Australian Broker Call

Macquarie rates A11 as Upgrade to Outperform from Neutral (1) -

Macquarie lowers EPS forecasts for junior lithium miners under research coverage, noting resilient lithium supply by producers using lepidolite and African ores have pushed Li2O3 prices below US$11k/t.

As the lithium market downturn reduces funding opportunities, the market is especially tough for small cap lithium producers and developers, highlights the analyst. Production start dates and output ramp-up profiles are also reviewed by the broker.

While Atlantic Lithium's target falls to 40c from 42c, the rating is upgraded to Outperform from Neutral as the analyst believes the share price fall is overdone and the market has failed to recognise recent positive exploration results.

Target price is $0.40 Current Price is $0.28 Difference: $0.12
If A11 meets the Macquarie target it will return approximately 43% (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 A1N as Neutral (3) -

Macquarie observes free to air television markets are down -11% in the 1H2024 with video on demand up 17.5%. Linear radio is flat over the same period.

Macquarie revises earnings forecasts for ARN Media on the back of softer radio markets. FY24 EPS estimates are lowered by -11% and -7% in FY25.

Target price declines to 63c from $1.04. Neutral rating unchanged.

Target price is $0.63 Current Price is $0.70 Difference: minus $0.07 (current price is over target).
If A1N meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.69, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

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 AAI as No Rating (-1) -

Following the commencement of Alcoa CDIs trading on the ASX on a normal basis on August 2, UBS initiates research coverage with a Buy rating and $58 target, noting material leverage on offer to an aluminium price recovery.

The broker is constructive on the fundamental medium-term outlook for aluminium, but more cautious on the outlook for alumina.

For Alcoa, the analyst anticipates only limited volume growth, but positive earnings momentum and improving free cash flow (FCF)
driven by higher aluminium prices and profitability improvements.

Target price is $58.00 Current Price is $46.16 Difference: $11.84
If AAI meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

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.

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

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

UBS originally underestimated the excess capital of Australian banks and now highlights the potential to recycle capital and return it to shareholders, supporting the investment case.

The broker also raises its lending growth forecasts for each of the banks under coverage by 1ppts (on average) on the back of the recently stronger APRA lending growth numbers.

For ANZ Bank, UBS lifts its target to $32 from $30 and upgrades to Buy from Neutral.

Target price is $32.00 Current Price is $28.22 Difference: $3.78
If ANZ meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $27.66, suggesting downside of -3.6% (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

Macquarie rates ARF as Upgrade to Outperform from Neutral (1) -

Macquarie upgrades Arena REIT to Outperform post research restrictions and its $140m July capital raising.

The REIT raised more funds than currently required for acquisitions which, the broker surmises, provides future funding flexibilty to grow earnings.

Management offered a better-than-expected FY25 dividend guidance with a "solid" earnings outlook the broker states.

The target price is $4.02 with an Outperform rating.

Target price is $4.02 Current Price is $3.84 Difference: $0.18
If ARF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 1.4% (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 ASK as Buy (1) -

At first glance, Abacus Storage King's FY24 result was broadly in line with consensus and Citi's forecasts as was FY25 FFO guidance.

The broker expects this will support the share-price near term, despite the company's rising weighted average cost of debt.

Citi observes the company is trading at a -24% discount to net tangible assets.

Buy rating and $1.40 target price.

Target price is $1.40 Current Price is $1.20 Difference: $0.2
If ASK meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 9.3% (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 AZJ as Neutral (3) -

Aurizon Holdings reported "soft" earnings, states Citi, with 2H24 coal volumes -3% below expectations and a big "disappointment" on bulk, across the board, including volumes (-2%), revenue (-9%) and earnings before interest and tax (-7%).

The broker highlights the company's reported higher costs, including depreciation/amortisation and interest. Management's guidance is a -3% miss at the midpoint.

Citi revises earnings forecasts by -13% for FY25 and -4% in FY26. The potentially attractive valuation is mitigated by ongoing downside risks to earnings, the analyst believes.

Neutral rating unchanged. Target price shifts to $3.55 from $4.

Target price is $3.55 Current Price is $3.30 Difference: $0.25
If AZJ meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Macquarie rates AZJ as Neutral (3) -

Macquarie assesses the FY24 earnings report for Aurizon Holdings as "disappointing" with lower than forecast results and FY25 guidance also weaker than expected. 

A 7.3c dividend was lower than anticipated due to lower earnings. A $150m share buyback was announced which provides some support for the "believers", the broker states.

FY25 capex guidance is higher than Macquarie's expectation; coal growth disappointed and containerised freight is also below forecasts with break-even expected.

Macquarie lowers EPS forecasts by -16% for FY25 and -12% for FY26. Accordingly, the target price is revised to $3.60 from $3.73. Neutral rating.

Target price is $3.60 Current Price is $3.30 Difference: $0.3
If AZJ meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

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

Following FY24 results for Aurizon Holdings, Morgan Stanley lowers its target to $3.55 from $3.77 and upgrades to Equal-weight from Underweight on a less demanding valuation. Industry view: Cautious.

The broker also feels the coal market risk skew is now more balanced, and progress is being made on non-Coal growth with the One Rail acquisition completed and Containerised Freight capacity in place.

FY24 earnings (EBITDA) of $1,624m missed forecasts by the broker and consensus by -2% and -7%, respectively, while FY25 underlying earnings guidance missed the consensus expectation by -3%.

Target price is $3.55 Current Price is $3.30 Difference: $0.25
If AZJ meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgans rates AZJ as Hold (3) -

Aurizon Holdings' FY24 EPS missed consensus forecasts by -24% due to higher than guided interest charges, weaker earnings (EBITDA) and a rise in depreciation and amortisation. FY25 guidance also disappointed. 

