Australian Broker Call

Morgans rates AGL as Hold (3) -

In a demerger that is expected to complete in 4Q22, subject to approvals, AGL Energy plans to move its retail business and some of its newer generation portfolio into a new entity called AGL Australia.

The legacy thermal assets and wind Power Purchase Agreements (PPAs) will remain in the old corporation to be renamed Accel Energy

Accel Energy will hold a 15%-20% interest in AGL Australia and an electricity offtake agreement out to FY27 will firm up volumes and reduce volatility for the two companies, explains Morgans.

The analyst highlights the special dividend has been cancelled, and the company is launching an underwritten DRP to conserve cash in 2H21 and FY22. Morgan's Hold rating is unchanged and the target is lowered to $7.34 from $9.74.

Target price is $7.34 Current Price is $8.10 Difference: minus $0.76 (current price is over target).
If AGL meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.38, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Macquarie rates AIA as Outperform (1) -

Auckland International Airport has provided a trading update, and pointed to covid-related border closures as a key driver of a slower-than-expected start and recovery in trans-Tasman travel. 

The company has reiterated an increasingly cautious outlook for international passenger recovery in the near-term. 

The company has reaffirmed a loss for FY21 of between -$35-55m, inclusive of -$20m in costs relating to debt restructuring. Combined with expected higher operating costs in FY22 to sustain increasing passenger recovery, Macquarie has downgraded FY21 and FY22, but points to recovery to pre-covid levels from late-FY24

The Outperform rating is retained and the target price increases to NZ$8.20 from NZ$7.61. 

Current Price is $6.72. Target price not assessed.

Current consensus price target is $6.80, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates AIA as Downgrade to Sell from Neutral (5) -

In light of the Auckland International Airport's enterprise value having recovered to pre COVID-19 levels, and the unlikely return to unrestricted international travel before FY24, 12 months longer than market expectations, UBS has lowered the company's rating to Sell from Neutral.

The broker has pushed back the start of NZ border re-opening by 3 months to mid-2022, reflecting a slower-than-expected vaccine rollout.

To reflect a slower-than-expected recovery in international passengers, UBS has lowered net profit forecasts by -54%, and -17% in FY23 and FY24, well below market consensus.

UBS has incorporated an extended period of retail rental abatements, deferral of aeronautical PSE4 reset until FY24, and a substantial reduction in capital expenditure from pushing back the new domestic terminal and second runway.

Price target is lowered to NZ$6.65 from NZ$7.30.

Current Price is $6.72. Target price not assessed.

Current consensus price target is $6.80, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

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

Macquarie is forecasting a solid FY21 result for Amcor, with the company guiding to a 14-15% earnings per share increase. 

The broker believes the growth cycle has peaked, meaning the company will be facing more volatility and lower equity returns in a slowing cycle. Despite this, Macquarie notes Amcor has generally performed well in a volatile market and continues to guide to a solid FY22 result. 

Macquarie has also highlighted Amcor has improved raw materials management, and attributes this to the company being more proactive regarding emerging markets. 

The rating is upgraded to Outperform and the target price increases to $16.56 from $16.42. 

Target price is $16.56 Current Price is $15.27 Difference: $1.29
If AMC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.15, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates AMP as No Rating (-1) -

In marking-to-market for equity movements in the June quarter, Credit Suisse estimates balanced portfolios increased by around 5%, which was ahead of the broker's estimate.

The broker upgrades AMP's EPS forecasts for FY21-23 by 3%, 2% and 2%, respectively. This comes after incorporating the stronger markets, the $200m buyback completed in May/June and lower-than-expected loan growth in April/May.

Credit Suisse is research restricted and cannot provide a rating or target for AMP.

Current Price is $1.13. Target price not assessed.

Current consensus price target is $1.23, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates AMP as Neutral (3) -

AMP is guiding to a -8 basis point decrease for FY21 based on price and simplification changes. Macquarie expects much of this decrease in the second half of FY21, and has accordingly decreased FY22 internal rate of return on assets under management to 56 basis points. 

The broker further highlights that each basis point decrease equates to roughly -2% change to group earnings per share outcomes. Macquarie decreases earnings per share forecasts for FY22 and further by -16% to -30%. 

Macquarie also notes AMP incurred -$24m in covid-related bank impairments in the first half of FY21, and the broker expects the company to start releasing these provisions in-line with most major banking peers. 

The Neutral rating is retained and the target price decreases to $1.15 from $1.50.

