Australian Broker Call

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

Morgan Stanley raises its target for AGL Energy to $8.88 from $7.77 after implementing regular mark-to-market changes for energy and certificate prices, as well as for the risk free rate.

The bulk of the broker's target increase (82cps) stems from incorporating development platform value from the company's 20% equity interest in Tilt Renewables.

Morgan Stanley feels Australia utilities are rapidly rebuilding energy markets earnings, and investor interest is finally returning.

The Equal-weight rating is unchanged. While the pool price cycle is supportive in the near term, the analyst thinks the company
earnings upgrade cycle may be sharper but shorter than the last one. Industry View: Cautious.

Target price is $8.88 Current Price is $8.58 Difference: $0.3
If AGL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates ALL as Overweight (1) -

Morgan Stanley forecasts revenue of $3bn and EBITA of $870m, when Aristocrat Leisure reports 1H results on May 18.

The broker anticipates an acceleration of 2H EBITA growth in 2H following a return to positive revenue growth in digital and margin improvement from the easing of supply chain costs.

An acceleration in digital growth in FY24/25 provides potential for a multiple re-rating, according to Morgan Stanley.

The Overweight rating and $43 target are unchanged. Industry View: In-Line. 

Target price is $43.00 Current Price is $37.67 Difference: $5.33
If ALL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $42.73, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Macquarie rates AMC as Neutral (3) -

On closer examination of Amcor's March-quarter result, Macquarie lowers the target price to $15.70 from $17.38.

Amcor's March-quarter EPS missed consensus forecasts by -6%, as volumes fell nearly -3% due to weakening demand from the fast moving consumer goods sector as economic growth slowed, demand elasticity was tested and destocking continued post covid.

Management believes earnings growth will improve over FY24 but Macquarie says this may not automatically translate to EPS growth (the broker is forecasting a weak first half followed by a big uplift in the second half), and advises keeping a keen eye peeled to volumes.

EPS forecasts fall -6% in FY23; -8% in FY24; and -7% in FY25. Neutral rating retained, the broker observing the company trades at a 7% premium to global rivals.

Target price is $15.70 Current Price is $14.91 Difference: $0.79
If AMC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

Morgan Stanley rates AMC as Underweight (5) -

A soft 3Q result by Amcor suggests to Morgan Stanley volume impacts are being felt across the business with material softness, with
margins meaningfully lower. Earnings (EBIT) were an -11% miss compared to the analyst's forecast.

Volumes fell by -3% compared to the previous corresponding period driven by mid-single-digit declines in European volumes and low-single-digit declines in North America.

Management lowered FY23 EPS guidance by -8% to 72-74cps, and free cash flow guidance to US$800-900m from US$1-1.1bn, which, in the broker's view, points to further deterioration in the 4Q.

The Underweight rating is retained and the target falls to $14 from $15.50. Industry view: In Line.

Target price is $14.00 Current Price is $14.91 Difference: minus $0.91 (current price is over target).
If AMC meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.44, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

Morgans rates AMC as Hold (3) -

Amcor delivered a 3Q result in line with Morgans forecast though lowered FY23 earnings and cash flow guidance due to a softer volume outlook for the 4Q.

Volume was down -3% in the 3Q due to weaker consumer demand and customer destocking in both the Flexibles and Rigid Packaging divisions, explains the analyst.

The analyst highlights a progressive slide in volumes, which fell by -1-2% in both January and February, and then by -7% in March. Management noted weakness continued into the 4Q.

The broker lowers its FY23-25 underlying EPS forecasts by between -4-6% and reduces its target to $15.20 from $16.20. A positive long-term outlook is maintained, but a Hold rating is kept on further destocking and customer weakness concerns.

Target price is $15.20 Current Price is $14.91 Difference: $0.29
If AMC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

Ord Minnett rates AMC as Upgrade to Accumulate from Hold (2) -

Ord Minnett reduces FY23 earnings forecast by -10% for Amcor following the March quarter update. The update was materially weaker than expected as softer consumer demand affected volumes.

The main concern for the broker entering FY24 is the impact of continued volume weakness without a corresponding decline in raw material costs.

Accordingly, margin assumptions are revised lower for FY24 and FY25 for flexibles and rigids. Rating is upgraded to Accumulate from Hold because of the share price fall. Target is reduced to $16 from $17.

Target price is $16.00 Current Price is $14.91 Difference: $1.09
If AMC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

UBS rates AMC as Neutral (3) -

The March quarter update from Amcor missed UBS estimates with volume pressure the driver of the miss. A key factor was de-stocking by customers as supply chains improve. Moreover, persistently higher food and beverage cost inflation is reducing volume elasticities.

