Australian Broker Call

Bell Potter rates 360 as Buy (1) -

With Life360 set to report on its first quarter in the coming week, Bell Potter anticipates 19% year-on-year revenue growth to US$80.9m, and more than 100% year-on-year earnings growth to US$3.7m. 

The company already announced 8% quarter-on-quarter growth in monthly active users and 5% quarter-on-quarter growth in paying circles, implying a solid quarter and positive start to the year.

The broker anticipates full year guidance will only be reiterated at this stage. The Buy rating and target price of $16.25 are retained.

Target price is $16.25 Current Price is $13.17 Difference: $3.08
If 360 meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $15.28, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Shaw and Partners rates AZY as Buy (1) -

Antipa Minerals has commenced phase 1 drilling at its Minyari Dome gold-copper project, with drill rigs mobilised and drilling now underway. 

As per Shaw and Partners, this first phase of the exploration drilling program aims to enable a maiden mineral resource estimate for the GEO-01 deposit, which the broker expects will prove valuable addition to the existing 1.5m ounce Minyari resource.

The program will also target new gold and copper discoveries within multiple target areas. 

The Buy rating and target price of 4 cents are retained.

Target price is $0.04 Current Price is $0.01 Difference: $0.026
If AZY meets the Shaw and Partners target it will return approximately 186% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates BBT as Buy (1) -

BlueBet Holdings is set to merge with the betr group through an all-scrip acquisition, creating a combined entity, notes Ord Minnett, that boasts net wins of more than $80m in the first half of FY24. 

The broker considers this a merger of two highly complementary businesses, combining BlueBet Holdings' strong, in-house platform with betr group's significant scale, which it notes is rewarded in the wagering sector.

Ord Minnett expects this new business to be earnings profitable in FY2, consistent with management expectations.

The Buy rating is retained and the target price decreases to 38 cents from 80 cents.

Target price is $0.38 Current Price is $0.26 Difference: $0.125
If BBT meets the Ord Minnett target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates BC8 as Buy (1) -

In an update from Black Cat Syndicate on refurbishments at its Paulsens gold operations, Shaw and Partners notes progress has been made on the crushing circuit, grinding circuit, leach circuit, gravity circuit and gold room.

Shaw and Partners maintains its expectation of first gold by the end of the calendar year, given the significant refurbishment work already completed. 

The broker notes third party occupants at the site continue to provide a source of income. The Buy rating and target price of 74 cents are retained.

Target price is $0.74 Current Price is $0.26 Difference: $0.48
If BC8 meets the Shaw and Partners target it will return approximately 185% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates BLD as Lighten (4) -

Boral has now unanimously recommended shareholders accept Seven Group's scrip/cash takeover offer following an increase to the cash component. Ord Minnett has increased its Boral valuation by 9%.

Given Ord Minnett believes the bid is highly likely to succeed, it recommends Boral shareholders accept or sell on market. With Seven Group trading at $40.50, the bid equates to $6.20 for Boral, which the broker would otherwise value at $4.40.

Ord Minnett has a $5.10 target on Boral, up from $4.70, and a Lighten rating.

Target price is $5.10 Current Price is $6.03 Difference: minus $0.93 (current price is over target).
If BLD meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.73, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 BMN as Buy (1) -

Bannerman Energy has recently released details of a scoping study with potential to double the size of its Etango uranium project. As per Shaw and Partners, the total resource already boasts 207m pounds of uranium.

A definitive feasibility study has outlined a 15 year mine life, with annual production of 3.5m pounds of uranium. 

Within its coverage, Shaw and Partners notes Bannerman Energy is the stock most leveraged to an expected surge in uranium prices in coming years. 

The Buy rating is retained and the target price increases to $7.40 from $7.04.

Target price is $7.40 Current Price is $3.96 Difference: $3.44
If BMN meets the Shaw and Partners target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates BOQ as Sell (5) -

For Bank of Queensland's 1H result due tomorrow, both Citi and consenus are forecasting cash earnings of around $161.4m, a -37% fall on the previous corresponding period.

Lower profits means lower dividends, and the broker predicts an interim dividend of 17cps, down from 20cps in the 1H of FY23. 

