Australian Broker Call

Citi rates 360 as Buy (1) -

Life360's August app data showed mixed trends, according to Citi. Global monthly active users (MAUs) rose 26% year-on-year to 104.8m, with net adds of 2.5m up from 1.7m in July, though overall growth slowed slightly from 27% in July.

App downloads declined -8% year-on-year, cycling a strong prior period, explain the analysts, with US downloads down -2% versus a 4% rise in July.

US momentum is strengthening, suggests Citi, with MAUs up 23% year-on-year and net adds of 1.2m in August, alongside improved revenue growth.

In the UK, Canada and Australia, MAU growth was steady at 20%, with Canada the standout at 30% year-on-year.

While Citi remains cautious on extrapolating app data given weaker correlation with reported results recently, the analysts believe consensus is underestimating growth in US MAUs and Paying Circles.

Buy rating. Target $47.

Target price is $47.00 Current Price is $44.31 Difference: $2.69
If 360 meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $47.63, suggesting upside of 3.9% (ex-dividends)

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: 0.9

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

Shaw and Partners rates AAR as Buy, High Risk (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Target for Astral Resources lifted to 45c from 38c. Buy, High Risk retained.

Target price is $0.45 Current Price is $0.17 Difference: $0.285
If AAR meets the Shaw and Partners target it will return approximately 173% (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 ASX as Sell (5) -

UBS highlights trading activity on ASX in August showed a continuation of diverging trends, with futures turnover contracting and cash equities expanding.

Average daily volume in futures was down -15.3% y/y, driven by declines in short-tenor and medium-term contracts. Average daily turnover for cash equities rose 23.8% y/y, with higher-margin on-market turnover up 22.1% y.y. 

The broker reckons cash turnover suggests moderate upside risk to expectations, but the sharper drop in futures volumes and softer collateral balances point to a bigger downside risk to consensus forecasts.

EPS forecasts for FY26-28 cut by -1%. Sell. Target unchanged at $62.15

Target price is $62.15 Current Price is $70.39 Difference: minus $8.24 (current price is over target).
If ASX meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.70, suggesting upside of 3.9% (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

Ord Minnett rates BBN as Buy (1) -

Ord Minnett notes ABS data showed a 5.4% y/y increase in household spending indicator in July, the fastest rate in 17 months. The data is consistent with positive commentary from retailers, the broker adds.

Baby Bunting and Beacon Lighting are the broker's preferred stocks in the retail space.

Buy. Target unchanged at $3.

Target price is $3.00 Current Price is $2.98 Difference: $0.02
If BBN meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting downside of -6.4% (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 BHP as Neutral (3) -

Following attendance at a London sell-side round table with BHP Group's CFO Vandita Pant, Brandon Craig (President Americas) and Alejandro Tapia (President Escondida), UBS noted focus on organic growth across copper and potash.

M&A remains an option but only under disciplined parameters, like the right commodities and at the right value. 

Net debt target range lifted to US$10-20bn from US$5-15bn due to stronger resilience, cost position, and cash generation capacity even at cycle troughs, and unrelated to M&A timing.

Neutral. Target unchanged at $42.

Target price is $42.00 Current Price is $41.98 Difference: $0.02
If BHP meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $43.48, suggesting upside of 4.5% (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: 0.3

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

Ord Minnett rates BLX as Buy (1) -

Ord Minnett notes ABS data showed a 5.4% y/y increase in household spending indicator in July, the fastest rate in 17 months. The data is consistent with positive commentary from retailers, the broker adds.

Baby Bunting and Beacon Lighting are the broker's preferred stocks in the retail space.

Buy. Target unchanged at $3.85.

Target price is $3.85 Current Price is $3.40 Difference: $0.45
If BLX meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 18.0% (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

Shaw and Partners rates BTR as Buy (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Target for Brightstar Resources lifted to $1.21 from $1.14. Buy retained.

Target price is $1.21 Current Price is $0.42 Difference: $0.795
If BTR meets the Shaw and Partners target it will return approximately 192% (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

Morgan Stanley rates CHC as Overweight (1) -

Targeting high net worth individuals (HNWI) and wholesale funds, Charter Hall has launched two new unlisted funds in the last week on the back of recent launches of the Convenience Retail Fund (CCRF) and the Charter Hall Office Trust 3 (CHOT3) fund.

Morgan Stanley highlights WPS3 (Wholesale Property Series) is the third in the series and is essentially a fund of funds, offering investors access to a range of funds. DCRF was also formed to raise money from wholesale investors to then invest in CCRF, with total assets over $3bn at launch (August 2025).