Target price is $1.15 Current Price is $1.13 Difference: $0.02
If AMP meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates ANP as Add (1) -

The depth and breadth of Antisense Therapeutics’ clinical/non-clinical data has increased substantially over the past 24 months, points out Morgans. 

With additional animal and human plasma studies expected to drive a better understanding into the mechanism of action (MOA) and new indications, it’s beginning to look like a compelling package, notes the broker.

The analyst is buoyed by recent events, including information on new indications and preliminary feedback from the two major regulatory authorities, and a FDA fast-track submission. The target price increases to $0.44 from $0.38.

Target price is $0.44 Current Price is $0.21 Difference: $0.23
If ANP meets the Morgans target it will return approximately 110% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

While the major banks had a very strong year, they underperformed the ASX200 in June. Morgan Stanley believes they will continue to outperform the ASX200, given a continuing EPS upgrade cycle and a better outlook for revenue growth.

Additionally, the broker notes large capital management prospects, a lower overall risk profile and relative valuation appeal. The analyst retains the Equal-weight rating for ANZ Bank and the $28 target. Industry view: In-Line.

Target price is $28.00 Current Price is $28.03 Difference: minus $0.03 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.17, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates BTH as Overweight (1) -

On the back of a stronger second half performance, Morgan Stanley upgrades annual recurring revenue (ARR) and EPS forecasts. Numbers are only lifted slightly for FY22 ARR and the broker assumes more modest cash burn to achieve it.

The analyst feels the stronger momentum implies consensus FY22 is a more modest hurdle. The Overweight rating and $1.50 target are  unchanged. Industry view is In-Line.

Target price is $1.50 Current Price is $1.14 Difference: $0.36
If BTH meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates CBA as Underweight (5) -

While the major banks had a very strong year, they underperformed the ASX200 in June. Morgan Stanley believes they will continue to outperform the ASX200, given a continuing EPS upgrade cycle and a better outlook for revenue growth.

Additionally, the broker notes large capital management prospects, a lower overall risk profile and relative valuation appeal. The analyst retains the Underweight rating and $89.50 target for the Commonwealth Bank. Industry view: In-line.

Target price is $89.50 Current Price is $98.70 Difference: minus $9.2 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.25, suggesting downside of -11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates CLW as Hold (3) -

Ord Minnett forecasts Charter Hall Long WALE REIT's announced acquisition of assets totalling $267m, including two retail assets and one industrial asset, to be 4% accretive to FY22 operating earnings per security (OEPS).

The broker forecast 7% OEPS growth in FY22 even after conservatively adjusting numbers to now assume Bowen Hills will not be leased until FY23.

Ord Minnett maintains a Hold rating for the REIT, and the target price is increased to $4.94 from $4.82.

The broker forecasts the REIT to pay an attractive FY22 distribution yield of 6.5%.

Target price is $4.94 Current Price is $4.78 Difference: $0.16
If CLW meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.17, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates CLW as Neutral (3) -

Charter Hall Long WALE has announced $267m of debt funded acquisitions and an upgrade to FY22 earnings per share
guidance to greater than 4.5% growth.

The 3 assets acquired take the portfolio property valuation to $5.55bn.

UBS' Neutral rating is maintained.

The broker updates earnings forecasts 2.5%, and FY22 net asset valuation reflects an initial yield of 5.0% (previously 5.2%).

Target is increased to $5.00 from $4.77.

Target price is $5.00 Current Price is $4.78 Difference: $0.22
If CLW meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.17, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates COE as Neutral (3) -

Due largely due to slower Sole/Orbost gas production, and ongoing/structural issues, plus Otway interruptions, Cooper Energy downgraded June quarterly production guidance by around 24%.

Prior guidance implied for the June quarter of 0.73-0.93 is now cut to 0.63MMboe.

Macquarie suspects this is driven by lower Sole production, and Otway periodic interruptions from Iona operator Lochard, with the latter being a one-off, since the fields will be running through Athena by the end of calendar year 2021.

Cooper Energy's lending syndicate has supported the resculpting of principal repayments on the $250m Sole facility.

The broker believes the next step in Cooper Energy's balance-sheet strategy will be refinancing this facility – to a larger amount, with more collateral for example with Otway/Athena to be included.

With tax loss selling now done and principal-repayment relief agreed with lenders, Macquarie expects Cooper Energy's shares may have now bottomed.

The broker notes purchasing back the Orbost plant could be a key positive, but the funding task for this and organic growth at Otway (OP3D) still remain challenging.

Neutral maintained. Target lowered to $0.31 from $0.32.