A sell-off ensued and Morgans surmises this most likely reflects the -9% dividend disappointment, despite management announcing a $150m buyback.

The broker observes rising maintenance capital expenditure and continuing concerns about the quality of earnings.

EPS forecasts fall -11% in FY25; -16% in FY26; and -7% in FY27. DPS forecasts fall -3% to -16% across FY25-FY27, maintaining an assumed EPS payout ratio of 80% (consensus had been expecting better).

Hold rating retained. Target price falls to $3.42 from $3.77.

Target price is $3.42 Current Price is $3.30 Difference: $0.12
If AZJ meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

UBS rates AZJ as Neutral (3) -

Aurizon Holdings reported FY24 net profit, EPS and DPS some -10% to -11% below the UBS forecast.

Results were tempered by higher interest costs and depreciation/amortisation charges.

The coal performance deteriorated in the 2H24 and came in below expectations with management offering a disappointing FY25 guidance for coal.

Network and bulk EBITDA met the broker's expectations.

Post the -9% fall in the share price in response to the results, UBS believes a lot of the negative news is priced in.

Neutral rating and a revised target price of $3.40 from $3.70.

Target price is $3.40 Current Price is $3.30 Difference: $0.1
If AZJ meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.70, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

UBS rates BEN as Sell (5) -

UBS originally underestimated the excess capital of Australian banks and now highlights the potential to recycle capital and return it to shareholders, supporting the investment case.

The broker also raises its lending growth forecasts for each of the banks under coverage by 1ppts (on average) on the back of the recently stronger APRA lending growth numbers.

For Bendigo & Adelaide Bank, UBS lifts its target to $10 from $8.75. The Sell rating is maintained.

Target price is $10.00 Current Price is $12.01 Difference: minus $2.01 (current price is over target).
If BEN meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.19, suggesting downside of -16.2% (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 BPT as Buy (1) -

Beach Energy's FY24 underlying earnings (EBITDA) and profit of $950m and $341m, respectively, fell short of Bell Potter's forecasts for $965m and $374m.

The key negative of the release, according to the broker, was a -11.5MMboe 2P reserve revision for Enterprise (Otway Basin). New production data indicate a smaller resource pool than originally estimated, explain the analysts.

Management reiterated FY25 guidance provided with the company’s Strategy Review in June.

A 2cps fully franked final dividend was declared.

Buy rating retained. Target price falls to $1.40 from $1.85 on the lower Otway reserves and increased depreciation assumptions.

Target price is $1.40 Current Price is $1.25 Difference: $0.15
If BPT meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates BPT as Sell (5) -

Citi remains negatively disposed to Beach Energy on the back of deteriorating asset quality and the need for mergers/acquisitions to offset its poorly performing assets.

The broker highlights net profit "surprisingly" was in line with consensus and 10% higher than its estimate. Free cashflow was notably lower than the analyst's forecast and even more so below consensus.

Citi highlights the pressure at Enterprise has declined more than expected with higher-than-forecast reserve impairment.

Sell rating emphasised as the reinvestment costs are ratcheted up, again. Target price $1.30.

Target price is $1.30 Current Price is $1.25 Difference: $0.05
If BPT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Macquarie rates BPT as Neutral (3) -

Macquarie acknowledges the attempts by new management to turn the ship around at Beach Energy but, alas, reserve downgrades at Thylacine (Otway) and Enterprise (down -50%) have undermined what the broker viewed an in line FY24 earnings report.

The Waitsia Stage 2 capex -increased to -$600m-$650m from -$450m-$500m, with a delay in the start up.

The broker cuts EPS forecasts by -7% and -2% for FY25/FY26, respectively. The target price is marked down by -10% to $1.30 on the lower reserves.

Neutral rating unchanged.

Target price is $1.30 Current Price is $1.25 Difference: $0.05
If BPT meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

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

Beach Energy's FY24 earnings (EBITDA) and underlying profit beat consensus forecasts by 14% and 1%, respectively. Morgan Stanley expects a cautious market reaction after recent consensus downgrades in the wake of the June 18 strategic review.

A final 2cps dividend was declared.

Reserve downgrades increased to -31.5MMboe from -19MMboe at the strategic review.

The broker points out FY25 production guidance of 17.5-21.5MMboe is heavily dependent on the timing of Waitsia's first gas.

Equal-weight rating. Target $1.45. Industry view: Attractive. 

Target price is $1.45 Current Price is $1.25 Difference: $0.2
If BPT meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

UBS rates BPT as Buy (1) -

While Beach Energy's FY24 net profit beat consensus estimates by 7%, management unveiled another material reserve downgrade, observes UBS.

Following new flow data indicating a higher decline rate than previous expectations, reserves at the new Enterprise gas field in the Victorian Otways were revised down by -11mmboe.

The broker still anticipates a material step change in free cash flow (FCF) from FY26.

Buy rating. The target falls to $1.60 from $1.75 after the broker cuts the FY25 EPS forecast by -12% and by -3-4% over FY26-27.

Target price is $1.60 Current Price is $1.25 Difference: $0.35
If BPT meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates CAR as Buy (1) -

Citi reiterates its Buy rating as both the international operations and the Australian business are anticipated to grow at double digit pace over the medium term.

The broker also suggests M&A potential is there to add extra growth (in existing markets). Forecasts have been lifted.

Earlier the broker reported:

CAR Group reported FY24 earnings which met Citi's forecasts. The broker commends international revenue growth of 13% year-on-year considering the challenging trading conditions.

Australia reported 12% annual revenue growth with the 2H24 slightly softer than the analyst's forecasts. A FY24 dividend of 73c was 3c better than expected.

