Australian Broker Call

Ord Minnett rates BEN as Hold (3) -

Bendigo and Adelaide Bank's third-quarter update showed robust growth in lending exposures, observes Ord Minnett, and stable non-performing loan trends. There was a slight rise in the common equity tier-one (CET1) ratio to 9.5%, right at the top end of the target range.

Ord Minnett has increased its cash earnings forecasts by 10% in FY21, 4% in FY22 and 1% in FY23. Despite these upgrades, the broker has a constrained dividend outlook. Also, the broker considers the stock fairly valued.

Hold recommendation and target price increased to $10.70 from $10.60.

Target price is $10.70 Current Price is $10.24 Difference: $0.46
If BEN meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.32, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates BHP as Overweight (1) -

According to news reports, BHP Group is in talks with Nutrien about a potential partnership to develop the Jansen potash mine.

Morgan Stanley notes the news, if true, seems consistent with BHP Group's previous comments. A decision on whether the project will proceed is due mid-2021. The broker values the Jansen project at book value at $0.9 per share.

The broker views the news, if confirmed, as a positive development that will de-risk the project while keeping exposure to potash fundamentals.

Overweight rating with a target price of $47.50. Industry view: Attractive.

Target price is $47.50 Current Price is $46.80 Difference: $0.7
If BHP meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $48.44, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates BTH as Overweight (1) -

Bigtincan Holdings latest update at the Australian Emerging Companies Conference showed the company has partnered with differentiated channels to increase the breadth of the offer, leading to new logo growth and more upselling opportunities.

The company sees considerable scope with sales teams who do not have real time access to content and are less informed than their customers. The ability to penetrate this market implies there is scope to sustain higher growth rates, suggests Morgan Stanley.

Overweight rating and $1.50 target. Industry view is In-Line.

Target price is $1.50 Current Price is $1.05 Difference: $0.45
If BTH meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates CAT as Add (1) -

Annualised contract value (ACV) churn of 5.5% and the ability to increase FCF generation were considered key quality indicators by Morgans in the FY21 results. 

Also, ACV growth of 16.5% (all in the second half) to US$48.4m was a highlight, with quarters three and four exhibiting 8% and 9% quarter-on-quarter growth.

Morgans both increases the long-term growth assumptions and moves to a different valuation approach, which sees a material valuation increase. The target price is increased to $2.46 from $2.12.  Add rating is unchanged.

Target price is $2.46 Current Price is $2.27 Difference: $0.19
If CAT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

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: 1.0

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

Macquarie rates CBA as Neutral (3) -

Commonwealth Bank has reiterated its focus on digital ventures. This is to drive deeper customer relationships and the bank is looking to lead the evolution of Open Data in Australia and offer customers a digital wallet, explains Macquarie.

In an attempt to find new sources of income, the bank is pursuing a higher revenue/cost growth strategy, suggests the broker.

While this paves the way for a broader offering, returns in its core products are likely to continue to decline, according to the analyst. The longer-term competitive landscape for banks is considered to be getting more difficult. Reduce rating and $86 target unchanged.

Target price is $86.00 Current Price is $98.97 Difference: minus $12.97 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.75, suggesting downside of -12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates CBA as Hold (3) -

In Commonwealth Bank's investor conference, management chalked out efforts made to boost the bank's digital advantage over peers. Also, the bank has become the first to offer customers visibility on account balances with other financial services providers in the CommBank app.

Ord Minnett believes the bank has a meaningful advantage over peers in both digital facing and back-bone technology which should sustain competitive advantage and drive faster revenue growth.

Even so, to the broker, Commonwealth Bank's absolute valuation looks stretched and Ord Minnett retains its Hold recommendation with a $91 target price.

Target price is $91.00 Current Price is $98.97 Difference: minus $7.97 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.75, suggesting downside of -12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Citi rates CGC as Neutral (3) -

With issues around labour shortages related to mushroom production and supply-driven weakness in avocado pricing, Citi expects to see Costa Group's first-half net profit after tax to be only marginally ahead of last year.

Further, the result is expected to largely offset favourable growing and demand conditions in China and Morocco.

While citrus yields are set to benefit, pricing remains a key question for the second half. 

Neutral rating with the target dropping to $3.75 from $4.90.

Target price is $3.75 Current Price is $3.37 Difference: $0.38
If CGC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates CGC as Upgrade to Outperform from Neutral (1) -

Credit Suisse upgrades to Outperform from Neutral with the target price dropping to $4.15 from $4.70.

Costa Group Holdings expects the June half performance to be marginally ahead of the last year. This guidance was below market expectations and a result of factors that Credit Suisse considers seasonal and not structural.