Target price is $0.31 Current Price is $0.27 Difference: $0.04
If COE meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 42.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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) -

Ahead of the FY21 results, Macquarie is forecasting Computershare Ltd to deliver FY22 earnings excluding Margin Income (constant FX) growth of 13%-plus.

The broker expects $141m FY22 Margin Income, factoring in the Wells Fargo acquisition from second quarter FY22.

Updates to Macquarie's forecasts factor in mark to markets and the extension of foreclosure moratoriums on US Mortgage Services.

While the extension of foreclosure restrictions prolongs headwinds for the US Mortgage Servicing business, the broker believes long-term growth prospects remain. 

Macquarie also notes the steepening of forward bond curves is encouraging with Computershare's exposure increasing with the Wells Fargo US Corporate Trust Services acquisition.

Outperform recommendation is retained, and target price increases to $22.00 from $20.95.

Target price is $22.00 Current Price is $16.77 Difference: $5.23
If CPU meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $16.37, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 CSL as Neutral (3) -

Target of $312 and Neutral rating retained as Macquarie's latest data gathering suggests further moderation in floor traffic at circa 100 CSL collection centres in the USA.

The broker points out CSL operates 15 centres near the Mexican border and a recent decision by Customs and Border Protection to not allow Mexican citizens to enter the US to donate plasma has likely impacted.

These centres represent no more than 5% of CSL's US plasma collection, though they were typically higher volume collectors in comparison to centres elsewhere in the country.

Macquarie also finds competitive risks are real for key Specialty Products. Minor adjustments have been made to forecasts.

Target price is $312.00 Current Price is $283.50 Difference: $28.5
If CSL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $299.47, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 DDH as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on DDH1 Ltd with an Outperform rating and $1.35 target price.

DDH1 operates one of Australia’s largest fleets of mineral drilling rigs across three brands, providing a full suite of drilling solutions through the mining life cycle.

The company specialises in the design and provision of complex and technical deep directional drilling programs, and has developed strong customer relationships across a diverse portfolio, weighted towards well-capitalised low-cost producers.

Commenting on the company, Macquarie notes DDH1 has a strong growth track record, with 24%-21% compound annual growth rate in revenue/earnings recorded FY17-20.

The broker believes DDH1 is strongly positioned versus peers with industry-leading margins and return on invested capital.

Target price is $1.35 Current Price is $1.18 Difference: $0.17
If DDH meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates EDV as Initiation of coverage with Hold (3) -

Morgans initiates coverage on Endeavour Group with a Hold rating and $6.65 target price. While attracted to the Retail business, the near-term outlook for Hotels is considered highly uncertain and at risk of further covid-related lockdowns.

The company has a retail network of 1630 stores across two key brands, Dan Murphy’s and BWS, and operates a portfolio of 332 licensed venues. It provides a range of hospitality services including food and beverage, gaming and accommodation.

According to the broker, growth opportunities include expanding the store/venue network, leveraging digital and data capabilities, broadening the product range and acquisitions. Risks include adverse changes to liquor and gaming regulations and increased ESG consciousness from investors.

Target price is $6.65 Current Price is $6.37 Difference: $0.28
If EDV meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates GMA as Outperform (1) -

Genworth Mortgage Insurance Australia Ltd has been advised by CommBank ((CBA)) of its intention to tender its LMI contract.

Assuming CommBank represents 57% of group net tangible assets in FY23, Macquarie believes the price for the residual business would be only around 50cps (with a stock price of $2.13).

But regardless of whether Genworth Australia loses the CommBank contact or not, the broker believes the stock is currently being under-priced.

Macquarie's earnings per share forecast changes, up 4.8% in FY21 reflect mark to market.

Outperform maintained. Target is lowered to $3.35 from $3.60 to reflect return on equity being below the cost of capital.

Target price is $3.35 Current Price is $2.13 Difference: $1.22
If GMA meets the Macquarie target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates GXY as Neutral (3) -

Credit Suisse notes an increasingly supportive lithium macro, which sees the broker's near-term pricing forecasts above consensus. The lithium price forecast incorporates exponential lithium demand for EV batteries, sustaining an upturn in prices as demand exceeds supply.

The broker notes lithium prices have risen sharply since February, and doesn't believe it is temporary. Orocobre ((ORE)) and Galaxy Resources have agreed to merge, and the analyst sees ample value upside.

This should come from Orocobre's hard-earned IP operating in Argentina, which may materially derisk Galaxy Resources’ Sal de Vida
Resource, explains the analyst. The overall scale and market relevance enhancements should derisk funding for and accelerate overall growth.

