Australian Broker Call

Macquarie rates 29M as Outperform (1) -

Presenting at the Macquarie Conference, 29Metals revealed it is executing multiple initiatives to improve operational performance at
both Golden Grove and Capricorn.

The Cervantes study is the key near-term catalyst, Macquarie notes, with the miner targeting completion of relevant studies in the September quarter.

With spot prices implying a 20% free cash flow yield, the broker retains Outperform and a $3.50 target.

Target price is $3.50 Current Price is $2.74 Difference: $0.76
If 29M meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 17.2% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Outperform (1) -

Presenting at the Macquarie Conference, Adbri noted continued solid market dynamics in residential, mining and infrastructure markets. Volumes were notably strong, with mining activity a key underpin in many regions, and rain disruption was well managed.

Adbri has shown resilience amidst weather conditions owing to its relatively diverse geographic and product market exposures, Macquarie suggests. The broker continues to see market conditions improving and find a forecast FY22 PE of 12.3x attractive.

Outperform and $4.15 target retained.

Target price is $4.15 Current Price is $3.03 Difference: $1.12
If ABC meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.58, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Neutral (3) -

Adbri's Q1 market update proved better-than-expected as UBS notes there has been a lot of bad weather throughout the period. A positive is taken from cost control in light of inflation challenges awaiting the industry.

UBS has lifted forecasts but remains skeptical, arguing there is no genuine prospect for a step change in margins. Thus others in the sector are seen as better propositions, including James Hardie ((JHX)), Reliance Worldwide ((RWC)) and CSR ((CSR)).

The Neutral rating is retained as well as the target price of $3.25 

Target price is $3.25 Current Price is $3.03 Difference: $0.22
If ABC meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.58, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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 AGL as No Rating (-1) -

Macquarie has cut its FY22-23 earnings forecasts for AGL Energy -18% and -5% due to the Loy Yang A outage.

The broker is currently on research restriction.

Current Price is $8.42. Target price not assessed.

Current consensus price target is $8.72, suggesting upside of 4.7% (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

Credit Suisse rates AMP as No Rating (-1) -

AMP's first quarter update included positive growth trends from AMP Bank, but weaker and below expectations growth in Wealth Management, driving Credit Suisse to downgrade earnings per share forecasts -3-4% through to FY24.

The company reported outflows of -$1.33bn in Australian Wealth Management in the first quarter, disappointing the broker's anticipated -$1.25bn but reflecting a year-on-year improvement, while AMP Bank delivered 2.4% growth in its loan book. 

The broker is restricted on providing a rating or target.

Current Price is $1.21. Target price not assessed.

Current consensus price target is $1.11, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates AMP as Hold (3) -

AMP's market update revealed strong growth in bank loan volumes, comments Ord Minnett, plus a gradually improving profile of flows within the Wealth Management business.

No changes have been made to forecasts. Hold. Target $1.25.

Target price is $1.25 Current Price is $1.21 Difference: $0.04
If AMP meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.11, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates AMP as Sell (5) -

UBS found AMP's update on funds under management broadly in-line, even though assets under management for the Wealth division proved "soft", as were funds flows for the division.

Bank loans were strong and here the broker sees continuation for at least this year. Sell rating and 90c target price retained.

UBS remains concerned by the structural deterioration in AMP's core wealth franchises. Plus the broker finds the current share price "expensive".

Target price is $0.90 Current Price is $1.21 Difference: minus $0.31 (current price is over target).
If AMP meets the UBS target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.11, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ANZ as Buy (1) -

ANZ Bank's interim performance surprised on the upside, but UBS points out it was a low quality "beat" (writing back provisions). The bank needs to address its market share losses in mortgage lending, assures the broker, adding many in the market are "frustrated" because of it.

Sentiment is negative and UBS sees a cheap valuation, with an improving outlook for the Net Interest Margin; all reasons to keep the Buy rating unchanged.

Target $32 (was $30) with higher forecasts.