As the current net interest margin (NIM) decline is easing, and the company benefits from the start of $200m in productivity benefits, Citi believes FY24 will be the nadir for both earnings and dividends.

The Sell rating and $5.05 target are maintained.

Target price is $5.05 Current Price is $5.82 Difference: minus $0.77 (current price is over target).
If BOQ meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.58, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Citi rates BSL as Neutral (3) -

Citi raises its FY26 earnings (EBIT) forecast for BlueScope Steel by 13% due to a 24% lift in ASP division estimates due to additional metal coating capacity.

The broker explains more capacity will enable the diversion of tonnes to high margin domestic sales from low margin exports. For FY24, the earnings forecast is lowered by -3% on a lower assumed Asian hot rolled coil (HRC) spread.

In the US, the ramp-up of the initial North Star expansion is progressing and now a debottlenecking program is under assessment to increase capacity in FY27/28, note the analysts.

The Neutral rating is retained and the target price increases to $24.50 from $22.30.

Target price is $24.50 Current Price is $23.80 Difference: $0.7
If BSL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.19, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates BSL as Outperform (1) -

To reflect the re-rating of US peers, Macquarie lifts its North American multiples for both North Star and Building & Coated Products. The broker also expects an earnings recovery based on recovering steel prices in the US (and spreads).

Steel prices also appear to be bottoming in Asia, though spreads are being supported more by moderating prices of steel inputs, suggests Macquarie.

As occurred in Australia, BlueScope Steel's US portfolio composition is moving towards less volatile, value-added revenues over time, explains the analyst.

Outperform rating retained. Target price rises to $29.45 from $25.

Target price is $29.45 Current Price is $23.80 Difference: $5.65
If BSL meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $23.19, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Bell Potter rates CTT as Upgrade to Buy from Hold (1) -

A strong third quarter trading update from Cettire, according to Bell Potter, with the company reporting sales revenue of $168m in a 14% beat to the broker's estimates. 

The company claims to be well positioned for its fourth quarter, supported by "seasonally improving metrics, growing supply and resilient demand." 

The China launch was confirmed for the coming quarter. The rating is upgraded to Buy from Hold and the target price decreases to $4.00 from $4.50.

Target price is $4.00 Current Price is $3.15 Difference: $0.85
If CTT meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates DMP as Accumulate (2) -

Following an investor briefing from Domino's Pizza Enterprises, Ord Minnett believes the full potential of the businesses in Japan and France are unlikely to be unlocked in the near term.

Management suggests it's unlikely the store count in those regions will grow in FY25 until franchisee profitability is restored. Domino's maintains a long term target of doubling its store count, but timing is dependent on a recovery in sales growth.

These challenges and weaker trading conditions in other markets are weighing on sentiment, Ord Minnett suggests, although the broker has not changed its long term earnings outlook.

Near term earnings forecasts have been cut. A $61 target is retained with an Accumulate rating.

Target price is $61.00 Current Price is $38.58 Difference: $22.42
If DMP meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $49.92, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates DMP as Neutral (3) -

UBS is more cautious on the long term growth available to Domino's Pizza Enterprises following the recent investor day. 

The company acknowledged recent store growth in Japan has been too rapid, and that stores need to mature before growth can accelerate. At this point, however, it intends to largely stay the course, anticipating most stores reach maturation in one to three years.

While store growth is key to the company's investment thesis, the broker believes franchise profitability is too low to drive significant store growth, and increasing profitability above $130,000 per store is necessary.

The Neutral rating is retained and the target price decreases to $40.00 from $42.00.

Target price is $40.00 Current Price is $38.58 Difference: $1.42
If DMP meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $49.92, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates DRO as Downgrade to Hold from Buy (3) -

A robust first quarter update from DroneShield has demonstrated the significant growth in the business over the last year, says Bell Potter.

First quarter revenue of $16.4m was more than ten times the revenue achieved in the same quarter a year prior, despite the period being the weakest for sales typically.

The company closed out the period with a cash balance of $54.6m, with $35.4m comitted to inventory supply chain payments over the next nine months in order to address a contracted backlog and sales pipeline.