Credit Suisse maintains the Neutral rating for Galaxy Resources and lowers the target price to $3.53 from $3.75.

Target price is $3.53 Current Price is $3.69 Difference: minus $0.16 (current price is over target).
If GXY meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.80, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates HUB as Outperform (1) -

In marking-to-market for equity movements in the June quarter, Credit Suisse estimates balanced portfolios increased by around 5%, which was ahead of the broker's estimate.

The broker upgrades EPS estimates by 2%, 5% and 4%, respectively, for FY21-23 for Hub24, and raises the target price to $31.50 from $27.70.

The earnings upgrades reflect the higher earnings profile and also increased conviction that the company will be able to benefit from rising deposit spreads and cash rates in the future, explains the analyst. The Outperform rating is unchanged.

Target price is $31.50 Current Price is $27.29 Difference: $4.21
If HUB meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $26.82, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgan Stanley rates IEL as Overweight (1) -

IDP Education announced the acquisition of British Council's Indian IELTS operations for $238m, to be funded from cash reserves and borrowing.

The broker notes management-supplied pre-synergy EPS accretion is 13%, based on pro forma 2019 numbers. This is estimated to imply 18.5% post-synergy after tax, adjusting the midpoint of $6-8m synergy range.

The synergies are primarily based on harmonising delivery costs, rather than long-term strategic benefits, in the analyst's opinion. The Overweight rating is retained with a target of $30. Industry view: In-line.

Target price is $30.00 Current Price is $24.47 Difference: $5.53
If IEL meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $30.04, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates IEL as Add (1) -

Morgans first take on the acquisition of 100% of the British Council’s Indian IELTs operations for $238m results in 10-13% upgrades to the broker's EPS forecasts for FY22 and FY23. The Add rating is retained and the price target is increased to $29.10 from $28.48.

Management expects synergies of $6-8m within 24 months, and estimates EPS accretion of around 13%, based on pro-forma 2019 (pre synergies). The analyst sees the acquisition as highly strategic and provides enhanced exposure to a large and growing IELTs region.

Longer-term, Morgans continues to see sustained strong growth, driven by market share gains in student placement, ongoing IELTs demand and potential further acquisition opportunities.

Target price is $29.10 Current Price is $24.47 Difference: $4.63
If IEL meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $30.04, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates IEL as Buy (1) -

IPD Education has entered into a binding agreement to acquire 100% of BC’s Indian IELTS operations for $238m on a cash free, debt free basis.

Commenting on the announcement, UBS believes a sharp recovery of the Indian business post lockdown provides comfort around pent-up demand and the strength of the business.

The broker believes structural tailwinds, together with the digital strategy and ensuing market share gain opportunity creates an
attractive growth profile, and maintains a Buy rating.

UBS' target of $28.25 is also retained, but has not yet incorporated the acquisition into the broker's forecasts.

Target price is $28.25 Current Price is $24.47 Difference: $3.78
If IEL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $30.04, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates IFL as Outperform (1) -

In marking-to-market for equity movements in the June quarter, Credit Suisse estimates balanced portfolios increased by around 5%, which was ahead of the broker's estimate.

The broker upgrades the IOOF Holdings's EPS forecasts for FY21-23 by 6%, 3% and 2%, respectively, and increases the price target to $5.30 from $5.25. The Outperform rating is maintained.

Target price is $5.30 Current Price is $4.24 Difference: $1.06
If IFL meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates IGO as Neutral (3) -

Credit Suisse increases the target price for IGO Ltd to $8.30 from $6.85, reflecting updated lithium prices. The increase in forecast EPS reflects operating changes as well as the Tropicana divestment, accounting adjustments and changes to the assumed capital structure.

The broker sees a fully-expanded (FY28) Greenbushes as capable of generating $1.7bn annual earnings (EBITDA), while a fully-expanded (FY31) Kwinana should be capable of $550m annual earnings.

Target price is $8.30 Current Price is $7.95 Difference: $0.35
If IGO meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.84, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates JHG as Neutral (3) -

As a sector, Credit Suisse estimates asset managers are trading at a -20% discount (near all-time lows) to the market and upgrades earnings by 1-2% on average. Sector flows have improved and are now less negative, but the price earnings discount has persisted.

Credit Suisse reiterates the Neutral rating for Janus Henderson Group as retail flows have recently softened. The broker sees scope for a buyback of up to $200m, potentially to be announced at the next result. The target price is also unchanged at $44.50.