Citi points to FY25 margin guidance which is softer than anticipated, although the top line growth could be more robust.

Forecast consensus adjustments will depend on the revenue growth outlook, the broker highlights.

Buy rating with $39.30 target with the possibility of share price underperformance from softer margins.

Target price is $39.30 Current Price is $35.14 Difference: $4.16
If CAR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $38.15, suggesting upside of 8.4% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates CAR as Outperform (1) -

Macquarie highlights the FY25 outlook commentary from CAR Group was better than expected due to an upbeat outlook for Brazil, Australia and the US.

The analyst believes the guidance outlook is achievable and could be more conservatively positioned by management.

The company has started trialling customer-to-customer payments in Australia to facilitate more sellers on its domestic platform.

Macquarie adjusts EPS estimate by -2% for FY25 and FY26 is unchanged. Outperform rating unchanged with a revised target price of $35.40 from $34.60.

Target price is $35.40 Current Price is $35.14 Difference: $0.26
If CAR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $38.15, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgan Stanley rates CAR as Overweight (1) -

FY24 results for CAR Group were in line with consensus forecasts and Morgan Stanley interprets FY25 guidance and management commentary positively.

The company expects "good growth" in revenue, adjusted EBITDA and adjusted NPAT on a constant currency basis.

The broker highlights depth take-up is rising in all the company's markets and cash flow conversion remains high. A rise of 20% in FY24 Media revenue was also a positive surprise.

 Overweight. Target $40. Industry view: Attractive.

Target price is $40.00 Current Price is $35.14 Difference: $4.86
If CAR meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $38.15, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates CAR as Hold (3) -

CAR Group's FY24 result broadly met consensus and Morgans considers it to be a strong result thanks to double-digit top-line growth and earnings growth across all regions.

EPS forecasts rise 0% to 2% for FY25 and FY26 to reflect FY25 guidance and a forecast improvement in margins.

The broker spies solid long-term growth prospects in both Australia and internationally and appreciates the company's strategy to strengthen its moat by helping dealers to bring more transactions online.

Hold rating retained. Target price rises to $35.40 from $34.70.

Target price is $35.40 Current Price is $35.14 Difference: $0.26
If CAR meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $38.15, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

UBS rates CAR as Buy (1) -

UBS believes the FY25 outlook commentary from CAR Group is on the conservative side, particularly for the domestic private sector.

This comes on the back of the 2H24 results which were "solid" the broker highlights. 

UBS notes profit margins across used car dealers remain elevated despite weakness in used car prices with inventory build-up pushing dealers to spend more on marketing.

The analyst has raised the domestic dealer revenue growth to 11% from 9% for FY25.

Over the next three years, UBS expects a 14% compound growth in revenue and 16% in EBITDA from higher dealer spend, price rises and adjacencies such as private and media.

UBS revises the target price to $39.80 from $40.50. Buy rating unchanged.

Target price is $39.80 Current Price is $35.14 Difference: $4.66
If CAR meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $38.15, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

UBS rates CBA as Sell (5) -

UBS originally underestimated the excess capital of Australian banks and now highlights the potential to recycle capital and return it to shareholders, supporting the investment case.

The broker also raises its lending growth forecasts for each of the banks under coverage by 1ppts (on average) on the back of the recently stronger APRA lending growth numbers.

For CommBank, UBS lifts its target to $110 from $107. The Sell rating is maintained.

Target price is $110.00 Current Price is $130.53 Difference: minus $20.53 (current price is over target).
If CBA meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $97.19, suggesting downside of -26.7% (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 CGF as Neutral (3) -

Challenger's FY24 normalised profit (NPBT) of $608m beat forecasts by consensus and Citi of $600m and $603m. Results were released today, and the broker is making an early assessment.

Management's FY25 guidance is for normalised profit of between $640-700m, which compares to the $672m forecast by consensus.

The 2H dividend of 13.5cps beat the analysts' 13.0cps estimate, with the payout ratio of 44% towards the top end of management's revised payout guidance of between 30%-50% of normalised profit.

Target $6.95. Neutral.

Target price is $6.95 Current Price is $6.88 Difference: $0.07
If CGF meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.57, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates CGF as Neutral (3) -

On first take, Macquarie considers Challenger's FY24 results as "positive" with the Life business coming in above consensus and the 2H24 dividend higher than forecast.

Funds under management came in below the analyst's estimates. The broker points to the FY25 guidance which at the midpoint infers the company will be able to meet the return on equity targets.

Thematically, Macquarie likes the "aging population" thematic. Target price $7.30. 

Target price is $7.30 Current Price is $6.88 Difference: $0.42
If CGF meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.57, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates CSL as Outperform (1) -

In a first look at today's FY24 result for CSL, Macquarie notes EBIT and and net profit were largely in line while gross profit came in around 1% higher than forecasts by the broker and consensus.

FY25 net profit in constant currency guidance for US$3,200-3,300m was -3-6% below the analyst's expectation, reflecting weaker-than-expected revenue growth. Details are awaited in relation to revenue growth and gross margin expectations for CSL Behring.

The analyst highlights the Rika roll-out currently extends to 84 centres and is on schedule for FY25 completion. Outperform. Target $330.

Target price is $330.00 Current Price is $308.93 Difference: $21.07
If CSL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $322.95, suggesting upside of 9.6% (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: 0.8

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

Bell Potter rates DXC as Buy (1) -

s FY24 funds from operations (FFO) came in slightly ahead of forecasts by Bell Potter and consensus.

FY25 guidance is for FFO and a dividend of 20.6cpu.

