Australian Broker Call

Macquarie rates CCP as Outperform (1) -

Credit Corp Group's AGM update satisfied Macquarie, purchased-debt ledge (PDL) share rising in all markets but struggling against weak supply. 

Lockdowns triggered a -6.5% reduction in the consumer lending book.

Management increases the bottom end of PDL guidance, and Macquarie notes an improvement in operating metrics.

The broker says the company has sufficient balance sheet capacity to build PDL investment as supply returns, and to fund a large one-off transaction (a competitive advantage).

The target price rises to $35.60. Outperform rating retained, the broker expecting short-term risks to subside and citing strong momentum.

Target price is $35.60 Current Price is $32.58 Difference: $3.02
If CCP meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $34.17, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

In the wake of GPT Group's 3Q results, Morgan Stanley can see green shoots emerging for Office, with occupancy rising to 92% (including recent completions), from 88.9% in June 2021.

No guidance for 2021 funds from operations (FFO) or DPS  was provided, which is party attributable to uncertainty over retail rent collections, thinks the analyst. The Equal-weight rating and $5.30 target price are maintained. Industry view is In-Line.

Target price is $5.30 Current Price is $5.21 Difference: $0.09
If GPT meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates GPT as Neutral (3) -

Following a 3Q update, UBS increases its earnings forecasts by 2% to reflect recent debt funded logistics transactions (Ascot) and the  disposal of Wollongong Central. The Neutral rating is unchanged.

The analyst lifts the target price to $5.25 from $5 to reflect tighter metrics on retail assets (-50bps to 5.75%) after a period of transactions that were ahead of expectations.

Target price is $5.25 Current Price is $5.21 Difference: $0.04
If GPT meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

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

Morgan Stanley increases its EPS forecasts, and target price to $4.90 from $4.60, after reviewing recent AGM commentary and the latest Medicare data. However, the broker retains an Equal-weight rating on the view that business performance remains subdued.

The analyst notes a much higher margin for covid-19 tests than expectations and estimates there may be upside risk to FY22 forecasts. Medicare data showed covid testing revenue was16% higher than the previous peak in August 2021. Industry view: In-Line.

Target price is $4.90 Current Price is $4.97 Difference: minus $0.07 (current price is over target).
If HLS 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 $5.21, suggesting upside of 6.8% (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

Citi rates LNK as Neutral (3) -

Citi suspects the market is sceptical about the chances of the proposal from Carlyle succeeding, given two prior bids have failed. The latest bid is at $3 cash and a pro rata distribution of the Link Administration holding in PEXA Group ((PXA)).

To account for some likelihood the bid may be successful Citi lifts its target to $5.00 from $4.75 and retains a Neutral rating.

The bid now values Link at $5.30 or a 22% premium, given the fall in the PEXA share price, and the broker warns the valuation of the bid will move around with changes in the PEXA value.

Target price is $5.00 Current Price is $4.70 Difference: $0.3
If LNK meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 18.8% (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 LNK as Add (1) -

Link Administration has received a proposal from Carlyle Asia Partners, part of the consortium that previously bid for the company in October 2020.

The current bid values Link, ex PEXA at ((PXA)), at $3 a share with Morgans calculating the implied value of PEXA at around $2.38 based on the current share price.

The broker suspects the board will find the discounted value compared with the previous bid unjustified, given progress the business has made since that time.

Morgans believes earnings will improve into FY23 on cost reductions and a new growth strategy as well as a more favourable macro environment. Add maintained. Target is raised to $5.38 from $5.19.

Target price is $5.38 Current Price is $4.70 Difference: $0.68
If LNK meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 18.8% (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 NWL as Outperform (1) -

Netwealth Group has proposed a merger with Praemium ((PPS)) and although the latter has rejected the offer it is "open to engagement".

Credit Suisse finds strategic merit in the transaction including the acquisition of the Praemium non-custody administration offering which could drive incremental flow through a holistic wealth offering.

A combination of the custody platforms could deliver scale and material cost synergies.

The broker believes Netwealth could increase the offer price to $2.00 a share (from $1.50) and still deliver earnings accretion of 10% while noting the threat from competing bids is low.

