Australian Broker Call

UBS rates A2M as Downgrade to Neutral from Buy (3) -

UBS cut its rating for a2 Milk Co to Neutral from Buy on valuation grounds, believing the current price fairly captures its forecast for net profit doubling by FY30.

The broker believes the company can lift China label market share by 200bps (150bps previous forecast) to 6% by FY32 after the upgrade of recipes.

The incremental sales of NZ$255m compare with the previous forecast of NZ$220m, and the company's guidance of over NZ$100m by FY30.

FY28 EPS forecast lifted by 1%, and the broker now expects EPS to rise to NZ57c by FY30. Target rises to NZ$10.55 from NZ$9.95.

Current Price is $9.14. Target price not assessed.

Current consensus price target is $8.46, suggesting downside of -8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.4

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

Ord Minnett rates AAI as Initiation of coverage with Buy (1) -

Ord Minnett initiates research coverage on Alcoa with a Buy rating and a $63.00 target price.

The broker highlights fully integrated exposure across bauxite, alumina and aluminium, upside from new mining projects, and the potential for further global portfolio restructuring.

A constructive view on the aluminium price underpins Ord Minnett's positive stance, with aluminium trading at 0.27 times the copper price versus parity in the late 1990s.

China has capped aluminium output at 45mtpa, while demand is set to rise due to uses in electricity grid upgrades and lighter-weight electric vehicles, highlights the analyst.

Meeting this demand will require new smelting capacity outside China, explains the broker, with higher capital intensity implying aluminium prices need to increase.

Ord Minnett also expects new Darling Range bauxite mining areas from 2028 to lower unit costs and lift volumes. 

Target price is $63.00 Current Price is $48.23 Difference: $14.77
If AAI meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

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

Market Sentiment: 0.5

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

Shaw and Partners rates AAR as Buy (1) -

Astral Resources recently finished a 76 hole drill program at Spargoville Gold project, and the first to be undertaken, Shaw and Partners notes, since the acquisition of Maximus Resources in May.

Assay results have been received for 23 holes, and high-grade mineralisation over 300m suggests significant upside to the current mineral resource of 0.5Mt at 1.3g/t Au for 19koz of contained gold.

Additional assay results for 53 holes at Trapdoor-Lindsay's Reward gold trend and the Eagles Nest deposit are pending.

Shaw and Partners' target is unchanged at 45c. Buy, High Risk retained.

Target price is $0.45 Current Price is $0.19 Difference: $0.26
If AAR meets the Shaw and Partners target it will return approximately 137% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

UBS made significant downward revisions to its forecasts for Boss Energy after moderating FY26 expectations and cutting Honeymoon production forecasts.

The broker notes the stock has had a volatile few months following the CEO departure and uncertainty over when Honeymoon will reach nameplate capacity, which prompted the company to launch an independent review.

FY26 production forecast cut by -7% and FY27-28 by -18%. EBITDA forecast for FY26 trimmed by -15% and by -25% for FY27.

Target lowered to $2.00 from $3.50 as the broker also increased risk weighting for Honeymoon expansion.

Rating upgraded to Neutral from Sell following share price weakness.

Target price is $2.00 Current Price is $2.04 Difference: minus $0.04 (current price is over target).
If BOE meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.33, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Citi rates COL as Buy (1) -

The two major Australian supermarkets have outlined further material impacts from the Federal Court’s ruling on staff underpayments, Citi notes.

Coles Group now expects additional pre-tax costs of -$150-250m pre-tax, in addition to -$50m already provisioned or paid.

Both retailers are yet to receive final orders and Citi expects appeals will be lodged.

The analysts highlight broader sector implications, as the judgement restricts set-off of overtime to the current pay cycle rather than a six to 12-month horizon, which had been common practice.

Citi expects retailers may respond by shifting some employees from salary to wages and/or extending pay cycles, such as from fortnightly to monthly.

For Coles Group, the Buy rating is retained with a $25.40 target price.