Target price is $44.50 Current Price is $51.42 Difference: minus $6.92 (current price is over target).
If JHG meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.85, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgan Stanley rates JHX as Overweight (1) -

The company released the KPMG Annual Actuarial Report, showing FY21 claim numbers were -13% below the actuary's expectation. Also, revised estimates lowered expected payouts for the next five years, points out Morgan Stanley.

Importantly for the broker, the -35% cash flow drain for the company is expected to moderate from FY24. The analyst's revised asbestos valuation declines -7% to $1.83 per share. Overweight rating reiterated. Target is $50. Industry view is In-Line.

Target price is $50.00 Current Price is $44.51 Difference: $5.49
If JHX meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates LLC as Buy (1) -

London lockdowns are weighing on Lendlease Group's development earnings, and Citi has reduced earnings forecasts for FY21 and highlighted a slower activity ramp-up in FY22 accordingly. 

Lendlease is now guiding to total profit of $375-410m for FY21, which at the midpoint is -16% below Citi's previous forecast of $465m. Similarly, the company's FY22 profit guidance of $578 is -8% below consensus forecast of $626. 

The broker notes Sydney, Melbourne and Milan all show development progress and longer-term forecasts are retained.

The Buy rating and target price of $16.77 are retained.

Target price is $16.77 Current Price is $11.14 Difference: $5.63
If LLC meets the Citi target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates LLC as Outperform (1) -

Lendlease Group's FY21 operating profit guidance of $375-$410m was below Credit Suisse's expectation for $474-460m. Management explained negative covid impacts, especially in the UK, were largely responsible.

The company was unable to forward-sell one tower, and there were profit claw-backs on two built-to-rent towers. However, while awaiting more detail, the broker doesn't feel the Construction and Investment segments are going to be materially worse than expected. 

The analyst lowers FY21-FY23 operating EPS forecasts by -16.1%,-15.3% and -11.8%, respectively, and lowers the target price to $12.94 from $13.47. Credit Suisse continues to see long-term value for patient investors.

Target price is $12.94 Current Price is $11.14 Difference: $1.8
If LLC meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Lendlease estimates FY21 profit will be -13%-20% below consensus estimates, due to project delays and profit write-backs in London. Morgan Stanley describes near-term profitability as appearing to be murky.

The broker lowers the already bottom-of-consensus FY22 profit to $502.5m from $550.4m. It's also suspected that current consensus of around $613m will have to come down materially to reflect the uncertain earnings in the near term.

The analyst lowers the price target to $13 from $13.98. Industry view: In-line.

Target price is $13.00 Current Price is $11.14 Difference: $1.86
If LLC meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates LLC as Hold (3) -

Following Lendlease Group's FY21 core operating profit guidance of $375–410m, well below $465m consensus, Ord Minnett reiterates that the group's asset class exposures and geographic mix are not conducive to a significant ramp-up in activity in the short term.

Overall, the broker believes Lendlease's earnings recovery is an FY23-plus story. 

However, Ord Minnett believes the outlook for the businesses has improved over the past six months, even though Lendlease has been
a material underperformer. 

The broker sees significant medium-term value in Lendlease, but awaits the FY21 result to look ‘under the bonnet’ for greater clarity on operational performance and sustainable divisional earnings.

Ord Minnett has reduced earnings forecasts by -16% for FY21, -11% for FY22 and -5% for FY23.

Hold retained. Target is increased to $13.00 from $12.80.

Target price is $13.00 Current Price is $11.14 Difference: $1.86
If LLC meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates LLC as Buy (1) -

Lendlease has missed FY21 consensus net profit estimates of $469m, and the guidance range of $375m to $410m still falls slightly short of UBS at $416m.

At first glance, UBS notes today’s announcement left little clarity around FY22 profit drivers, given substantial deals still closed in FY21.

The broker sees several potential new deals such as Capella reaching financial close on the North East Tunnelling project, and build-to-rent at Melbourne Quarter, plus overhead reductions.

In moving One Sydney Harbour to FY21, the broker reduces FY22 earnings estimates -17% to $559m.

In later years, FY23 to FY25, UBS has reduced forecasts by around -3% reflecting some deferrals. However, the broker expects the Google project and Barangaroo settlements to drive growth.

UBS sees a 3-year net profit compound annual growth rate of 12% from the base of the broker's revised FY22 net profit forecast.

The broker notes while FY22 remains a transition year, Lendlease's latest profit warning has shown there is persistent earnings risk across the business.

UBS maintains a Buy rating and a target price of $13.00.

