Australian Broker Call

Macquarie rates ABP as Neutral (3) -

Abacus Property has provided an update on the proposed de-stapling to create Abacus Storage King (ASK) REIT. If approved at an EGM expected in July, the new REIT will be externally managed and the parent will become Abacus Group (ABG). The manager will hold up to 19.9% of securities in ASK.

Relative valuation suggests to Macquarie upside from de-stapling self storage, but the broker will look to assess practical outcomes for Abacus Group in the future. This includes the impact of the equity raise which will follow within the Storage King REIT.

Neutral and $2.90 target retained.

Target price is $2.90 Current Price is $2.68 Difference: $0.22
If ABP meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 21.4% (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

Macquarie rates ALL as Outperform (1) -

Aristocrat Leisure's first half result was ahead of Macquarie's expectations, led by improving land-based profitability, but Pixel United disappointed, hence the broker believes there will be a debate whether guidance is achievable.

Macquarie continues to have high conviction given earnings upside, in particular with Anaxi pairing losses and given the NeoGames opportunity.

The stock is trading on 19x forecast FY23 PE, which is a 7% premium to market versus a 25% long-run average.

Outperform retained, target rises to $46.20 from $44.50.

Target price is $46.20 Current Price is $38.04 Difference: $8.16
If ALL meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $44.00, suggesting upside of 14.3% (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

Morgan Stanley rates ALL as Overweight (1) -

First half results were broadly in line with expectations. Morgan Stanley was disappointed with the digital side, amid both lower bookings and lower margins.

Although booking growth should turn positive in the second half, Aristocrat Leisure will need to manage margins in the second half in order to deliver guidance, the broker adds.

Meanwhile, outright sales in North America outperformed against a backdrop of strong capital commitments from operators.

The Overweight rating is maintained based on the company's content advantage, the build of real money gaming and strength in land-based North American business.

Buyback assumptions are increased by $500m, as recently announced. Target of $43 is unchanged. Industry View: In-Line. 

Target price is $43.00 Current Price is $38.04 Difference: $4.96
If ALL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $44.00, suggesting upside of 14.3% (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

Morgans rates ALL as Add (1) -

Morgans describes Aristocrat Leisure's 1H results, which exceeded the broker's profit (NPATA) forecast by 6.7%, as a tale of two businesses.

The largest division, Americas Gaming, achieved 20.6% profit growth, partly offset by a -8.9% decline in the digital gaming division Pixel United.

After subtracting the contribution from a strong US dollar, the headline 14% increase in 1H profit becomes 4%, measured by constant currency growth, highlights the analyst.

The broker suggests Pixel United will experience challenging conditions and deliver softer growth for the next 12-18 months, though there is still a lot of near-term growth via land-based gaming in the US.

The Add rating is maintained and the target slips to $45 from $46.

Target price is $45.00 Current Price is $38.04 Difference: $6.96
If ALL meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $44.00, suggesting upside of 14.3% (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

Ord Minnett rates ALL as Accumulate (2) -

Ord Minnett notes the first half result from Aristocrat Leisure was buoyed by sharply lower net interest costs and favourable foreign currency translation.

The broker lowers FY23 underlying net profit estimates by -2%, largely because of the softness in the Pixel United result.

Meanwhile, the gaming business, around two thirds of earnings, lifted operating earnings by 17%, underscoring what the broker describes as a "lucrative and resilient market".

The Accumulate rating and $43 target are unchanged.

Target price is $43.00 Current Price is $38.04 Difference: $4.96
If ALL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $44.00, suggesting upside of 14.3% (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

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

Morgan Stanley calculates second half futures volumes are tracking 12% higher, compared with its forecast of 4.5%.

This implies around 2.5% upside to second half earnings. Yet the broker warns April and May are slowing after a strong March quarter.

The Equal-weight rating and target price of $68.90 are retained. Industry view: In-Line.

Target price is $68.90 Current Price is $67.95 Difference: $0.95
If ASX meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $69.87, suggesting upside of 2.9% (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 AUB as No Rating (-1) -

AUB Group has upgraded FY23 profit guidance by 4.1% at midpoint driven by underlying operating performance, Macquarie reports.

The Tysers UK Retail JV with PSC Insurance ((PSI)) will not proceed. AUB will continue to own 100% of Tysers, including UK Retail. The segment is trading ahead of AUB's expectations, with cost synergy realisation on track and revenue synergies to flow in FY24.