The two new funds are not considered too material to the scheme of Charter Hall's Property AUM at $69.4bn, but are viewed as incrementally positive.

Morgan Stanley reiterates its Overweight rating and $26.35 target price. Industry view: In-Line

Target price is $26.35 Current Price is $22.70 Difference: $3.65
If CHC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $21.71, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

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

Citi rates COL as Buy (1) -

ABS retail sales rose 4.8% year-on-year in July, with food up 2.5% and alcohol and tobacco down -17.5% due to weakness in tobacco, explains Citi.

The broker highlights strong growth in discretionary categories, particularly household goods up 5.3%, department stores up 6.6% and eating-out up 7.4%.

Western Australia and Queensland remain the fastest growing states, while Victoria showed improvement. Citi points to household savings balances rising around $140bn year-on-year, but expects stabilisation and a possible unwind.

The broker believes rate cuts and continued income growth should support stronger consumer spending in FY26.

Citi’s preferred retail exposures are JB Hi-Fi, Harvey Norman, Super Retail and Coles Group.

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

Target price is $25.40 Current Price is $24.09 Difference: $1.31
If COL meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $24.18, suggesting upside of 0.9% (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

Macquarie rates DOW as Upgrade to Outperform from Neutral (1) -

During reporting season, Downer EDI delivered FY25 earnings (EBITA) margin of 4.4%, above management's 4.2% target. Macquarie now expects margins above 4.5% in FY25-26.

The broker sees further upside beyond FY26 with margin improvement of around 20bps annually to 5.3% in FY28, supported by strong end-market demand.

Macquarie highlights a $4.5bn pipeline where Downer is a preferred bidder, including defence contracts worth $400m annually. Upside is also expected via power, social housing, defence, rail and a gradually recovering New Zealand.

The broker upgrades to Outperform from Neutral and keeps a $7.65 target price.

Target price is $7.65 Current Price is $6.90 Difference: $0.75
If DOW meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.62, suggesting upside of 9.4% (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

Shaw and Partners rates GMD as Buy, High Risk (3) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased target price for gold stocks using DCF valuation.

Genesis Minerals is among the stocks expected to benefit the most from rising gold prices. Target lifted to $5.40 from $4.40. Rating upgraded to Buy, High Risk from Hold.

Target price is $5.40 Current Price is $5.08 Difference: $0.32
If GMD meets the Shaw and Partners target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting downside of -6.4% (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

Citi rates HVN as Buy (1) -

ABS retail sales rose 4.8% year-on-year in July, with food up 2.5% and alcohol and tobacco down -17.5% due to weakness in tobacco, explains Citi.

The broker highlights strong growth in discretionary categories, particularly household goods up 5.3%, department stores up 6.6% and eating-out up 7.4%.

Western Australia and Queensland remain the fastest growing states, while Victoria showed improvement. Citi points to household savings balances rising around $140bn year-on-year, but expects stabilisation and a possible unwind.

The broker believes rate cuts and continued income growth should support stronger consumer spending in FY26.

Citi’s preferred retail exposures are JB Hi-Fi, Harvey Norman, Super Retail and Coles Group.

For Harvey Norman, the Buy rating is retained with $7.70 target price.

Target price is $7.70 Current Price is $7.34 Difference: $0.36
If HVN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.98, suggesting downside of -6.1% (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

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

The ACCC has announced the proposed acquisition of RAC insurer raises concerns over decreasing competition in both motor and home insurance in the WA market.

Morgan Stanley believes the takeover is unlikely to proceed given the findings, and the ACCC has invited additional submissions by September 18. A final decision is due by November 27.

The analyst estimates RAC would have been around 7% EPS accretive, so the market will move back to focusing on organic growth. Top-line FY26 guidance currently sits below its peers. Morgan Stanley expects earnings growth to "moderate" with a slowdown in the pricing cycle.

Equal-weight. Target remains at $8.45. Industry View: In-Line.

Target price is $8.45 Current Price is $8.65 Difference: minus $0.2 (current price is over target).
If IAG 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 $9.03, suggesting upside of 3.6% (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

UBS rates IAG as Buy (1) -

UBS highlights increased opposition from the regulator, ACCC, on the proposed acquisition of RACI which was always viewed as a "line ball" call. Concerns over weakening competition in motor, home & contents insurance were identified.

