Australian Broker Call

Ord Minnett rates AGL as Buy (1) -

Ord Minnett reduces AGL Energy's target price to $7.55 from $7.65 to reflect minor declines in earnings net-present-value forecasts after incorporating cost-inflator adjustments.

Buy rating retained.

Target price is $7.55 Current Price is $5.56 Difference: $1.99
If AGL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Credit Suisse rates BHP as Neutral (3) -

Credit Suisse has become more constructive on the coal market and expects higher coal prices will offset some of the pressure on iron ore in the short to medium term.

Yet there is a risk that in the process of decarbonisation BHP Group may exit the coal business completely and potentially at a discount. Moreover, structurally higher coal prices appear already priced into the shares.

Neutral maintained. Target rises to $39.50 from $39.00.

Target price is $39.50 Current Price is $35.56 Difference: $3.94
If BHP meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $44.39, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Citi rates CHC as Buy (1) -

Charter Hall has upgraded FY22 guidance by 11% to "no less than $0.83" primarily to reflect higher performance fees. Citi continues to envisage upside to guidance and is forecasting FY22 earnings per security of $0.90.

The stock is trading on undemanding multiples and, given the favourable backdrop, Citi retains Charter Hall as a top pick. Buy rating. Target is raised to $21.80 from $21.00.

Target price is $21.80 Current Price is $18.59 Difference: $3.21
If CHC meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $20.14, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates CRN as Outperform (1) -

The coal outlook is structurally better and Credit Suisse expects supply constraints could continue in 2022.

 While expecting metallurgical coal prices will pull back from their current peak, the Chinese ban on Australian imports is unlikely to be resolved in the near term and should put a floor under metallurgical coal prices, which the broker estimates could be around US$300/t in 2022.

Outperform maintained. Target rises to $2.20 from $2.00.

Target price is $2.20 Current Price is $1.28 Difference: $0.92
If CRN meets the Credit Suisse target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 56.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Morgans rates CTP as Hold (3) -

Central Petroleum's September-quarter sales volume met Morgans' estimates. In the short-term, the analyst believes a discount on Range (the company's largest prospect) will likely persist until demonstration of good gas flows and a funding solution is secured.

The broker lowers its target price to $0.12 from $0.13 and maintains its Hold rating.

Target price is $0.12 Current Price is $0.13 Difference: minus $0.01 (current price is over target).
If CTP meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates DRR as Outperform (1) -

Deterra Royalties achieved a realised iron ore price from Mining Area C of US$208/dmt in the September quarter with production of 22.3m wmt.

Credit Suisse lowers iron ore price forecasts by -25% for the December quarter and increases freight costs by 50%. Nevertheless, the stock remains attractive to the broker, with a 7% dividend yield calculated for FY22-23 on the revised numbers.

Outperform maintained. Target is lowered to $4.20 from $4.80.

Target price is $4.20 Current Price is $3.85 Difference: $0.35
If DRR meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates FMG as Neutral (3) -

While Credit Suisse lowers short-term iron ore price forecasts, there is a floor envisaged under prices from the second quarter of 2022 if China accelerates its infrastructure investment to keep up with its 5% GDP target.

Yet, Fortescue Metals faces additional pricing headwinds from a widening of low-grade discounts that could persist while coal prices are elevated. Neutral maintained. Target is reduced to $13.50 from $14.00.

Target price is $13.50 Current Price is $13.95 Difference: minus $0.45 (current price is over target).
If FMG meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.50, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.1

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

Credit Suisse rates GMG as Outperform (1) -

The company has upgraded FY22 guidance to earnings growth in excess of 15%, driven by higher development activity and better margins. Credit Suisse suspects the actual result could yield even more strength in earnings.

Development work keeps growing and is now at $12.7bn on a higher forecast yield on cost of 6.8%. The broker retains an Outperform rating and raised the target to $25.01 from $24.04.

Target price is $25.01 Current Price is $23.49 Difference: $1.52
If GMG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates GMG as Outperform (1) -

Goodman Group has upgraded FY22 growth guidance to 15% from 10%, even as it delays recognition of $200m in development profit. Macquarie asserts the structural environment continues to benefit the company and the earnings potential is significant.

The development timeframe has extended to 22 months which provides the broker with more confidence the production rate can be sustained. September-quarter work in progress was $12.6bn. Outperform maintained. Target is raised to $26.45 from $24.84.

Target price is $26.45 Current Price is $23.49 Difference: $2.96
If GMG meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates GMG as Overweight (1) -

Following a September-quarter update, Morgan Stanley was pleasantly surprised that Goodman Group upgraded FY22 EPS guidance to more than 15% from 10%. This springs from a global lift in rents and increasing clarity about construction site restrictions, explains the analyst.