Due to research restrictions, Macquarie cannot advise on a rating or target for AUB.

Current Price is $25.86. Target price not assessed.

Current consensus price target is $29.50, suggesting upside of 7.7% (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 AUB as Hold (3) -

Ord Minnett suspects AUB group has cooled on the idea of selling half of Tysers because of the strong performance since taking over the business.

As a result of pulling the plug on the JV with PSC Insurance ((PSI)) the company, to keep gearing in check, is raising up to $165m.

Ord Minnett assesses dilution from the equity raising is offset by retaining the retail broker business. The broker retains a Hold rating and $29 target.

Target price is $29.00 Current Price is $25.86 Difference: $3.14
If AUB meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $29.50, suggesting upside of 7.7% (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 AUB as Buy (1) -

AUB Group will not proceed with the Tysers Retail joint venture and will raise up to $165m in equity in lieu of of the proceeds it would have received from PSC Insurance ((PSI)).

The company has also upgraded guidance for net profit to $120-124m. Overall, UBS considers the net impact positive as the higher-margin component of Tysers has been effectively bought back. Buy rating maintained. Target rises to $30.00 from $29.65.

Target price is $30.00 Current Price is $25.86 Difference: $4.14
If AUB meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $29.50, suggesting upside of 7.7% (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 BGL as Initiation of coverage with Neutral (3) -

UBS initiates coverage of Bellevue Gold with a Neutral rating and $1.40 target. The underground gold project in Western Australia is on track with first gold expected in October.

The broker notes there are challenges, in particular the headwinds that face miners delivering on time and budget. Ongoing exploration and improvements in plant throughput will be key value drivers in the medium term.

Target price is $1.40 Current Price is $1.26 Difference: $0.14
If BGL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

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

Bell Potter rates BPT as Buy (1) -

Bell Potter highlights Beach Energy's strong balance sheet, which will allow the company to withstand potential pressure resulting from the withdrawal of its targeted schedule and capital estimates for the Waitsia Stage 2 project.

While the project is a key component of near-term production growth, the impact on valuation is muted given production is deferred to later periods, explains the broker.

The delay will mostly impact FY24 production and earnings estimates and makes providing FY24 guidance difficult, suggests the analyst.

The broker's target falls to $2.05 from $2.18. Buy.

Target price is $2.05 Current Price is $1.35 Difference: $0.7
If BPT meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 34.1% (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 BPT as Upgrade to Buy from Neutral (1) -

Following the withdrawal of guidance relating to Waitsia and a -10% decline in the share price since April, Citi assesses the impact is minimal and upgrades to Buy from Neutral.

The broker expects a three-month delay at Waitsia and an extra -$30m in capital expenditure, a smalll dent in valuation.

Meanwhile, Waitsia 2P is being audited and may be updated prior to the August results, providing a catalyst. The Trigg-1 exploration results are also imminent. Target is reduced to $1.65 from $1.70.

Target price is $1.65 Current Price is $1.35 Difference: $0.3
If BPT meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 34.1% (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

Macquarie rates BPT as Neutral (3) -

Beach Energy has withdrawn capex and schedule guidance at Waitsia, with the tight WA labour market impacting progress on the construction site. The Waitsia completion contract with WeBuild is cost-plus, so the Beach/Mitsui JV is exposed, Macquarie notes.

For now, the broker assumes a three-month delay and -$1bn gross total capex.

Meanwhile, Perth basin exploration upside could be material, and others have had strong results, but Macquarie finds this is speculative and hard to base a thesis on.

Neutral retained, target falls to $1.35 from $1.48.

Target price is $1.35 Current Price is $1.35 Difference: $0
If BPT meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 34.1% (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

Bell Potter rates BST as Hold (3) -

Bell Potter lowers its revenue and earnings forecasts after Best & Less provided a soft sales trading update for the first 19 weeks of the 2H, and downgraded profit guidance for the half to $10-12m from $18-20m.

Like-for-like sales growth of -1.4% on the previous corresponding period compares to 3.9% for the first seven weeks of the 2H.

The broker lowers its target price to $1.80 from $1.85, which incorporates an expected improvement in gross margins back towards the company's targeted range of 48-50% from the 2H of FY24 onwards.

