Australian Broker Call

Macquarie rates AMI as Outperform (1) -

Aurelia Metals has one of the highest earnings risk exposure to higher Australian east coast electricity prices within Macquarie's coverage universe. 

In 2021, the broker estimated that around 3% of operating costs for gold miners in general were related to electricity consumption.

The Outperform rating and $0.57 target price are maintained.

Target price is $0.57 Current Price is $0.31 Difference: $0.26
If AMI meets the Macquarie target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ANZ as Outperform (1) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Outperform rating and $29.50 target price for ANZ Bank.

Target price is $29.50 Current Price is $23.35 Difference: $6.15
If ANZ meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $29.18, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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) -

Following the decision by the RBA to increase the cash rate by 50bps on June 7, banks have raised rates on some deposits by more than 50bps, points out Morgan Stanley.

The broker feels the higher term deposit rates and a deposit mix shift could negatively impact the margin benefit from rate hikes.

Morgan Stanley retains its Equal-weight rating and $28.90 target price for ANZ Bank. Industry view: Attractive.

Target price is $28.90 Current Price is $23.35 Difference: $5.55
If ANZ meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $29.18, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates ARF as Outperform (1) -

Following a market update by Arena REIT, Macquarie remains attracted to the defensive earnings profile, and points out the certainty of income provided by its tenancies. The REIT has achieved like-for-like rent growth of 4.1% in FY22.

Some preliminary June 2022 asset revaluations (up 7.8% half-on-half) suggest to the analyst pro forma gearing of 19.5%, well below the REIT's internal target gearing range of 35-40%.

The Outperform rating and $4.61 target price are maintained.

Target price is $4.61 Current Price is $4.21 Difference: $0.4
If ARF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates AZJ as No Rating (-1) -

Following a monthly data update, Macquarie notes port volumes for coal continue to show limited signs of recovery, while Hunter Valley export volumes are improving due to better weather.

While concerns held by the ACCC are resolvable by the sale of East Coast Rail, the broker points out the delay has lifted funding costs and possibly delays some cost savings at OneRail.

Macquarie is unable to provide a rating or target at present as it is under research restriction.

Current Price is $4.18. Target price not assessed.

Current consensus price target is $3.71, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Macquarie rates BEN as Outperform (1) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Outperform rating and $11.00 target price for Bendigo & Adelaide Bank.

Target price is $11.00 Current Price is $9.48 Difference: $1.52
If BEN meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $10.56, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates BOQ as Neutral (3) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Neutral rating and $8.75 target price for Bank of Queensland.

Target price is $8.75 Current Price is $6.92 Difference: $1.83
If BOQ meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.68, suggesting upside of 41.4% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BRG as Outperform (1) -

Macquarie increases the level of its forecast inventory as at June 2022, following an inventory build by Breville Group in the June quarter. The timing of the build is not expected to cause obsolescence concerns.

The target price eases to $23.80 from $24.65 after incorporating the acquisition of coffee group LELIT (expected to close in early July 2023) and the new inventory position. The Outperform rating is maintained.

Target price is $23.80 Current Price is $18.01 Difference: $5.79
If BRG meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $30.70, suggesting upside of 69.3% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates BXB as Buy (1) -

While UBS has not changed its forecasts to incorporate the fall of US lumber futures to US$573 from US$1,200 in March, the fall is expected to aide Brambles' free cash flow recovery.

While European lumber prices still remain much higher than pre-covid levels, this impacts a lesser share of company capital expenditure, points out the analyst.

The Buy rating and $13.70 target price are maintained.

Target price is $13.70 Current Price is $10.82 Difference: $2.88
If BXB meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $11.99, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Macquarie rates CBA as Underperform (5) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Underperform rating and $90.00 target price for CommBank.

Target price is $90.00 Current Price is $94.95 Difference: minus $4.95 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $92.79, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Morgan Stanley rates CBA as Underweight (5) -

Following the decision by the RBA to increase the cash rate by 50bps on June 7, banks have raised rates on some deposits by more than 50bps, points out Morgan Stanley.

The broker feels the higher term deposit rates and a deposit mix shift could negatively impact the margin benefit from rate hikes.

Morgan Stanley maintains its Underweight rating and $91.00 target price for CommBank. Industry view: Attractive.

Target price is $91.00 Current Price is $94.95 Difference: minus $3.95 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $92.79, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Citi rates CHC as Buy (1) -

Citi believes value is emerging in Charter Hall as the stock has been hit hard and has declined around -40% over the year to date.

While acknowledging the potential for headwinds over the longer term in a rising interest-rate environment, the broker believes the latest valuation update from one of its listed peers, Arena REIT ((ARF)), signals upside support for funds under management and earnings.

