Australian Broker Call

Macquarie rates AFG as Outperform (1) -

While Home Loan lodgements for Australian Finance Group declined by -21% in the September quarter, Macquarie makes no changes to its earnings forecasts or its $2.09 target price.

The broker has confidence earnings will increase as cash rates stabilise and housing markets settle, and retains its Outperform rating.

Target price is $2.09 Current Price is $1.68 Difference: $0.41
If AFG meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates ANZ as Accumulate (2) -

Ord Minnett notes market cash rate pricing points to a December cash rate of 3.0%, versus the 3.3% envisaged in early September, and a peak rate of 3.7% in July 2023.

Since the first rate hike in April, the broker notes banks have been lagging in increasing deposit rates, which is a positive near-term tailwind for margins.

Ord Minnett assesses CommBank has the best rate leverage of the major banks, while ANZ Bank has the least.

The Accumulate rating and $24.70 target for ANZ Bank are unchanged.

Target price is $24.70 Current Price is $24.39 Difference: $0.31
If ANZ meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $26.58, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates APE as Add (1) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Morgans retains its Add rating and $14.58 target for Eagers Automotive. It's noted the company has recently gained strong market share in new territory via an acquisition in the ACT.

Target price is $14.58 Current Price is $11.65 Difference: $2.93
If APE meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 22.8% (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

Ord Minnett rates APX as Sell (5) -

Ord Minnett maintains its Sell rating for Appen and lowers its target price to $2.60 from $3.00 after yet another operating earnings (EBITDA) downgrade.

Second half earnings guidance (the most severely impacted) was lowered by -72% on slowing customer spending and higher product and technology costs, which suggests to the analyst management has limited visibility on earnings and little confidence in a recovery.

2022 revenue is now expected to be US$375-395m compared to the consensus expectation for US$409m.

The company did not provide any clear guidance for an earnings recovery trajectory, points out the broker and there's considered to be looming balance sheet risk, with the potential need to raise funds for working capital.

Target price is $2.60 Current Price is $2.94 Difference: minus $0.34 (current price is over target).
If APX meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.28, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates ASB as Lighten (4) -

Austal is now clear to proceed with design work for future offshore patrol cutter (OPC) production, now that a protest from a third party regarding the contract award has been withdrawn, explains Ord Minnett.

The likelihood of the protest succeeding was small, according to the broker. The Lighten rating and $2.40 target are unchanged.

Target price is $2.40 Current Price is $2.40 Difference: $0
If ASB meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates BAP as Hold (3) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Morgans retains its Hold rating and $7.36 target for Bapcor.

Target price is $7.36 Current Price is $6.51 Difference: $0.85
If BAP meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.86, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates BHP as Outperform (1) -

Climate change, biodiversity and nature, and the approach to sexual harassment were topics discussed during an online ESG roundtable held by BHP Group.

The company noted sexual harassment is a key risk, highlights Macquarie, and also updated on iron ore's plans to achieve its net zero target by 2050 via initiatives including including green electricity, battery-powered trucks and trains.

The Outperform rating and $45.00 target are unchanged.

Target price is $45.00 Current Price is $40.76 Difference: $4.24
If BHP meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $41.52, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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) -

After visiting BHP Group's new South flank iron ore operations, Morgan Stanley notes the ramp-up is progressing well. The analyst highlights 40% of the workforce is female.

The tour also took in the company's Mining Area C (MAC) operation in the Pilbara region, which the broker believes will be long life and low cost. Management sees a third of the resource base being very close to the MAC hub.

The trip highlighted to the broker the complexity in adding capacity to ageing infrastructure.

While Morgan Stanley feels management is conservative in maintaining production guidance, the Equal-weight rating and $43.20 target are retained. Industry View: Attractive.

Target price is $43.20 Current Price is $40.76 Difference: $2.44
If BHP meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $41.52, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Credit Suisse rates BOQ as Outperform (1) -

Ahead of Bank of Queensland's full year results release, Credit Suisse expects the bank will deliver $492m in cash earnings which remains -4.7% below consensus forecasts. 