Target price is $1.80 Current Price is $1.87 Difference: minus $0.065 (current price is over target).
If BST meets the Bell Potter target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Shaw and Partners rates CLG as Buy (1) -

Close the Loop has updated on trading in FY23, flagging EBITDA of $22m which includes two months contribution of ISP. Guidance for FY24 EBITDA is over $43m on revenue of at least $200m.

This implies a EBITDA margin of 21.5%, well ahead of the Shaw and Partners prior estimate.

The company intends to utilise its international footprint to expand refurbishment expertise obtained through the ISP acquisition.

The broker retains a conservative view on the global opportunity, yet notes the stock is trading well below peers and retains a Buy rating. Target is $0.70.

Target price is $0.70 Current Price is $0.37 Difference: $0.33
If CLG meets the Shaw and Partners target it will return approximately 89% (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 DBI as Buy (1) -

Dalrymple Bay Infrastructure has announced an increase in the terminal charge of 8.7% to $3.45 for the 12 months ending June 2024. As a result, the implied revenue for this period is $290.5m, generally in line with consensus.

Citi retains a Buy rating and target of $2.80.

Target price is $2.80 Current Price is $2.58 Difference: $0.22
If DBI meets the Citi target it will return approximately 9% (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

Ord Minnett rates FCL as Downgrade to Accumulate from Buy (2) -

As the share price of Fineos Corp has moved through the trigger level Ord Minnett downgrades to Accumulate from Buy. Target is $3.40.

Target price is $3.40 Current Price is $1.82 Difference: $1.585
If FCL meets the Ord Minnett target it will return approximately 87% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 30.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in EUR. 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

Macquarie rates FMG as Underperform (5) -

Fortescue Metals will use its excess cash to fund the early redemption of its US$750m senior unsecured notes.

Average June quarter iron ore pricing and spot iron ore prices are below Macquarie's 2023 forecasts, presenting near term earnings headwinds for Fortescue. Fortescue Future Industries' cash outflows maintained an upward trend in the first half.

This compares to a payout ratio that has been on a downward trend. The scope of projects and the cash outflow to FFI remain
headwinds to shareholder returns, in the broker's view.

Underperform and $17 target retained.

Target price is $17.00 Current Price is $20.53 Difference: minus $3.53 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.42, suggesting downside of -19.7% (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: -0.9

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

Bell Potter rates IEL as Initiation of coverage with Hold (3) -

Bell Potter initiates coverage on education services provider IDP Education with a Hold rating. While shares are trading at a large premium to the average of its peers, its felt the company's larger scale and size justifies this outcome. A $30.45 target is set.

In the broker's opinion, innovation is the key that sets the company's offerings apart, which also helps defend market share.

The company places international students with educational institutions across six English-speaking destination countries and co-owns and distributes English language proficiency tests, ‘IELTS’. This latter is one of the most well-renowned and widely accepted tests.

In addition, IDP Education owns and operates English language schools in South East Asia and provides digital marketing and event services.

Swing factors for Bell Potter's valuation and rating relate to M&A, changes to global mobility and acceptance of competing English language tests in new markets.

Target price is $30.45 Current Price is $27.07 Difference: $3.38
If IEL meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $31.48, suggesting upside of 16.6% (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 KMD as Equal-weight (3) -

In its market update, KMD Brands indicated sales growth was moderating, to 15.6% in the third quarter from 35% in the first half. Yet, Morgan Stanley considers this is still healthy and tracking ahead of expectations.

Gross margins are also withstanding the pressure, which suggests the business is not aggressively promoting products to drive sales.

Still, Morgan Stanley expects the market will remain cautious because of the challenging macro environment. Equal-weight retained. Target is $1.05. Industry view is In-Line.

Target price is $1.05 Current Price is $1.05 Difference: $0.005
If KMD meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.01, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Citi rates LOV as Neutral (3) -

Citi reviews the roll-out of Lovisa Holdings' stores and suspects this may have slowed since the trading update at the first half result. Furthermore, foot traffic data in Australian retail appears to have weakened, with all three track metrics declining at the start of May.

Citi  forecasts a drop of -2% in like-for-like sales for the second half. FY23-25 estimates for earnings per share are increased by 1% to reflect a slower roll-out into regions where the average sales per store may be lower than more mature markets.