Additionally, the acquisition could enable Insurance Australia Group to limit rival insurers’ access to quality and cost-effective repairers.

Submissions to the Statement of Issues are due by September 18, and a final determination is due by November 27.

The analyst notes consensus forecasts exclude the deal. The stock remains Buy rated with a $9.60 target. No change to the broker's earnings forecasts. There are believed to be heightened risks the deal will not proceed.

Target price is $9.60 Current Price is $8.65 Difference: $0.95
If IAG meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.03, suggesting upside of 3.6% (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 JBH as Buy (1) -

ABS retail sales rose 4.8% year-on-year in July, with food up 2.5% and alcohol and tobacco down -17.5% due to weakness in tobacco, explains Citi.

The broker highlights strong growth in discretionary categories, particularly household goods up 5.3%, department stores up 6.6% and eating-out up 7.4%.

Western Australia and Queensland remain the fastest growing states, while Victoria showed improvement. Citi points to household savings balances rising around $140bn year-on-year, but expects stabilisation and a possible unwind.

The broker believes rate cuts and continued income growth should support stronger consumer spending in FY26.

Citi’s preferred retail exposures are JB Hi-Fi, Harvey Norman, Super Retail and Coles Group.

For JB Hi-Fi, the Buy rating is retained with $120 target price.

Target price is $120.00 Current Price is $113.97 Difference: $6.03
If JBH meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $104.94, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

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

UBS rates KMD as Neutral (3) -

KMD Brands hosted an investor day at Christchurch headquarters, announcing the new "Next Level" strategy from the renewed management team, UBS explains.

There will be a brand- and product-led focus, customer-centric processes, and prudent financial and capital management, highlighted as the priorities to achieve more sustainable earnings.

Management pointed to cost outs of -NZ$25m and the closure of 21 underperforming stores, alongside some NZ$15m of investment in growth for FY26.

FY28 targets came in higher than anticipated, with gross margins of circa 60%, operating expenses below 50% of sales, and earnings (EBITDA) margin of 10%, with working capital at less than 16% of sales.

No change to Neutral rating and NZD35c target.

Current Price is $0.23. Target price not assessed.

The company's fiscal year ends in July.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Shaw and Partners rates LM8 as Buy, High Risk (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Target for Lunnon Metals lifted to 75c from 60c. Buy, High Risk retained.

Target price is $0.75 Current Price is $0.27 Difference: $0.48
If LM8 meets the Shaw and Partners target it will return approximately 178% (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

Ord Minnett rates LOT as Speculative Buy (1) -

Ord Minnett notes the completion of a $65m institutional equity raising by Lotus Resources for working capital as the ramp up of Kayelekera begins, which is considered sensible given the 43%-plus share price appreciation over the last month.

Considerable upside to the U308 price, beyond the current US$82/lb, is likely, according to the analyst, with expanding global power needs alongside decarbonisation.

First mining for Kayelekera is expected in 4Q2025, and Lotus is viewed as the top pick within Ord Minnett's uranium coverage.

There is slight target price dilution from the issue, which slips to 35c from 36c. Speculative Buy rating retained.

Target price is $0.35 Current Price is $0.18 Difference: $0.17
If LOT meets the Ord Minnett target it will return approximately 94% (excluding dividends, fees and charges).

Current consensus price target is $0.32, suggesting upside of 67.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Shaw and Partners rates MAU as Buy, High Risk (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Target for Magnetic Resources lifted to $3.98 from $3.33. Buy, High Risk retained.

Target price is $3.98 Current Price is $1.27 Difference: $2.705
If MAU meets the Shaw and Partners target it will return approximately 212% (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

Ord Minnett rates MEI as Speculative Buy (1) -

Meteoric Resources has received approval to build and operate a rare earth pilot plant at Pocos de Caldas for its Caldeira project in Brazil, keeping the definitive feasibility study (DFS) timeline on track for 2026, observes Ord Minnett.

The plant, with capex of around -$2m, is scheduled to start in late October 2025, explain the analysts, and will produce 2kg per hour of mixed rare earth carbonate for optimisation and customer sampling.

Caldeira is the world’s largest ionic clay resource at 1.5bn tonnes, but initial mining is planned in a buffer zone near a conservation area, which recently received a negative vote from the local management council, cautions Ord Minnett.

If not overturned, Meteoric would need to rework the mine plan to move outside the buffer, delaying development and altering economics, points out the broker. It's noted the outcome and timing of any appeal remain uncertain, and environmental approval is the key catalyst.