Target price is $32.00 Current Price is $26.91 Difference: $5.09
If ANZ meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $29.56, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates AQZ as Outperform (1) -

Qantas Airways ((QAN)) is set to acquire the remaining 80% of Alliance Aviation Services in a takeover bid equivalent to $4.75 per share. With the deal subject to shareholder and ACCC approval, Credit Suisse feels there is high risk of the ACCC blocking or delaying the sale.

Despite being a 12% premium to the current share price, Credit Suisse finds the offer price to be on the low side and considers the offer fails to take into account upside earnings potential from E190 deployment and domestic travel growth.

The Outperform rating is retained and the target price decreases to $4.75.

Target price is $4.75 Current Price is $4.25 Difference: $0.5
If AQZ meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 20.0% (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

Ord Minnett rates AQZ as Buy (1) -

Ord Minnett is not 100% happy with Qantas Airways' ((QAN)) agreement to acquire all outstanding equities for $4.75 a piece, arguing the price doesn't include a control premium.

Qantas already owns 20% and the broker thus thinks it's a done deal. The ACCC is expected to give the green light.

Target $5. Buy, High Risk.

Target price is $5.00 Current Price is $4.25 Difference: $0.75
If AQZ meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 20.0% (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

Ord Minnett rates ATL as Buy (1) -

Ord Minnett previously stated it can see no reason why the proposed merger between Apollo Tourism and Leisure and NZ-listed Tourism Holdings won't go ahead.

This view has been maintained, assuming any issues raised by the regulators can be addressed. Anyway, the earnings outlook is improving, says the broker.

Buy. Target price rises to $0.70 from $0.63.

Target price is $0.70 Current Price is $0.46 Difference: $0.24
If ATL meets the Ord Minnett target it will return approximately 52% (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

Macquarie rates BOE as Outperform (1) -

Following Boss Energy's completed capital raising, Macquarie returns from restriction with an unchanged Outperform rating, and a target increase to $3.20 from $3.00.

The broker's outlook for an 11-year mine life at Honeymoon and production of 2.45mlb per annum is based on the enhanced feasibility study, and sees upside to both life-of-mine and production on exploration success.

The Honeymoon project is fully licensed, in a tier-one jurisdiction and has a near-term path to market buoyed by rallying uranium prices, the broker points out.

Target price is $3.20 Current Price is $2.60 Difference: $0.6
If BOE meets the Macquarie target it will return approximately 23% (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

Citi rates BWX as Buy (1) -

Citi has described BWX's market update as underwhelming, with the company offering a weaker than anticipated full year guidance. At the mid-point, revenue and earnings guidance were a -17% and -24% miss on the broker's forecasts.

Citi noted increasing customer acquisition costs are driving underperformance of digital platforms, with web traffic for Flora & Fauna, Nourished Life and Go-To decreasing -6%, -35% and -24% respectively during the first quarter of the year.

The broker suggests BWX may benefit from divesting digital platforms and focusing on core brands. The Buy rating is retained and the target price decreases to $2.90 from $4.90.

Target price is $2.90 Current Price is $1.48 Difference: $1.42
If BWX meets the Citi target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 157.9% (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

UBS rates BWX as Buy (1) -

Let's just say the revised guidance given by BWX yesterday fell well short of forecasts. The good news: Sukin and Mineral Fusion are performing in-line with expectations and they combined represent 56% of forecast FY22 revenues, points out the broker.

Management is gearing up for an investor day on May 19. UBS retains its Buy rating but acknowledges until management can show positive execution, this stock cannot re-rate.

Valuation drops by -46% to $2.70 (new target) on sharply reduced estimates.

Target price is $2.70 Current Price is $1.48 Difference: $1.22
If BWX meets the UBS target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 157.9% (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 CBA as Sell (5) -

CommBank is scheduled to report its Q3 update on May 12th. Citi comments it sits 3% above market consensus as it is more optimistic on bad and doubtful debts.

Regardless, the broker is expecting the bank to announce a profit retreat of -10% with higher costs the challenge that cannot be beaten, apparently.

Asset quality is expected to remain benign with 2bps BDD charge whereas consensus is set for 7bps, says the broker. Sell. Target $90.75.