The broker is looking for net interest margin expansion with the result driving by low-cost deposits, but with larger and earlier than expected rate hikes offering further upside. 

The Outperform rating and target price of $10.00 are retained.

Target price is $10.00 Current Price is $6.98 Difference: $3.02
If BOQ meets the Credit Suisse target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 25.6% (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

Credit Suisse rates BXB as Outperform (1) -

Brambles' shares have declined -12% since August, but Credit Suisse feels risks are being overstated. The broker does not see significant concerns around excess inventories driving high pallet returns, but notes returns could allow Brambles to accommodate an additional 5-10% of the pallet pool and meet new customer demand.

Current forward foreign exchange rates have driven a -3.5% decline in Credit Suisse's earnings outlook for Brambles in FY23. The Outperform rating is retained and the target price increases to $14.85 from $14.40.

Target price is $14.85 Current Price is $11.64 Difference: $3.21
If BXB meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $13.30, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.4

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

Ord Minnett rates CBA as Hold (3) -

Ord Minnett notes market cash rate pricing points to a December cash rate of 3.0%, versus the 3.3% envisaged in early September, and a peak rate of 3.7% in July 2023.

Since the first rate hike in April, the broker notes banks have been lagging in increasing deposit rates, which is a positive near-term tailwind for margins.

Ord Minnett assesses CommBank has the best rate leverage of the major banks, while ANZ Bank has the least.

The Hold rating and $90 target for CommBank are unchanged.

Target price is $90.00 Current Price is $96.88 Difference: minus $6.88 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.90, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Macquarie rates CNU as Neutral (3) -

Macquarie notes a -NZ$12m reduction by the New Zealand Commerce Commission compared to the draft starting regulated asset base (RAB) for Chorus, announced in December 2021.

The broker points out this reduction does not affect Chorus' maximum allowable revenue (MAR) for the first regulatory period 2022 to 2024 and leaves its earnings forecasts and NZ$7.82 target unchanged. Neutral.

Current Price is $6.75. Target price not assessed.

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: 0.0

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

Citi rates CSL as Buy (1) -

Citi finds there to be little therapeutic overlap between CSL and its new acquisition Vifor, but will look for further strategic rationale from the company at its upcoming investor day for Vifor. The broker also expects CSL to address how it will plan for Vifor's patent expiry risk.

CSL may also provide medium-term sales and margins targets to provide investors with better line of sight over Vifor's potential beyond covid. 

The Buy rating and target price of $340.00 are retained.

Target price is $340.00 Current Price is $290.20 Difference: $49.8
If CSL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $324.80, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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 awaits a clearer rationale behind the Vifor acquisition at the company's investor day on October 17. Vifor is (mostly) a chronic kidney disease (CKD) company.

The analyst sees good growth potential outside of the CKD population in the area of Patient Blood Management (PBM) via the Injectafer product. Recent revelations of a decline in the CKD patient population is considered unlikely to impact Injectafer revenues.

Morgan Stanley also sees growth for the Vifor drug Veltassa and lowly penetration of the general hyperkalemia patient population. This drug is expected to contribute 8-10% of Vifor's profit when the analyst looks at the FY21-26 period.

Separately, the broker's data on plasma collection centre rollouts show a 6% year-on-year increase for CSL. It's also noted fractionators are pointing to emerging signs of accelerating plasma collection volumes.

The Overweight rating and $323 target are retained. Industry View: In-line.

Target price is $323.00 Current Price is $290.20 Difference: $32.8
If CSL meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $324.80, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates FMG as Underperform (5) -

After attending a site tour of Fortescue Metals' Solomon hub in Western Australia, Macquarie notes new mining areas are being
opened, which continues to extend the life of the Firetail ore processing plant.

The analyst also concludes no major capital investment is required in the medium term.

The Underperform rating and $14.50 target price are unchanged.