Outperform rating and $17.80 target maintained.

Target price is $17.80 Current Price is $17.23 Difference: $0.57
If NWL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $17.97, suggesting upside of 9.4% (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) -

First quarter results were ahead of Credit Suisse estimates. This was largely because of better-than-expected earnings in subscription video services and news media.

The broker increases estimates for operating earnings (EBITDA) by 16% in FY22 to reflect a strong start and the likely escalation of payments from the licensing deal is with Google/Facebook.

The broker believes the commencement of the US$1bn buyback will also be a positive catalyst. Outperform retained. Target rises to $42 from $ 41.

Target price is $42.00 Current Price is $33.90 Difference: $8.1
If NWS meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $40.25, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates NWS as Overweight (1) -

Upon an initial look at News Corp's 1Q result, Morgan Stanley assesses stronger numbers than consensus expected for Dow Jones, Real Estate, Books, Foxtel and News. Accelerating growth for Move has particularly impressed (it is now outpacing competitors).

After 1Q earnings (EBITDA) growth of 53%, the analyst estimates 16%  is required for the next  nine months to make full year consensus of 24% growth. The Overweight rating and $32 target price are maintained.

Target price is $32.00 Current Price is $33.90 Difference: minus $1.9 (current price is over target).
If NWS meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.25, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates NWS as Buy (1) -

Following News Corp's 1Q results, UBS notes earnings (EBITA) were ahead in most segments and the broker highlights strong momentum for Digital real estate. Year-on-year revenue growth of 47% included 62% at REA Group ((REA)).

Earnings (EBITDA) of $410m were up 53% versus the analyst's expectation for $344m and the consensus forecast of $354m. UBS retains its Buy rating and $42 target.

Target price is $42.00 Current Price is $33.90 Difference: $8.1
If NWS meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $40.25, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates ORI as Downgrade to Neutral from Outperform (3) -

Credit Suisse is constructive regarding Orica yet downgrades to Neutral from Outperform ahead of the FY21 result. Commodity cost pressures are likely to have increased throughout the second half and extend into the first half of FY22.

Higher import parity pricing is expected to create a more favourable environment allowing the company to increase prices, providing some offset. The broker upgrades the target to $17.23 from $16.11.

Target price is $17.23 Current Price is $15.61 Difference: $1.62
If ORI meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.78, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates PDL as Downgrade to Neutral from Outperform (3) -

While the FY21 results were ahead of Credit Suisse's expectations and the stock is considered inexpensive, catalysts are likely to be more negative over the short term. Credit Suisse envisages downside risk should institutional outflows persist for longer.

Consequently, the rating is downgraded to Neutral from Outperform. The broker will be on the look out for signs that outflows are turning around as well as for the benefits of the multi-year global expansion. Target is reduced to $7.20 from $8.70.

Target price is $7.20 Current Price is $6.95 Difference: $0.25
If PDL meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.11, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Outperform (1) -

Pendal Group's FY21 result fell -1% to -2% shy of consensus and Macquarie forecasts, higher variable expenses consuming stronger fee revenue.

The broker expects costs will continue to drag and says a higher share count shaved another -1% off EPS.

Macquarie notes institutions continued to exit and remaining funds under management were skewed to lower margin institutional business.

The broker expects institutions to continue to leave but says overall fund performance has been encouraging and expects flows to reverse soon.

EPS forecasts fall -2.8% and -2.3% for FY22 and FY23. Target price rises to $8.45 from $8.20. Outperform rating retained.

Target price is $8.45 Current Price is $6.95 Difference: $1.5
If PDL meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $8.11, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Overweight (1) -

While Pendal Group's FY21 profit (UPAT) was a -1% miss versus Morgan Stanley's forecast and -3% miss versus consensus forecasts, the dividend was a 4% and 1% beat, respectively.

The broker reiterates its Overweight rating stance as the performance is strong, ESG options are growing and the stock is looking cheap on valuation metrics. The $9 target price is retained. Industry view: In-Line. 