Target price is $90.75 Current Price is $103.71 Difference: minus $12.96 (current price is over target).
If CBA meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $92.45, suggesting downside of -9.7% (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

Citi rates DMP as Buy (1) -

Market trends suggest Domino's Pizza Enterprises may benefit from an acceleration in carryout sales, a positive for some of the company's markets that retained strong carryout business pre-covid according to Citi, while delivery orders appear weak as they cycle lockdown highs.

The broker highlights like-for-like sales grew 3.9% in the quarter, an improvement on the -2.3% decline in the previous quarter, and the company's first national price campaign in several years supported the result.

The Buy rating is retained and the target price increases to $108.42 from $108.30.

Target price is $108.41 Current Price is $69.04 Difference: $39.37
If DMP meets the Citi target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $99.13, suggesting upside of 49.5% (ex-dividends)

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 ECX as Outperform (1) -

Elevated used car prices have driven Eclipx Group to record half year earnings and strong cash generation, and Credit Suisse notes that while prices will inevitably normalise at some point it appears pricing will be stronger for longer.

Further, the broker highlighted that with Eclipx Group outperforming on new business and organic growth, the company will likely experience a smoother transition when normalisation occurs.

The company reported net profit of $60.4m from the first half, up 58% on the previous comparable period and a sizeable beat on the broker's forecast $47.5m, largely driven by a beat in end of lease income.

The Outperform rating is retained and the target price increases to $3.10 from $2.95.

Target price is $3.10 Current Price is $2.69 Difference: $0.41
If ECX meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 ECX as Outperform (1) -

Eclipx Group's first half result featured net operating income (pre provisions and end-of-lease) up 9% year on year and operating expenses down  -2% despite underlying inflationary cost pressure.

End-of-lease was up 60%, more than 50% better than Macquarie's forecast, and cash conversion of 110% accelerated net corporate debt elimination.

While conditions will ultimately normalise, the underlying performance of Eclipx supports the broker's Outperform rating. Target rises to $2.98 from $2.82.

Target price is $2.98 Current Price is $2.69 Difference: $0.29
If ECX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 ECX as Overweight (1) -

Eclipx Group posted a material beat of Morgan Stanley's half-year forecasts across the board, driven predominately by elevated used vehicle pricing but also pleasingly higher net operating income pre end-of-lease.

A 32% year on year profit increase materially de-risks FY22 expectations, the broker suggests.

The broker believes the company's over-the-life revenue model, order backlog and 95% lower risk customer exposure provides a buffer to volatility amd demand destruction from high prices.

Overweight and $2.90 target retained. Industry View: In-Line.

Target price is $2.90 Current Price is $2.69 Difference: $0.21
If ECX meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

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 EVN as Underperform (5) -

Presenting at the Macquarie Conference, Evolution Mining reported it has consolidated the Mungari district incorporating the Kundana
acquisition and a plant upgrade study at Mungari is expected in 2022.

The Ernest Henry pre-feasibility study completion is expected by the end of 2022 which has the potential to extend life of mine beyond FY26.

Red Lake's performance remains important for Macquarie's long-term outlook. Underperform and $4.00 target retained.

Target price is $4.00 Current Price is $3.94 Difference: $0.06
If EVN meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.33, suggesting upside of 13.7% (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

Credit Suisse rates HT1 as Outperform (1) -

An encouraging update from HT&E following the first quarter according to Credit Suisse, with radio revenues up 5% year-on-year despite the impact of bookings pushed to subsequent months. Signs point to second quarter improvement, with April up 9% year-on-year.

The company will divest Brisbane's 4KQ, as per the ACCC's requirement to acquire Grant Broadcasters, but with a sale price of $12m the broker does not expect an impact on earnings. The company has reiterated expected acquisition synergies of of $6-8m in FY22.

The Outperform rating and target price of $2.50 are retained.

Target price is $2.50 Current Price is $1.68 Difference: $0.82
If HT1 meets the Credit Suisse target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 50.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates ING as Neutral (3) -

Inghams Group's trading update revealed ongoing operational challenges, comments UBS, with earnings further negatively impacted by floods and delayed covid-costs, plus higher feed costs.