The broker finds it difficult to ascertain a normal margin for the group's domestic product since in a 12-month period, the group's peak margins have been about 14%-15% while in a bad year, margins have been as low as 5%-6%.

The 2021 operating income forecast has been reduced by -7.5%.

Target price is $4.15 Current Price is $3.37 Difference: $0.78
If CGC meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates CGC as No Rating (-1) -

Costa Group expects first half performance to be marginally ahead of the pcp, with strong international operations offset by challenges in domestic product conditions. Macquarie forecasts FY21 earnings (EBITDA-SL) to fall -17% versus prior estimates. 

The broker reduces FY21-23 EPS forecasts by -31%, -11% and -10%, respectively. This incorporates first half guidance as well as -$10m in additional D&A attributable to capex.

Macquarie is under research restriction.

Current Price is $3.37. Target price not assessed.

Current consensus price target is $4.01, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates CGC as Downgrade to Hold from Add (3) -

Morgans downgrades Costa Group to Hold from Add, after first half guidance was for marginal growth. Also, from the guidance, there was considered implicit contraction in Produce segment that is materially weaker than expected.

The broker lowers FY21-23 underlying earnings (EBITDA-S) forecasts by -10%, -5% and -5%, respectively. Also, increased D&A guidance and operating deleverage has seen material downgrades at the profit (NPAT-S) level.

Overal, the more limited visibility on the earnings potential of the domestic Produce business and uncertainty remaining over the extent of the second half earnings recovery, prompts the analyst to lower the rating. The target price falls to $3.54 from $5.03.

Target price is $3.54 Current Price is $3.37 Difference: $0.17
If CGC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates CIA as Upgrade to Neutral from Sell (3) -

Citi upgrades to Neutral from Sell with the target price rising to $7.10 from $6.40.

Champion Iron delivered a record quarterly revenue, observes Citi, with strong price momentum in iron ore. Net profit for FY21 was slightly below Citi's forecast at $477m but more than doubled over FY20.

In the broker's view, the company is well-positioned to capitalise on a global de-carbonisation theme and expansion upside via Phase II delivery and potential Phase III expansion post Kami acquisition.

Target price is $7.10 Current Price is $6.74 Difference: $0.36
If CIA meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in CAD. 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 CIA as Outperform (1) -

Champion Iron reported FY21 financial results, highlighting to Macquarie strong growth in revenue, earnings and cash flow year-on-year.

Additionally, the Bloom Lake phase 2 expansion to 15mtpa was approved and management finalised the Kami acquisition. This could see the company expanding to beyond 22mtpa with the development of Kami, estimates the broker.

After incorporating the FY21 result and slightly higher forecast shipments and unit costs, the analyst retains the Outperform rating and $8 target.

Target price is $8.00 Current Price is $6.74 Difference: $1.26
If CIA meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in CAD. 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

Ord Minnett rates CL1 as Buy (1) -

Class Limited’s latest investor day showed the company continues to execute on its strategy to grow organically with new products like Class Trust demonstrating early promise.

Management reiterated its FY21 revenue guidance of $54m with an operating income margin of 40%. Ord Minnett notes in the longer run, the company looks confident of improving margins once the reinvestment period has wound back.

Given this growth potential and an "enviable" client retention rate of 99%, Ord Minnett remains positive on the stock. 

Buy rating with a target price of $2.40.

Target price is $2.40 Current Price is $1.69 Difference: $0.71
If CL1 meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates CNU as Neutral (3) -

New Zealand Commerce Commission's (ACCC equivalent) draft allowable fibre revenue for the March quarter was -4% below what Chorus had hoped for but 5% above the broker's expectation. The ComCom estimates are preliminary, with a final decision due in August.

Beyond August there are still some more key regulatory decisions to be made. Neutral and NZ$6.30 target retained.

Current Price is $5.96. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

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

Credit Suisse downgrades Fisher & Paykel Healthcare Corp to Neutral from Outperform with the target dropping to $30 from $34.

Post the FY21 result, Credit Suisse has lowered its earnings estimates for FY22-23. Earnings uncertainty is expected to persist over the next six months and the broker does not see a short-term catalyst for the stock to outperform.

Management conceded there is too much uncertainty in the monthly and quarterly earnings to provide any guidance or be confident that the current trends will continue.

The broker notes demand is tracking covid-related hospitalisations and in countries where hospitalisations have fallen, there has not been evidence of sustained strong utilisation of the installed base outside of covid patients.