Speculative Buy rating and 20c target retained.

Target price is $0.20 Current Price is $0.14 Difference: $0.065
If MEI meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $0.23, suggesting upside of 61.9% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates NXD as Speculative Buy (1) -

NextEd Group's FY25 result was a slight beat against Ord Minnett's forecast, with earnings (EBITDA) of $14.3m against Ord Minnett’s $14.1m forecast, driven by stronger margins.

English language student growth benefited from the International House acquisition, highlights the broker, while international vocational enrolments lifted higher-margin revenue.

Operating costs were reduced by -$5.6m, delivering a 2H earnings margin of 17.4%, with a further $2m of savings targeted in FY26, observe the analaysts.

Ord Minnett raises its earnings forecasts and increases its target to 40c from 30c. The broker retains a Speculative Buy rating.

Target price is $0.40 Current Price is $0.22 Difference: $0.18
If NXD meets the Ord Minnett target it will return approximately 82% (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

Citi rates ORI as Buy (1) -

As part of today's business update, management at Orica reaffirmed expectations for FY25 earnings growth across all segments, which Citi (at first glance) views as a sign of strong operating momentum.

Blasting Solutions continues to benefit from demand for value-adding products and technology-driven services, explains the broker, though volumes in Indonesia and the US remain pressured by thermal coal exposure.

The analysts note Digital Solutions is gaining traction, with increased uptake of Axis sensors and cross-selling opportunities, supported by higher exploration activity flagged by industry peers.

Specialty Mining Chemicals is also expected to grow, with new cyanide and emulsifier contracts secured and Winnemucca upgrades completed ahead of full production in FY26.

FY25 guidance remains unchanged for net finance costs and capex, while depreciation and amortisation is now expected at the lower end of the range, notes the broker. Significant items included -$50-54m in litigation costs pre-tax.

Buy rating. Target $20.65.

Target price is $20.65 Current Price is $20.76 Difference: minus $0.11 (current price is over target).
If ORI meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.81, suggesting upside of 3.7% (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 PGC as Buy (1) -

Ord Minnett assesses Paragon Care's FY25 result as mixed but constructive as the business absorbed three major acquisitions (CH2, Paragon, Oborne), navigated management transition, and delivered solid revenue and pharmacy growth.

FY25 revenue rose 8% y/y to $3.6bn, and underlying EBITDA grew 3% y/y to $95m. 

The broker notes near-term profitability remains constrained by integration costs, elevated opex, and working capital timing. But the medium-term growth case is intact with synergy capture, founder alignment, network optimisation, and M&A optionality.

The broker trimmed FY26-27 EBITDA estimates by -6%.

Target cut to 50c from 56c. Buy maintained.

Target price is $0.50 Current Price is $0.33 Difference: $0.17
If PGC meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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 PRU as Buy (1) -

UBS continues to remain bullish on the gold sector and on the precious metal having touched US$3,600/oz, while acknowledging high prices can lead to higher cost pressures for miners.

The analyst remains observant for 'peak cycle' indicators but for now remains positive on the sector.

If current spot prices are maintained, UBS earnings forecasts for FY25/FY26 are cum a 13%-30% upgrade, and consensus is believed to be more. On this basis, were it to transpire, target prices could increase 46%-87%.

The broker's preferred stocks are Perseus Mining, Buy rated, target $4.75, Genesis Minerals ((GMD)), and Vault Minerals ((VAU)).

Target price is $4.75 Current Price is $4.10 Difference: $0.65
If PRU meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.11, suggesting downside of -3.2% (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: 0.6

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

Shaw and Partners rates RMS as Buy (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Ramelius Resources is among the stocks expected to benefit the most from rising gold prices. Target lifted to $3.64 from $3.19. Buy retained.

Target price is $3.64 Current Price is $3.35 Difference: $0.29
If RMS meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting downside of -1.7% (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

Morgans rates RRL as Accumulate (2) -

Morgans maintains its FY26 production forecastsfor Regis Resources but lifts realised gold price assumptions from FY27 onwards. The broker now models a spot price scenario of US$3,250/oz, up from US$3,000/oz.

The analyst notes the company remains unhedged and debt-free, producing more than 350koz annually, which offers strong leverage to higher gold prices. It's also felt organic growth potential at Duketon is underappreciated

Morgans raises its target price to $5.80 from $5.00 and retains an Accumulate rating.

