Australian Broker Call

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

System housing loan growth was steady at around 6.4% in April. Within the detail, Morgan Stanley notes that among the majors ANZ Bank's growth turned negative.

A loss of Australian mortgage momentum was one of several reasons the broker recently downgraded the rating for the bank. This trend has accelerated in April, with mortgage balances declining for the first time since May 2020.

The analyst feels that unless the bank quickly regains momentum, there is downside risk to the broker's second half annualised Australian housing loan growth forecast of over 5%. The Equal-weight rating and $28 target are retained. Industry view: In-Line.

Target price is $28.00 Current Price is $28.31 Difference: minus $0.31 (current price is over target).
If ANZ 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 $30.17, suggesting upside of 6.4% (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

Macquarie rates API as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Staples, the broker sees valuation appeal in Australian Pharmaceutical Industries as it trades on a low price earnings ratio. It's also felt the company should benefit from increased front-of-house sales, particularly in the beauty segment, as people return to CBD's.

The Outperform rating and $1.45 target are retained.

Target price is $1.45 Current Price is $1.13 Difference: $0.32
If API meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.35, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in August.

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 AVN as Add (1) -

The funds from operations (FFO) measure for FY21 is unchanged and expected to be at least 19cps, up 4% on the pcp. Management has stated it will payout 90% of FFO which implies to Morgans a FY21 DPS of at least 17.1 cents. 

The broker notes the group remains well positioned and expects near term newsflow to focus on June 2021 revaluations. After several years of relatively stable cap rates, based on recent transactions there's expected to be cap rate compression at June 2021.

The Add rating is maintained and the target is increased to $3.12 from $2.90.

Target price is $3.12 Current Price is $2.97 Difference: $0.15
If AVN meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting downside of -2.6% (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

Morgan Stanley rates CIP as Overweight (1) -

Centuria Industrial REIT has undertaken independent external valuations on all its 61 properties as at June 2021. The portfolio's cap rate has compressed to 4.53%, from 4.94% as at March 2021, which has stemmed from an extrapolation of recent warehouse transactions.

As a result, the analyst raises the target to $3.90 from $3.77 and retains the Overweight rating. Industry view: In-line.

Target price is $3.90 Current Price is $3.61 Difference: $0.29
If CIP meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.70

The company's fiscal year ends in June.

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

UBS rates CIP as Downgrade to Neutral from Buy (3) -

Centuria Industrial has revalued its entire portfolio of 61 assets to a 4.53% cap rate, reflecting current market strength UBS asserts. The broker now believes the risk/reward is relatively balanced and downgrades to Neutral from Buy on valuation grounds.

The broker's preference is for Goodman Group ((GMG)) as current conditions are favouring developers and valuations for that stock now more conservative. Target is raised to $3.72 from $3.54.

Target price is $3.72 Current Price is $3.61 Difference: $0.11
If CIP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.70

The company's fiscal year ends in June.

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

Macquarie rates COL as Neutral (3) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

In Staples, the broker continues to prefer Woolworths ((WOW)) over Coles Group and Metcash ((MTS)), ahead of the Endeavour
Group demerger due for June 24. The Neutral rating and $17.30 target maintained.

Target price is $17.30 Current Price is $16.49 Difference: $0.81
If COL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.03, suggesting upside of 8.6% (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

Macquarie rates CTD as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Discretionary, the broker remains positive on travel. It's considered Webjet ((WEB)) is best placed among listed travel stocks to benefit from a domestic-led travel recovery with circa 70% of total transaction volume (TTV) being domestic. 

By comparison Corporate Travel Management derives around 60% of revenue from domestic, while Flight Centre ((FLT)) derives around 53%. The Outperform rating and $20.75 target are retained.

Target price is $20.75 Current Price is $20.71 Difference: $0.04
If CTD meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $21.94, suggesting upside of 2.0% (ex-dividends)

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 DXS as Downgrade to Neutral from Outperform (3) -

After reviewing the earnings drivers for Dexus, Macquarie downgrades to Neutral from Outperform as balance sheet flexibility is more limited and headwinds from work-from-home persist. It's expected DPS will fall -7% in FY22.