Target rises to $25.75 from $24.55 and a Neutral rating is maintained.

Target price is $25.75 Current Price is $25.13 Difference: $0.62
If LOV meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $29.24, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Bell Potter rates NUF as Buy (1) -

Nufarm's 1H operating profit of $142.3m exceeded Bell Potter's $107.2m forecast. FY23 is considered a year of earnings consolidation, with a slump in the APAC region mitigated by gains elsewhere in the global portfolio.

Management expects modest earnings growth in FY23 with a less pronounced 1H skew than the previous corresponding period.

The analyst believes Nufarm can attain its FY26 revenue targets via omega3 and carinata opportunities and continued over indexing in ag-chem.

The Buy rating is maintained and the target climbs to $7.35 from $7.15, largely due to changes in depreciation and interest costs.

Target price is $7.35 Current Price is $6.05 Difference: $1.3
If NUF meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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 NUF as Buy (1) -

First half results beat Citi's forecasts, with Nufarm's seed technologies the main driver, and estimates are now raised for the second half. Seed technology EBITDA was up 34%.

A working capital unwind is anticipated in the second half while the interest expense is expected to increase. Citi retains a Buy rating and $6.90 target.

Target price is $6.90 Current Price is $6.05 Difference: $0.85
If NUF meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates NUF as Outperform (1) -

Nufarm posted a pleasing result, Macquarie suggests, featuring growth guidance affirmation in context of weak results from domestic and global peers in recent weeks.

Nufarm’s geographic diversity and a strong seeds result helped buffer against more normalised demand patterns post-covid.

The company remains on track to meet or exceed FY26 revenue aspirations and Macquarie believes long-term seeds potential is not fully captured in the share price. On higher average debt levels, target falls to $6.94 from $7.11.

Outperform retained.

Target price is $6.94 Current Price is $6.05 Difference: $0.89
If NUF meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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

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

The first half result was ahead of expectations, driven by double-digit growth in seed technologies. Softer cash flow was the main negative.

Morgan Stanley observes Nufarm is on track to meet or exceed FY26 revenue targets, and demonstrable progress towards these targets will increase market confidence.

Management continues to expect modest underlying EBITDA growth in FY23, albeit weighted to the first half. Morgan Stanley increases underlying EBITDA forecasts to $468m, largely from higher earnings in Europe and seed technology.

Equal-weight rating reiterated. Target rises to $7.00 from $6.80. Industry view: In-Line.

Target price is $7.00 Current Price is $6.05 Difference: $0.95
If NUF meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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 NUF as Hold (3) -

Nufarm's 1H result exceeded Morgans' expectations, with a modest decline in earnings (EBITDA) a commendable outcome given strength in the previous corresponding period (pcp).

Cash flow was materially weaker-than-expected due to elevated inventory in the US.

Management continues to target 'modest' underlying earnings growth in FY23, which implies to the analyst solid earnings growth in the 2H, compared to the pcp.

The company stated it is on-track to either meet or exceed its FY26 revenue targets.

The broker lowers its target to $6.64 from $6.70. The Hold rating is maintained given strong recent share price appreciation.

Target price is $6.64 Current Price is $6.05 Difference: $0.59
If NUF meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates NUF as Buy (1) -

The first half result was solid yet UBS observes the share price of Nufarm has lagged significantly and underperformed the broader ASX 200 index by -20%.

The broker suspects this reflects market fears of an earnings downgrade following weakness in other agricultural stocks. Yet the broker observes the business is defying market expectations, having reiterated FY23 earnings growth guidance.

UBS expects FY23 growth of 2%, underpinned by seeds, Europe and North America are slightly offset by Asia-Pacific. Buy rating retained. Target is reduced to $7.30 from $7.50.

Target price is $7.30 Current Price is $6.05 Difference: $1.25
If NUF meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates NXT as Hold (3) -

NextDC is increasing its share capital by around 12.5%, announcing a non-renounceable entitlement offer to raise $618m. The offer is priced at $10.80 a share.

The company plans to put -$250m towards a new data centre in Kuala Lumpur and expects to use international demand for its existing customer base in Australia to help underwrite the new centre.

A new data centre will also be developed in Auckland while -$150m will be used to accelerate the fit-out of S3.