Target price is $30.00 Current Price is $27.94 Difference: $2.06
If FPH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $30.00, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Macquarie rates FPH as Outperform (1) -

In what Macquarie describes as a 'reality check', FY21 results showed Hospital hardware/consumables growth missed expectations. This is thought to reflect lower demand for traditional product applications, primarily in the US and Europe.

The broker thinks this highlights possible lower near-term device utilisation and potentially foreshadows challenges (speed) in imbedding clinical practice changes. The Outperform rating is unchanged and the target is decreased to NZ$31.84 from NZ$40.38.

Macquarie's EPS forecasts fall -17%, -20% and -23% across FY22-24 to reflect downgrades to operating revenue (lower device sales/utilisation and OSA mask revenue), alongside D&A, FX and R&D tax rebate tweaks.

Current Price is $27.94. Target price not assessed.

Current consensus price target is $30.00, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

UBS rates FPH as Sell (5) -

While Fisher & Paykel Healthcare posted 82% year on year earnings growth, this was well below forecast due to lower hospital consumables sales. The clouds have now moved in on the company's moment in the sun, in which ventilator sales surged.

The broker expects sales to continue to decline over the next two years as vaccines roll out across the world. A significant drop in FY22 earnings is expected and limited growth in FY23, only partly offset by a wider uptake of high-flow therapy.

As investors move away from the covid winners, the broker sees the stock as overvalued. Sell retained, target to NZ$22.65 from NZ$24.80.

Current Price is $27.94. Target price not assessed.

Current consensus price target is $30.00, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Macquarie rates IAG as Neutral (3) -

Following the release of APRA’s quarterly general insurance performance statistics for March, Macquarie estimates premium rate movements for the market and reviews profitability across major products.

The broker concludes industry price rises remain strong while covid-19 benefits (particularly in Home and Commercial lines) are dissipating.

Macquarie expects industry data will likely be volatile over the next few quarters, with diverging price rises and claims experience by product and state. The Neutral rating and $5.30 target are retained for Insurance Australia Group.

Target price is $5.30 Current Price is $4.89 Difference: $0.41
If IAG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.39, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates INR as Buy (1) -

Ord Minnett sees a buying opportunity in Ioneer following the recent confusion regarding US government policy and environmental activism. The broker believes Ioneer's fundamentals remain strong and its strategic value should be enhanced by upcoming newsflow.

The broker's focus remains on the upcoming catalysts of off-take and strategic partnering over the coming weeks. 

Speculative Buy rating reiterated. Target falls to $0.55 from $0.56.

Target price is $0.55 Current Price is $0.31 Difference: $0.24
If INR meets the Ord Minnett target it will return approximately 77% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates JHC as No Rating (-1) -

A market update shows Macquarie an improvement in occupancy trends though current run-rates are below previous expectations.

The analyst makes forecast EPS revisions for FY21-23 of -21%, -43% and -35%, respectively, to primarily reflect revised near-term occupancy assumptions.

Macquarie is research restricted and cannot provide a rating or target.

Current Price is $1.14. Target price not assessed.

Current consensus price target is $0.94, suggesting downside of -18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates LNK as Hold (3) -

Link Administration has received an offer from the trade sale buyer KKR-Domain for a 44% stake in the property settlements platform PEXA.

It is unclear to Ord Minnett if other entities will consider making increased offers or if the board views this offer as reasonable.

Ord Minnett notes the proposal from KKR-Domain values Link’s stake in PEXA at $2.56 per share, translating to about 34.5x the broker's FY22 net profit forecast and 12.6x the revenue forecast.

The broker highlights this offer for PEXA is superior to the $1.60 implied valuation that the Pacific Equity Partners (PEP) consortium had suggested in October 2020.

Hold recommendation is maintained with the target rising to $5.75 from $5.20.

Target price is $5.75 Current Price is $5.19 Difference: $0.56
If LNK meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates MFG as Underweight (5) -

Magellan Financial Group's new retirement income product - FuturePay - has the potential to support flows across the group, suggests Morgan Stanley.

Even so, given the outflows in the group's active ETFs in April-May, the broker thinks this support may be required to deliver inflows.

While FuturePay increases Magellan Financial Group's capital intensity, Morgan Stanley thinks this will have a limited competitive impact on Challenger ((CGF)) given it's not capital guaranteed.

Underweight rating and $39.60 target. Industry view: In-line. 

Target price is $39.60 Current Price is $47.81 Difference: minus $8.21 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.48, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates NST as Buy (1) -

Northern Star Holdings is excited about the opportunities at Kalgoorlie Consolidated Gold Mines (KCGM), observes Ord Minnett.

