Australian Broker Call

Morgan Stanley rates AD8 as Overweight (1) -

Morgan Stanley infers around 26-31% revenue growth, compared to the consensus forecast for 28-29%, after Audinate Group reaffirmed FY24 guidance in US$ gross profit dollars "consistent with historical".

Management materially upgraded the total addressable market (TAM) for Audio as well as Video and Software to US$2bn from the prior $1bn (note the change of currency).

The Video and Software TAM's were materially upgraded to US$780m and US$890m, respectively from around $400m each previously. The broker suggest the Video upgrade was likely driven by higher prices and volume.

Overweight. Target $13.30. Industry view is In-Line. 

Target price is $13.30 Current Price is $13.52 Difference: minus $0.22 (current price is over target).
If AD8 meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.03, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates ALX as Hold (3) -

Morgans updates forecasts for Atlas Arteria following 3Q traffic and toll revenue data, and details around the Chicago Skyway refinancing. The latter results in higher debt servicing costs and lower operating earnings forecasts.

The traffic and toll data lead to downgrades for traffic forecasts for APPR, immaterial changes for Chicago Skyway and a mild downgrade to earnings forecasts for Dulles Greenway. 

The broker believes risk/returns are evenly balanced at the current share price and retains a Hold rating. The target falls to $5.36 from $5.67, partly due to the updated assumptions for traffic/toll revenues and the refinancing of the Chicago Skyway.

Target price is $5.36 Current Price is $5.41 Difference: minus $0.05 (current price is over target).
If ALX meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.06, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates AND as Add (1) -

Ansarada Group's 1Q revenue was in line with Morgans forecast while costs were lower. The business was free cash flow (FCF) neutral compared to an expectation for a small cash outflow.

A gap between customers and subscribers indicates nearly 10,000 freemium customers, many of whom should convert into paying customers, suggest the analysts, when activity increases for capital markets and/or M&A.

The Add rating and $1.90 target are unchanged.

Target price is $1.90 Current Price is $1.49 Difference: $0.41
If AND meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Ansell reiterated FY24 EPS guidance at its AGM, noting market conditions were broadly in line with expectations. Ongoing de-stocking across surgical and life sciences is expected to normalise in the 2H.

Management intends slowing production to reduce inventory, which will increase the cost of goods sold (COGS) metric, offsetting positive benefits from manufacturing changes and investments. Cost-out savings (reduced SG&A expenses) are expected from October forward.

Equal-weight. Target $25.38. Industry view In-Line.

Target price is $25.38 Current Price is $21.49 Difference: $3.89
If ANN meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Ord Minnett rates ANN as Accumulate (2) -

The worst appears to be over for Ansell, in Ord Minnett's opinion, with productivity gains on track. Following a 1Q AGM trading update, the broker still expects the earnings (EBIT) margin to better pre-pandemic levels.

Management reaffirmed FY24 EPS guidance of US92c to US$1.12, with customer de-stocking in the surgical and life sciences businesses persisting until the 2H.

Accumulate rating and $30 target price retained.

Target price is $30.00 Current Price is $21.49 Difference: $8.51
If ANN meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

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 BCB as Buy, High Risk (1) -

Following Bowen Coking Coal's 1Q activities report, Shaw and Partners notes a positive in operating cash flow of $11.5m though a negative relating to a -$4m loss at the Bluff mine in the Bowen Basin.

The Bluff mine is not profitable at current coal prices and has been placed on care-and-maintenance, explains the broker.

The analysts highlight a new record high of 555kt for shipments of produced coal. An even better result is expected in the December quarter, given the closure of Bluff and as Ellensfield South reaches steady state.

The Buy, High Risk rating is unchanged and the target falls to 27c from 29c.

Target price is $0.27 Current Price is $0.11 Difference: $0.165
If BCB meets the Shaw and Partners target it will return approximately 157% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates BGA as Buy (1) -

Bega Cheese's management retained earnings guidance and five-year earnings and ROFE targets in its AGM commentary but expected commodity headwinds in the bulk division in the December half, reports Bell Potter.

The broker observes that the price of dairy ingredients has risen recently, suggesting an increase of 18% since August, and notes forward rates for the June half are trading near 2022 December half levels.

This leads the broker to concur that while the group faces bulk headwinds this December half, this should be more than offset by the sharp rise implied in ingredient futures markets.

Recent moves by Coles Group ((COL)) to raise its private label milk prices another 10c a litre could also pave the way for branded products to raise prices down the track, says the broker.

Buy rating retained. Target price steady at $3.35.