One of Bell Potter's preferred ways to play externally managed REITs, Dexus Convenience Retail REIT provides both an attractive distribution yield and valuation confidence, and trades at an around -21% discount to net tangible assets (NTA).

The Buy rating is retained and the target price increases to $3.10 from $3.00.

Target price is $3.10 Current Price is $2.82 Difference: $0.28
If DXC meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates DXC as Add (1) -

Dexus Convenience Retail REIT's FY24 result met guidance but dividend guidance fell shy of Citi's forecasts.

The broker observes resilient portfolio metrics and a slowing in the REIT's cap-rate expansion.

The REIT closed June 30 with gearing of 32% and Citi expects asset sales should bring this down to 30%.

Management provided an update on the $45m two-stage Glass House Mountains project in Queensland: about 45% of stage 1 income will be derived from QSR tenants and Viva Energy ((VEA)) will supply the balance; and the project will start in FY25 and is forecast to be finished by FY27 with the first stage completed by December 2025.

Add rating retained. Target price edges up to $3.25 from $3.23.

Target price is $3.25 Current Price is $2.82 Difference: $0.43
If DXC meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Ord Minnett rates DXC as Accumulate (2) -

Ord Minnett acknowledges Dexus Convenience Retail REIT reported results which met expectations and benefited from the $23m sale in assets with an additional $46m under negotiation which will help the Glass House Mountains development.

The REIT reported average rent reviews of 3.4% with like-for-like income growth of 2.8% over FY24.

The broker continues to find the REIT attractive, trading at a circa 7% yield and a -21% discount to net asset value.

Accumulate with a revised target price to $3.01 from $2.82.

Target price is $3.01 Current Price is $2.82 Difference: $0.19
If DXC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 10.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Ord Minnett rates EOS as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage of Electro Optic Systems with a Buy rating (High risk) and a $2.80 target price.

The broker believes the company has developed leading edge products and has strong technical capabilities which are being boosted by a new management team.

The company is expected to win new contracts over the next 24-60 months to help underwrite earnings growth.

Target price is $2.80 Current Price is $1.59 Difference: $1.21
If EOS meets the Ord Minnett target it will return approximately 76% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 FBU as Equal-weight (3) -

An equity raising still remains a strong possibility (especially given the pending CEO and CFO transition), suggests Morgan Stanley, despite Fletcher Building selling 100% of Tradelink for $170m.

Sale proceeds will be applied to pay down debt, notes management.

The company's FY24 result is due on August 21.

The Equal-weight rating and $2.84 target are unchanged. Industry View: In-Line.

Target price is $2.84 Current Price is $2.84 Difference: $0
If FBU meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

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: -0.5

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

Macquarie rates GL1 as Neutral (3) -

Macquarie lowers EPS forecasts for junior lithium miners under research coverage, noting resilient lithium supply by producers using lepidolite and African ores have pushed Li2O3 prices below US$11k/t.

As the lithium market downturn reduces funding opportunities, the market is especially tough for small cap lithium producers and developers, highlights the analyst. Production start dates and output ramp-up profiles are also reviewed by the broker.

For Global Lithium Resources, the target falls to 25c from 30c due to the broker's changed funding assumptions. Neutral.

Target price is $0.25 Current Price is $0.23 Difference: $0.02
If GL1 meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.25, suggesting upside of 443.5% (ex-dividends)

The company's fiscal year ends in June.

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 GLN as Neutral (3) -

Macquarie lowers EPS forecasts for junior lithium miners under research coverage, noting resilient lithium supply by producers using lepidolite and African ores have pushed Li2O3 prices below US$11k/t.

As the lithium market downturn reduces funding opportunities, the market is especially tough for small cap lithium producers and developers, highlights the analyst. Production start dates and output ramp-up profiles are also reviewed by the broker.

For Galan Lithium, the broker's target falls to 12c from 20c largely due to delayed first production from phase 1 & 2 of the Hombre Muerto West (HMW) lithium project in Argentina. Neutral.

Target price is $0.12 Current Price is $0.12 Difference: $0
If GLN meets the Macquarie target it will return approximately 0% (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 HCW as Buy (1) -

HealthCo Healthcare & Wellness REIT's FY24 funds from operations (FFO) of 8cpu met forecasts by Bell Potter and consensus.

FY25 guidance is for FFO and a dividend of 8.4cpu.

The Buy rating and $1.50 target are retained.

Given the around 5% FY25 earnings growth (unlike most REITs) forecast by Bell Potter, the analyst sees value at the current share price, especially as a buyback places a floor under the stock price.

Target price is $1.50 Current Price is $1.20 Difference: $0.3
If HCW meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.46, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates HCW as Outperform (1) -

HealthCo Healthcare & Wellness REIT reported earnings which met expectations from Macquarie.

The guidance came in slightly (-2%) below the broker's expectations and consensus.

Macquarie highlights the REITs leases are linked to the CPI which offers positive upside to the growth outlook compared to other REITs, including longer dated average leases of 12.2 years.

Gearing sits at 31% and the $200m asset recycling program is almost finished. The broker points to higher on market share buybacks as a possibility.

The target price is revised to $1.32 from $1.29. Outperform rating maintained. A re-rating in the stock depends on increased certainty around the private hospital sector, the broker suggests.

Target price is $1.32 Current Price is $1.20 Difference: $0.12
If HCW meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.46, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

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

In line with management's guidance, HealthCo Healthcare & Wellness REIT reported FY24 funds from operations (FFO) of 8cpu. While the result was "fine" according to the broker, cash conversion was a little low.

First time FY25 guidance of 8.4cpu for FFO and the dividend fell short of the 8.6cpu expected by consensus.

Equal-weight rating. Target $1.41. Industry view: In-Line.