Target price is $25.40 Current Price is $23.84 Difference: $1.56
If COL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $24.18, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

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

Ord Minnett rates EBO as Accumulate (2) -

Ord Minnett cuts its target price for Ebos Group by -13% to $33.00 and retains an Accumulate rating, after FY25 underlying earnings of $585m came in -2% shy of the broker's forecasts but in line with company guidance.

Retail pharmacy share gains and -$30m in cost-outs helped offset the loss of the Chemist Warehouse contract, which had contributed $2.2bn revenue and around $80m profit in FY24, explain the analysts.

The broker highlights weaker FY26 guidance of $615-635m in earnings, with higher depreciation and net interest driving forecast downgrades. 

Group revenue rose 12% in FY25, supported by pharmacy and institutional healthcare, while free cash flow (FCF) rose 21% to $302m on lower working capital, observes the broker.

With net debt to earnings at 1.9 times and $250m balance sheet capacity, the group remains positioned for bolt-on acquisitions, in Ord Minnett's view.

Target price is $33.00 Current Price is $26.88 Difference: $6.12
If EBO meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $33.27, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

UBS rates HMC as Buy (1) -

UBS notes the market is sceptical of HMC Capital's ability to continue to grow and raise capital.

Buy. Target price $7.14.

Target price is $7.14 Current Price is $3.53 Difference: $3.61
If HMC meets the UBS target it will return approximately 102% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 41.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

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

Macquarie rates JHX as Outperform (1) -

Macquarie reminds James Hardie Industries' 1Q26 result was a disappointment and the adjustment to FY26 outlook was a shock, but believes the base is now reset.

The broker expects likely Fed rate cuts will aid mortgage spreads and R&R demand, though inflation pass-through may dampen the benefit somewhat. The broker sees a doubling in EBITDA by FY30 vs FY26, and its net profit forecast for FY27 is 6% above consensus.

Balance sheet risk remains, though net debt/EBITDA of 3.6x FY26E (3.3x covenant adjusted) leaves adequate headroom to the 4.25x covenant, provided conditions don’t deteriorate further.

Minor changes to forecasts, with modelling revised further following more disclosure post-Azek deal. 

Outperform. Target rises to $37.20 from $36.90.

Target price is $37.20 Current Price is $30.20 Difference: $7
If JHX meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $35.88, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.3

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

UBS rates LOV as Neutral (3) -

Lovisa Holdings' FY25 result (back on August 27) came in below expectations held by UBS, with earnings (EBIT) and profit both underperforming despite revenue growth of 14.2%.

Higher costs and depreciation weighed on earnings, explain the analysts, though revenue and gross margins were stronger than forecast. 

The broker highlights improving sales momentum, with respective total and like-for-like sales growth of 20.4% and 1.7% in 2H25, accelerating to 28.0% and 5.6%, respectively, in the first eight weeks of FY26.

Growth is expected to be driven by the Americas, UK, Ireland and Western Europe, with significant upside from Claire’s store closures in Europe and the US. Also, the broker notes new store expansion is accelerating as US operating issues are resolved.

Gross margins remain strong at 82%, with tariffs successfully passed on in the US, but UBS expects CODB/sales to stay elevated as investment continues. 

UBS lifts its target to $42 from $30, supported by stronger EPS forecasts and a higher multiple, but retains a Neutral rating given rising costs and the stock’s premium valuation.

Target price is $42.00 Current Price is $41.81 Difference: $0.19
If LOV meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $40.41, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

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

Shaw and Partners rates MMI as Buy (1) -

Metro Mining shipped 735kt of bauxite in August, some 6% above the same period last year, meaning the producer is on track to ship around 2.2Mt in the September quarter, Shaw and Partners observes, which will be a record.

Adverse weather impacted at the start of August, which resulted in a miss on target by -80kt, although management has retained 2025 guidance at 6.5-7.0wmt.