The broker estimates that, in terms of assets under management (AUM), the company is a year ahead of market expectations. Management highlighted that major US retailers have increased committments to logistics facilities in the past six months.

The target price rises to $26.50 from $25 and the Overweight rating is unchanged. Industry view: In-Line. 

Target price is $26.50 Current Price is $23.49 Difference: $3.01
If GMG meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

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 GMG as Accumulate (2) -

Goodman Group's September-quarter update pleased Ord Minnett, management raising EPS growth guidance to more than 15% from 10% (slightly shy of the broker's 17%).

Work in progress (WIP) rose 20% quarter-on-quarter and 74% year-on-year thanks largely to US drivers; and the average yield on WIP development cost was relatively steady at 6.8%. 

Ord Minnett expects further growth upgrades given guidance is typically conservative. Accumulate rating and $24 target price retained.

Target price is $24.00 Current Price is $23.49 Difference: $0.51
If GMG meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates GMG as Neutral (3) -

Goodman Group's September-quarter update beat high expectations, UBS asserts. Development work and completions were at all-time highs and the company expects growth of more than 15%.

UBS upgrades earnings estimates by 4% to reflect the increased activity across the business. The strong performance of the company's partnerships will also mean an increase in performance fees. Neutral rating maintained. Target rises to $23.80 from $22.50.

Target price is $23.80 Current Price is $23.49 Difference: $0.31
If GMG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

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 GUD as Buy (1) -

Ord Minnett increases GUD Holdings' earnings forecasts to incorporate AGM guidance.

Target price rises to $13.40 from $13. Target price retained.

Target price is $13.40 Current Price is $12.24 Difference: $1.16
If GUD meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.90, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates IAG as Buy (1) -

Citi believes Insurance Australia Group's existing reinsurance cover is unlikely to prove adequate in FY22 as a $280m perils over-run is being carried in guidance, triggering a significant drop in margin expectations.

While the impact of claims is short term, the repercussions may include higher reinsurance costs and an increase in reinsurance coverage, the broker assesses. Buy rating retained. Target is reduced to $5.60 from $5.75.

Target price is $5.60 Current Price is $4.50 Difference: $1.1
If IAG meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates IAG as Outperform (1) -

Insurance Australia Group has increased its natural perils costs guidance by -$280m for FY22 to -$1.05bn, representing an impact of -360 basis points to the insurance margin.

The main issue for Credit Suisse is what this may mean for outer year underlying margins as the FY22 natural perils allowance has missed the company's guidance in seven out of the last 10 years.

While the company may elect to manage higher reinsurance costs by adjusting cover, this could come at the expense of increased volatility. Credit Suisse reiterates an Outperform rating and reduces the target to $5.60 from $5.90.

Target price is $5.60 Current Price is $4.50 Difference: $1.1
If IAG meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates IAG as Outperform (1) -

Insurance Australia Group has downgraded FY22 guidance as expectations of natural-perils claims rise to $1.05bn. This leaves about $510m for the remainder of the financial year which Macquarie considers is "light", given the peak months for La Nina events are ahead.

Macquarie suggests there will be further pressure on perils allowances moving into FY23. Attention turns to the renewal of reinsurance programs over the coming months.

As the stock is trading at a -9% discount to Suncorp (((SUN)) an Outperform rating is maintained. Target is reduced $5.40 from $5.70.

Target price is $5.40 Current Price is $4.50 Difference: $0.9
If IAG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

With La Nina expected this summer, and the peak risk period still coming, Morgan Stanley sees a risk of further downgrades for Australian insurers.

Insurance Australia Group has downgraded FY22E guidance with catastrophe costs now expected to exceed the original budget for $765m by $280m. The analyst is concerned the company's cost of capital may rise on earnings uncertainty.

Equal-weight rating and $4.80 target price are retained. Industry view: In-Line.

Target price is $4.80 Current Price is $4.50 Difference: $0.3
If IAG meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates IAG as Add (1) -

After severe storms in October, Insurance Australia Group has lifted estimated claims costs to $535m from $280m for the first four months of FY22. The FY22 expected natural perils claims costs are forecast to rise to $1.04bn versus $765m.

Morgans downgrades its FY22 EPS forecast by -26% and reduces its target price to $5.36 from $5.64. The analyst remains upbeat, citing attractive valuation and continuing insurance price increases, and retains an Add rating.