Target price is $14.50 Current Price is $17.60 Difference: minus $3.1 (current price is over target).
If FMG 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 $16.05, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.4

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

Macquarie rates IMD as Outperform (1) -

Macquarie assesses a strong start to the financial year for Imdex with all regions performing well in the 1Q. This follows an AGM trading update that came in around 10% ahead of the broker's forecasts.

The analyst believes the combination of growth in sensors on hire and average revenue per user (ARPU) will support further growth in the 2Q.

Longer term growth is also expected to be assisted by numerous factors including strong demand for metals and decarbonisation.

The target rises by 5.6% to $2.85. Outperform.

Target price is $2.85 Current Price is $2.10 Difference: $0.75
If IMD meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates JIN as Outperform (1) -

Macquarie attributes an -11% decline in Australian lottery volumes (the broker's data) in the 1Q of FY23 to lower Powerball jackpot activity, which should normalise.

While the broker sees volume downgrade risks to FY23, forecasts into FY24 should be unchanged once normalisation occurs. It's noted lotteries are highly defensive and inelastic to economic conditions.

The Outperform rating and $18.05 target are maintained for Jumbo Interactive.

Target price is $18.05 Current Price is $12.50 Difference: $5.55
If JIN meets the Macquarie target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $17.01, suggesting upside of 40.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Credit Suisse rates MFG as Neutral (3) -

An update from Magellan Financial shows large outflows continued in September, with funds under management missing Credit Suisse's expectations by -3%. The broker cut its earnings forecasts -3-4%, describing Magellan Financial's fund performance as remaining underwhelming.

While commentary from the company's full year year suggested excess cash will likely be retained for growth in Funds Management, Credit Suisse remains concerned around how long it will take for this to translate into value. 

The Neutral rating is retained and the target price decreases to $10.90 from $11.40.

Target price is $10.90 Current Price is $10.75 Difference: $0.15
If MFG meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.89, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Morgans rates MFG as Hold (3) -

A -$3.2bn institutional outflow in September for Magellan Financial was higher than Morgans forecast, while Retail outflows have persisted at around -$400m. The group had $50.9bn of funds under management (FUM) at September 30, down by -11.6% for the month.

The broker fails to see how outflows will abate while the group's fees are positioned above the market. While further earnings pressure is expected and the target is lowered to $10.94 from 14.04, the Hold rating is kept due to a solid capital position.

Target price is $10.94 Current Price is $10.75 Difference: $0.19
If MFG meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.89, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

UBS rates MFG as Sell (5) -

Magellan Financial's funds under management took an -11.6% tumble in the last month, a combination of a -6.3% decline in flows and a -5.4% decline in investment returns.

Given the company's remaining $26bn of global equity funds appears split between retail and insto, UBS remains concerned about further revenue risk. 

With a turnaround in the Global Fund performance key to restoring inflows for Magellan Financial, UBS sees little opportunity within the company's control. The broker expects a strategic update could offer a sharpening of investment processes and risk management. 

The Sell rating is retained and the target price decreases to $9.80 from $10.30.

Target price is $9.80 Current Price is $10.75 Difference: minus $0.95 (current price is over target).
If MFG meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.89, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Morgans rates MTO as Add (1) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Morgans retains its Add rating and $3.42 target for Motorcycle Holdings. It's noted the company's recent OEM distributor acquisition improves geographic and product (agricultural market) diversification.

Target price is $3.42 Current Price is $2.59 Difference: $0.83
If MTO meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates NAB as Accumulate (2) -

Ord Minnett notes market cash rate pricing points to a December cash rate of 3.0%, versus the 3.3% envisaged in early September, and a peak rate of 3.7% in July 2023.

Since the first rate hike in April, the broker notes banks have been lagging in increasing deposit rates, which is a positive near-term tailwind for margins.

Ord Minnett assesses National Australia Bank has the second best rate leverage of the major banks, behind CommBank.