Target price is $1.41 Current Price is $1.20 Difference: $0.21
If HCW meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.46, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates JBH as Buy (1) -

JB Hi-Fi FY24 results were 5% better than Citi's forecasts and consensus. The broker likes the E. & S. acquisition and believes it will be a good fit with The Good Guys, including potential gross margin expansion from supplier overlaps.

JB Hi-Fi also announced a special dividend of 80c and a final 103c dividend, again above the broker and consensus expectations.

In FY25 the analyst forecasts like-for-like sales growth of 6.7% in JB Hi-Fi and 5% in The Good Guys with improved margins, including lower labour costs on FY24.

Buy rated and the target price is raised to $85 from $74.

Target price is $85.00 Current Price is $72.98 Difference: $12.02
If JBH meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $69.62, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Macquarie rates JBH as Outperform (1) -

The reported 75% acquisition of the E.& S. appliance retailer by JB Hi-Fi  is viewed positively by Macquarie with the purchase diversifying its customer base including premium brand exposure.

Macquarie believes there are sourcing and distribution cost benefits with scope to expand the company's 10 stores interstate.

FY25 trading shows ongoing momentum for JB Hi-Fi Australia and The Good Guys. The broker highlights the FY24 earnings result was "strong" including a special 80c dividend.

Outperform rating retained with a revised 7% lift in the target price to $77. Macquarie raises EPS forecasts by 7.2% and 7.5% for FY25/FY26, respectively.

Target price is $77.00 Current Price is $72.98 Difference: $4.02
If JBH meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $69.62, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgan Stanley rates JBH as Underweight (5) -

JB Hi-Fi's FY24 earnings (EBIT) beat the consensus forecast by 4.4%, notes Morgan Stanley. Sales were in line, while gross profit and EBIT margins came in ahead of consensus. Sales momentum continued into July, according to management.

In a rational move, according to the broker, management also announced the acquisition for -$47.8m of E. & S., the commercial premium home appliance retailer with an offering across kitchen, laundry and bathroom.

Given spare balance sheet capacity, a special dividend of 80cps was declared, bringing the total dividend to $2.61/share.

Underweight rating. Target $54.70. Industry View: In-line.

Target price is $54.70 Current Price is $72.98 Difference: minus $18.28 (current price is over target).
If JBH meets the Morgan Stanley target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $69.62, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgans rates JBH as Hold (3) -

JB Hi-Fi's FY24 result sharply outpaced consensus' and Morgans' forecasts, thanks to a resilient performance in Australia and strong cost control, which supported margins in the face of a broad fall in most other metrics and heavy promotions.

Gross margins eased just -42 basis points to 22.2%. Like for like sales in Australia rose 5.2% in July. Morgans expects customers will continue to be attracted to JB Hi-Fi's promotional events.

The big plus, says the broker, was the company's robust balance sheet, which generated an 80cps special dividend.

Hold rating retained on valuation. Target price rises to $69 from $62.

Target price is $69.00 Current Price is $72.98 Difference: minus $3.98 (current price is over target).
If JBH meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $69.62, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Ord Minnett rates JBH as Hold (3) -

JB Hi-Fi reported a "bumper" earnings result for FY24, according to Ord Minnett, including a special dividend.

The analyst does not expect a decline in margins to pre covid levels which assists with an upbeat outlook for the company.

Although modest in scale, the broker likes the E&S acquisition, as it offers an entry in the bathroom, laundry and kitchen markets, the domain traditionally of Harvey Norman ((HVN)).

Ord Minnett revises EPS forecasts by 13% and 15% for FY25 and FY26, respectively. Hold rating with $68 target price.

Target price is $68.00 Current Price is $72.98 Difference: minus $4.98 (current price is over target).
If JBH 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 $69.62, suggesting downside of -8.3% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

UBS rates JBH as Sell (5) -

UBS observes the JB Hi-Fi FY24 result was better than consensus and its forecasts although July has presented a mixed picture.

The broker revises EPS forecast by 7.3% and 6.7% for FY25 and FY26 on the back of higher sales and gross margins for JB Hi-Fi Australia, as well as the inclusion of the E.& S. acquisition and slightly stronger expectations for The Good Guys.

Notably, the margin reversion to pre-covid levels has not transpired.

UBS highlights the robust cashflow generation has permitted an 80c special dividend and the acquisition. Sell rating unchanged. Target price revised to $64 from $60.

Target price is $64.00 Current Price is $72.98 Difference: minus $8.98 (current price is over target).
If JBH 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 $69.62, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates JHX as Neutral (3) -

At first glance, James Hardie Industries's June-quarter result outpaced consensus by 16% thanks to a strong beat on margins.

Moderating volumes (down -9%) were offset by lower costs with North American margins rising more than 30%, observes Cti.

Guidance was less buoyant, the broker observing a contracted guidance period and lower R&R expectations, although management did expect an improvement in the macro environment as new housing was expected to come on line.

Volume growth guidance outpaced consensus by 3% at the midpoint and net profit after tax guidance outpaced by 17%. Buy rating and $51.10 target price.

Target price is $51.10 Current Price is $49.80 Difference: $1.3
If JHX meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $57.73, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Macquarie rates JHX as Outperform (1) -

Macquarie believes James Hardie Industries continues to progress through the earnings trough, with net profit slightly above forecast and consensus for FY24.

The company reiterated FY25 guidance although North American volumes guidance is below forecast pointing to soft trading conditions in the 2Q25.

Macquarie highlights higher cement, freight and labour costs have been offset by lower pulp prices in North America.

James Hardie Industries is stopping operations in the Philippines causing a pre-tax impairment of -US$58m-US$70m.