The analyst has lowered the forecast to 6.3wmt to err on the conservative side, but this does not detract from the view Metro Mining can achieve earnings (EBITDA) of around $140m in 2025, and rising to over $200m, estimated in 2026.

The stock remains one of the broker's top picks. Buy, High Risk. Target unchanged at 17c.

Target price is $0.17 Current Price is $0.08 Difference: $0.086
If MMI meets the Shaw and Partners target it will return approximately 102% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates NSR as Buy (1) -

UBS notes National Storage REIT's advertised storage growth rates cooled in July, with like-for-like falling -0.5% m/m on a national basis following two months of gain. This compares with a 0.7% m/m rise for its key unlisted peers.

Buy. Target unchanged at $2.57.

Target price is $2.57 Current Price is $2.40 Difference: $0.17
If NSR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

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

UBS rates ORG as Buy (1) -

UBS highlights Origin Energy’s 22.7% stake in Octopus Energy as a key source of valuation support and potential catalysts.

The broker values Octopus at $2.91 per share net to Origin, split between $1.10 per share for the retail arm and $1.71 per share for the Kraken SaaS platform.

The analysts point to accelerating global licensing growth of Kraken, forecasting 116m accounts by FY27, with an upside scenario of 300m by 2030.

The broker sees potential catalysts from a full financial separation of Octopus divisions, or a possible Kraken IPO, which could unlock higher implied valuations. 

UBS compares Kraken to global SaaS peers on metrics such as Rule of 40 and EV/sales, concluding that the risk/reward for Origin shareholders is skewed 4:1 to the upside.

The target price is increased to $14.00 from $13.70. Buy rating.

Target price is $14.00 Current Price is $12.41 Difference: $1.59
If ORG meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.29, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

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

Citi rates ORI as Buy (1) -

Citi raises its target for Buy-rated Orica to $24.04 from $20.65 after management delivered an encouraging trading update. It's felt this update reflects confidence in the near-term outlook extending beyond FY25.

The broker highlights rising adoption of higher-margin products and services, both from existing operations and recent acquisitions, which should align profit and EPS growth rates.

Structural headwinds from thermal coal remain, while litigation costs are elevated but considered understandable by the analysts given Orica’s intellectual property base and operational footprint.

All up, the broker expects elevated Australian dollar prices and stronger exploration activity to support momentum across the group.

Target price is $24.04 Current Price is $21.03 Difference: $3.01
If ORI meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $23.25, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates ORI as Buy (1) -

Orica will book -$50-54m in pre-tax legal charges in the second half of FY25, Ord Minnett notes, tied to the defence of Webgen patents in Australia and litigation with CF Industries in the US over an off-take contract.

Post-tax, the costs amount to -$39-42m and will be recognised as significant items.

Underlying momentum from the first half has continued (September year end), highlights the analyst, with management guiding to higher earnings across all three business segments year-on-year.

While no quantitative guidance was provided, Ord Minnett considers the tone positive and expects FY25 results to at least meet market forecasts.

The balance sheet remains strong with net debt at the low end of the 1.25-2.0 times range, providing scope for capital management, in Ord Minnett's view.

Buy rating. Target $23.00.

Target price is $23.00 Current Price is $21.03 Difference: $1.97
If ORI meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $23.25, suggesting upside of 10.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates PMV as Neutral (3) -

Macquarie notes its proprietary consumer spending data are consistent with green shoots highlighted in the consumer sector at the August results season.

The data also track favourably with Australian Bureau of Statistics housing spending indicator.

Neutral. Target price $21.80 for Premier Investments.

Target price is $21.80 Current Price is $22.12 Difference: minus $0.32 (current price is over target).
If PMV 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 $25.23, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Bell Potter rates PYC as Speculative Buy (1) -

PYC Therapeutics published first safety/efficacy data for its second drug trialled in nine patients with Autosomal Dominant Optic Atrophy, a rare genetic vision disorder with no approved treatments.