Amcor has downgraded FY23 guidance by -5% and now expects earnings per share of 72-74c. UBS notes the downgrade effectively eliminates the previous organic growth guidance of 5-10%.

The broker retains a Neutral rating and reduces the target to $16.30 from $18.00.

Target price is $16.30 Current Price is $14.91 Difference: $1.39
If AMC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.44, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: -0.1

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

Citi rates ARB as Neutral (3) -

Citi found the trading update from ARB Corp weaker than previously expected and downgrades FY23-25 estimates for earnings per share by -3-4%.

While the company is pivoting its US business towards a more direct to consumer model this is likely to take time and the broker envisages potential execution risk. Margins may need to be structurally lower for some time to maximise the opportunity.

Neutral rating retained and the target is lowered to $32.04 from $32.75.

Target price is $32.04 Current Price is $30.52 Difference: $1.52
If ARB meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $32.28, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates ARB as Neutral (3) -

ARB Corp's March-quarter sales disappointed Macquarie, the broker observing sales in the first three quarters of FY23 have fallen -4.4%, due to a -10.8% lower export and operating equipment manufacturing sales.

Australian aftermarket revenues proved the highlight and the broker observes the order book is strong at $100m, compared with $20m to $30m pre-covid.

Macquarie forecasts a margin recovery but doubts a return to the mid-covid peak, and the company's US expansion has disappointed management.

EPS forecasts fall -2% in FY23 and FY24. Neutral rating retained. Target price falls 1.4% to $32.09 from $32.55.

Target price is $32.09 Current Price is $30.52 Difference: $1.57
If ARB meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $32.28, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Following a market update by ARB Corp, Morgan Stanley notes management continues to execute the global growth story, particularly in the US, with the Seattle store to open in the 1Q 2024.

The Equal-weight rating and some caution are maintained, given volatile 3Q trading and the large 4Q skew required to hit consensus estimates.

The $31 target is unchanged. Industry view: In-Line. 

Target price is $31.00 Current Price is $30.52 Difference: $0.48
If ARB meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $32.28, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates ARB as Buy (1) -

ARB Corp posted an improvement in Australian aftermarket sales in the March quarter with a strong order book buffering persistent vehicle supply issues and labour constraints. The disruption in new vehicle sales was particular pronounced between February and April.

Export sales deteriorated, attributed to lower US export sales and ongoing problems with a major customer.

Ord Minnett expects vehicle supply and availability should start to stabilise in FY24 and retains a Buy rating. Target is reduced to $34.00 from $34.80.

Target price is $34.00 Current Price is $30.52 Difference: $3.48
If ARB meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $32.28, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

After integrating OZ Minerals into forecasts for BHP Group, Morgan Stanley notes most of the synergies are long-dated and the target only rises to $41.75 from $41.50.

Future dividend payouts will be restrained by net debt at the top-end of target and the overhang from the company's 50% exposure to Samarco's court case, in the broker's view.

The Equal-weight rating is unchanged. Sector view is Attractive.

Target price is $41.75 Current Price is $43.27 Difference: minus $1.52 (current price is over target).
If BHP meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.58, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates BLD as Neutral (3) -

Boral presented at the Macquarie Conference 2023 and reiterated the need for further price rises to alleviate persistent cost inflation.

Management advised the chloride bypass retrofit at Berrima is on track, positioning it well for the advent of the Safeguard Mechanism, says Macquarie, and Boral again called for a carbon border adjustment mechanism to ensure non-compliant importers do not gain an unfair advantage.

No guidance was provided, leaving Macquarie to surmise previous guidance stands.

Neutral rating and $4.05 target price retained.

Target price is $4.05 Current Price is $3.98 Difference: $0.07
If BLD meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting downside of -12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Macquarie rates CPU as Outperform (1) -

Computershare has cut margin income guidance for FY23 and FY24 at a recent trading update, but has retained overall guidance.

On the upside, Macquarie advises the company is moving to protect margins by hedging up to 50% of exposed balances is 2023 and that operating expenditure fell.

But rising cost of capital continues to drag on merger and acquisition and IPO volumes, and average client balances has felt the impact of delayed securitisations (due to interest rate uncertainty), observes the broker.

Management conveyed confidence at the update, says Macquarie, despite its adoption of a more prudent stance.

EPS forecasts rise 0.6% in FY23; fall -1.5% in FY24; and are steady in FY25.