Target price is $5.36 Current Price is $4.50 Difference: $0.86
If IAG meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates IAG as Upgrade to Buy from Accumulate (1) -

Insurance Australia Group guides to higher perils claims for FY22 as catastrophe claims rise $280m above allowance (3.6% of the net-equity premium).

Perils-claim guidance rises to $1.045bn from $765m and margin guidance falls to 10%-12% from 13.5%-15.5%

Ord Minnett says the company's assumption of no increase in reinsurance recoveries is most likely conservative.

The broker upgrades to Buy from Accumulate in light of the recent share-price retreat. Target price steady at $5.35.

Target price is $5.35 Current Price is $4.50 Difference: $0.85
If IAG meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates IAG as Neutral (3) -

Insurance Australia Group has revised its natural peril estimates to $1.05bn after recent storms, and downgrades insurance-margin guidance to 10-12% from 13.5-15.5%.

UBS calculates the revised natural-peril budget will assume full utilisation of the aggregate allowance for FY22 and downgrades earnings estimates by -27%.

The broker also believes questions will continue to circulate about the adequacy of perils budgets. Neutral rating maintained. Target is $5.35.

Target price is $5.35 Current Price is $4.50 Difference: $0.85
If IAG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates INA as Neutral (3) -

Ingenia Communities has acquired several businesses amounting to $552m, to be funded by a $475m equity raising along with debt. The transactions will increase the asset base by 38% and broadly maintain the business mix.

UBS assesses guidance for FY22 earnings growth of 3-6% equates to EPS of 24.3c-25.0c. The broker's estimates are largely unchanged and high single-digit accretion is expected from the acquisitions. Neutral maintained. Target rises to $6.75 from $6.60.

Target price is $6.75 Current Price is $6.13 Difference: $0.62
If INA meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates NHC as Outperform (1) -

The coal outlook is structurally better and Credit Suisse upgrades thermal coal price forecasts by 17-68% for 2021-25. Tight supply could continue in 2022 and support a US$160/t Newcastle benchmark.

The broker also suspects high prices for thermal coal in particular may not induce enough supply response amid rising activism over climate change.

The broker forecasts New Hope could be $1bn net cash by the end of FY23, enough to fund a sizeable M&A opportunity. Outperform maintained. Target rises to $2.80 from $2.70.

Target price is $2.80 Current Price is $1.87 Difference: $0.93
If NHC meets the Credit Suisse target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 53.1% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates NHF as Neutral (3) -

Macquarie assesses visa statistics are strong leading indicators of the nib Holding's international students and workers business. Student visa growth continues to be affected by the closure of Australian borders to non-residents.

As borders have only just re-opened this indicates volumes are likely to remain depressed for another three to six months.

The broker points out nib Holdings is one of the cheapest major insurers for the workers and visitors product, and this signals the opportunity for revenue growth over the year. Neutral rating retained. Target rises to $7.15 from $7.05.

Target price is $7.15 Current Price is $6.72 Difference: $0.43
If NHF meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.79, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates NWL as Outperform (1) -

Netwealth Group has made a non-binding indicative offer to merge with Praemium ((PPS)), although the latter's board has concluded the proposal undervalues the business. Macquarie estimates the deal could be 5-7% accretive on FY22 forecasts.

The offer is one Netwealth share for every 11.96 Praemium shares plus a cash consideration. Macquarie calculates the offer implies $1.43 for each Praemium share with net sales proceeds from the international division on top of this.

The broker is positive about the outlook for flows in the sector and asserts scale is critical to platforms. Outperform rating and $19 target retained.

Target price is $19.00 Current Price is $17.15 Difference: $1.85
If NWL meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.97, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates NWS as Outperform (1) -

Credit Suisse believes Dow Jones, digital real estate and news media will be the drivers of growth in the first quarter. A property listings recovery in Australia and continued momentum at Move are positive signals for digital real estate.

Dow Jones will benefit from the IBD acquisition and news media from the commencement of payments by Facebook/Google. News Corp will report its first quarter on November 5. Outperform maintained. Target is $41.

Target price is $41.00 Current Price is $31.12 Difference: $9.88
If NWS meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $40.00, suggesting upside of 27.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates PPH as Neutral (3) -

Macquarie hopes Pushpay Holdings' first-half result will reveal some momentum but acknowledges short-term earnings are lacking visible drivers. The result is due on November 10.

That said, the broker believes there are multiple issues over FY22-23 that are likely to garner attention, including momentum in the integrated product suite, church management and the Catholic opportunity.

Neutral rating. Target is raised to NZ$1.86 from NZ$1.76.

Current Price is $1.78. Target price not assessed.