Bell Potter notes no drug-related adverse events were reported, and in four weeks, treated eyes showed better average visual acuity than untreated eyes. In 24 weeks, two out of three patients had over 10-letter improvement in visual acuity from baseline.

The early results are very encouraging, the broker highlights, strengthening confidence the company's platform could be applied across multiple genetic eye diseases.

Speculative Buy. Target unchanged at $2.30.

Target price is $2.30 Current Price is $1.24 Difference: $1.065
If PYC meets the Bell Potter target it will return approximately 86% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

UBS rates RFF as Neutral (3) -

UBS sees the real estate sector's current pricing at a 10% premium to NTA (excluding fund managers) as being relatively fair, with earnings growth adequately priced.

Further upside could come from NTA growth via cap rate compression or decline in bond yields, or stronger earnings growth if accretive acquisitions can be equity-funded, the broker believes.

Neutral. Target for Rural Funds rises to $1.93 from $1.89.

Target price is $1.93 Current Price is $1.88 Difference: $0.05
If RFF meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

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

Citi rates SDR as Buy (1) -

Revisiting Siteminder’s FY25 results, Citi highlights annual recurring revenue (ARR) rose 27% year-on-year in 2H25, supported by Smart Distribution, prompting the broker to now lift its FY26 revenue forecasts by 2% to $282m.

The broker expects Channels Plus, Dynamic Revenue Plus and payment terminals to further drive ARR growth, though weaker travel demand could weigh on transaction revenue.

Property net adds rose to 2.9k in 2H, with forecasts for 6.3k in FY26, taking subscriptions to 62.2k. The analysts expect growth from APAC strength, go-to-market investment, and Little Hotelier integration.

Operating costs grew faster than expected, leading to -8% and -7% downgrades to the broker's FY26 and FY27 earnings forecasts.

Nonetheless, Citi raises its target price to $8.00 from $6.45 largely due to a higher relative valuation as well as a higher medium-term earnings growth forecast. Buy retained.

Target price is $8.00 Current Price is $6.85 Difference: $1.15
If SDR meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Shaw and Partners rates SMI as Buy (1) -

Santana Minerals has released assay results from drilling at the northern extensions of the Rise and Shine deposit, and the results are outside of any planned mining as assessed under the updated pre-feasibility study, Shaw and Partners explains.

The drilling is expected to result in a resource upgrade down the track and allow for mine life extensions to the existing underground mine plan.

The analyst confirms other industry experts believe Santana Minerals' Bendigo-Ophir Gold project will be approved and in production.

The explorer has a cash balance of $99m post a recent $60m capital raising.

Buy, High Risk retained with an unchanged target price of $1.63.

Target price is $1.63 Current Price is $0.77 Difference: $0.865
If SMI meets the Shaw and Partners target it will return approximately 113% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates SVR as Hold (3) -

Bell Potter notes the Federal Court found some contraventions of responsible lending provisions in the ASIC vs Money3 case, but most ASIC claims were rejected. Money3 was rebranded to Solvar in late 2021.

The broker believes it was not a clean result for the company, but far from a major ASIC victory.

Hearing on penalty, fine, costs etc, is due in October and while the broker acknowledges it carries financial/reputational risk, the tone of judgment suggests limited downside relative to ASIC’s original claims.

Separately, the broker reviewed forecasts, lowering overall funding costs for FY26 to 4.5% over cash from 5.3%. Bad debts and provisions estimates also lifted, and the net outcome is a 9.4% lift to FY26 EPS forecast and a 4.5% rise to FY27.

Hold. Target rises to $1.70 from $1.60.

Target price is $1.70 Current Price is $1.63 Difference: $0.075
If SVR meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Bell Potter rates TLX as Buy (1) -

Telix Pharmaceuticals announced it has reached an agreement with the FDA on the resubmission package for Pixclara (floretyrosine F-18).

The resubmission doesn't require new patient data but needs additional confirmatory efficacy analysis of the existing data and a re-examination of the original NDA package.