APAC revenues grew 3% and Europe volumes expanded 7%. Outperform rating and $66.60 target price.

Target price is $66.60 Current Price is $49.80 Difference: $16.8
If JHX meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $57.73, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Morgans rates MND as Hold (3) -

Morgans cuts its target price for Monadelphous Group heading into the company's FY24 results on suggestions delays may have occurred at core projects. News on July 1 that a contract with Albemarle had been terminated left FY25 guidance on the back foot. 

On the upside, the company announced $2.1bn in contract wins and extensions in FY24 and the broker expects these will underpin multi-year earnings growth.

Majors BHP Group ((BHP)), Rio Tinto ((RIO)) and Fortescue ((FMG)) have all announced plans to increase capital expenditure over the next three to five years, which should prove a boon to contractors, says Morgans.

But given these contracts are the best part of a year away, the broker plumps for the sidelines. Hold rating retained. Target price falls to $13.20 from $14.40.

Target price is $13.20 Current Price is $11.52 Difference: $1.68
If MND meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 20.9% (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

Macquarie rates MP1 as Outperform (1) -

Macquarie conducts a channel check for any indications on the macro-outlook for Megaport.

Notably staff layoffs from Cisco of circa -400 people plus softer results from Cisco, Palo Alto and Fortinet imply to the broker ongoing macro weakness with potential for good staff hires.

The current share price suggests net revenue retention of 113% over the forecast earnings, the analyst observes, which sits below the historical average of around 117%.

Macquarie revises the target price to $15.50 from $18.30 with a -11% decline in the FY25 EPS estimate as the outlook for FY25 is rebased.

Outperform rating unchanged.

Target price is $15.50 Current Price is $10.55 Difference: $4.95
If MP1 meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $14.15, suggesting upside of 33.0% (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 NAB as Sell (5) -

UBS originally underestimated the excess capital of Australian banks and now highlights the potential to recycle capital and return it to shareholders, supporting the investment case.

The broker also raises its lending growth forecasts for each of the banks under coverage by 1ppts (on average) on the back of the recently stronger APRA lending growth numbers.

For National Australia Bank, UBS lifts its target to $32 from $31. The Sell rating is maintained.

Target price is $32.00 Current Price is $35.99 Difference: minus $3.99 (current price is over target).
If NAB meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.02, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in September.

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 NCK as Outperform (1) -

Macquarie observes 4Q24 sales rose 4.8% on the previous corresponding period for Nick Scali although orders contracted -1.2% year-on-year for June/July. Management attributes the soft result to NZ foot traffic down around -35%.

Notably, gross margins improved 200 basis points to 65.5% with better supplier sourcing assisting.

The broker expects new store rollouts will improve post the FY24 constrained issues with finding store locations, with ongoing "optimisation" of the Plush network.

Macquarie adjusts EPS forecasts by 3% in FY25. Outperform rating unchanged. Target price moves to $16.25 from $16.10.

Target price is $16.25 Current Price is $15.25 Difference: $1
If NCK meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.26, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates NEC as Neutral (3) -

Macquarie observes free to air television markets are down -11% in the 1H2024 with video on demand up 17.5%. Linear radio is flat over the same period.

Macquarie revises EPS estimates for Nine Entertainment based on the Olympics market share in FY25 and weaker ad markets in FY26.

FY24 EPS forecasts are lifted by 7% and FY25 by 6%, with the broker's estimates sitting 15% above consensus in FY24 and 8% in FY25.

Neutral rating retained. Target price moves to $1.31 from $1.64. News Corp ((NWS)) is the preferred exposure in the sector.

Target price is $1.31 Current Price is $1.42 Difference: minus $0.11 (current price is over target).
If NEC meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.07, suggesting upside of 51.8% (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

Bell Potter rates NEU as Buy (1) -

Bell Potter's Buy rating for Neuren Pharmaceuticals is driven by the longer-term outlook for the NNZ-2591 asset which has multi-indication potential across different neurodevelopmental disorders.

For the recent small single-arm Phase 2 trial for NNZ-259, the biggest highlight for the broker was 85% of subjects demonstrated improvement in overall symptoms after just 13 weeks of treatment.

Importantly, the safety and tolerability profile of NNZ-2591 continues to look very favourable, note the analysts.

The $25 target is unchanged.

Target price is $25.00 Current Price is $16.23 Difference: $8.77
If NEU meets the Bell Potter target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 NWL as Sell (5) -

According to Citi's first take on the Netwealth Group FY24 earnings report, the company's net profit was slightly below expectations and consensus forecasts,

EBITDA margins came in better than expected, some 27 basis points ahead of the Citi estimate. Funds under administration advanced 1% in the first six weeks of FY25, but cost guidance is higher than expected.

On balance the analyst envisages possible FY25 net profit downgrades in the mid-single range for consensus forecasts. Sell rating and $18.90 target.

Target price is $18.90 Current Price is $21.92 Difference: minus $3.02 (current price is over target).
If NWL 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 $20.64, suggesting downside of -0.3% (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 NWL as Underperform (5) -

Today's FY24 result for Netwealth Group revealed an underlying profit of $83.4m, missing the consensus forecast for $85.6m, but beating Macquarie's $81.8m estimate.

In a first glance at the results, the broker notes disappointing guidance was due to cost growth above expectations, which will likely drive earnings forecast downgrades. 

The analyst highlights growth in Platform revenue to $245m was driven by higher average funds under administration (FUA), partially offset by a lower revenue margin of 32bps.

Management is "confident in our outlook and future growth opportunities which we believe are very significant."

Target $16.75. Underperform.

