is retained with a revised price target price of $16.20, up from $15.30. 

Target price is $16.20 Current Price is $13.68 Difference: $2.52
If IGO meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.55, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates NAB as Neutral (3) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Citi now prefers the 'cheaper' majors such as Westpac ((WBC)) and ANZ Bank ((ANZ)) and National Australia Bank now ranks third among the four majors with a Neutral rating. The target rises to $33 from $30.50.

Target price is $33.00 Current Price is $32.47 Difference: $0.53
If NAB meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $32.34, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates NCM as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Newcrest Mining's Outperform rating and $30 target price are retained.

Target price is $30.00 Current Price is $27.59 Difference: $2.41
If NCM meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $30.12, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Ord Minnett rates NGI as Buy (1) -

Ord Minnett forecasts 1% and 19% accretion in FY23 and FY24 from Navigator Global Investments' acquisition of a 19.8% interest in Marble Capital. The company is a manager in the US multi-family real estate class. 

The analyst notes the acquisition points to an ongoing determination by Navigator Global Investments to increase its exposure to the alternatives space.

The Buy rating is maintained while the target slips to $2.30 from $2.40 after the broker incorporates into forecasts a recent business update, the acquisition of Marble Capital and a $47m placement.

Target price is $2.30 Current Price is $1.61 Difference: $0.69
If NGI meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates NIC as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

The rating and price target for Nickel Mines both remain unchanged at Neutral and $1.35.

Target price is $1.35 Current Price is $1.26 Difference: $0.09
If NIC meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Credit Suisse rates NST as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Northern Star Resources' Outperform rating is retained and the target price has risen to $11.

Target price is $11.00 Current Price is $10.27 Difference: $0.73
If NST meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

OZ Minerals remains Underperform rated with a price target of $21.

Target price is $21.00 Current Price is $25.83 Difference: minus $4.83 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.28, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates PME as Neutral (3) -

In the second new contract win so far in FY22, Pro Medicus announced a $32m, eight year ($4m/yr) contract for the Visage radiology software in the US.

While the win is a positive, the analyst points out new contract wins are expected by the market, and another $10m/yr in new contracts is required within three months to meet Citi's FY22 forecast.

The Neutral rating is maintained, as the broker feels the current company valuation is elevated. The target of $46 is maintained.

Target price is $46.00 Current Price is $47.97 Difference: minus $1.97 (current price is over target).
If PME meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates PRU as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

The Outperform rating for Perseus Mining remains intact while the price target price gains 20c to $2.20.

Target price is $2.20 Current Price is $1.79 Difference: $0.41
If PRU meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates PTM as Sell (5) -

Platinum Management continues to record outflows, reporting funds under management fell -7.9% in March 2022 to $19.4bn - the lowest level in nine years.

Morgans says the company's Asian exposure is the most likely culprit, as markets get jittery over China's position over the Ukraine war.

The broker notes that post the fall, the company now has a grossed up yield of 11% and presents a dividend trap.

EPS forecasts are downgraded -3% for FY22 and -15% in FY23.

Sell rating retained. Target price falls to $1.90 from $2.10.

Target price is $2.10 Current Price is $1.90 Difference: $0.2
If PTM meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.27, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Credit Suisse rates RMD as Outperform (1) -

With supply of semiconductor chips remaining constrained Credit Suisse considers it increasingly unlikely that ResMed will meet its FY22 US$300-350m incremental sales target off the back of Philips' recall, forecasting a US$270m benefit in the current year.

Expecting the company to derive a US$55m benefit in the third quarter, similar to the US$45-55m benefit of the second quarter, Credit Suisse notes a further $100-120m sales benefit would need to be achieved in the fourth quarter to meet the lower end of guidance.

However, the broker predicts Philips' will not return to the market until June 2023, creating longer-term opportunity for ResMed. Credit Suisse expects ResMed to sustain a 10% market share uplift. 

The Outperform rating is retained and the target price decreases to $41.00 from $41.50.

Target price is $41.00 Current Price is $33.41 Difference: $7.59
If RMD meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $37.84, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Credit Suisse rates RRL as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Outperform rating retained. Target rises to $2.60 from $2.45.

Target price is $2.60 Current Price is $2.04 Difference: $0.56
If RRL meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Credit Suisse rates S32 as Outperform (1) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

Outperform rating retained for South32 while the price target rises to $6 from $5.30.

Target price is $6.00 Current Price is $5.02 Difference: $0.98
If S32 meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates SBM as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

St Barbara is rated Neutral with a price target of $1.40 (unchanged).

Target price is $1.40 Current Price is $1.38 Difference: $0.02
If SBM meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates SFR as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 and IGO are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

The Neutral rating is retained and the updated target price sits at $5.90.

Target price is $5.90 Current Price is $5.63 Difference: $0.27
If SFR meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.32, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

UBS rates SHV as Buy (1) -

UBS revises down FY22 net profit after tax forecasts almost -45% to reflect lower realised almond prices and rising costs.

The broker says industry feedback suggests the company's prices may recover from cyclical lows as Californian supply-chain issues ease; drought conditions ratchet up in California; and purchases increase from China and India (India and Australia's Free Trade Agreement could also result in a -50% cut in tariffs).

Moderating upside is the company's weaker crop quality, due to wet weather. 