Not making matters any easier, UBS thinks any recovery in FY23 is being hindered by commodity feed costs. The broker still believes this company operates inside an attractive industry structure, but near-term the challenges dominate the picture.

UBS has now settled below market consensus for FY23 forecasts. Neutral. Target drops to $3.05 from $3.49.

Target price is $3.05 Current Price is $2.81 Difference: $0.24
If ING meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.36, suggesting upside of 21.2% (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

Credit Suisse rates JHG as Neutral (3) -

Following Janus Henderson's first quarter results, Credit Suisse has downgraded earnings per share expectations -10-15% through to FY24. The broker highlighted the quarter delivered a -15% miss on its earnings per share expectations, largely driven by lower revenue.

Further, despite efforts to reduce expenses, full year cost guidance was reiterated by the company, and given continued investment and falling revenue Credit Suisse expects margins to decline to 36% this financial year from 43% in FY21.

The Neutral rating is retained and the target price decreases to $46.00 from $50.00.

Target price is $46.00 Current Price is $37.76 Difference: $8.24
If JHG meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $47.75, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates LOV as Buy (1) -

Lovisa Holdings' latest market update has demonstrated continued strong sales growth despite global supply constraints, although Citi anticipates growth to moderate over the coming months and forecasts sales growth of 45% over the second half.

New store rollout has been slower than expected, with 17 stores to date in the second half. Given the company had guided to a second half rollout in line with the first half, the four stores per month in the second half compared to 7 per month in the first half has disappointed. 

The Buy rating is retained and the target price decreases to $20.40 from $21.45.

Target price is $20.40 Current Price is $17.88 Difference: $2.52
If LOV meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $22.16, suggesting upside of 33.3% (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 LOV as Overweight (1) -

Lovisa Holdings had previously reported comparable sales growth of 12% for the first eight weeks of the second half and yesterday noted sales momentum continued through April, Morgan Stanley observes. The company has added 17 new stores in the half, to 603.

Labour shortages and logistics challenges, particularly in the US, are nonetheless increasing store-build costs, but the broker believes store-builds remain on track.

Overweight retains, target rises to $21.50 from $21.00. Industry View: In-Line.

Target price is $21.50 Current Price is $17.88 Difference: $3.62
If LOV meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $22.16, suggesting upside of 33.3% (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

UBS rates LOV as Buy (1) -

UBS saw Lovisa Holdings releasing a strong trading update. It was better-than-expected, hence estimates have further moved higher.

The broker highlights in particular in the US the cheap bling retailer is experiencing strong growth. Lovisa can grow quicker in the US because of a greater landlord concentration, points out the analyst.

Store growth remains key to Lovisa's investment thesis, reminds the broker. Buy rating retained while the price target loses -$1 to $20.

Target price is $20.00 Current Price is $17.88 Difference: $2.12
If LOV meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $22.16, suggesting upside of 33.3% (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

Macquarie rates LYC as Outperform (1) -

Presenting at the Macquarie Conference, Lynas Rare Earths reported construction of the cracking and leaching plant in Kalgoorlie is progressing to plan with all long lead-time items in place.

The mining campaign at Mt Weld will support supply for higher production rate at Lynas Malaysia. Macquarie believes the ramp-up in production rates is impressive and has Lynas well positioned to deliver higher volumes in FY23.

Outperform and $12.80 target retained.

Target price is $12.80 Current Price is $9.31 Difference: $3.49
If LYC meets the Macquarie target it will return approximately 37% (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

Ord Minnett rates MAF as Buy (1) -

MA Financial Group has reiterated FY22 guidance and achieved 4.3% growth in asset management funds under management over the first four months of 2022, in line with Ord Minnett's forecast.

Ord Minnett retains a positive view, also because of recent share price weakness. Buy rating reiterated. Target $12.50.

Target price is $12.50 Current Price is $6.69 Difference: $5.81
If MAF meets the Ord Minnett target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates MFG as Underweight (5) -

Based on yesterday's funds under management disclosures, Morgan Stanley estimates Magellan Financial saw -1.5bn of net outflows in April, mostly from Global Equities but also from Global Infrastructure.