Target price is $13.00 Current Price is $11.14 Difference: $1.86
If LLC meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates MFG as Neutral (3) -

As a sector, Credit Suisse estimates asset managers are trading at a -20% discount (near all-time lows) to the market and upgrades earnings by 1-2% on average. Sector flows have improved and are now less negative, but the price earnings discount has persisted. 

The broker reiterates the Neutral rating for Magellan Financial Group as consensus fund flows remain too high, given recent outflows and lacklustre fund performance. The target price of $54 is also unchanged.

Target price is $54.00 Current Price is $54.42 Difference: minus $0.42 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.91, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates MTS as Neutral (3) -

As Macquarie points out, Metcash's annual group revenues exceeded $16bn for the first time ever in FY21. The performance of the Food operations was relatively subdued, with Hardware and Liquor exhibiting strength.

The broker also points out the company has launched an off-market share buyback (up to $175m) while also increasing its dividend payout ratio to 70%.

Macquarie forecasts Hardware to benefit from a strong pipeline of Australians renovating, but retains a Neutral rating while the price target only gains 10c to $3.80. Earnings estimates went up by low single digit percentages.

Target price is $3.80 Current Price is $3.81 Difference: minus $0.01 (current price is over target).
If MTS meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.05, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

While the major banks had a very strong year, they underperformed the ASX200 in June. Morgan Stanley believes they will continue to outperform the ASX200, given a continuing EPS upgrade cycle and a better outlook for revenue growth.

Additionally, the broker notes large capital management prospects, a lower overall risk profile and relative valuation appeal. The analyst retains the Equal-weight rating for National Australia Bank and the $27.20 target. Industry view: In-Line.

Target price is $27.20 Current Price is $26.04 Difference: $1.16
If NAB meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $27.33, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgans rates NAN as Add (1) -

Morgans believes Nanosonics’ investment in R&D is delivering, after the launch a new digital platform, AuditPro. The platform offers digital traceability, reporting and compliance. This will provide a new revenue stream, which is thought to have good potential.

The analyst had already allowed for a second instrument-disinfection product in FY23 forecasts, so makes no adjustments.

The broker lowers forecasts, mainly in FY21, to reflect an exchange rate adjustment to consumables. The target price have been revised down to $6.57 from $6.69.

Target price is $6.57 Current Price is $5.79 Difference: $0.78
If NAN meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.82, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates NUF as Buy (1) -

Citi has highlighted likely positive crop protection application for corn and soybean crops this season, following the United States Department of Agriculture (USDA) reporting an expected 4% year-on-year increase in combined corn and soybean planted acres.

The broker notes this supports its forecast for Nufarm to achieve 10% sales growth in North America in the second half, a segment which accounts for 21% of Nufarm's forecast FY21 earnings. 

The Buy rating and target price of $6.00 are retained.

Target price is $6.00 Current Price is $4.48 Difference: $1.52
If NUF meets the Citi target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates NWL as Downgrade to Underperform from Neutral (5) -

Following an around 25% appreciation in share price over the last quarter, Credit Suisse lowers  Netwealth Group's rating to Underperform from Neutral, solely on valuation grounds. The target price rises to $16 from $14.40.

The company continues to attract significant flows and grow market share, and the broker expects this to continue.

Target price is $16.00 Current Price is $16.75 Difference: minus $0.75 (current price is over target).
If NWL meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.46, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates ORA as Neutral (3) -

Macquarie expects Orora Ltd's strong recent North America performance - with March quarter volumes up 3.9% - to continue with SAP system now bedded down and providing better insights into customer profitability as well as cost management.

The broker expects a 62% lift in Orora's second half FY21 North America earnings on the previous period, including 3.5% second half FY21 earnings margins.

In FY22 the broker forecasts another flattish year with a full period effect of the China wine impact offsetting strong ongoing aluminum beverage cans demand.

Macquarie notes the underlying strength of Orora's balance sheet creates ample internal funding ability for growth initiatives such as domestic canning line & M&A, although latter is not an immediate priority.

The broker lifts FY21, FY22, FY23 and FY24 earnings per share by 2%, 2%, 3% and 6% respectively on stronger North America margin forecasts.

While Macquarie sees a positive earnings outlook, the broker believes the stock is relatively fully valued and notes the buyback is also now complete.

Macquarie retains its Neutral rating with the target increasing to $3.38 from $3.05.