Target price is $5.80 Current Price is $4.82 Difference: $0.98
If RRL meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting downside of -14.0% (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

Morgan Stanley rates SKT as Underweight (5) -

SKY Network Television announced FY25 results which were in line with expectations according to Morgan Stanley, with the first FY26 guidance coming in above previous expectations at earnings (EBITDA) for FY26 between NZ$142m-NZ$162m versus consensus at NZ$144m.

The analyst emphasises the Discovery NZ acquisition was viewed as a good transaction, with the economics of such a small market meaning content suppliers prefer to go through a partner like Sky in an industry that remains under structural pressure.

The stock remains Underweight rated with a target price of NZ$2.29, suggesting some -30% downside from current levels. Industry View: Attractive.

Current Price is $2.79. Target price not assessed.

Current consensus price target is N/A

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: 0.3

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

Shaw and Partners rates SMI as Buy, High Risk (1) -

Shaw and Partners expects gold prices to rise further from record levels on expectations of rate cuts by the Federal Reserve despite sticky, tariff-induced inflation.

The broker notes ASX-listed gold producers reported strong results on the back of sustained rally in gold prices, which offset rising production costs.

FY26 gold price forecast lifted to US$3,850 from US$3,325, FY27 to US$3,750 from US$3,104, and FY28 to US$3,400 from US$2,674.

As a result, the broker increased the target price for gold stocks using DCF valuation.

Target for Santana Minerals lifted to $1.63 from $1.36. Buy, High Risk retained.

Target price is $1.63 Current Price is $0.68 Difference: $0.955
If SMI meets the Shaw and Partners target it will return approximately 141% (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

Shaw and Partners rates STM as Buy, High Risk (1) -

Shaw and Partners highlights the latest surface sampling at Sunstone Metals' Bramaderos project has extended gold-copper mineralisation at both Copete and Brama porphyry systems.

The results add weight to ongoing partner discussions, enhancing the project’s value proposition, the broker notes, while also showing potential for resource upgrades beyond the current estimates.

Buy, High Risk. Target rises to 4c from 3.2c.

Target price is $0.04 Current Price is $0.02 Difference: $0.02
If STM meets the Shaw and Partners target it will return approximately 100% (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

Citi rates SUL as Buy (1) -

ABS retail sales rose 4.8% year-on-year in July, with food up 2.5% and alcohol and tobacco down -17.5% due to weakness in tobacco, explains Citi.

The broker highlights strong growth in discretionary categories, particularly household goods up 5.3%, department stores up 6.6% and eating-out up 7.4%.

Western Australia and Queensland remain the fastest growing states, while Victoria showed improvement. Citi points to household savings balances rising around $140bn year-on-year, but expects stabilisation and a possible unwind.

The broker believes rate cuts and continued income growth should support stronger consumer spending in FY26.

Citi’s preferred retail exposures are JB Hi-Fi, Harvey Norman, Super Retail and Coles Group.

For Super Retail, the Buy rating is retained with $20.50 target price.

Target price is $20.50 Current Price is $18.27 Difference: $2.23
If SUL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $18.48, suggesting downside of -1.5% (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

Citi rates TUA as Buy (1) -

Tuas should deliver strong results this month, according to Citi, supported by disciplined cost management and capital allocation.

The broker suggests investor focus will centre on progress with the M1 transaction. M1 is a major Singapore telecommunications operator.

Approval from Singapore’s Infocomm Media Development Authority (IMDA) is anticipated in the coming months.

Commentary on potential synergies will likely remain limited, though the analysts see these as significant.

Citi sees the company’s scale and reach positioning it to move rapidly from challenger to market leader.

Unchanged $7.10 target. Buy.

Target price is $7.10 Current Price is $7.58 Difference: minus $0.48 (current price is over target).
If TUA meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

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 XRO as Upgrade to Buy from Accumulate (1) -

Xero displayed its products to accountants and bookkeepers at its annual conference in Brisbane, and Ord Minnett reckons it showcased initiatives that could materially lift ARPU over time, though monetisation is not yet formalised.

Future upside for the Syft Analytics product is expected to come from enhanced AI integration to drive business analytics. Just Ask Xero has no monetisation model, but is expected to support ARPU growth via plan bundling.

The broker believes the conference strengthened its view the company can reach its ambitious NZ$4.2bn-plus revenue target by FY28.

Rating upgraded to Buy from Accumulate on valuation grounds. Target unchanged at $200.

Target price is $200.00 Current Price is $157.00 Difference: $43
If XRO meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $213.17, suggesting upside of 33.8% (ex-dividends)

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: 0.9

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