This represents an annual run-rate of around 25% of opening FUM for the group and is tracking broadly in line with the broker's forecasts. April saw an improved investment performance but longer term measures remain soft.

Underweight and $11.00 target retained. Industry View: Attractive.

Target price is $11.00 Current Price is $17.57 Difference: minus $6.57 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.63, suggesting downside of -21.3% (ex-dividends)

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

Citi rates NAB as Neutral (3) -

Despite National Australia Bank's first half continuing cash earnings of $3,480m missing Citi's forecasts by -2%, the broker has described the result as an exceptionally strong, sector leading performance, which included 10% lending growth.

Citi notes market attention has quickly turned to earnings performance amid cash rate rises, but while lending growth is expected to slow off the back of rate hikes the broker expects net interest margin expansion will more than offset.

The broker warns the inflationary environment coupled with increased investment spend will see cost growth of 2-3% annually.

The Neutral rating is retained and the target price decreases to $32.25 from $33.00.

Target price is $32.25 Current Price is $32.25 Difference: $0
If NAB meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates NAB as Neutral (3) -

Strong lending across both housing and business in the first half has driven Credit Suisse to upgrade its earnings forecasts for National Australia Bank 2-4% for FY22 and FY23.

The broker highlights National Australia Bank is leveraged to rate rises, and has brought forward its anticipated benefits given the announced rate hikes this week, driving an increase to net interest margin expectations. 

Less positively, the bank did warn of higher cost guidance given the current inflationary environment. The Neutral rating and target price of $32.40 are retained.

Target price is $32.40 Current Price is $32.25 Difference: $0.15
If NAB meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates NAB as Outperform (1) -

Macquarie suggests the performance across most of National Australia Bank's key business units was pleasing as the bank grew
volumes and managed margins in the first half.

The broker states a strong balance sheet position, balance sheet momentum, leverage to higher rates and the buy-back continue to provide share-price support.

Macquarie expects a further investment uplift in future periods, which is a key driver behind the broker's higher expense growth assumptions than consensus. Target rises to $34.00 from $32.50, Outperform retained.

Target price is $34.00 Current Price is $32.25 Difference: $1.75
If NAB meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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

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

Even excluding the rebound in Treasury & Markets income, National Australia Bank's revenue increased 3.5% in the half due to better-than-peer margins and above-system housing and SME loan growth, Morgan Stanley reports.

NAB has good franchise momentum, due to simpler home loan processing, improving digital capability and investment in business banking. Mortgage growth will slow, the broker suggests, but SME loan growth will be more resilient.

NAB should be able to deliver mid-single-digit revenue growth (ex T&M) over the next two years, on the broker's projections. Equal-weight retained, target rises to $31.80 from $31.50. Industry View: Attractive.

Target price is $31.80 Current Price is $32.25 Difference: minus $0.45 (current price is over target).
If NAB 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 $33.14, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Accumulate (2) -

National Australia Bank's interim results met Ord Minnett's expectations. The 73c in dividend beat the broker's 72c forecast.

The broker finds the franchise is in good shape. Accumulate rating retained, alongside a $34.50 price target, up from $33.50 on increased forecasts.

Target price is $34.50 Current Price is $32.25 Difference: $2.25
If NAB meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates NHF as Neutral (3) -

The health insurer has slightly recalibrated its guidance for FY22 and Macquarie has made adjustments to forecasts.

The broker continues to see this company as a major beneficiary from re-opening borders.

Target price falls to $7.55 from $7.65. Neutral rating retained.

Target price is $7.55 Current Price is $7.23 Difference: $0.32
If NHF meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting downside of -5.1% (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 NHF as Neutral (3) -

Presenting at the Macquarie Conference, nib Holdings updated FY22 Australian residents health insurance net policyholder growth guidance to "about 3%" from “at least 3%", but introduced maiden FY23 guidance of 3-4%.

FY22 New Zealand net policyholder growth expectations have increased to 4-6% from 3-5%.

A “strong recovery”is expected in international inbound health and travel insurance, with FY22 underlying operating losses at the “lower end of expectations”.

Macquarie marks investment income to market in cutting its target to $7.55 from $7.65. Neutral retained.