The rating is downgraded to Hold from Buy and the target price increases to $1.00 from 90 cents.

Target price is $1.00 Current Price is $0.95 Difference: $0.05
If DRO meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Ord Minnett has initiated coverage of ImpediMed with a Buy rating and price target of 16c. This company, explains the analyst, is the global leader in bioimpedance spectroscopy, with its SOZO product the only FDA cleared BIS device for lymphoedema assessment.

The company is making headways in the US and Ord Minnett sees it rapidly approaching critical mass coverage, which will act as an inflection point.

With an estimated total addressable market worth some $2bn in the US alone, the broker's forecasts project 59% revenue CAGR between FY25-28.

Target price is $0.16 Current Price is $0.09 Difference: $0.071
If IPD meets the Ord Minnett target it will return approximately 80% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanley is anticipating commodities income declines -50% year-on-year over the second half, noting any 10% deviation from this forecast equates to a 4% impact to Macquarie Group's second half net profits.

Beyond FY24, the broker anticipates a -4% year-on-year commodity income decline over FY25, but with further risk to the downside.

The Overweight rating and target price of $225 are retained. Industry view: In-Line.

Target price is $225.00 Current Price is $188.23 Difference: $36.77
If MQG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $187.08, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates NWL as Hold (3) -

Netwealth Group reported net March Q flows of $2.7bn, up on the $2.6bn in the prior quarter but below Ord Minnett's $3.0bn forecast. Funds under management grew 8.6% over the quarter and ahead of the broker's forecast, given strong equity markets.

Netwealth nevertheless outlined the average revenue margin declined during the quarter due to a combination of fee-tiering impacts and lower client cash holdings.

Ord Minnett believes the growth outlook for Netwealth is excellent, forecasting 23% compound earnings growth over the next three years. The company has class-leading operational and return metrics, while the market opportunity is substantial, the broker believes.

Target rises to $19.00 from $17.50, Hold retained.

Target price is $19.00 Current Price is $19.85 Difference: minus $0.85 (current price is over target).
If NWL meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.71, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates ORI as Hold (3) -

Two new acquistions by Orica helps diversify the company's commodities mix, notes Morgans,  with exposure to gold rising to 25% of revenue from 21%. Earnings from North America also increase to 25% from 22%.

These changes are in line with the company's beyond blasting strategy, notes the broker.

The acquisitions are in Mining Chemicals and Digital Solutions and were purchased from private equity at relatively full multiples, according to the broker.

After taking into account the combined -$1,546m acquistion costs and a $465m capital raise, Morgans' target rises to $18.78 from $16.80. The Hold rating is maintained.

Orica's first half result is due on May 9.

Target price is $18.78 Current Price is $17.91 Difference: $0.87
If ORI meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.64, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates QOR as Buy (1) -

Qoria delivered a beat to Ord Minnett's forecasts across key metrics with its third quarter update.

The broker notes annual recurring revenue increased $6m in the period, to $112m, with full year guidance of $117-120m suggesting further acceleration over the fourth quarter. Ord Minnett remains at the top end of this guidance range.

Notably, all in costs of $24.8m were flat year-on-year despite the addition of $21m in annual recurring revenue over the same period. 

The Buy rating is retained and the target price increases to 50 cents from 48 cents.

Target price is $0.50 Current Price is $0.42 Difference: $0.08
If QOR meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates RPL as Buy (1) -

Regal Partners reported March flows in line with Ord Minnett's forecasts, with higher than expected funds under management growth of 9.8% due to good investment performance and supportive markets.

These gains were partially offset by the closure of Hong Kong-based East Point Asset Management, with $135m of FUM.

Given the recent PM Capital and Taurus acquisitions, the excellent investment performance across flagship products, and improving
performance fee potential, Ord Minnett believes Regal Partners should generate very strong returns over the next few years.

Target rises to $3.70 from $3.60, Buy retained.

Target price is $3.70 Current Price is $2.85 Difference: $0.85
If RPL meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SGR as Hold (3) -

Star Entertainment reported a -12% year-on-year decline in earnings over the third quarter, with weakness in premium gaming rooms continuing to weigh on the earnings according to Ord Minnett.