Outperform rating retained. Target price eases to $25 from $26.

Target price is $25.00 Current Price is $21.92 Difference: $3.08
If CPU meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $25.39, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

UBS rates DHG as Buy (1) -

UBS observes the trading update from Domain Holdings Australia shows the negative impact from its exposure to Sydney and Melbourne, which have continued to underperform the broader market on listing volumes.

The underperformance is considered temporary and likely to dissipate when property market conditions stabilise. The broker lowers FY23-25 estimates for EBITDA by around -8%.

A Buy rating is reiterated, given the likely yield outperformance when sentiment begins to stabilise in the property market, underpinned by 10% price increases coming through in FY24. Target is reduced to $3.75 from $3.90.

Target price is $3.75 Current Price is $3.23 Difference: $0.52
If DHG meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.37, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Bell Potter rates DVP as Initiation of coverage with Buy (1) -

Bell Potter initiates coverage of critical minerals underground miner and mining contractor Develop Global with a Buy rating and $4.20 target price.

The company owns and mines two assets - the Woodlawn and Sulphur Springs zinc-copper mine and project -- and contracts to other miners.

Develop Global was awarded a four-year contract at Bellevue mine in April 2022, and purchased Woodlawn the following month.

The broker observes much of the capex ($340m) was invested by the previous owner and the company bought Woodlawn for $30m with up $70m in contingency payments, suggesting minimal start-up costs.

Bell Potter expects the formal restart of Woodlawn in mid 2024, which the broker observes dovetails with peak revenue generation from its Bellevue contract, suggesting a sharp acceleration in earnings and free cash flow generation.

The broker appreciates Develop Global's strong balance sheet and observes the company has an opportunity to raise funds from deep in-the-money options, which the broker says will derisk project financing for its medium to long-term prospect Sulphur Springs.

Target price is $4.20 Current Price is $2.88 Difference: $1.32
If DVP meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Ord Minnett rates EDV as Lighten (4) -

Endeavour Group posted sales growth of 4% in the March quarter. Sales at its pubs increased by 16% as pandemic-related restrictions were lapped.

Ord Minnett expects sales growth will moderate as consumers dine out less and the pubs business cycles a more normal period since the pandemic.

In liquor retailing, the business outperformed its larger competitor, Coles Group ((COL)), while underperforming on the online channel.

Lighten rating and $6.40 target price retained.

Target price is $6.40 Current Price is $6.41 Difference: minus $0.01 (current price is over target).
If EDV meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.75, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

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 FLT as Upgrade to Add from Hold (1) -

Flight Centre Travel has slightly lifted FY23 underlying earnings (EBITDA) guidance to a level above the consensus estimate. Morgans upgrades its rating to Add from Hold and raises its target to $26.25 from $19.11.

The broker feels guidance is conservative and believes an earnings upgrade cycle is imminent, and may continue for the next few years.

Volumes continue to recover strongly, observes the analyst, with March delivering record post-covid total transaction value (TTV). Also, the group cost margin is now at an historic low, partly reflecting permanent and structural cost base changes.

Management is now targeting a 2% profit margin for FY25, yet the consensus forecast is for 1.5%, notes Morgans.

Target price is $26.25 Current Price is $20.80 Difference: $5.45
If FLT meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $21.06, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates FLT as Neutral (3) -

Flight Centre Travel continues to recover momentum. The operating environment is improving and international air capacity is now 82% of pre-pandemic levels in Australia.

The largest upside potential is derived from medium-term forecasts UBS asserts. If the company can achieve its 2025 target of 2% pre-tax profit margins this suggests 39-52% upside compared with the broker's estimates for net profit in FY25-26.

Guidance for FY23 underlying EBITDA has been upgraded slightly to $270-290m. UBS retains a Neutral rating, as the extent of changes to the leisure business materially increase the complexity of the outlook. Target is raised to $20.80 from $18.65.

Target price is $20.80 Current Price is $20.80 Difference: $0
If FLT meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $21.06, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates HLI as Underperform (5) -

Helia Group's March-quarter trading update appears to have outpaced Macquarie's forecasts, despite tough trading.

Net Claims remained in the red as delinquencies rose and gross written premium growth more than halved in the response to slower home sales for LVR customers. Net earned premium fell -13.2%.

On the upside, investment income proved the highlight, the company benefiting from falling bond yields in the quarter. Macquarie observes the company has renewed two exclusive contracts.

EPS forecasts rise 35% in FY23; 5% in FY24; and are steady in FY24, to reflect the trading update and mark-to-market. 