The broker highlights key headwinds including over -$2bn of divestments, a reduction in occupancy driven by the expiry of Rio Tinto ((RIO)) contract at 123 Albert St and elevated tenant incentives.

The deployment of around -$1.1bn of capital is not enough to offset the above headwinds, notes the analyst. The target price increases to $10.85 from $10.81.

Target price is $10.85 Current Price is $10.42 Difference: $0.43
If DXS meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.42, suggesting upside of 0.1% (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 DXS as Hold (3) -

Dexus upgraded its FY21 dividend guidance from flat to about 3% growth on FY20. Ord Minnett explains the upgrade was driven by a delayed settlement at Grosvenor Place. The Hold rating is maintained and the target lifts to $9.80 from $9.70.

Management noted better-than-expected outcomes on leasing, rents, capital expenditure, incentives and rent relief. The analyst incorporates these changes and a little more buyback activity than previously assumed.

Target price is $9.80 Current Price is $10.42 Difference: minus $0.62 (current price is over target).
If DXS meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.42, suggesting upside of 0.1% (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 FLT as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Discretionary, the broker remains positive on travel. It's considered Webjet ((WEB)) is best placed among listed travel stocks to benefit from a domestic-led travel recovery with circa 70% of total transaction volume (TTV) being domestic. 

By comparison Corporate Travel Management ((CTD)) derives around 60% of revenue from domestic, while Flight Centre derives around 53%. The Outperform rating and $17.50 target are retained.

Target price is $17.50 Current Price is $15.44 Difference: $2.06
If FLT meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.75, suggesting upside of 5.7% (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

Macquarie rates GEM as Neutral (3) -

In the wake of the AGM, Macquarie remains cautious on supply pressures and cuts the price target to $1.05 from $1.15 while maintaining the Neutral rating. Circa 70.8% occupancy as at 14 May 2021 was lower than expected and -3.3% below 2019.

The broker lowers FY21-23 EPS forecasts by -2%, -3% and -3%, respectively, with lower occupancy forecasts for 2021 now capturing a
lower centres count, with divestments progressing. Higher cost-base expectations offset any removed losses from the divestments.

Target price is $1.05 Current Price is $1.00 Difference: $0.05
If GEM meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting upside of 11.7% (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 GWA as Outperform (1) -

After reviewing ABS Australian Building Approvals data for April 2021, Macquarie notes strength continues for Detached and Alterations and Additions.

The recent uptick in multi-residential approvals is a positive for GWA Group. However, the lengthy lag between approvals and completions (the company's products are used near the completion end) suggests to the broker the group is unlikely to see a rebound until FY23.

Outperform retained. The analyst lowers EPS forecasts to largely reflect lower activity in Commercial and expectations of higher costs (freight/supplier) in FY22. The target price falls to $3.55 from $3.80.

Target price is $3.55 Current Price is $2.88 Difference: $0.67
If GWA meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 13.6% (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

Credit Suisse rates HLS as Outperform (1) -

Testing rates for covid-19 have been strong throughout the second half of FY21 and have doubled per day on average since Melbourne's latest lockdown.

Credit Suisse raises earnings assumptions by 7% in FY21 and 5% in FY22 to account for the stronger volumes. With Australia unlikely to achieve herd immunity before the end of 2021 testing is likely to remain robust for the short term.

The broker retains an Outperform rating and increases the target to $4.45 from $4.25.

Target price is $4.45 Current Price is $4.21 Difference: $0.24
If HLS meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates HVN as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Discretionary, the broker maintains a preference for Harvey Norman over JB Hi-Fi ((JBH)) on the back of strong housing turnover driving home-related spending. The Outperform rating and $6 target are retained.

Target price is $6.00 Current Price is $5.24 Difference: $0.76
If HVN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.86, suggesting upside of 12.7% (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

UBS rates IFM as Buy (1) -

The acquisition of SimplePart has been completed which UBS expects will complement the core after sales SaaS platform and enable further penetration of the parts business.