Buy rating retained. Target price falls -9% to $7.80.

Target price is $7.80 Current Price is $5.67 Difference: $2.13
If SHV meets the UBS target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates TGR as Buy (1) -

A tour of Tassal Group's operations pointed to improvement on ESG thematics, says UBS.

The company is using optimisation technology in its fisheries; automated feeders are improving prawn yields; water recirculation systems at hatcheries has minimised water wastage; the company has been using seaweed to abate nutrient discharge at the a prawn farm and is considering monetising seaweed as an animal feed supplement; and a selective breeding program aims to increase stock resilience to warmer temperatures.

Otherwise, UBS notes salmon pricing momentum is continuing, which should offset rising costs, and the broker's earnings forecasts are broadly unchanged.

Buy rating and $4.05 target price retained.

Target price is $4.05 Current Price is $3.45 Difference: $0.6
If TGR meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates TWE as Buy (1) -

Cost pressures flagged by Treasury Wine Estates during the February reporting season were confirmed by Citi after reviewing the 4Q results for US-based peer Constellation Brands.

Nonetheless, Constellation is increasing its pricing for popular wine brands, which the broker also expects of Treasury Wine Estates. The Buy rating and $13.78 target are retained.

Target price is $13.78 Current Price is $11.47 Difference: $2.31
If TWE meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates WBC as Buy (1) -

Citi believes the Reserve Bank's tightening cycle is set to reshape the Bank sector’s earnings profile over the next two and a half years. The sector view is raised to positive with forecast earnings changes of more than 10%.

The broker forecasts a cash rate of 0.75% by the end of 2022, and 1.75% by the end of 2023.

Despite natural concerns around credit quality, a 'sweet spot' is predicted by the analysts, with net interest margins forecast to return to pre-pandemic levels, materially above consensus.

Citi now prefers the 'cheaper' majors such as Westpac and ANZ Bank ((ANZ)). For Westpac the target rises to $29.00 from $27.00 and the Buy rating is maintained.

Target price is $29.00 Current Price is $24.10 Difference: $4.9
If WBC meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $25.44, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates WHC as Add (1) -

Morgans raises its FY22-24 thermal coal price assumptions by 24%-42%, and increases its long-term price to US$80/t from US$75. 

The broker sees clear upside risk to Whitehaven Coal's dividends, with physical market feedback suggesting ongoing coal price strength above consensus forecasts. 

The analyst feels that recent energy market dynamics has alerted investors to the crucial part thermal coal plays and the compelling outlook for Whitehaven Coal. The target rises to $5.20 from $3.72. Add.

Target price is $5.20 Current Price is $4.49 Difference: $0.71
If WHC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.36, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates WPL as Neutral (3) -

Citi notes the valuation of the proposed Woodside Petroleum and BHP Petroleum merger outlined by the Independent Expert's report of  $26.25-29.81 per share appears low compared to Woodside's $33.00 trading price prior to the announcement. 

The broker attributes the low valuation to a bearish weighted average cost of capital of between 8-14% for key assets, compared to Citi's weighted average cost of capital of 7.8%.

More positively, the report did provide detail around Woodside's expected US$400m per annum synergies, outlining US$120m from corporate, US$80m from operations, and US$200m from exploration and growth.

The Neutral rating and target price of $29.35 are retained.

Target price is $29.35 Current Price is $32.40 Difference: minus $3.05 (current price is over target).
If WPL meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.86, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Macquarie rates WPL as Neutral (3) -

Woodside Petroleum has benefited from high oil and gas prices as well as a notable cash inflow from BHP Petroleum earnings since last July estimated at around US$770m. Macquarie notes the company will consider special dividends or buybacks given capital surplus.

Additionally, considering KMPG's recent materially lower valuation on several of Woodside Petroleum's projects, Macquarie has decreased its earnings per share forecasts -7% for 2022 citing revised production and cost estimates.

The Neutral rating is retained and the target price decreases to $29.50 from $31.30.

Target price is $29.50 Current Price is $32.40 Difference: minus $2.9 (current price is over target).
If WPL meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.86, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Credit Suisse rates WSA as Neutral (3) -

Credit Suisse has updated price forecasts for industrial and precious metals. Weather events in Australia, the war in Ukraine, labour tightness and staff shortages; it is all having an impact on supply and prices.

The broker's preferred commodities are aluminium and lithium over the medium term (on supply deficits). Preferred stocks South32 ((S32)) and IGO ((IGO)) are considered well placed to capitalise on this.

Forecast gold prices have been lifted by US$50/oz to US$1,650/oz for 2023-25, and the long run forecast to US$1,450/oz (real) from 2026.

The broker retains a Neutral rating for Western Areas with a revised price target of $3.80, up from $3.36.

Target price is $3.80 Current Price is $3.65 Difference: $0.15
If WSA meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates WTC as Accumulate (2) -

Ord Minnett notes ongoing supply-chain disruptions have worsened into 2022, due to covid, labour challenges and the Russia/Ukraine conflict. Nonetheless, traffic to WiseTech Global's CargoWise platform has experienced record usage in 2022.

Recent data to January show the analyst that container volumes have remained broadly steady, while global average container
prices are at increasingly elevated levels.

Accumulate and $52 target retained.

Target price is $52.00 Current Price is $48.45 Difference: $3.55
If WTC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $48.34, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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