Underperform rating retained, the broker expecting a -15% fall in house prices from previous highs and a rise in unemployment. Target price rises to $2.60 from $2.50, the broker expecting continued support from the buyback.

Target price is $2.60 Current Price is $3.17 Difference: minus $0.57 (current price is over target).
If HLI meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Ord Minnett rates HLI as Hold (3) -

Ord Minnett describes Helia Group's first quarter update as "decent" although the profit uplift was driven by higher investment income thanks to higher interest rates. At the top line, a dramatic decline in demand for lenders mortgage insurance continues as gross written premiums fell -52%.

At this point, the broker notes the impact on revenue is not material as Helia Group recognises revenue from policies written in recent years when demand was strong and benefits accrued from higher levels of cancellations.

While positive now, a drop in new policies is likely to mean earnings fall in 2024. Ord Miinnett retains a Hold rating and $3.20 target.

Target price is $3.20 Current Price is $3.17 Difference: $0.03
If HLI meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Citi rates HUB as Neutral (3) -

Citi accepts the acquisition of myprosperity will accelerate the Hub24 platform strategy. The main issue is whether it helps attract additional flows, given the broker's view that the core custody business represents the main opportunity for revenue.

The broker does not expect the market will make material changes to earnings expectations on the back of the acquisition and will likely wait to see if additional flows can be garnered by leveraging the new capability. Neutral rating and $30.65 target maintained.

Target price is $30.65 Current Price is $27.22 Difference: $3.43
If HUB meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates HUB as Add (1) -

Hub24 will acquire client portal technology business myprosperity for an initial consideration of -$40m using scrip, which equates to an  around 1.8% share issue.

Management aims to accelerate its ‘platform of the future’ strategy and strengthen the group’s leadership position.

Morgans believes the transaction will initially drag on EPS through FY24-FY25, become neutral in FY26, and then be 4-5% accretive from FY27. 

The target falls to $30.60 from $31.10. Add. 

Target price is $30.60 Current Price is $27.22 Difference: $3.38
If HUB meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates HUB as Buy (1) -

Ord Minnett asserts the acquisition of myprosperity for $40m is highly complementary with strong strategic merit and will accelerate Hub24's "platform of the future" strategy.

The broker acknowledges the transaction is fully priced and comes with execution risk as myprosperity builds profitability. Forecasts for earnings per share are downgraded by -2-3% but strong growth is still expected.

Buy rating reiterated. Target is reduced to $32 from $33.

Target price is $32.00 Current Price is $27.22 Difference: $4.78
If HUB meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates HUB as Buy (1) -

Hub24 will acquire portal provider myprosperity for $40m. UBS considers the price expensive and strong execution along with substantial expenditure may be required to transform the acquisition into a contributor of value over the next few years.

The business will be incorporated into platform segment financials which the broker estimates will reduce the platform EBITDA margin by -1.7 percentage points in FY24.

Buy rating retained and the broker continues to envisage M&A as a risk factor in the investment case. Target is $32.

Target price is $32.00 Current Price is $27.22 Difference: $4.78
If HUB meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates IMD as Buy (1) -

Imdex's March-quarter result appears to have met Bell Potter's forecasts.

The broker observes exploration activity was stymied as junior miners moved to preserve cash, combined with cost inflation, a jump in mergers and acquisitions, and poor weather, but management expects these to be short-term obstacles.

Meanwhile, the Devico integration is on track a the company is trialling BLAST DOG sensor technologies and is earning prototype revenue from its Bolt surveying tool.

Buy rating retained. Target price eases to $2.80 from $2.85

Target price is $2.80 Current Price is $2.03 Difference: $0.77
If IMD meets the Bell Potter target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 36.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates IMD as Neutral (3) -

The March quarter trading update from Index was in line with expectations. By region, revenue growth continues to be broad-based.

The highest level of exploration activity growth was in South America, Asia and Africa. As these regions are more focused on fluids, the revenue mix in the quarter shifted away from the higher-margin sensors and software-as-a-service.

Imdex has also revealed its Blast Dog contract with Fortescue Metals ((FMG)) has been terminated. Imdex was meant to provide three Blast Dog units to the new Iron Bridge mine.

UBS expects market attention on the viability of Blast Dog will now shift towards the commercial trial at a copper mine in Chile. Neutral rating and $2.75 target maintained.

Target price is $2.75 Current Price is $2.03 Difference: $0.72
If IMD meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 36.1% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates JBH as Add (1) -

Following a better-than-expected 3Q sales performance by JB Hi-Fi, Morgans raises its FY23 EPS forecast by 3% and lifts its target to $50 from $48.