The company's trading update has signalled a marginally slower recovery in top-line momentum because of challenging conditions in Europe yet UBS believes revenue growth of 9.5% for FY22 is achievable.

Buy rating maintained. Target is lowered to $2.15 from $2.20.

Target price is $2.15 Current Price is $1.53 Difference: $0.62
If IFM meets the UBS target it will return approximately 41% (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

Credit Suisse rates ING as Outperform (1) -

Inghams Group has achieved further margin improvement from efficiencies implemented throughout the past year and this will be the main contributor to pushing FY21 guidance ahead of consensus forecasts, Credit Suisse notes.

The broker remains of the view that the stock offers a positive growth trajectory against an undemanding valuation. FY21 guidance is for underlying EBITDA of $203-213m and net profit of $96-103m.

Outperform rating maintained. Target rises to $4.10 from $3.95.

Target price is $4.10 Current Price is $3.51 Difference: $0.59
If ING meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 6.6% (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 JBH as Neutral (3) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Discretionary, the broker maintains a preference for Harvey Norman ((HVN)) over JB Hi-Fi on the back of strong housing turnover driving home-related spending. The Neutral rating and $50.40 target are retained.

Target price is $50.40 Current Price is $48.13 Difference: $2.27
If JBH meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $51.90, suggesting upside of 8.0% (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

Macquarie rates MFG as Neutral (3) -

Magellan Financial Group has provided more information on its long-awaited retirement-income product, FuturePay, which launches today. Macquarie explains the product will have an initial target yield of circa 4.25% p.a. and a 1% management fee.

The broker notes distributions will be paid monthly and grow quarterly with inflation. The return is not guaranteed though outperformance will be retained in a Support Trust, building reserves.

While early investors receive a degree of income certainty, the analyst considers any outperformance generated on their capital will
be used to provide protection for subsequent investors, explains the analyst.

This reduces the appeal of being an early investor prior to the build-up of meaningful reserves, believes Macquarie. In addition, because of the nature of underlying investments, it's estimated there will be a lack of franking credits. Neutral rating and $47.50 target.

Target price is $47.50 Current Price is $47.88 Difference: minus $0.38 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.34, suggesting upside of 4.9% (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 MFG as Buy (1) -

Magellan Financial Group (MFG) launched the retirement income product FuturePay. The product aims to deliver an inflation-linked distribution stream though there is no guarantee or explicit capital protection, highlights Ord Minnett.

The product initially will see support only from a section of the superannuation market, such as self-managed super funds, believes the broker. The Hold rating is retained and the target price slips to $51 from $52.

Potential downside risk will be managed through a combination of portfolio construction and a cash-reserving structure. This will initially be funded by Magellan Financial Group and maintained by excess portfolio returns and net movement in unitholder flows.

Target price is $51.00 Current Price is $47.88 Difference: $3.12
If MFG meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $50.34, suggesting upside of 4.9% (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 MQG as Accumulate (2) -

Ord Minnett performs a review of the Macquarie Asset Management division, which is a top 50 global asset manager and one of the world’s largest alternative asset managers. 

The arm relating to real assets is called Macquarie Infrastructure and Real Assets (MIRA). The broker notes it is benefiting from low rates, global investment in infrastructure, the urbanisation of Asian economies and the increased financing of renewable energy assets.

The analyst has a positive outlook on growth in MIRA's equities under management (EUM), base fees and performance fees. It's also noted Macquarie Investment Management (MIM), the traditional asset management business, has swung to positive net flows in the second half of FY21.

The Accumulate rating and $170 target are retained for Macquarie Group.

Target price is $170.00 Current Price is $150.38 Difference: $19.62
If MQG meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $161.20, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in March.

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 MTS as Neutral (3) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

In Staples, the broker continues to prefer Woolworths ((WOW)) over Coles Group ((COL)) and Metcash, ahead of the Endeavour
Group demerger due for June 24. The Overweight rating and $4.20 target are maintained.