Target price is $3.35 Current Price is $2.91 Difference: $0.44
If BGA meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates BGA as Lighten (4) -

At the Bega Cheese AGM, management reaffirmed its FY24 earnings (EBITDA) guidance and noted the Branded business continues to perform well following strong price increases during FY23 to counter input cost inflation. 

The Bulk Ingredients division, however, faces an ongoing disconnect in FY24  between a high farm gate milk price and a material decline in global dairy commodity prices, explains the broker. Further offsetting price increases may be required, in the analysts' view.

The target falls to $3.00 from $3.10. Lighten.

Target price is $3.00 Current Price is $2.91 Difference: $0.09
If BGA meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates BPT as Sell (5) -

Beach Energy, earlier today, released Q1 production numbers and Citi, upon first glance, believes key performances were largely in line with forecasts, including by market consensus.

The broker identified a few "small wins" with the added observation these have already been accounted for in its own projections. These wins include Waitsia on track, Kupe South 9 poised to spud imminently and Enterprise should receive final regulatoy approval shortly.

The broker retains its Sell rating with a price target of $1.55 (down from $1.65 in August). The analyst explains: with the company forced into M&A to grow and Lattice repricing catalyst delayed from arbitration, Beach Energy is deemed "too hard" for the time being.

Citi awaits the new CEO articulating his strategy in mid-2024.

Target price is $1.55 Current Price is $1.50 Difference: $0.055
If BPT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 20.5% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Ord Minnett rates CCP as Accumulate (2) -

Following a disappointing trading update from Credit Corp, Ord Minnett had placed its rating for the stock under review.

The broker resumes coverage with a target of $15, down from $22.50, on lower revenue and margin growth assumptions in anticipation of a substantial decline in business profitability compared to the past few years.

The analyst expects rising bad debts and increased competition in the US.

The rating is upgraded to Accumulate from Hold. Prior to placing the stock under review the broker made the following comments:

The broker highlighted Credit Corp intends to impair 14% of its US debt ledger assets, resulting in a -$45m reduction in profit after tax in FY24.

The broker attributed the debt ledger impairment to higher interest rates, which have also driven a deterioration in cash collections, but also suggests to Ord Minnett the US is more competitive than it had anticipated which challenges the broker's expected growth. 

The broker is concerned about a lack of visibility around the longer-term profitability of Credit Corp's US operations, with no evidence of how it will perform against rapidly rising interest rates.

Target price is $15.00 Current Price is $12.41 Difference: $2.59
If CCP meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $15.02, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates CMM as Buy (1) -

Capricorn Metals' September-quarter production from Karlawinda nosed out Bell Potter's forecasts; all-in-sustaining costs also proved a slight beat; and mined ore and milled head grades were higher quarter on quarter.

All up, the result suggests the company is on track to meet the midpoint of FY24 guidance, says the broker.

The company closed the quarter with cash and bullion of $133.6m, up from $110.3m at June 30 (the broker expects the cash increase will prove a market-leading metric). The September quarter was the company's first quarter of unhedged production, and has proved well timed given the rise in the gold price, observes the broker.

EPS forecasts fall -4% in FY24; are steady in FY25; and rise 1% in FY26, as a higher gold price is offset by lower production.

Buy rating retained. Target price rises to $5.50 from $5.20.

Target price is $5.50 Current Price is $4.80 Difference: $0.7
If CMM meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates CMM as Neutral (3) -

Capricorn Metals' Sep Q saw production 5% higher than Macquarie, costs -6% worse and sales -14% softer. FY24 production guidance is retained with the miner on track.

Cash flows were softer than the broker's estimate with management citing timing of contractor payments, while net cash was also weighed down by a strong bullion on hand build over the quarter. Macquarie has ticked down earnings forecasts.

Neutral and $4.80 target retained, with environmental approvals and subsequent development timing of Mt Gibson remaining important.

Target price is $4.80 Current Price is $4.80 Difference: $0
If CMM meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates COE as Buy (1) -

Cooper Energy's September-quarter production and sales outpaced Bell Potter's forecasts, thanks to uninterrupted operations at the Athena Gas Plant and the connection of a new well in the Cooper Basin. No changes were made to guidance.

The company closed the quarter with cash reserves of $48m and net debt of $11m after paying -$40m to APA Group ((APA)) for the Orbost Gas Processing Plant and spending -$18m on BMG abandonment works. 

Bell Potter expects the company will draw more from its $400m committed debt facility this quarter as BMG decommissioning kicks off (total capital expenditure of $193m to $198m).