Target price is $7.55 Current Price is $7.23 Difference: $0.32
If NHF meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting downside of -5.1% (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

Credit Suisse rates NWL as Outperform (1) -

In its market update Netwealth Group has reported its cash admin fee is already benefiting from the cash rate, up to 85 basis points from 60 basis points at the end of April, with the company now targeting a 120 basis points cash admin fee as noted by Credit Suisse.

The broker notes April flows of $790m were slightly below expectations, and it has downgraded full year flow guidance by -$0.5bn as a result, now forecasting flows above $13.0bn. Further, Credit Suisse expects flow recovery as current covid impacts subside.

The Outperform rating is retained and the target price increases to $17.50 from $17.00.

Target price is $17.50 Current Price is $12.70 Difference: $4.8
If NWL meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $16.03, suggesting upside of 30.1% (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 NWL as Outperform (1) -

Management at Netwealth has pared back expectations for funds inflows (by -$0.5bn) but also reduced the interest rate payable on transaction accounts by -15bps.

Macquarie sees upside risk to consensus forecasts from the positive leverage to rising rates. Small amendments have been made to forecasts.

Target has reduced to $17.40 (from $18.20). Outperform.

Target price is $17.40 Current Price is $12.70 Difference: $4.7
If NWL meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $16.03, suggesting upside of 30.1% (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 OGC as Outperform (1) -

OceanaGold's Q1 update proved a lot better than what Macquarie had penciled in, with gold production volume surprising to the magnitude of 18%.

The company has retained its 2022 guidance. Macquarie sees upside potential from Haile while Didipio is now fully ramped up, facilitating a smoother performance path in comparison with previous years, suggests the broker.

Outperform. Target has lifted to $4.

Target price is $4.00 Current Price is $3.63 Difference: $0.37
If OGC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

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

Macquarie rates PRN as Outperform (1) -

Perenti Global's ongoing divestments have triggered another update by Macquarie, having lifted forecasts by circa 1%.

The broker's positive view is supported by a significant level of work in hand and a large order book, supporting cash flow and ongoing de-levering.

Macquarie has not changed the $1.10 price target and retains an Outperform rating.

Target price is $1.10 Current Price is $0.70 Difference: $0.4
If PRN meets the Macquarie target it will return approximately 57% (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 QAN as Underperform (5) -

Qantas Airways and Alliance Aviation ((AQZ)) are in agreement for Qantas Airways to acquire the remaining 80% stake in Alliance Aviation at $4.75 per share, but Credit Suisse notes significant risk of the ACCC blocking or delaying the deal given commentary made when Qantas Airways acquired the initial 20% stake.

The broker finds the proposed deal attractive for Qantas Airways, noting as Alliance Aviation's largest customer the airline was likely in a strong negotiating position.

The Underperform rating and target price of $5.05 are retained.

Target price is $5.05 Current Price is $5.65 Difference: minus $0.6 (current price is over target).
If QAN meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.22, suggesting upside of 13.1% (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

Morgan Stanley rates QAN as Overweight (1) -

While the combination of FIFO specialist Alliance Aviation Services ((AQZ)) and Qantas is likely to present operational synergies, for example in fleet maintenance, while fortifying Qantas' exposure to the growing resources sector, Morgan Stanley is sceptical of completion.

Aside from requiring a vote from Alliance shareholders, who will receive Qantas shares, the ACCC previously highlighted a number of competition concerns when Qantas acquired its 20% stake in Alliance.

Overweight and $7.10 target retained. Industry View: In-Line.

Target price is $7.10 Current Price is $5.65 Difference: $1.45
If QAN meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 13.1% (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 QAN as Accumulate (2) -

Qantas Airways has an agreement to acquire the 80% it doesn't yet own in Alliance Aviation ((AQZ)) and Ord Minnett sees an improved competitive position in the charter market on the horizon.

The deal will also put Qantas in a stronger position to service the resource markets of Western Australia and Queensland, the broker adds.

Target $6.40. Rating is Accumulate.