Target price is $9.00 Current Price is $6.95 Difference: $2.05
If PDL meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $8.11, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Add (1) -

Underlying net profit was up 25% in FY21, slightly ahead of Morgans' forecasts. The operating margin of 35% was flat with the company expecting this will hold for the short term.

Morgans maintains an Add rating, believing the valuation is undemanding and the balance sheet remains strong. Significant progress has been made on improving the operating platform along with establishing a proprietary US mutual fund structure.

Pressure on institutional flows is expected to continue which the broker believes signals the risk of meaningful outflows from institutions in FY22. Target is reduced to $7.80 from $8.05.

Target price is $7.80 Current Price is $6.95 Difference: $0.85
If PDL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.11, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Upgrade to Buy from Accumulate (1) -

FY21 net profit was broadly in line with Ord Minnett's forecasts. Lower performance fees from JO Hambro have meant a reduction in forecasts going forward.

The broker suspects fixed cost growth will dampen near-term operating leverage while fund flows are likely to be lumpy.

Ord Minnett increases the rating to Buy from Accumulate while reducing the target to $8.50 from $8.60.

Target price is $8.50 Current Price is $6.95 Difference: $1.55
If PDL meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $8.11, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

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 REA as Neutral (3) -

REA Group results for the first quarter were well ahead of estimates, particularly growth in residential depth listings. This contribution should be the driver of growth for the remainder of FY22, Credit Suisse asserts.

Management has signalled comparables will become harder in the second half and the timing of the federal election may affect volumes, although the broker points out the re-opening of Sydney and Melbourne should mean that listings growth remains strong.

Credit Suisse retains a Neutral rating and raises the target to $166.50 from $157.00.

Target price is $166.50 Current Price is $176.81 Difference: minus $10.31 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $169.03, suggesting downside of -1.6% (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

Macquarie rates REA as Outperform (1) -

REA Group's September-quarter update pleased Macquarie, management guiding to a slight improvement for the full year.

Listing volumes rose 11% and developer commencements eased 37%, suggesting yield growth of more than 11%, says the broker.

Greater equity accounted losses from Simpology, Campaign Agent and Realair translated into EPS downgrades of -1.3% for FY22; -0.8% for FY23 and -0.8% for FY24.

Target prices edges up 1% to $192.00. Outperform rating retained.

Target price is $192.00 Current Price is $176.81 Difference: $15.19
If REA meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $169.03, suggesting downside of -1.6% (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

Morgan Stanley rates REA as Overweight (1) -

Morgan Stanley suggests investors should stay Overweight REA Group, after a stronger-than-expected 1Q result. The broker sees potential for a super cycle with numerous tailwinds assisting the group. The $185 target price is retained. Industry view: Attractive.

Some tailwinds include higher rates of churn, as Australians rethink their work and living priorities, as well as rising listings post lockdowns, suggests the analyst. 

There was no explicit guidance. However, the broker estimates that after 1Q earnings (EBITDA) growth of 28%, over the next nine months the group needs around 11% growth to achieve full year FY22 consensus earnings estimates.

Target price is $185.00 Current Price is $176.81 Difference: $8.19
If REA meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $169.03, suggesting downside of -1.6% (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

Morgans rates REA as Hold (3) -

REA Group has beat expectations with its trading update, anticipating top-line growth of around 22%. Morgans also suggests REA Group is successfully combining the Mortgage Choice brand, with strong revenue growth and increased numbers of brokers.

The SmartLine brand will also be incorporated into Mortgage Choice with full platform integration anticipated in 18 months time.

The broker notes the domestic residential real estate market is resilient and depth penetration has surprised to the upside. Hold maintained on valuation. Target is raised to $165.70 from $160.40.

Target price is $165.70 Current Price is $176.81 Difference: minus $11.11 (current price is over target).
If REA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $169.03, suggesting downside of -1.6% (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

Ord Minnett rates REA as Hold (3) -

REA Group expects high single-digit cost growth in FY22, which Ord Minnett assesses reflects increased investment in the business. The broker factors in 9% cost growth in FY22 for the core Australian business.

Commentary was positive, although the broker points out the company cited a number of headwinds including tougher comparables, potential regulatory action to curb house prices and the looming federal election.