The broker notes that efforts to raise Orbost's throughput will start in November, revealing whether more capital investment will be necessary. All up, Bell Potter expects Cooper Energy will become free cash flow positive after navigating a challenging FY24.

The broker also observes the company will be renegotiating some offtake contracts (and resetting for CPI) at the end of 2023, likely resulting in stronger realised prices in 2024.

Buy rating and 17c target price retained.

Target price is $0.17 Current Price is $0.10 Difference: $0.071
If COE meets the Bell Potter target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 76.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates COE as Neutral (3) -

Cooper Energy's Sep Q production and revenue were soft due to flat Orbost volumes. Early abandonment works for the BMG subsea project have begun and should be completed provided the plug & abandon vessel arrives from NZ in late November as planned, Macquarie notes.

This would lift a key overhang as Cooper is effectively spending 2/3 of its current market cap on this rehab. The company needs to complete the works and Orbost plant improvement before it can proceed with a final investment decision on Otway, the broker points out.

With Otway FID timing less certain, target falls to 12c from 14c, Neutral retained.

Target price is $0.12 Current Price is $0.10 Difference: $0.021
If COE meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 76.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgans rates COE as Add (1) -

First quarter production, sales volumes and revenue for Cooper Energy were broadly in line with Morgans forecasts, though fell short of consensus estimates.

The broker believes shares are trading at deep value and key catalysts to spur a share price rally include completing the BMG abandonment project and lifting production at Orbost.

The Add rating and 24c target are retained.

Target price is $0.24 Current Price is $0.10 Difference: $0.141
If COE meets the Morgans target it will return approximately 142% (excluding dividends, fees and charges).

Current consensus price target is $0.18, suggesting upside of 76.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgan Stanley rates EBO as Overweight (1) -

While Ebos Group's Q1 trading update suggests some downside risk to Morgan Stanley's 1H forecasts, the broker points out the 2Q was stronger than the 1Q in the prior financial year.

Management noted some positive Australian government initiatives should counter the negative impact on the company's gross margin from the change to the government's dispensing policy to two months of supply from 30 days.

The company also announced a four-pronged strategy to replace the Chemist Warehouse contract including cost and M&A initiatives.

Target $39. Overweight retained. Industry view In-Line.

Target price is $39.00 Current Price is $32.03 Difference: $6.97
If EBO meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $34.61, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Bell Potter rates IMM as Buy (1) -

Immutep has published data from two clinical trials in small cell lung cancer, and Bell Potter considers the results from the Phase 2 Efti plus pembrolizumab trials to be impressive.

The median overall survival rate of 35.5 months in the latter is double historical data for other treatments; and the three-year survival rate of 46% of patients is sharply higher than alternatives, observes the broker.

Bell Potter believes if the Phase 3 trials replicate these data, Efti would prove a considerable improvement on current treatments.

Buy rating and 55c target price retained.

Target price is $0.55 Current Price is $0.32 Difference: $0.23
If IMM meets the Bell Potter target it will return approximately 72% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates JHG as Hold (3) -

After lowering its Australian dollar forecast to US$0.6300 from US$0.6700, Ord Minnett raises its target for Janus Henderson to $41 from $39.

The share price is moderately undervalued, in the broker's view, and a Hold rating is retained.

Target price is $41.00 Current Price is $35.73 Difference: $5.27
If JHG meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $41.39, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Macquarie rates KLS as Outperform (1) -

Kelsian Group's AGM update was in line with Macquarie's expectations. Bus staffing in Australia has recovered to more normal levels and new Sydney contracts will deliver a positive earnings contribution.

Marine & Tourism is benefiting from resilient domestic demand while the outlook is for Sydney to see international visitors return. All Aboard America! integration is progressing well and the contract portfolio growing, with further wins an upside risk.

Target rises to $7.70 from $7.60, Outperform retained.

Target price is $7.70 Current Price is $6.02 Difference: $1.68
If KLS meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $7.29, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates LYC as Neutral (3) -

With its Malaysian license extended until March 2026, Lynas Rare Earths has committed to increasing its research and development investment to 1.0% of Malaysian gross sales, from a previous 0.5%, and to exploring removing naturally occurring radioactive material from residues.

The license allows Lynas Rare Earths to continue importing and processing lanthanide concentrate from the Mt Weld mine, and sees Citi increase its NdPr production forecasts 16% and 8% in FY25 and FY26 respectively. 

The Neutral rating is retained and the target price increases to $7.20 from $7.15.