The broker notes while main floor gaming is up around 5%, premium gaming rooms across Star Entertainment's properties have reported double digit revenue declines.

Ord Minnett also feels Star Entertainment lacks competitive advantages, noting Crown appears to be taking table games market share in Sydney.

The Hold rating and target price of 90 cents are retained.

Target price is $0.90 Current Price is $0.49 Difference: $0.415
If SGR meets the Ord Minnett target it will return approximately 86% (excluding dividends, fees and charges).

Current consensus price target is $0.69, suggesting upside of 64.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates SPZ as Initiation of coverage with Buy (1) -

As per Shaw and Partners, Smart Parking, on which the broker is initiating coverage, is a leader in parking site management using number plate recognition and a top player in the UK market. 

The broker sees potential for Smart Parking to deliver a 30% compound annual earnings growth rate through to FY28 through building on its UK and New Zealand businesses. It is expected the company will further penetrate Germany and Denmark, and enter new markets.

Shaw and Partners sees Smart Parking as on track to reaching its targeted 1,500 automated parking sites by FY25.

The broker initiates with a Buy rating and a target price of 70 cents.

Target price is $0.70 Current Price is $0.40 Difference: $0.3
If SPZ meets the Shaw and Partners target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SVW as Lighten (4) -

Boral ((BLD)) has now unanimously recommended shareholders accept Seven Group's scrip/cash takeover offer following an increase to the cash component. Ord Minnett has increased its Boral valuation by 9%.

Given Ord Minnett believes the bid is highly likely to succeed, it recommends Boral shareholders accept or sell on market. With Seven Group trading at $40.50, the bid equates to $6.20 for Boral, which the broker would otherwise value at $4.40.

Ord Minnett has a $30.50 target on Seven Group and a Lighten rating.

Target price is $30.50 Current Price is $39.36 Difference: minus $8.86 (current price is over target).
If SVW meets the Ord Minnett target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.23, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Shaw and Partners rates SXG as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on exploration company Southern Cross Gold, currently exploring and growing the Sunday Creek gold project which, the broker highlights, has already proven itself to be one of the country's highest grade gold projects. 

As per the broker, 'exceptional' drilling results at the project saw Southern Cross Gold set an exploration target of 1.0-1.6m ounces of gold, but this target so far accounts for less than half of the known strike.

The broker initiates with a Buy rating and a target price of $2.61.

Target price is $2.61 Current Price is $2.21 Difference: $0.4
If SXG meets the Shaw and Partners target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates TLG as Buy (1) -

Following completion of front end engineering and design work at its Vittangi natural graphite anode project, Talga Group has updated estimated capital costs, with capital expenditure rising to -EUR560m with a further EUR39m in contingency.

As per Bell Potter, the key hurdle for the project remains environmental licensing. The company is waiting on a decision from the Supreme Court as to whether appeals to the license will be heard or not.

Either way, the broker does expected the outcome will be a permit being granted. The Buy rating is retained and the target price decreases to $2.35 from $2.50.

Target price is $2.35 Current Price is $0.79 Difference: $1.565
If TLG meets the Bell Potter target it will return approximately 199% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates XRO as Buy (1) -

UBS anticipates Xero can deliver an annual revenue per user compound growth rate of 6.5% over the next five years, from a prior projection of 5.0%. The broker points out this forecast could still prove conservative.

The broker explains this does rely on core accounting average revenue per user increasing by more than $2.20 annually, largely from price rises, and platform average revenue per user increasing by more than 46 cents annually.

Between price rises and plan upgrades, the broker feels there could be further room for growth. The Buy rating is retained and the target price increases to $141.90 from $139.30.

Target price is $141.90 Current Price is $119.84 Difference: $22.06
If XRO meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $126.92, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.5

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

UBS rates ZIP as Buy (1) -

UBS spotted another strong update released by Zip Co this morning. In an initial response to the release, the broker notes EBITDA guidance has been upgraded.

Net bad debts remain low, highlights the broker. Buy rating with a valuation of $1.43.

Target price is $1.43 Current Price is $1.33 Difference: $0.1
If ZIP meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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