Ord Minnett remains concerned about the large amount of capacity being built in Australasia and Asia and the impact this might have on pricing and industry returns.

Hold rating retained. Target is raised to $11.20 from $11.00.

Target price is $11.20 Current Price is $11.73 Difference: minus $0.53 (current price is over target).
If NXT 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 $13.68, suggesting upside of 15.8% (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 PSI as Buy (1) -

Following a few delays to the completion date, PSC Insurance has ended discussions with AUB Group ((AUB)) regarding the Tysers joint venture. 

Bell Potter is dissapointed given Tysers was expected to be a significant growth driver and feels the company may accelerate other acquisitions to fill the gap.

On the flipside, the announcement means PSC Insurance will have a much stronger balance sheet and removes any potential doubts around an ability to fund the transaction.

The broker's target falls to $5.86 from $6.23 given forecasts had allowed for joint venture earnings from FY24. Buy.

Target price is $5.86 Current Price is $4.71 Difference: $1.15
If PSI meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates PSI as Neutral (3) -

UBS notes the difficulties for PSC Insurance on settling the terms for the Tysers Retail joint venture, which will now not proceed and believes this will be disappointing, given the initial terms were quite attractive for the company.

Still, around $100m is now freed for acquisitions elsewhere, the broker adds. Meanwhile, the core business is performing ahead of plan. Neutral rating and $5 target maintained.

Target price is $5.00 Current Price is $4.71 Difference: $0.29
If PSI meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates PTM as Accumulate (2) -

Despite Platinum Asset Management's recently improved track record, Ord Minnett observes redemptions have not moderated as previously expected and now expects the business will achieve net inflows in FY25 instead of FY24.

The broker acknowledges the difficulty in predicting the timing of a turnaround in investor appetite for risk but believes, if the business can maintain its current strong investment performance, it could attract new money and help offset redemptions.

Ord Minnett anticipates funds under management stabilise at around $18bn by FY27. Accumulate rating maintained. Target is reduced -7% to $2.10.

Target price is $2.10 Current Price is $1.73 Difference: $0.37
If PTM meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 3.5% (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

Ord Minnett rates PWR as Buy (1) -

Peter Warren Automotive will acquire three dealerships from the Warren family, including two Toyota dealers, which represents the resumption of its official relationship with Toyota.

Ord Minnett observes the continuation of a broader consolidation strategy which opens up the prospect for additional Toyota dealerships.

Meanwhile, remarks from the company about new car supply are in line with recent industry feedback in that issues of biosecurity, port congestion and shipping challenges are causing an inconsistent supply. Buy rating retained. Target rises to $3.70 from $3.60.

Target price is $3.70 Current Price is $2.60 Difference: $1.1
If PWR meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 30.7% (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

UBS rates SDF as Buy (1) -

UBS envisages upside risk to organic growth for Steadfast Group and raises FY23 estimates for EBITA to $436m, which is now above guidance. Buy rating retained. Target is raised to $6.80 from $6.70.

Target price is $6.80 Current Price is $5.92 Difference: $0.88
If SDF meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.27, suggesting upside of 4.1% (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

UBS rates SVW as Buy (1) -

Seven Group's investor briefing and tour of the WesTrac facilities highlighted the ongoing leverage to multiple end-market growth themes.

UBS expects the growth outlook will be supported by ongoing strength in Australian mine maintenance activity and increasing domestic infrastructure investment.

Guidance for FY23 group EBIT growth of low to mid teens was reiterated. UBS expects FY23 EBIT growth of 15%. Buy rating and $27 target maintained.

Target price is $27.00 Current Price is $23.96 Difference: $3.04
If SVW meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $26.10, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Bell Potter rates TPW as Hold (3) -

An update for the 2H by Temple & Webster showed a return to 10% growth in the last four weeks (middle of Q4), highlights Bell Potter, and FY23 earnings (EBITDA) margins of 3-5% were reaffirmed by management.

While revenue for the first five months of the 2H was below expectation, the broker raises its medium-to-longer-term forecasts, with management prioritising higher growth whilst remaining profitable. Some benefits for fixed costs are also expected from AI initiatives.

The target rises to $4.70 from $4.10. Buy.