Target price is $7.20 Current Price is $6.82 Difference: $0.38
If LYC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.75, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates LYC as Outperform (1) -

Lynas Rare Earths has announced that its Malaysian operating licence has been amended by the government. This is encouraging, Macquarie suggests, as the revised licence will allow continued operations of its cracking and leaching facility beyond 1st Jan 2024. 

The updated licence is valid until 2nd March 2026, which takes the pressure off the Kalgoorlie ramp-up.

Lynas has de-bottlenecked its cracking and leaching following the licence update, Macquarie believes, and the broker sees
multiple opportunities to further unlock production capacity.

Target rises to $7.70 from $7.50, Outperform retained.

Target price is $7.70 Current Price is $6.82 Difference: $0.88
If LYC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.75, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates MMS as Upgrade to Buy from Neutral (1) -

The government's electric car discount policy is providing a boost to the novated leasing industry, with around 26% of electric cars purchased in June being financed through a novated lease. 

For McMillan Shakespeare, new electric vehicles have accounted for 36% of novated leases in the September quarter. Citi estimates McMillan Shakespeare holds 12% of the electric vehicle novated market, but could capture 16% given its large employee base. 

Further, Citi expects better education around novated leasing could see the novated industry take a larger share of the new electric vehicle lease market. The rating is upgraded to Buy from Neutral and the target price increases to $20.70 from $17.95.

Target price is $20.70 Current Price is $16.42 Difference: $4.28
If MMS meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $21.44, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgan Stanley rates MMS as Overweight (1) -

McMillan Shakespeare's 1Q update surprised Morgan Stanley to the upside with evidence electric vehicle (EV) growth is a structural tailwind to overall novated order growth.

Group Remuneration Services (GRS) segment revenues rose by 29% beating the around 15% consensus estimate, largely due to a  28% increase in sales volume, explain the analysts.

Suggestive of ongoing organic volumes (particularly EV penetration), according to the broker, the order backlog remains at a similar level to FY23.

Target $20.60. Overweight. Industry view: In-line.

Target price is $20.60 Current Price is $16.42 Difference: $4.18
If MMS meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $21.44, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates MND as Buy (1) -

Monadelphous Group has secured the Stage 1 contract with Lynas Rare Earths ((LYC)) for the structural, mechanical and piping works at its Mt Weld mine, one of the three near-term construction opportunities that Monadelphous Group had its eye on. 

For Citi, the contract illustrates acceleration of award momentum for Monadelphous Group, and highlights the company is benefiting from its competitors facing more acute capacity strains. The broker expects the company is now well placed to be awarded the Stage 2 contract.

The Buy rating and target price of $15.30 are retained.

Target price is $15.30 Current Price is $14.39 Difference: $0.91
If MND meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.68, suggesting upside of 3.6% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgan Stanley rates ORG as Overweight (1) -

Morgan Stanley has reviewed the independent expert's report attached to the Origin Energy Scheme Booklet published on 19 October and noted some assumptions underpinning the valuation estimate of between $8.45-9.48 per share.

The analysts points out the independent expert does not appear to explicitly value Origin's ESG initiatives, including its Climate Transition Action Plan. Additionally, no synergy value is placed on the acquirer's undertaking to build renewable generation and storage.

The independent expert did concede valuing Origin Energy is "both challenging and subject to considerable uncertainty".

The broker's $8.88 target and Overweight rating are unchanged. Industry view: Cautious.

Target price is $8.88 Current Price is $9.16 Difference: minus $0.28 (current price is over target).
If ORG meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.92, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates PNI as Neutral (3) -

UBS downgrades Pinnacle Investment Management's target price to $8.50 from $9.20 after marking to market its funds under management forecasts. EPS forecasts fall -4% for FY24; and -8% in FY25.

Heading into the company's September-quarter AGM update, UBS observes Calastone data imply challenging retail conditions have continued into FY24, but Morningstar data suggest Pinnacle will still report positive September-quarter retail flows.

The broker considers this to be respectable given the difficult trading environment and expects volatile equity markets could delay a cyclical recovery and the fuller benefits of Horizon II beyond FY24.

Neutral rating retained.

Target price is $8.50 Current Price is $7.98 Difference: $0.52
If PNI meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.03, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates PRU as Outperform (1) -

Perseus Mining posted a solid Sep Q with production 2% better than Macquarie expected and costs -18% lower. Perseus remains comfortably on track to meet first half guidance. Free cash flow was better than expected and the miner has zero debt.

Management commented while it is still actively looking for inorganic (M&A) opportunities, any such investment will be carefully weighed against capital returns to shareholders.

Outperform and $2.60 target retained.