Target price is $16.75 Current Price is $21.92 Difference: minus $5.17 (current price is over target).
If NWL meets the Macquarie target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.64, suggesting downside of -0.3% (ex-dividends)

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 NWS as Outperform (1) -

News Corp reported better than consensus 4Q24 earnings and in line with Macquarie's forecasts, with strong results from books and real estate.

Management served up a "cautious" outlook for FY25, the broker notes, including a buyer's interest in Foxtel and the content sharing with OpenAI, valued at US$50m per annum for five years.

Macquarie tweaks EPS estimates by -3% for FY25 and -7% for FY26 based on higher operating expenses for Dow Jones.

The target price is revised to $49 from $46 and Outperform rating retained.

Target price is $49.00 Current Price is $43.74 Difference: $5.26
If NWS meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $43.20, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.5

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

Macquarie rates NXT as Outperform (1) -

Macquarie adjusts its model for the 23.6MW win of contracted capacity for NextDC in 1H24.

The company announced it had received Nvidia DGX Cloud Ready status and the commentary infers to the broker more than one asset may host Ai capacity. S6 is expected to a be an Ai factory for large business clients.

Macquarie adjusts EPS forecasts by -20% for FY24 and -5% for FY25 but raises FY26/FY27 estimates as the new announced capacity ramps up.

Outperform rating unchanged with a revised target price of $21.10 from $20.

Target price is $21.10 Current Price is $16.18 Difference: $4.92
If NXT meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $20.24, suggesting upside of 22.2% (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 OML as Outperform (1) -

Macquarie observes free to air television markets are down -11% in the 1H2024 with video on demand up 17.5%. Linear radio is flat over the same period.

Macquarie makes no changes to the earnings forecasts for oOh!media and stock retains an Outperform rating.

Target price moves to $2.28 from $2.31.

Target price is $2.28 Current Price is $1.49 Difference: $0.79
If OML meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 34.3% (ex-dividends)

The company's fiscal year ends in December.

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 PAA as Speculative Buy (1) -

Morgans initiates coverage on Pharmaust, a biotech drug development company concentrating on motor neurone disease (MND), with a Speculative Buy rating and 42c target price.

The company's main asset is monepantel, a drug approved as a de-worming agent for sheep and cattle, with Morgans explaining it is being repurposed to a potential human treatment for neurodegenerative conditions such as MND.

Phase 1 trials for this treatment have been successful, observes Morgans. The broker believes the company represents a strong opportunity in the rare disease spaced, which could warrant an accelerated pathway to approval within one to two years.

The broker spies plenty of catalysts on the horizon.

Target price is $0.42 Current Price is $0.17 Difference: $0.25
If PAA meets the Morgans target it will return approximately 147% (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 PLL as Downgrade to Neutral from Outperform (3) -

Macquarie lowers EPS forecasts for junior lithium miners under research coverage, noting resilient lithium supply by producers using lepidolite and African ores have pushed Li2O3 prices below US$11k/t.

As the lithium market downturn reduces funding opportunities, the market is especially tough for small cap lithium producers and developers, highlights the analyst. Production start dates and output ramp-up profiles are also reviewed by the broker.

Piedmont Lithium's target falls to 15c from 25c and the rating is downgraded to Neutral from Outperform given uncertainties in spodumene concentrate produced by the North American Lithium (NAL) project in Quebec (operated by Sayona Mining ((SYA)).

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

The company's fiscal year ends in December.

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 QBE as Upgrade to Buy from Hold (1) -

Bell Potter observes overall 1H profitability for QBE Insurance was below the consensus expectation and below H2 of FY23.

Results were dominated by the closure and portfolio transfer of previous poor risks from the US mid-market business, explain the analysts, which ultimately places the business on a better footing.

Management is now aiming for gross written premium (GWP) growth of around 3%, down from 5% due to portfolio exits, notes the broker.

The interim dividend rose to 24cps from 14cps in the previous corresponding period.

The target falls to $18.27 from $18.47 and the rating is upgraded to Buy from Hold after recent share price weakness.

Target price is $18.27 Current Price is $16.19 Difference: $2.08
If QBE meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $18.79, suggesting upside of 16.0% (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: 0.7

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

Citi rates RGN as Buy (1) -

At first glance, Citi's main takeout on Region Group's FY24 result was a slight miss on consensus and the broker's FY25 guidance expectations.

On the upside, management advised non-discretionary retail was holdiing up and Citi sees an easing in rate costs given the company's 96% hedging, and appreciates the company's "prudent" cap rate.

All up, the broker believes this may represent a nadir for operational cost-to-income ratios, which, along with a stabilising in inflation relative to income, should support operating margins, and spies limited downside.

Buy rating and $2.60 target price retained.

Target price is $2.60 Current Price is $2.25 Difference: $0.35
If RGN meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 11.1% (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

Macquarie rates RGN as Outperform (1) -

In a first glance at Region Group's FY24 results, Macquarie notes FY24 funds from operations (FFO) and adjusted FFO came in marginally below consensus forecasts due to interest expenses.

However, first time FY25 guidance for both measures fell short of the broker's forecasts by -5% and -6%, respectively. The analyst is now expecting negative consensus earnings revisions. 

Management noted growth headwinds from higher weighted average cost of debt (WACD), line fees and rising corporate costs.

Target $2.42. Outperform.

Target price is $2.42 Current Price is $2.25 Difference: $0.17
If RGN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.51, suggesting upside of 11.1% (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 SGM as Buy (1) -

Sims has entered a binding agreement to sell its UK metals business for after tax cash proceeds of $385m, yielding an extraordinary post-tax gain of $142m, observes the broker.

Management has also announced a letter of intent to sell its remaining interest in Sims Municipal Recycling of New York for $50m, registering a loss in FY24 of -$48m (although the full stake was sold for an overall gain of $56m in tranches since January 2022).