The target also benefits as the analyst applies higher peer company multiples to largely unchanged FY24 EBIT estimates.

The broker's Add rating is unchanged. It's felt JB Hi-Fi can outperform other discretionary retailers due to its strong market share, effective cost control and a younger customer base (in the JB Hi-Fi brand). The increasingly ‘staple’ nature of its product suite should also help.

Target price is $50.00 Current Price is $45.48 Difference: $4.52
If JBH meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $45.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates JBH as Lighten (4) -

Ord Minnett observes JB Hi-Fi's sales increased 1% in the March quarter after rising 6% in the December quarter and 15% in the previous September quarter.

A material slowdown in shelf price inflation of household appliances and consumer electronics has signalled that competition intensified materially.

At current prices, the broker assesses the stock screens significantly overvalued and a further weakening in trading conditions is forecast. Lighten rating maintained along with a $35.50 target.

Target price is $35.50 Current Price is $45.48 Difference: minus $9.98 (current price is over target).
If JBH meets the Ord Minnett target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates JBH as Neutral (3) -

JB Hi-Fi's March quarter update indicated there has been some moderation in sales albeit not as bad as previously feared. The company has grown market share during the third quarter and sales are well above pre-pandemic levels.

UBS revises FY23 and FY24 estimates up by 6%, believing JB Australia enjoys a strong value proposition and growing more confident in the growth profile.

Going forward, while categories for The Good Guys are more susceptible to a slowdown, the broker remains confident repositioning has occurred and a slowdown will be less evident because of ongoing market share gains.

Neutral retained. Target rises to $47.50 from $46.00.

Target price is $47.50 Current Price is $45.48 Difference: $2.02
If JBH meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $45.78, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates JHG as Neutral (3) -

Citi considers the highlight of the first quarter was a return to positive net inflows. First quarter intermediary net flows were the best in nearly 3 years. That said consistency will take some time to achieve, the broker warns.

The more disappointing aspect was guidance for FY23 performance fees, as Janus Henderson still expects a significantly negative outcome, guiding to performance fees of -US$5-10m the second quarter and for FY23 at best close to -US$45m.

Citi maintains a Neutral rating and raises the target to $40.40 from $37.80.

Target price is $40.40 Current Price is $38.82 Difference: $1.58
If JHG meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $39.48, suggesting upside of 0.0% (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

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

In the wake of 1Q results, management at Janus Henderson has reiterated there is "much work to do to deliver consistent organic
growth”.

Morgan Stanley highlights institutional mandate wins in the 1Q came from both equities and fixed interest and across several clients.

The company noted unusually low gross redemptions for the period and expects higher outflows.

Morgan Stanley maintains its Equal-Weight rating and $36.70 target price. Industry view: Attractive.

Target price is $36.70 Current Price is $38.82 Difference: minus $2.12 (current price is over target).
If JHG meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.48, suggesting upside of 0.0% (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

Ord Minnett rates JHG as Hold (3) -

Janus Henderson reported adjusted earnings per share of US$0.55 for the March quarter, better than expected. The difference was due to higher levels of managed assets, revenue and earnings.

Net inflows were also a positive surprise marking the first quarter of positive flows since the third quarter of 2017.

Still, Ord Minnett discounts this, as management has pointed out it will be tougher to achieve positive flows going forward. The broker retains a Hold rating and $37 target.

Target price is $37.00 Current Price is $38.82 Difference: minus $1.82 (current price is over target).
If JHG meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.48, suggesting upside of 0.0% (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 JIN as Outperform (1) -

Jumbo Interactive presented at the Macquarie Conference 2023 and provided guidance relating to the repricing resulting from the Lottery Corp's ((TLC)) May increase in commissions.

Jumbo advised this should raise prices by 5c, yielding an extra $4m in earnings (outpacing Macquarie's forecast), but declining volumes over the last nine months were likely to offset much of this gain.

Management advises it is reducing growth expenditure but the move appears to be insufficient to stave off a cut in earnings (EBITDA) margins to 48% (in line with the broker), compared with 48% to 50% previously.

Outperform rating retained. Target price rises to $17.20 from $16.90.

Target price is $17.20 Current Price is $13.58 Difference: $3.62
If JIN meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $18.17, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates JIN as Overweight (1) -

Morgan Stanley raises its earnings forecasts for Jumbo Interactive on price rise certainty after commentary at 3Q results. The target is increased to $20.80 from $19.30. Industry view is In-Line.