Target price is $2.60 Current Price is $1.76 Difference: $0.84
If PRU meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates REG as Outperform (1) -

Regis Healthcare's AGM update showed average occupancy improved in the Sep Q from the June Q with increased government revenue. Average care minutes currently exceed the government's 200-minute requirement.

Management reiterated its intention to rationalise non-income producing assets for redeployment into higher returning opportunities. Combined with a favourable balance sheet position, Macquarie sees scope for acquisition opportunities.

Target rises to $2.65 from $2.60, Outperform retained.

Target price is $2.65 Current Price is $2.48 Difference: $0.17
If REG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates RMD as Outperform (1) -

Macquarie's forecasts imply a Sep Q gross margin below consensus for ResMed. While forecasts capture improved mask/accessories growth, the broker assumes a continuation of higher component/freight costs, with house FX forecasts implying a further incremental headwind.

Philips has indicated that sales have recommenced in several ex-US markets, with no material discounting or change in pricing. ResMed has indicated potential for new mask launches over FY24, which Macquarie sees as potentially supporting improved mask/accessories revenue growth.

Target falls to $32.30 from $32.60. Outperform retained ahead of Friday's result release.

Target price is $32.30 Current Price is $22.83 Difference: $9.47
If RMD meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $36.81, suggesting upside of 64.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.6

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

Citi rates SIQ as Upgrade to Buy from Neutral (1) -

The government's electric car discount policy is providing a boost to the novated leasing industry, with around 26% of electric cars purchased in June being financed through a novated lease. 

Citi estimates Smartgroup Corp holds 10% of the electric vehicle novated market, but could capture 15% given its large employee base. 

Further, Citi expects better education around novated leasing could see the novated industry take a larger share of the new electric vehicle lease market. The rating is upgraded to Buy from Neutral and the target price increases to $9.70 from $8.50.

Target price is $9.70 Current Price is $8.50 Difference: $1.2
If SIQ meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates WAF as Outperform (1) -

West African Resources announced Sep Q production and costs in line with Macquarie's estimates. Year to date production represents 77% of the midpoint of 2023 guidance while costs are below the midpoint.

Net cash was in line but lower than the June Q due to spending on Kiaka development. The timing of this development is important for the miner's outlook, the broker notes.

Outperform and $1.60 target retained.

Target price is $1.60 Current Price is $0.75 Difference: $0.85
If WAF meets the Macquarie target it will return approximately 113% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates WOW as Buy (1) -

Woolworths Group, earlier today, released its quarterly trading update and UBS, upon first assessment, believes the New Zealand operations performed weaker-than-expected.

Total sales for the quarter did meet the broker's $17.2bn forecast as Food sales in Australia slightly beat. Management remains cautious while trading to date in October remained largely in line. Customers are seeking out value propositions.

In New Zealand, the broker believes market share is being lost to Foodstuffs, amidst ongoing tough conditions. For Big W, the Christmas sales period remains all-important.

Buy. Target $42.

Target price is $42.00 Current Price is $36.35 Difference: $5.65
If WOW meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $37.25, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Ord Minnett rates ZIP as Hold (3) -

Strong revenue growth for Zip Co in the 1Q was driven by an 11% rise in total transaction value (TTV), explains Ord Minnett, while revenue margin improvement to 8.5% also contributed.

Management announced positive cash earnings (EBTDA), and, in a pleasant surprise for the broker, upgraded guidance to "positive group cash EBTDA result for FY24".

Ord Minnett points out the company is benefiting from FY23 restructuring decisions, as well as improved margins.

The analysts were also impressed by 3.5% cash transaction margin, which is net of bad debts and interest expenses. It's felt bad debts performed well, with only around 1.3% of net bad debts.

The target falls to 42c from 45c after the broker includes the impacts of a valuation roll-forward and recent capital management exercises.

Target price is $0.42 Current Price is $0.32 Difference: $0.1
If ZIP meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 140.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates ZIP as Neutral (3) -

Zip Co's September-quarter trading update outpaced UBS on cash earnings (EBTDA), due to stronger than forecast revenue yields. The broker raises FY24 to FY25 portolio incomes and revenue yield forecasts accordingly.

On the downside, net customer additions and TTV/customer spend disappointed.

UBS suspects the company's strategy to exit unprofitable regions, raise revenue yields, lift profitability and improve liability management is working and its main word of caution relates to weakening consumer retail spending trends in US and Australia.

Neutral rating retained. Target price rises to 36c from 32c.

Target price is $0.36 Current Price is $0.32 Difference: $0.04
If ZIP meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 140.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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