Target price is $3.38 Current Price is $3.26 Difference: $0.12
If ORA meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.14, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates ORE as Neutral (3) -

Credit Suisse notes an increasingly supportive lithium macro environment, which sees the broker's near-term pricing forecasts above consensus. The lithium price forecast incorporates exponential lithium demand for EV batteries sustaining an upturn in prices as demand exceeds supply.

The broker notes lithium prices have risen sharply since February and doesn't believe it is temporary. Orocobre and Galaxy Resources ((GXY)) have agreed to merge and the analyst sees ample value upside.

This should come from Orocobre's hard-earned IP operating in Argentina, which may materially derisk Galaxy Resources’ Sal de Vida
Resource. The overall scale and market relevance enhancements should derisk funding for and accelerate overall growth.

The Neutral rating for Orocobre is maintained and the target slips to $6.32 from $6.60, largely from lower long term forecast lithium carbonate pricing.

Target price is $6.32 Current Price is $6.44 Difference: minus $0.12 (current price is over target).
If ORE meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.52, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates PDL as Upgrade to Outperform from Neutral (1) -

As a sector, Credit Suisse estimates asset managers are trading at a -20% discount (near all-time lows) to the market and upgrades earnings by 1-2% on average. Sector flows have improved and are now less negative, but the price earnings discount has persisted. 

The broker upgrades Pendal Group to Outperform from Neutral, given it is trading at a P/E discount to three prominent peers, yet its flows are tracking better than all three.

There's considered scope for both a P/E re-rate and upside risk to earnings should flows further accelerate from this point, explains the analyst. The target price is raised to $8.90 from $7.90, and the stock is now Credit Suisse's most preferred in the sector.

Target price is $8.90 Current Price is $7.99 Difference: $0.91
If PDL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.55, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates PLS as Neutral (3) -

Credit Suisse notes an increasingly supportive lithium macro environment which sees the broker's near-term pricing forecasts above consensus. The lithium price forecast incorporates exponential lithium demand for EV batteries sustaining an upturn in prices as demand exceeds supply.

The broker notes lithium prices have risen sharply since February and doesn't believe it is temporary. Pilbara Minerals remains Credit Suisse's top pick in the sector for reasons including management's track record and a simpler hardrock resource.

The broker lifts the target price to $1.38 from $0.93 and maintains the Neutral rating.

Target price is $1.38 Current Price is $1.46 Difference: minus $0.08 (current price is over target).
If PLS meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.33, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates PNI as Outperform (1) -

Market boosts experienced by Pinnacle Investment Management Group in May and June drive Macquarie's 3% earnings per share (EPS) upgrade in FY22 and FY23, 10% ahead of consensus.

The broker forecasts Pinnacle Affiliate funds under management (FUM) at June 2021 to reach $90bn, comprising $20bn retail and $70bn institutional. 

Recent affiliates fund performance has seen Macquarie performance fee estimates cut to $72m from $100m in FY21.

Since January 2021, the impact of flows, markets, performance, and operating leverage has seen Macquarie EPS forecasts upgraded by 80% in FY21, 120% in FY22 and 110% in FY23.

Macquarie believes the outlook for the group's organic performance, backed by net flows, performance fees and operating leverage, continues to support upside risk to the broker's estimates in FY22 and beyond.

Outperform retained with the target price increasing to $12.26 from $11.37.

Target price is $12.26 Current Price is $11.35 Difference: $0.91
If PNI meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.97, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates PPT as Outperform (1) -

As a sector, Credit Suisse estimates asset managers are trading at a -20% discount (near all-time lows) to the market and upgrades earnings by 1-2% on average. Sector flows have improved and are now less negative, but the price earnings discount has persisted.

For Perpetual, an improvement in fund performance for Perpetual Australian and Barrow Hanley could lead to a turnaround in flows in these businesses, notes the broker. It's also considered flows into Trillium may assist.

Credit Suisse's price target rises to $43 from $39, and the Outperform rating is unchanged.

Target price is $43.00 Current Price is $39.60 Difference: $3.4
If PPT meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.71, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates PTM as Underperform (5) -

As a sector, Credit Suisse estimates asset managers are trading at a -20% discount (near all-time lows) to the market and upgrades earnings by 1-2% on average. Sector flows have improved and are now less negative, but the price earnings discount has persisted.

With ongoing outflows weighing on earnings growth, the broker doesn't see a likely near-term turning point for Platinum Asset Management  and lowers the target price to $4.60 from $4.65. The Underperform rating is unchanged.

Target price is $4.60 Current Price is $4.85 Difference: minus $0.25 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.07, suggesting downside of -15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.6

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

Ord Minnett rates RHP as Accumulate (2) -

Rhipe Ltd has received an acquisition proposal from Norway-listed Crayon Group.