Current consensus price target is $1.90, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates PPS as Buy (1) -

Ord Minnett believes Netwealth Group's ((NWL)) declined takeover for Praemium puts the latter company firmly in play and expects an impending update on international sales could trigger further action, either from Netwealth or a rival bidder.

Buy rating retained. Target price rises to $1.70 from $1.60.

Target price is $1.70 Current Price is $1.43 Difference: $0.27
If PPS meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates REA as Neutral (3) -

REA Group will provide first quarter results on November 5. Credit Suisse expects year-on-year revenue growth of 26% in the quarter. The residential segment is likely to be the main contributor.

The broker will also be looking for comments on the listings environment for the remainder of FY22. Neutral maintained. Target rises to $157.00 from $152.50.

Target price is $157.00 Current Price is $164.72 Difference: minus $7.72 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $165.40, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates RIO as Outperform (1) -

Credit Suisse believes attractive free cash flow and dividend yields should sustain interest in Rio Tinto while the share price implies an unrealistic drop in iron ore pricing.

The broker is reassured as the company continues to return cash to shareholders in the absence of growth options. Headwinds to iron ore pricing could linger into 2022 but the broker believes beyond this the outlook is better.

Outperform retained. Target is lowered to $106 from $110 on the back of lower iron ore prices.

Target price is $106.00 Current Price is $88.66 Difference: $17.34
If RIO meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $109.71, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Credit Suisse rates S32 as Outperform (1) -

Credit Suisse upgrades coking coal prices, as China imposes curbs on a tight market. The broker believes the tight market will be slow to unwind given the difficulty in lifting supply amid activism on climate change.

Domestic coking coal output has not increased in 2021 and the broker does not believe China can raise production any further from its depleting coking coal.

The broker forecasts South32 earnings will increase 36% and 22% in FY22 and FY23, respectively. Outperform retained. Target rises to $5.00 from $4.60.

Target price is $5.00 Current Price is $3.50 Difference: $1.5
If S32 meets the Credit Suisse target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 24.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Morgan Stanley rates SFR as Overweight (1) -

Sandfire Resources' September-quarter copper production met Morgan Stanley's forecast but direct production costs (C1) proved a -16% miss as grades at DeGrussaa declined -14%.

Guidance for FY22 production is for 64,000-68,000 tonnes of contained copper, and at the upper end of 30,000-34,000oz of contained gold.

Overweight rating and $6.60 target price are maintained. Industry view: In-Line.

Target price is $6.60 Current Price is $5.49 Difference: $1.11
If SFR meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.59, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

With La Nina forecast for summer, and the peak risk period still coming, Morgan Stanley sees a risk of further downgrades for Australian insurers. 

The broker estimates that Suncorp Group has probably exceeded its catastrophe budget after the recent storms in Victoria and South Australia. The analyst is concerned the company's cost of capital may rise on earnings uncertainty.

Equal-weight rating and $11.90 target price are retained. Industry view: In-Line.

Target price is $11.90 Current Price is $11.31 Difference: $0.59
If SUN meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.40, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates TPG as Hold (3) -

Ord Minnett reduces TPG Telecom's target price to $6.80 from $6.85 to reflect minor declines in earnings and net-present-value forecasts after incorporating cost-inflator adjustments.

Hold rating retained.

Target price is $6.80 Current Price is $6.82 Difference: minus $0.02 (current price is over target).
If TPG meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.52, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates WHC as Outperform (1) -

The coal outlook is structurally better and Credit Suisse upgrades thermal coal price forecasts by 17-68% for 2021-25. Tight supply could continue in 2022 and support a US$160/t Newcastle benchmark.

The broker also suspects high prices for thermal coal in particular may not induce enough supply response amid rising activism over climate change.

Credit Suisse estimates Whitehaven Coal may generate a free cash flow yield of 52% in FY22 and 47% in FY23. Outperform maintained. Target rises to $4.50 from $ 4.00.

Target price is $4.50 Current Price is $2.37 Difference: $2.13
If WHC meets the Credit Suisse target it will return approximately 90% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 60.0% (ex-dividends)

The company's fiscal year ends in June.

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

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

Western Areas' September-quarter results revealed a -13% miss on both nickel sold and cash costs versus Morgan Stanley's estimates.

Despite this, the broker retains its Equal-weight rating and $2.90 target price. FY22 guidance was unchanged. Industry view: In-Line.

The analyst notes the achievement of first ore production from the Odysseus mine. 

Target price is $2.90 Current Price is $2.94 Difference: minus $0.04 (current price is over target).
If WSA meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.12, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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