Target price is $4.70 Current Price is $4.80 Difference: minus $0.1 (current price is over target).
If TPW meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.68, suggesting downside of -3.4% (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

Morgans rates WPR as Add (1) -

At yesterday's AGM for Waypoint REIT, management left distributable EPS guidance unchanged and expects it will match the FY22 level, which, according to Morgans, equates to a distribution yield of around 6%.

As a result of the transaction market for fuel and convenience property remaining subdued, there are no plans by management to either acquire or divest assets this year.

Nonetheless, the analyst expects selective non-core assets will be sold over the medium term. Around 5% of the portfolio is considered non-core.

The Add rating and $2.90 target are unchanged.

Target price is $2.90 Current Price is $2.64 Difference: $0.26
If WPR meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.74, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates XRO as Buy (1) -

The new CEO at Xero has emphasised efficient growth. Citi notes entering new areas has been pushed out and the focus is now on existing markets.

The company has flagged more work in its modernisation with the technical team's efficiency program expected to finish by July. Citi envisages upside risk to margin guidance based on current top-line trends.

Details of a strategic review into the North American business are expected at the first half result in November. The main issue for the broker is whether the company pauses investment in the interim.

The Buy rating is retained and the target price is steady at $105.70.

Target price is $105.70 Current Price is $102.49 Difference: $3.21
If XRO meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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

Macquarie rates XRO as Neutral (3) -

Xero's adjusted earnings came in above Macquarie's expectations, with operating expense and non-A&NZ subscriptions the highlights.

Management delivered a positive update to loosely provide a longer-term margin outlook. There is plenty of upside, the broker suggests, if Xero is able to execute on North America in the medium-term.

But the valuation is challenging if the group adopts a core A&NZ-only model. On the balance of risks, Macquarie retains Neutral.

Target rises to $106 from $90.

Target price is $106.00 Current Price is $102.49 Difference: $3.51
If XRO meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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

Morgan Stanley rates XRO as Overweight (1) -

FY23 results were slightly ahead of expectations. Importantly, Morgan Stanley notes Xero's commitment to further cost reductions.

While it is early days, the broker lauds the actions from the new CEO that have been decisive and make strategic sense, which in turn has started to de-risk the outlook for equity holders.

The broker asserts the prior leadership lacked the commitment to positive free cash flow with a lack of accountability on capital allocation.

Overweight. Target is raised to $125 from $100. Industry view is Attractive.

Target price is $125.00 Current Price is $102.49 Difference: $22.51
If XRO meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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

Morgans rates XRO as Downgrade to Hold from Add (3) -

Morgans assesses Xero displayed financial resilience over FY23 and expects this to continue into FY24. A "good" FY23 result revealed year-on-year revenue and subscriber growth of 28% and 14%, respectively, and 8% higher average revenue per user (ARPU).

A highlight for the analyst was an impressive rise in free cash flow to around NZ$102m.

Management didn't provide any subscriber growth targets though expects to deliver revenue growth from a combination of subscriber and ARPU growth.

After an around 20% share price rally in the last few months, Morgans lowers its rating to Hold from Add, while the target rises to $101 from $97.

Target price is $101.00 Current Price is $102.49 Difference: minus $1.49 (current price is over target).
If XRO meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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

Ord Minnett rates XRO as Sell (5) -

In its FY23 result, Ord Minnett notes, Xero grew net subscribers by 14% and average revenue per user by 8% for 25% constant currency revenue growth, all in line with estimates.

Yet, the broker continues to believe the shares are significantly overvalued and maintains a Sell rating.

Ord Minnett does not expect the company will be able to fully adhere to the "rule of 40" as a key performance metric.

This rule tries to strike a balance between growth and profitability by targeting revenue growth and free cash flow margin percentage to equal at least 40%. Target is $66.

Target price is $66.00 Current Price is $102.49 Difference: minus $36.49 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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

UBS rates XRO as Buy (1) -

FY23 results from Xero revealed margin growth and the core business performed better than UBS expected in terms of subscribers and revenue.

The broker makes minimal changes to FY24-27 estimates but upgrades free cash flow by an average of 3% to reflect a slight reduction in R&D intensity over the next few years.

UBS remains positive on the core business and reiterates a Buy rating. Target is raised to $117.70 from $109.00.

Target price is $117.70 Current Price is $102.49 Difference: $15.21
If XRO meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $103.57, suggesting downside of -4.1% (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: 0.3

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