The offer price of $2.50 a share values Rhipe at an enterprise value (EV) of $372m, and implies an EV to operating earnings multiple of 23x FY21 and 18x FY22.

Ord Minnett believes the offer price - which is at a 29% premium to Rhipe’s June-21 volume-weighted average price - could be improved.

Given that Rhipe competes with Crayon in some South East Asian markets and, given the standardised nature of the cloud solution providers’ two-tier distribution, the broker expect minimal issues with due diligence.

The broker maintains the Accumulate rating and increases the target price to $2.57 from $2.45.

Target price is $2.57 Current Price is $2.51 Difference: $0.06
If RHP meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SO4 as Outperform (1) -

While practical completion of the Lake Way SOP processing plant is a positive step for Salt Lake Potash, Macquarie notes that commissioning appears to be slipping behind management’s previous expectations.

Given the well-known constraints on the ramp up over FY22, including low feed salt availability from the late delivery of the second half of evaporation ponds, the broker believes timely first production will not materially impact FY22 cash flow, and could be made-up over the year.

The Outperform rating is retained, and target is lowered to $0.60 from $0.65.

Target price is $0.60 Current Price is $0.35 Difference: $0.25
If SO4 meets the Macquarie target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SUN as Outperform (1) -

Today, Suncorp Group provided an update on the sale of its 50% interest in RACTI, as well as the placement of its FY22 reinsurance program and the pay and leave entitlements review.

In an initial response to the release, Macquarie analysts observe the FY22 reinsurance program structure is unchanged while the natural hazard allowance will be $980m. The latter is in-line with the broker's forecast for FY21.

Macquarie retains its Outperform rating with price target of $13.20. Suncorp remains the broker's preference in the Australian General Insurance sector.

Target price is $13.20 Current Price is $10.98 Difference: $2.22
If SUN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.81, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates SYR as Neutral (3) -

The recent recommencement of operations at Balama is an encouraging sign for Credit Suisse. Long-term, Syrah Resources is considered well positioned to benefit from the prolific expected growth in lithium-ion based EVs and stationary storage.

However, is still difficult to have any great conviction around phase/timing of ramp-up to material cash positive operations, explains the broker. The timing around any potential strategic partner coming on board the downstream operation is also considered problematic.

The target price is reduced to $1.20 from $1.25 and the Neutral rating is maintained. As the company approaches the long-awaited ramp-up, it could trigger a rerating, if successful, predicts the analyst.

Target price is $1.20 Current Price is $1.07 Difference: $0.13
If SYR meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 TLS as Buy (1) -

While Ord Minnett's earnings estimates remain broadly unchanged following Telstra's announced sale of a minority interest (49%) in InfraCo Towers for $2.8bn, the broker's net present value estimate has increased 3%.

The broker believes Telstra is best placed in the Australian mobile market, with the company’s head-start on the rollout of 5G
infrastructure leading to market share gains of lucrative postpaid subscribers.

Additionally, Ord Minnett expects product bifurcation through the establishment of sub-brands to protect higher quality services from further price degradation.

With the stock price well below Ord Minnett's valuation, the broker recommends a Buy and increases the target price to $4.25 from $4.10.

Target price is $4.25 Current Price is $3.76 Difference: $0.49
If TLS meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

With the key catalysts to UBS' Buy rating having played out through rational competition in mobile, the TowerCo sale, and no further dividend cut, the broker has lowered the rating on Telstra Corp to Neutral.

Telstra plans to return half the proceeds to shareholders, invest -$75m in regional connectivity, with the remainder earmarked to pay down debt.

Key upside risks noted by UBS include even more favourable mobile market conditions, 5G use case upside, further corporate activity around Telstra's Infrastructure assets, and more cost initiatives.

The TowerCo sale drives earnings per share upgrades of around 1%, and the price target increases to $3.90 from $3.70.

Target price is $3.90 Current Price is $3.76 Difference: $0.14
If TLS meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates WBC as Overweight (1) -

While the major banks had a very strong year, they underperformed the ASX200 in June. Morgan Stanley believes they will continue to outperform the ASX200, given a continuing EPS upgrade cycle and a better outlook for revenue growth.

Additionally, the broker notes large capital management prospects, a lower overall risk profile and relative valuation appeal. The analyst retains the Overweight rating and $29.20 target for Westpac Bank. Industry view: In-line.

Target price is $29.20 Current Price is $25.65 Difference: $3.55
If WBC meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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