Target price is $3.60 Current Price is $3.53 Difference: $0.07
If MTS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.91, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in April.

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

Morgan Stanley rates MVF as Overweight (1) -

April Medicare shows IVF cycles are up 22% versus April 2019 and 37% versus April 2020, which is better than Morgan Stanley anticipated. It's estimated these figures will remain elevated across the balance of the second half of FY21 at least.

The broker prefers Monash IVF Group over Virtus Health ((VRT)), due to a better valuation and lower balance sheet leverage. The Overweight rating and $0.90 target are retained. Industry view is In-Line.

Target price is $0.90 Current Price is $0.86 Difference: $0.04
If MVF meets the Morgan Stanley target it will return approximately 5% (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

Credit Suisse rates NEC as Outperform (1) -

Nine Entertainment has confirmed definitive agreements have been signed with Facebook and Google for the supply of news content. No specific disclosure was given regarding payments under the agreement.

Nevertheless, the guidance for the publishing segment is for growth of $30-40m in  EBITDA for FY22. This is consistent with Credit Suisse estimates and an Outperform rating and $3.40 target are maintained.

Target price is $3.40 Current Price is $2.99 Difference: $0.41
If NEC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates NEC as Overweight (1) -

Management has signed agreements for digital licencing revenue from Google and Facebook and expects an incremental earnings (EBITDA) benefit of $30-40m starting from FY22. The outcome increases Morgan Stanley's conviction in the positive investment thesis.

The broker lifts earnings (EPS) estimates for FY22 and FY23 by 8.9% and 9.4%. The price target increases to $3.75 from $3.50 and the Overweight rating is maintained. Industry view: Attractive.

Target price is $3.75 Current Price is $2.99 Difference: $0.76
If NEC meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates NEC as Neutral (3) -

Nine Entertainment has signed agreements with Facebook and Google for the supply of news clips and access to digital news for terms of up to 3 years.

The company expects the net impact on publishing in FY22 which will be $30-40m, roughly in line with expectations. UBS highlights the fact there is still an opportunity to generate incremental sales or negotiate a deal with Google in the future relating to video.

Neutral rating and $3.00 target maintained.

Target price is $3.00 Current Price is $2.99 Difference: $0.01
If NEC meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates PRT as Underweight (5) -

Industry feedback and the company's recent trading update on April 15 indicate to Morgan Stanley a more strongly positive regional tv advertising market in the second and third quarters of 2021.

As a result, the analyst's EPS estimates move higher by 12.9%-14.2% over the period FY21-23. Nevertheless, the broker continues to be fundamentally cautious and keeps an Underweight rating.

Morgan Stanley expects meaningfully lower medium to long-term earnings, due to a structural decline in the regional tv ad market and rising affiliate fees payable to its tv program supplier Seven West Media ((SVM)).

Morgan Stanley maintains an Underweight rating. Target is increased to $0.09 from $0.08. Industry view: Attractive.

Target price is $0.09 Current Price is $0.23 Difference: minus $0.14 (current price is over target).
If PRT meets the Morgan Stanley target it will return approximately minus 61% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates QUB as Buy (1) -

Citi upgrades estimates to allow for stronger container volumes. Total container movements across Australia's major ports have increased by 11% in the year to date. Melbourne leads the way with volumes up 22%.

As a result, the broker expects increased logistics. Additionally, earnings for Patrick should benefit and the joint venture has the added impetus from higher charges and gains in market share. Buy rating retained. Target rises to $3.57 from $3.51.

Target price is $3.57 Current Price is $3.03 Difference: $0.54
If QUB meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 1.4% (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

UBS rates SCG as Upgrade to Neutral from Sell (3) -

The risk to the downside is reducing and as a result UBS upgrades to Neutral from Sell. This takes into account the recent underperformance of the stock and improved valuation support along with better operating metrics.

The ongoing re-setting of rents is now reflected in the price of the stock, the broker adds. Recent analysis also highlights a manageable vacancy profile.