A 200bps step-up in commissions allows the company to put through a 5c/game increase across the portfolio.

Also, the company will increase its own mark-up on Powerball by a further 5c/game in addition to Lottery Corps' ((TLC)) 10c/game price rise, implying a 20c/game total increase for Jumbo Interactive on Powerball, explains the analyst.

On the flipside, the broker notes how soft 2H jackpot draws have been.

Target price is $20.80 Current Price is $13.58 Difference: $7.22
If JIN meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $18.17, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates LRS as Buy (1) -

Bell Potter is awaiting a Mineral Resource Estimate for Latin Resources's Salinas project in June, and the broker observes drilling at the company's Colina deposit reveals a resource three times the initial estimate.

The company holds net cash of $58m post a $37m institutional placement to fund the company's Colina drill program, and the broker spies potential for another sharp increase in the Colina estimate in June.

Speculative Buy rating retained. Target price rises to 23c from 22c.

Target price is $0.23 Current Price is $0.14 Difference: $0.095
If LRS meets the Bell Potter target it will return approximately 70% (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

Citi rates MHJ as Buy (1) -

Michael Hill expects to grow the Bevilles network by 80-100 stores by FY28. Citi calculates an additional 64 new stores represents 17% upside to FY22 EBITDA.

The expansion of this newly-acquired business is justified, in the broker's view, given this network is under penetrated relative to its closest competitors and it can leverage the Michael Hill scale and landlord relationships to secure new sites.

Citi also believes, while 25 of the 26 stores are in the same locations as existing Michael Hill stores, the risk of cannibalisation is relatively low as the product offering appear sufficiently differentiated.

Buy rating maintained. Target rises to $1.28 from $1.21.

Target price is $1.28 Current Price is $0.99 Difference: $0.295
If MHJ meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Morgans rates MX1 as Speculative Buy (1) -

As the current CFO at Micro-X steps into the CEO role, following the retirement announcement by Peter Rowland, Morgans feels the transition has been both well managed and clearly communicated.

While encouraged by commercially focused commentary from the new CEO, the broker lowers its mobile DR unit sales forecasts for FY24 and FY25, which results in a 28c target, down from 33c.

The Speculative Buy rating is unchanged.

Target price is $0.28 Current Price is $0.10 Difference: $0.18
If MX1 meets the Morgans target it will return approximately 180% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 NEC as Buy (1) -

The March quarter trading update from Nine Entertainment was in line with expectations. The main surprise for UBS was the reinstatement of FY23 EBITDA guidance of $590-600m. Visibility apparently has improved coming into the fourth quarter.

Other positives from the update include a better performing metro FTA ad market and price increases in digital. UBS reiterates a Buy rating with an unchanged $2.40 target.

Target price is $2.40 Current Price is $2.03 Difference: $0.37
If NEC meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates NHF as Buy (1) -

Nib Holdings has raised guidance for net policyholder growth in FY23 for Australian residents to 4-5% from 3-4%, which signals mild upside risk to Citi's forecasts.

The company has also suggested international continues to recover strongly and margins are improving. The NDIS business, nib Thrive, will complete its fourth acquisition in May and is on track for 50,000 participants by FY25.

Citi maintains a Buy rating with a $7.85 target.

Target price is $7.85 Current Price is $7.52 Difference: $0.33
If NHF meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.48, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates NST as Sell (5) -

In a sell-side briefing from Northern Star Resources, UBS notes there was little focus on the growth potential of the KCGM plant to 2mozpa by FY26, despite a few quarters annualising 1.6mozpa to date. A final investment decision on the mill optimisation is expected by the end of 2023.

UBS continues to model the 24mtpa option and 3-year build at $1bn in capital outlay. Increasingly the broker is focusing on the risk to timelines and capex.

The company retains a CAD154m convertible senior unsecured debenture, having decided not to proceed with a joint venture to develop the Windfall project in Canada. UBS asks: could this come to shareholders or will it be required for KCGM?

Sell rating maintained. Target is $12.70.

Target price is $12.70 Current Price is $13.55 Difference: minus $0.85 (current price is over target).
If NST meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.04, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates OML as Hold (3) -

Ord Minnett observes the risk/reward proposition for oOh!media has shifted and there is now good value at current levels. The broker points out it took remarks from management regarding a slowdown in 2023 to wipe out the 10-15% premium the stock enjoyed in recent months.

Now the broker considers reaction excessive as June quarter growth may still end up positive. The main concern is the renewal risk for concessions as about 32% of revenue for the group is attached to concessions that are set to expire this year.