Combined, the company estimates the sales will deliver $435m post tax in the December half. The sales follow the company's strategic review in November.

Citi adjusts its earnings estimates, excluding the New York business given the letter is not binding. FY25 forecast earnings (EBIT) rise 8%, primarily to reflect a lower Australian dollar versus US dollar.

Forecast FY26 EPS falls -11% to reflect the UK asset sales. Buy rating retained. Target price rises to $13.80 from $13.50.

Target price is $13.80 Current Price is $9.69 Difference: $4.11
If SGM meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $12.78, suggesting upside of 19.1% (ex-dividends)

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 SWM as Neutral (3) -

Macquarie observes free to air television markets are down -11% in the 1H2024 with video on demand up 17.5%. Linear radio is flat over the same period.

Macquarie revises EPS estimates for Seven West Media by 3% in FFY24 and -18% in FY25 to account for a lower market share resulting from Nine Entertainment's Olympic performance.

The broker's FY24 forecast is 44% above consensus and -13% below in FY25.

Target price revised to 17c from 22c with a Neutral rating.

Target price is $0.17 Current Price is $0.17 Difference: $0
If SWM meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.24, suggesting upside of 50.0% (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 SXL as Neutral (3) -

Macquarie observes free to air television markets are down -11% in the 1H2024 with video on demand up 17.5%. Linear radio is flat over the same period.

Resulting from weaker tv and radio ad markets, Macquarie revises the forecast EPS for Southern Cross Media by 57% in FY24 and -48% in FY25.

The target price moves to 61c from 94c. Neutral rating unchanged.

Target price is $0.61 Current Price is $0.66 Difference: minus $0.05 (current price is over target).
If SXL meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.81, suggesting upside of 30.6% (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 SYA as Downgrade to Underperform from Neutral (5) -

Macquarie lowers EPS forecasts for junior lithium miners under research coverage, noting resilient lithium supply by producers using lepidolite and African ores have pushed Li2O3 prices below US$11k/t.

As the lithium market downturn reduces funding opportunities, the market is especially tough for small cap lithium producers and developers, highlights the analyst. Production start dates and output ramp-up profiles are also reviewed by the broker.

For Sayona Mining, Macquarie lowers its target to 3c from 4c and downgrades to Underperform from Neutral in the belief the company may face near-term liquidity issues.

The broker highlights uncertainties in spodumene concentrate produced by the North American Lithium (NAL) project in Quebec, operated by Sayona Mining.

Target price is $0.03 Current Price is $0.03 Difference: $0
If SYA meets the Macquarie target it will return approximately 0% (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

Bell Potter rates TLX as Buy (1) -

Bell Potter makes large downgrades to the FY25 EPS forecast for Telix Pharmaceuticals following deferral of revenues from
Zircaix which are now expected to commence in the 4Q of FY25. 

Zircaix failed to achieve regulatory approval due to a recent hiccup with the Biologics License Application (BLA) filing.

Buy rating retained. Target price falls to $21.34 from $22.60 after Bell Potter assumes -8% dilution from the issue of $650m of convertible notes.

Target price is $21.34 Current Price is $17.99 Difference: $3.35
If TLX meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Bell Potter rates TNE as Buy (1) -

Bell Potter has increased confidence in the medium-term outlook for TechnologyOne following the release of the $1bn annual recurring revenue (ARR) target by FY30 set by management at the recent investor day.

The Buy rating is kept, and the analysts' target is increased to $22.25 from $20.50 after an increase in valuation multiple and a lower weighted average cost of capital (WACC) assumption.

Target price is $22.25 Current Price is $21.64 Difference: $0.61
If TNE meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $19.22, suggesting downside of -11.3% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates TPW as Buy (1) -

At first glance, Temple & Webster's FY24 top line result met consensus and earnings outpaced, underscored by a positive in-line August trading update in a tough environment, observes Citi.

Cit observes growth was skewed towards repeat customers, pointing to strong retention and improved app useage.

On the downside, June-half gross profit margins proved a miss, possibly due to freight costs, surmises Citi.

Earnings (EBITDA) guidance was retained. Cameron Barnsley has been appointed CFO, starting September.

Buy rating and $11 target price.

Target price is $11.00 Current Price is $9.50 Difference: $1.5
If TPW meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $11.45, suggesting downside of -2.2% (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

Macquarie rates TPW as Outperform (1) -

Temple & Webster reported 1H25 year-to-date sales up 26% year-on-year and reiterated EBITDA margin guidance of 1%-3% for FY25 on the back of FY24 earnings at the upper end of guidance and 2.3% above Macquarie's forecast.

in an initial appraisal, the broker notes active customer growth rose 31% in FY24 underpinning revenue growth of 26%. The company is looking for a circa 31% gain in market share, with current weakness in home/furniture.

Fixed costs declined to 11% from 12% of sales with management committed to less than a 6% target.

Ai continues to be employed for customer conversion and productivity improvements, Macquarie notes.

Outperform rating and $12.30 target.

Target price is $12.30 Current Price is $9.50 Difference: $2.8
If TPW meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $11.45, suggesting downside of -2.2% (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 WBC as Upgrade to Neutral from Sell (3) -

UBS originally underestimated the excess capital of Australian banks and now highlights the potential to recycle capital and return it to shareholders, supporting the investment case.

The broker also raises its lending growth forecasts for each of the banks under coverage by 1ppts (on average) on the back of the recently stronger APRA lending growth numbers.

For Westpac, UBS lifts its target to $30 from $25 and upgrades to Neutral from Sell.

Target price is $30.00 Current Price is $28.22 Difference: $1.78
If WBC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $26.42, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in September.

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