UBS expects 2021 growth in earnings per share of 32%, helped by reduction in coronavirus-related abatements. Target is steady at $2.65.

Target price is $2.65 Current Price is $2.69 Difference: minus $0.04 (current price is over target).
If SCG meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.84, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley concludes Stockland generally re-rates and de-rates in line with the residential cycle. This comes after an in-house analysis of Sydney's dwelling price movement versus Stockland's price earnings multiple over a 20 year history.

As May's residential data showed 2.97% growth for the month, it suggests to the broker continued support for the company's multiple. Overweight rating. Target is $5. Industry view: In-line.

Target price is $5.00 Current Price is $4.62 Difference: $0.38
If SGP meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.63, suggesting downside of -1.3% (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

Credit Suisse rates SHL as Outperform (1) -

Despite vaccination programs being rolled out globally testing rates for coronavirus have remained strong. Credit Suisse raises earnings assumptions to account for stronger testing volumes, estimating this will add $1.1bn or 43% to FY21 EBITDA.

The broker also continues to assume strong growth in Sonic Healthcare's base business. Base business growth of 13% is anticipated in Australia in the second half and 10% in the US.

Credit Suisse maintains an Outperform rating and $40 target and expects more than a -$1bn reduction in net debt in FY21.

Target price is $40.00 Current Price is $34.61 Difference: $5.39
If SHL meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $37.30, suggesting upside of 7.5% (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

Morgan Stanley rates SHL as Overweight (1) -

April Medicare data shows pathology, diagnostic imaging and GP benefits paid continue to show good growth on pre-covid-19 levels. Morgan Stanley believes Sonic Healthcare offers the most palatable valuation relative to other large cap Australian health care companies.

The company has relatively low-risk estimated three-year EPS compound annual growth rate (CAGR) of around 11% to FY23, explains the broker. Additionally, it's considered to have a relatively attractive dividend yield and a de-leveraged balance sheet.

Overweight rating maintained. Target is $38.60. Industry view: In-line.

Target price is $38.60 Current Price is $34.61 Difference: $3.99
If SHL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $37.30, suggesting upside of 7.5% (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

Morgan Stanley rates VRT as Underweight (5) -

April Medicare stats shows IVF cycles are up 22% versus April 2019 and 37% versus April 2020, which is better than Morgan Stanley anticipated. It's estimated these figures will remain elevated across the balance of the second half of FY21 at least.

The broker prefers Monash IVF Group ((MVF)) over Virtus Health due to better valuation upside and lower balance sheet leverage. The Underweight rating and $5.05 target are retained. Industry view is In-Line.

Target price is $5.05 Current Price is $6.29 Difference: minus $1.24 (current price is over target).
If VRT meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.29, suggesting downside of -0.1% (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 WEB as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May, while Staples downgrades persist. Meanwhile, Discretionary returned the best price performance in consumer, up by 3.4% for May.

Within Discretionary, the broker remains positive on travel. It's considered Webjet is best placed among listed travel stocks to benefit from a domestic-led travel recovery with circa 70% of total transaction volume (TTV) being domestic. Outperform and $6.35 target unchanged.

By comparison Corporate Travel Management ((CTD)) derives around 60% of revenue from domestic, while Flight Centre ((FLT)) derives around 53%.

Target price is $6.35 Current Price is $5.11 Difference: $1.24
If WEB meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates WOW as Outperform (1) -

In a monthly consumer sector review, Macquarie notes Retail posted the highest EPS upgrades in consumer of 29.4% year-on-year in May while Staples downgrades persist. Meanwhile Discretionary returned the best price performance in consumer, up by 3.4% for May.

In Staples, the broker continues to prefer Woolworths over Coles Group ((COL)) and Metcash ((MTS)), ahead of the Endeavour
Group demerger due for June 24. The Outperform rating and $44.50 target are retained.

Target price is $44.50 Current Price is $41.76 Difference: $2.74
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 0.9% (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