Ord Minnett retains a Hold rating and $1.50 target.

Target price is $1.50 Current Price is $1.24 Difference: $0.26
If OML meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 53.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Bell Potter rates PNV as Buy (1) -

PolyNovo's March-quarter result appears to have pleased Bell Botter, the company reporting its first $6m month in March and the company's expansion proceeding apace.

PolyNovo also reported its first sales from its MTX product (the BTM product with a sealing membrane), which received Federal Drug Administration clearance in September, and demand has been stronger than expected, according to the company's ASX update.

Buy recommendation retained. Target price falls to $2.40 from $2.55, as the broker adopts a conservative stance towards the timing of BTM sales. Longer-term estimates are steady.

Target price is $2.40 Current Price is $1.52 Difference: $0.885
If PNV meets the Bell Potter target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates RHC as Neutral (3) -

On further analysis of Ramsay Health Care's trading update, Citi reduces FY23 and FY24 estimates for earnings per share by -12% and -10%, respectively, given the slower pace of margin recovery.

Margins are expected to remain below pre-pandemic levels for some time and the broker assumes Australian EBIT margins return to pre-pandemic levels of around 15% in FY26.

Management has indicated January was a poor month and barely profitable although Australian surgical admissions continued to recover in February and March.

Citi maintains a Neutral rating and reduces the target to $66 from $69.

Target price is $66.00 Current Price is $61.87 Difference: $4.13
If RHC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $66.73, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates RHC as Neutral (3) -

Ramsay Health Care's March-quarter earnings disappointed Macquarie, the broker observing labour shortages and inflation are continuing to take their toll.

Globally, conditions remained challenging during the quarter given extended specialist leave in January in Australia; reduced cost subsidies in France; and labour shortages and wage inflation in Britain.

EPS forecasts fall -17% in FY23; -11% in FY24; and -5% in FY25.

Neutral rating retained. Target price falls to $64.50 from $69.

Target price is $64.50 Current Price is $61.87 Difference: $2.63
If RHC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $66.73, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates RHC as Underweight (5) -

As cost pressures evident in 3Q results for Ramsay Health Care were greater than anticipated, Morgan Stanley lowers its FY23-25 EPS forecasts by -13.5%, -5.1% and -7.8%, respectively.

The analyst now expects margins will take longer to recover and plateau below pre-pandemic levels due to lower indexation paid by insurers, ongoing elevated costs and the global nurse shortage.

More positively, the volume recovery remains on-track, highlights Morgan Stanley, and revenue growth looks like meeting market expectations.

As a result of these views, the broker's target price falls to $57.60 from $60.60. Underweight. Industry view: In-Line.

Target price is $57.60 Current Price is $61.87 Difference: minus $4.27 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $66.73, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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 RHC as Add (1) -

Morgans lowers its FY23-25 underlying earnings forecasts for Ramsay Health Care following 3Q results which revealed growing volumes offset by a shallower recovery in margins. Volumes improved across all regions on increased surgical activity.

The analyst highlights profitabilty is opaque as it depends upon a number of "unknowns" including tariff negotiations, recruitment/retention, lower usage of agency nurses and additional capacity gains.

Management anticipates a gradual recovery in FY23 earnings and more normalised conditions in FY24.

The target barely moves to $77.57 from $77.56 and the Add rating is unchanged.

Target price is $77.57 Current Price is $61.87 Difference: $15.7
If RHC meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $66.73, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates RHC as Hold (3) -

The main disappointment from the March quarter update by Ramsay Health Care in Ord Minnett's view was the margin contraction in the main Australian segment. An EBIT margin of 9% was calculated versus an estimated 13% underlying EBIT margin in the first half.

This has largely stemmed from depressed surgical activity in January 2023. That said, activity levels in March 2023, measured by inpatient day admissions, were the second highest in five years. Moreover, labour shortages are easing.

Ord Minnett retains a Hold rating and $68 target.

Target price is $68.00 Current Price is $61.87 Difference: $6.13
If RHC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $66.73, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

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

In the wake of Smartgroup Corp's 3Q results, which were broadly in line with consensus, Morgan Stanley highlights strong year-to-date trading with signs of stabilisation.

The analyst highlights ongoing resilient autos/novated demand, which has been further supported by interest in electric vehicles.

Morgan Stanley's Equal-weight rating is maintained given already re-rated valuation multiples and the high 2H skew required to meet consensus forecasts.

The $6.00 target is unchanged. Industry View: In-Line.