Target price is $6.40 Current Price is $5.65 Difference: $0.75
If QAN meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 13.1% (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

UBS rates QAN as Buy (1) -

Qantas Airways has reached an agreement to purchase the 80% it doesn't yet own in Alliance Aviation ((AQZ)) and UBS points out the full process could take 9-12 months to close given shareholders and ACCC need to give their approval.

UBS thinks ACCC approval has a high probability of being granted. The broker refers to a previous investigation upon Qantas acquiring the 20% stake in 2019.

Buy rating retained. Target price $6.65. No changes have been made to forecasts at this stage.

Target price is $6.65 Current Price is $5.65 Difference: $1
If QAN meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 13.1% (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 QBE as Buy (1) -

While QBE Insurance's continued focus on reducing volatility looks to dampen near-term earnings, Citi notes the company's outlook remains favourable, supported by ongoing robust top line growth and rate rises.

The broker's full year outlook declines -7%, accounting for additional liability associated with the Russia-Ukraine conflict. While natural catastrophe claims have been in line with allowance, QBE Insurance has outlined an additional -US$75m in war exposure.

The Buy rating is retained and the target price increases to $14.40 from $13.70.

Target price is $14.40 Current Price is $12.68 Difference: $1.72
If QBE meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 QBE as Outperform (1) -

QBE Insurance reported continued strong growth in the first quarter, with 22% Crop insurance growth driving the result. Credit Suisse expects strong earnings momentum to support an earnings per share compound annual growth rate above 30% in the next two years.

While natural catastrophe claims in the quarter stayed within QBE Insurance's allowance despite the impacts of flooding events and Storm Eunice, the insurer has highlighted a -$75m inclusion for Russia-Ukraine conflict exposure will be reported with catastrophe costs.

The Outperform rating is retained and the target price increases to $16.75 from $15.55.

Target price is $16.75 Current Price is $12.68 Difference: $4.07
If QBE meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 QBE as Outperform (1) -

QBE Insurance's trading update must have been a relief to Macquarie with the broker pointing out catastrophe costs to April proved in-line with the insurer's allowance including some -$75m for net losses in Russia and the Ukraine.

The update also revealed premium rate rises remain healthy and volume growth continues to be strong, comments the broker.

Macquarie has increased forecasts. Target price rises to $15 from $13.50. Outperform rating retained. 

Target price is $15.00 Current Price is $12.68 Difference: $2.32
If QBE meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 QBE as Overweight (1) -

Following QBE Insurance's AGM, Morgan Stanley notes better first quarter premium growth, pricing and investment yields drive the broker's earnings forecasts higher.

Well-managed catastrophe costs, more clarity on Ukraine exposure and reinsurance on legacy North America reserves should de-risk the stock, suggests the broker.

Valuation is compelling, the broker suggests, at 9x forward earnings estimates. Overweight and $15.70 target retained.

Target price is $15.70 Current Price is $12.68 Difference: $3.02
If QBE meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates QBE as Add (1) -

QBE Insurance has provided a performance update and Morgans has spotted both pros and cons, with the added observation that the balance is skewed towards the positive.

One of the positive take-aways is that QBE’s investment yield is rising with increasing interest rates. Estimates have been lifted; FY23 by 20%.

Target price rises to $14.45 from $13.50. Add retained as Morgans sees a positive trajectory over the years forthcoming.

Target price is $14.45 Current Price is $12.68 Difference: $1.77
If QBE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates QBE as Buy (1) -

QBE Insurance's trading update provided no nasty surprises for Ord Minnett. The broker points at higher yields on investment assets and strong gross written premium.

The losses from Russia and the Ukraine were not large enough to temper Ord Minnett's enthusiasm, with higher forecasts the result.

The Buy rating now accompanies a target price of $16, up from $15.50.

Target price is $16.00 Current Price is $12.68 Difference: $3.32
If QBE meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 QBE as Buy (1) -

UBS found the market update provided by QBE Insurance Group "reassuring". The broker notes no changes were made to FY22 guidance despite premium revenue and investment yields tracking ahead of consensus.

Macro, industry and company-specific tailwinds all support the broker's Buy rating, with positive feedback from offshore peers on top.

Target increases by $1 to $16.