The broker believes the premium to Domain ((DHG)) is justified considering the different operating metrics such as margins, operating cash conversion and free cash flow.

Hold retained. Target is $145.

Target price is $145.00 Current Price is $176.81 Difference: minus $31.81 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $169.03, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates REA as Neutral (3) -

REA Group's 1Q revenues and earnings (EBITDA) were a 5% and 3% beat versus the estimates by UBS. October national residential listings rose 6% year-on-year though growth rates are expected to slow as the group cycles stronger comparisons, particularly in the 2H.

Those comparatives and impacts from a Federal election has the analyst forecasting a -2.5% volume decline in the 2H. The Neutral rating and $160 target price are retained.

Target price is $160.00 Current Price is $176.81 Difference: minus $16.81 (current price is over target).
If REA meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $169.03, suggesting downside of -1.6% (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

Morgan Stanley rates SHL as Overweight (1) -

Morgan Stanley upgrades its EPS forecasts for Sonic Healthcare on global data showing ongoing elevation of covid-19 testing. The broker lifts its target price to $46.10 from $45.50 and retains its Overweight rating. Industry view: In-line.

The analyst assesses the company's risk reward payoff compares favourably to alternatives in the Health Care sector.

Target price is $46.10 Current Price is $40.91 Difference: $5.19
If SHL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $44.51, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates VUK as Neutral (3) -

Virgin Money UK's FY21 pre-announced result proved a mixed bag; expenses disappointing the broker and management guiding to stronger margins.

Macquarie suspects guidance may trigger a rise in consensus earnings forecasts but says the company's poor track record on expenses has bred scepticism, and the forecast industry trend of favouring customers over shareholders, is likely to keep investors sidelined.

Target price falls to $4 from $4.30. Neutral rating retained, Macquarie expecting Virgin Money will have to cut expenses and stem market-share losses without sacrificing margins before regaining market favour.

Target price is $4.00 Current Price is $3.15 Difference: $0.85
If VUK meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

This company reports in GBP. 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

Macquarie rates WPL as Neutral (3) -

Woodside Petroleum has downgraded reserves at Greater Pluto by -10%, bringing forward the well life by 15 months.

Macquarie expects further downgrades of North West Shelf assets may be in the pipeline and says recent disappointments leave Woodside increasingly dependent on its strategy to buy Scarborough from Exxon and BHP.

FY21 forecasts rise 5% to reflect a likely improvement in fourth-quarter margins. FY22 to FY25 EPS forecasts fall -1% to -8% to reflect reduced Pluto output.

Target price falls -3.7% to $24.95. Neutral rating retained.

Target price is $24.95 Current Price is $22.58 Difference: $2.37
If WPL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $26.04, suggesting upside of 12.0% (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: 0.6

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

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

Morgan Stanley assesses the importance of sanctioning Scarborough has increased now that Woodside Petroleum Woodside has announced a -10% Pluto 2P reserve downgrade, following its -30% Wheatstone 2P downgrade last month.

The broker points out both downgrades currently constitute around 10% of the total reserves of the company. Thankfully, it's thought the approval for Scarborough continues to look very likely.

Morgan Stanley is restricted on providing a rating and a target price estimate.

Current Price is $22.58. Target price not assessed.

Current consensus price target is $26.04, suggesting upside of 12.0% (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: 0.6

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

UBS rates WPL as Buy (1) -

UBS lowers its target price for Woodside Petroleum to $24.70 from $25.40 following a -10% cut to 2P reserves at Greater Pluto after a reserves reassessment. While this doesn't affect the analyst's near term earnings forecast, the valuation drops by -3%.

A host of potential positive catalysts outweighs the broker's caution over the potential for additional reserve downgrades. This include further corporate cost savings and the selling-down of equity in both the Sangomar oil project and Pluto T2.

Moreover, there is the upcoming potential from the final investment decision on the Scarborough gas project, points out UBS. The Buy rating is unchanged.
 

Target price is $24.70 Current Price is $22.58 Difference: $2.12
If WPL meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $26.04, suggesting upside of 12.0% (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: 0.6

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