Target price is $6.00 Current Price is $6.94 Difference: minus $0.94 (current price is over target).
If SIQ meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.52, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates SIQ as Add (1) -

Smartgroup Corp's 1Q earnings run-rate was flat when compared to the level in the 2H22 though Morgans notes forward metrics support positive 2H23 growth.

The broker expects electric vehicle (EV) policy will drive incremental demand in the corporate segment and a higher short-term lease yield. EVs were more than 20% of quotes and orders in the quarter, up from negligible levels in the previous corresponding period.

 While Smartgroup Corp's price earnings multiple has risen, Morgans feels it is not stretched and retains an Add rating. The target rises to $7.50 from $6.70 after a roll-forward of the multiple and after upgrading FY23-25 EPS forecasts.

Target price is $7.50 Current Price is $6.94 Difference: $0.56
If SIQ meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.52, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates SLC as Add (1) -

Morgans suggests Superloop should be both profit positive and free cah flow positive in FY24, and hopefully also in 2H23.

The broker arrives at this conclusion after conducting a scenario analysis focusing on the real cash profits of the business. This involved excluding an extremely large depreciation and amortisation (non-cash) expense (resulting from acquisitions) from considerations.

Should the analyst's calculations prove correct, Superloop is trading on similar multiples to peers, while having twice the growth rate.

The Add rating and $1.06 target are unchanged.

Target price is $1.06 Current Price is $0.62 Difference: $0.445
If SLC meets the Morgans target it will return approximately 72% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Morgans rates STA as Add (1) -

The economics of Strandline Resources' Coburn mineral sands project are improved by a positive 3Q operating cash performance, according to Morgans.

The broker feels management is on-track to approach wet concentrator plant (WCP) design capacity and potentially achieve first end-product sales in the June quarter.

A full ramp-up supports an acceleration in cash flows/de-gearing from early FY24, points out the analyst.

The Add rating is unchanged and the target falls to 70c from 75c.

Target price is $0.70 Current Price is $0.36 Difference: $0.345
If STA meets the Morgans target it will return approximately 97% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 SUL as Neutral (3) -

Despite the higher cost of living, UBS assesses Super Retail is well-positioned comparatively, given its low average selling prices. Rebel sales were strong in the latest trading update along with record Easter sales at Macpac.

The business continues to benefit from the changes announced in the November investor briefing such as the focus on four core brands, store investment and improved online economics.

Neutral rating and $13.25 target maintained.

Target price is $13.25 Current Price is $13.45 Difference: minus $0.2 (current price is over target).
If SUL meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.14, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates SXL as Buy (1) -

Ord Minnett believes the incoming CEO, John Kelly, needs to address certain priorities to kickstart a recovery in the stock, which has languished at a -55% discount to its $1.80 target.

Southern Cross Media's traditional broadcast radio earnings (EBITDA) in 2022 was -27% below the pre-pandemic level in 2019 and margins were also down comparatively.

Hence, the broker suggests a re-sharpened focus on costs and, secondly, a deeper scrutiny of digital radio investments is required. Buy rating retained.

Target price is $1.80 Current Price is $0.80 Difference: $1
If SXL meets the Ord Minnett target it will return approximately 125% (excluding dividends, fees and charges).

Current consensus price target is $1.39, suggesting upside of 74.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Bell Potter rates VIT as Buy (1) -

Vitura Health, the market in leader in medicinal cannabis distribution, has entered a 50:50 joint venture with PharmAla Biotech called Cortexa, to take on the Australian research and therapeutic supply markets for MDMA and psilocybin. The end game would be to establish domestic manufacturing operations.

Cortexa gets to benefit from Vitura's pharmacy relationships and distribution networks, and will hold the exclusive licence for PharmAla's manufacturing and intellectual property for MDMA and Psilocybin.

Under the deal, Cortex pays $250,000 a year for three years to PharmAla for licence fees, and a 5% royalty on net profit. Each company is on the hook for a  break fee of $500,000 in the event of breach of contract. Vitura will loan $2.2m for working capital at a rate of 5% plus per year, linked to the cash rate.

Meanwhile, the broker observes the Therapeutic Goods Administration has down-scheduled (reclassified to non-prescription) MDMA for post traumatic stress disorder and Psilocybin for treatment resistant depression from July 1, 2023, and considers this to be a strong accretive sign for Vitura.

Dividend forecasts fall.

Buy recommendation and 90c target price retained.

Target price is $0.90 Current Price is $0.38 Difference: $0.52
If VIT meets the Bell Potter target it will return approximately 137% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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