Bell Potter believes there remains high regulatory uncertainty, and approval is not guaranteed even with confirmatory analysis.

At the same time, the broker notes the 505b(2) is a commonly used approval pathway and both Illuccix and Gozellix were approved in the same manner. Additionally, the company has senior executives and advisors with recent first-hand experience in the 505b(2) pathway. 

Earnings and price target are under review.

Target price is $23.00 Current Price is $13.82 Difference: $9.18
If TLX meets the Bell Potter target it will return approximately 66% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

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 WBC as Underweight (5) -

Morgan Stanley reiterates Westpac is its least preferred major bank stock and reckons market enthusiasm looks overdone. 

While FY25 earnings momentum is strong, the broker believes FY26 is shaping up as a more challenging year, with margin pressure, higher reinvestment, and execution risk likely to weigh.

The broker expects core net interest margin to dip below the 3Q25 level of 1.85%, given limited deposit repricing opportunities, a smaller replicating portfolio benefit and tighter business loan pricing.

EPS forecasts for FY26-27 trimmed by -1% mainly on margin downgrades. Special dividend of 15c also removed from 1H26 forecast as the broker expects the new CFO to take a measured approach to capital management.

Underweight. Target cut to $31.60 from $32.10. Industry View: In-Line.

Target price is $31.60 Current Price is $37.65 Difference: minus $6.05 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.84, suggesting downside of -14.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Citi rates WOW as Neutral (3) -

The two major Australian supermarkets have outlined further material impacts from the Federal Court’s ruling on staff underpayments, Citi notes.

Woolworths Group now expects additional pre-tax costs of -$450-750m ($320-530m post-tax), on top of around -$550m already provisioned or paid.

Both retailers are yet to receive final orders and Citi expects appeals will be lodged.

The analysts highlight broader sector implications, as the judgement restricts set-off of overtime to the current pay cycle rather than a six to 12-month horizon, which had been common practice.

Citi expects retailers may respond by shifting some employees from salary to wages and/or extending pay cycles, such as from fortnightly to monthly.

The Neutral rating and $31 target for Woolworths Group are unchanged.

Target price is $31.00 Current Price is $27.62 Difference: $3.38
If WOW meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $30.82, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

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

Citi rates WTC as Buy (1) -

Citi believes WiseTech Global’s near-term revenue opportunity lies in embedding agentic AI into its Cargowise product.

It's thought commercialising AI-driven workflows should deliver significant productivity benefits for customers, while also reducing competitive risks from native AI entrants.

Partnerships with large freight forwarders will likely be the next signpost, according to the analyst, with Container Transport Optimisation (CTO) considered a longer-term revenue driver.

E2open synergies could add further upside to group revenue in the near term, while Cargowise growth appears to have slowed due to delays in new product rather than weaker demand, explains the broker.

The $121.35 target and Buy rating are maintained.

Target price is $121.35 Current Price is $94.36 Difference: $26.99
If WTC meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $123.99, suggesting upside of 31.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.9

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

Citi rates ZIP as Buy (1) -

Zip Co’s August performance was stronger than expected by Citi, with app downloads accelerating and monthly active users reaching a record high.

Total app sessions rose 43% year-on-year in August, suggesting to the broker healthy customer activity and supporting total transaction value growth.

US app downloads increased 13% month-on-month and 24% year-on-year, highlight the analysts, representing the second strongest month since January 2023.

Monthly active users (MAU) were up 21% year-on-year and 17% month-on-month, while growth in Pay in 4 slowed to 19% year-on-year in the June quarter as competition from Sezzle’s On-Demand product gained traction.

Citi believes the launch of Pay in 2 should drive higher purchase frequency and repeat usage, potentially accretive for near-term margins. 

The broker retains a Buy rating and $4.50 target.

Target price is $4.50 Current Price is $4.43 Difference: $0.07
If ZIP meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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