The Accumulate rating and $32.70 target for National Australia Bank are unchanged.

Target price is $32.70 Current Price is $30.27 Difference: $2.43
If NAB meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $31.76, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates NTD as Hold (3) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Morgans retains its Hold rating and $0.96 target for National Tyre & Wheel.

Target price is $0.96 Current Price is $0.68 Difference: $0.28
If NTD meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates PNV as Outperform (1) -

Following a 1Q sales update by PolyNovo showing a record $5.4m of sales in the month of September, Macquarie retains its Outperform rating.

Moreover, the analyst feels recent FDA approval of MTX will diversify sales and broaden the company's product offering.

The $1.90 target price is also unchanged.

Target price is $1.90 Current Price is $1.81 Difference: $0.09
If PNV meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates PWR as Add (1) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Morgans retains its Add rating and $3.25 target for Peter Warren Automotive. It's noted the recent register change (SMA Motors acquiring a 9.1% stake) should allow a partnership with Toyota and open up new acquisition opportunities.

Target price is $3.25 Current Price is $2.74 Difference: $0.51
If PWR meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates SGR as Neutral (3) -

Credit Suisse expects recommendations for default pre-set loss limits from the Queensland casino inquiry may take Star Entertainment's investors by surprise, although notes implementation of recommendations may take to 2025. 

Star Entertainment is largely only indirectly exposed to the Queensland market, with its exposure estimated at $255m of slot machine revenue in FY25.

The Neutral rating and target price of $2.90 are retained.

Target price is $2.90 Current Price is $2.58 Difference: $0.32
If SGR meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 31.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates SIQ as Hold (3) -

While Morgans expects demand for Australian new car sales will slow, there is only limited evidence to support this view to-date. Auto retailer order books are expected to help smooth any slowdown impact.

This view comes as September new vehicle sales rose 6.1% on September 2019 levels and increased by 12.1% on the previous corresponding period.

Current deliveries are more reflective of global supply constraints rather than higher demand, explains the analyst.

Management at Smartgroup Corp have noted lower novated lease conversion, in what Morgans notes could be first signs of an impact in a more interest-rate sensitive area.

The Hold rating and $7.40 target are retained.

Target price is $7.40 Current Price is $5.15 Difference: $2.25
If SIQ meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $6.99, suggesting upside of 40.4% (ex-dividends)

The company's fiscal year ends in December.

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 TAH as Outperform (1) -

The Gaming Services business of Tabcorp Holdings continues to be under transition with recent news of the new Tasmanian monitoring licence and the proposed sale of the eBet business, explains Macquarie.

While the broker doesn't rule out softer earnings from competition via newly-launched brands, there's still potential for medium-term upside risk from regulatory reform.

The Outperform rating and $1.10 target are unchanged.

Target price is $1.10 Current Price is $0.95 Difference: $0.15
If TAH meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates TLC as Outperform (1) -

Macquarie attributes an -11% decline in Australian lottery volumes (the broker's data) in the 1Q of FY23 to lower Powerball jackpot activity which should normalise.

While the broker sees volume downgrade risks to FY23, forecasts into FY24 should be unchanged once normalisation occurs. It's noted lotteries are highly defensive and inelastic to economic conditions.

The Outperform rating and $4.70 target are maintained for Lottery Corp.

Target price is $4.70 Current Price is $4.20 Difference: $0.5
If TLC meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.90, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett notes market cash rate pricing points to a December cash rate of 3.0%, versus the 3.3% envisaged in early September, and a peak rate of 3.7% in July 2023.

Since the first rate hike in April, the broker notes banks have been lagging in increasing deposit rates, which is a positive near-term tailwind for margins.

Ord Minnett assesses Westpac has the second worst rate leverage of the major banks, ahead of ANZ bank, while CommBank has the best leverage. 

The Hold rating and $22.80 target for Westpac are unchanged.

Target price is $22.80 Current Price is $21.94 Difference: $0.86
If WBC meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.52, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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