Target price is $16.00 Current Price is $12.68 Difference: $3.32
If QBE meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $15.47, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in December.

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 RIC as Initiation of coverage with Buy (1) -

UBS has initiated coverage on Ridley Corp with a Buy rating and $2 valuation/price target. The broker sees potential for capital management given the company's conservative dividend policy with plenty of free cash flow on the horizon.

Since FY19, points out the broker, the new CEO has restructured the business by closing under-utilised mills, lifting utilisation, lowering costs and developing new products.

UBS sees increased efficiencies and growth on the horizon. A new three year strategic plan is expected to be announced in August.

Target price is $2.00 Current Price is $1.72 Difference: $0.28
If RIC meets the UBS target it will return approximately 16% (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

Ord Minnett rates SVW as Buy (1) -

Ord Minnett retains a Buy rating with a price target of $25 as Seven Group Holdings reiterated FY22 guidance for an 8–10% increase on
FY21 pro-forma earnings before interest and tax from continuing operations, excluding property.

Target price is $25.00 Current Price is $19.94 Difference: $5.06
If SVW meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $26.60, suggesting upside of 34.6% (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

Ord Minnett rates TCL as Accumulate (2) -

Ord Minnett observes a strong share price performance but thinks this positive story is not over yet. Hence Transurban Group retains the broker's Accumulate rating, with an increased price target of $15.85, from $15.

Don't get stuck in the bond proxy narrative, suggests the broker. Ord Minnett is forecasting a compound annual growth rate (CAGR)
of 10% per annum over FY21–31.

Forecasts have been increased also incorporating higher inflation.

Target price is $15.85 Current Price is $14.73 Difference: $1.12
If TCL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.71, suggesting upside of 2.9% (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 VCX as Underweight (5) -

Productivity metrics all looked positive to Morgan Stanley in Vicinity Centres' trading update, with FY22 funds from operations guidance retained. Sales in the March quarter were up 11.2% on March FY19.

Rent collection was fine at 89% but the broker would've thought this number would be higher if productivity was so strong. Similarly, leasing spreads were not a bad outcome, but retailers would still seem to be a touch apprehensive about longer-term trading conditions.

Underweight and $1.82 target retained. Industry View: In-Line.

Target price is $1.82 Current Price is $1.91 Difference: minus $0.09 (current price is over target).
If VCX meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.93, suggesting upside of 5.0% (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

Ord Minnett rates VCX as Hold (3) -

Vicinity Centres' market update revealed improved cash collections, notes Ord Minnett, while FY22 guidance has been maintained.

The broker is positive and sees positive trends continuing into the current quarter. Hold. Target $2.10.

Target price is $2.10 Current Price is $1.91 Difference: $0.19
If VCX meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 5.0% (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

Macquarie rates VUK as Neutral (3) -

Macquarie comments Virgin Money UK's leverage to rising interest rates was the dominant stand-out from the bank's interim report. Alas, aggressive mortgage competition is offsetting the benefits.

Given only small changes made to forecasts, we have to assume the financials were broadly in-line.

Management has indicated margins might be lower in the second half. Macquarie also thinks further investments are needed to support the franchise and systems quality.

Target price $3.80 (decline of -4%), or GBP2.25. Despite valuation appeal, the broker sticks with a Neutral rating.

Target price is $3.80 Current Price is $3.07 Difference: $0.73
If VUK meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

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

Citi rates WTC as Neutral (3) -

Citi has highlighted a reported slow down in freight volume growth presents a headwind for WiseTech Global's transaction based pricing model, with data suggesting sea freight volumes declined -5-10% year-on-year in the March quarter.

The broker expects global roll outs, customer wins and and development work can offset a volume slowdown, but despite this anticipates full year revenue could be at the lower end of the $600-635m guidance range, with the broker forecasting $612m.

More positively, Citi highlighted near-term demand remains strong and recovery in the freight market is expected in the fourth quarter.

The Neutral rating and target price of $46.35 are retained.

Target price is $46.35 Current Price is $43.82 Difference: $2.53
If WTC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $48.34, suggesting upside of 16.7% (ex-dividends)

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