Ord Minnett notes KCGM and the Kalgoorlie hub sit at the core of Northern Star’s planned production growth to 2mozpa and the broker is positive about the prospects while noting the complexity that comes with maturing assets.

Buy rating with a target of $13.50.

Target price is $13.50 Current Price is $11.60 Difference: $1.9
If NST meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.06, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates RHC as Outperform (1) -

Macquarie sees the agreement to acquire UK-based Spire via a scheme of arrangement as providing both strategic and financial benefits, and supporting the medium-longer term growth outlook. 

The transaction will provide increased scale (via the creation of the largest private/independent hospital operator in the UK) and diversification of payor and case mix, explains the broker. Additionally, there will be an expanded geographic footprint.

Synergy benefits of at least GBP26m p.a. from FY24 have been identified as part of the transaction, and are expected to be
achieved irrespective of the UK CMA approval process, highlights the analyst. The Outperform rating and $74.85 target are retained.

Target price is $74.85 Current Price is $62.30 Difference: $12.55
If RHC meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $70.13, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Ramsay Health Care made an all-cash offer for UK private hospital group Spire at GBP2.40 per share, representing a 24.4% premium to the closing price on May 25. The company sees the deal as high-single-digit earnings accretive to FY24 earnings. 

Also, the company's UK hospitals will rise to 73 from 35 with the addition of Spire helping Ramsay Health Care to create a leading UK presence, diversify its UK payor sources and establish an enhanced offering for patients.

Morgan Stanley is research restricted and unable to provide a rating or target price. Industry view: In-line.

Current Price is $62.30. Target price not assessed.

Current consensus price target is $70.13, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates RHC as Hold (3) -

Morgans believes shareholders will vote in favour of the $1.8bn all cash offer to acquire UK-based Spire Healthcare via a scheme of arrangement. The Hold rating and $65.54 target are unchanged.

The resultant uplift in debt puts a strain on the credit rating and has pre-empted a strategic review of all assets, highlights the broker.

The analyst cautions overall returns are only realised fully in outer years, and are potentially at risk. They are contingent on the UK Competition and Markets Authority (CMA) review, which is considered more than likely to require divestments.

Target price is $65.54 Current Price is $62.30 Difference: $3.24
If RHC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $70.13, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SUN as Outperform (1) -

Following the release of APRA’s quarterly general insurance performance statistics for March, Macquarie estimates premium rate movements for the market and reviews profitability across major products.

The broker concludes industry price rises remain strong while covid-19 benefits (particularly in Home and Commercial lines) are dissipating.

Macquarie expects industry data will likely be volatile over the next few quarters, with diverging price rises and claims experience by product and state. The Outperform rating and $13.20 target are retained for Suncorp Group. 

Target price is $13.20 Current Price is $11.04 Difference: $2.16
If SUN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.83, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates VHT as Add (1) -

The FY21 result held few surprises for Morgans. It’s considered a key highlight was the last quarter average revenue per user (ARPU) of US$2.50. 

The FY22 revenue guidance is 30% higher than FY21, aided by the recent CRA acquisition (breast risk assessment company), recent contract wins and a rising ARPU, explains the broker.

The Add rating is unchanged and the target price is decreased to $1.87 from $1.94.

Target price is $1.87 Current Price is $1.30 Difference: $0.57
If VHT meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates WOW as Outperform (1) -

In a profitablity comparison for Endeavour Group's (EDG) Hotels business, Macquarie notes that Redcape Hotel Group ((RDC)) is overweight in NSW, while EDG is overweight in QLD. NSW has a higher level of gaming profitability/machine relative to other states.

In the analyst's view, EDG’s gaming share of profit is likely to sit between the industry average (20%) and Redcape’s 66%, given higher density of electronic gaming machines (EGM's) per venue.

It's estimated gaming accounts for approximately half of EDG’s Hotel gross profit, with food and beverage at closer to 40% and
accommodation at 10%. The analyst maintains the Outperform rating for Woolworths and the $44.50 target price.

Target price is $44.50 Current Price is $41.67 Difference: $2.83
If WOW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $42.54, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates XRO as Neutral (3) -

While noting there isn’t a lot to read-through for Xero from Intuit’s third quarter, Citi sees Intuit’s commentary on the use of online accounting and associated services as positive for Xero.

In the broker's view, the results from both companies point to home markets outperforming the International markets although going by Intuit’s comments, it looks to the broker Xero could be outperforming Quickbooks in the UK.

Neutral rating with a target price of $136.

Target price is $136.00 Current Price is $131.94 Difference: $4.06
If XRO meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $118.67, suggesting downside of -8.9% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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