Buy rating maintained. Target is $24.50.

Target price is $24.50 Current Price is $12.35 Difference: $12.15
If CHC meets the Citi target it will return approximately 98% (excluding dividends, fees and charges).

Current consensus price target is $18.18, suggesting upside of 51.2% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates CWY as Hold (3) -

As part of a strategy day, Cleanaway Waste Management revealed a permanent cost increase of -$15m/year from FY23 to improve capabilities and support growth initiatives.

Part of the growth strategy is taking an opportunity to expand into the fast growing Construction & Demolition waste space, to leverage the company's vertical integration.

The target price falls to $2.79 from $2.87, while the Hold rating is maintained.

Target price is $2.79 Current Price is $2.84 Difference: minus $0.05 (current price is over target).
If CWY meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.11, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates EBO as Outperform (1) -

Macquarie resumes coverage of Ebos Group with a NZ$44.52 target price, up from NZ$35.49 after the acquisition of medical devices business LifeHealthcare has completed. The Outperform rating is maintained.

The broker increases its FY22-24 EPS estimates by 7%, 2% and 4%, respectively, to reflect a reassessment of LifeHealthcare projections, and an upgrade to Community Pharmacy estimates.

Current Price is $36.58. Target price not assessed.

Current consensus price target is $40.19, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates EVN as Underperform (5) -

Evolution Mining has one of the highest earnings risk exposures to higher Australian east coast electricity prices within Macquarie's coverage universe. 

In 2021, the broker estimated that around 3% of operating costs for gold miners in general were related to electricity consumption.

The Underperform rating and $4.00 target price are maintained.

Target price is $4.00 Current Price is $3.58 Difference: $0.42
If EVN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Macquarie rates FCL as Outperform (1) -

Following a peer result, Macquarie cuts its earnings forecasts for Fineos Corp to allow for an ongoing longer sales cycle and cost pressures. For FY23 and FY24, earnings (EBITDA) estimates are reduced by -17% and -18%, respectively.

The target price falls to $3.06 from $3.59. Nonetheless, the broker assesses the company is trading at an excessive -73% discount to its key comparatives, and retains its Outperform rating.

Target price is $3.06 Current Price is $1.53 Difference: $1.53
If FCL meets the Macquarie target it will return approximately 100% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates GEM as Neutral (3) -

Following a review of recent supply and demand developments in childcare, Macquarie notes supply is moderating further with elevated build costs, at a time of greater sector funding by the new Federal government, to support demand.

Despite these positive developments, the broker cautions investors around risks pertaining to the current macroeconomic environment. The Neutral rating and $1.20 target price are retained.

Target price is $1.20 Current Price is $1.15 Difference: $0.05
If GEM meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates HAS as Outperform (1) -

After assay results from Hastings Technology Metals' Simon’s Find deposit were released, Macquarie notes the potential to
extend current resources. An updated resource estimate is expected in the 2H of 2022.

The broker also highlights spot Neodymium-Praseodymium (NdPr) prices have recovered 13% over the past six weeks, as lockdowns in China ease. the Neutral rating and $0.40 target price are unchanged.

Target price is $0.40 Current Price is $0.23 Difference: $0.17
If HAS meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates IGO as Underweight (5) -

With the acquistion of Western Areas ((WSA)) almost complete, Morgan Stanley reduces its price target for IGO to $10.65 from $11.35 as the price paid was significantly above the broker's base case. The Underweight rating is maintained.

The broker estimates IGO's nickel production increases by 66% and 85% over FY23 and FY24, which raises Morgan Stanley's FY23/24 EPS forecasts by 5.9% and 7.5%, respectively.

Target price is $10.65 Current Price is $11.70 Difference: minus $1.05 (current price is over target).
If IGO 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 $12.68, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates MGH as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Maas Group with an Outperform rating and $5.20 target price.

The company operates across four business segments: Civil Construction & Hire (47% of forecast FY22 revenue), Construction Materials 21%, Real Estate 28% & Manufacturing 5%.

This diversified offering underpins a high tender win rate across all segments, explains the analyst. The largest segment (see above) has around 75% of targeted FY23 growth locked-in, and two pending acquisitions are expected to be earnings accretive.

The broker points to upside risk for consensus forecasts, as well as M&A optionality.

Target price is $5.20 Current Price is $4.38 Difference: $0.82
If MGH meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates MQG as Buy (1) -

Macquarie Group plans to increase the interest rate paid on everyday transaction accounts to 1.5%. Ord Minnett observes, having disrupted the home loan market in recent years, this could have an impact on the deposit market if it gains traction.

Still, the broker considers it unlikely there will be pressure on cash management account rates as these are relatively small balances. Also, the value of Macquarie Group's retail transaction accounts is immaterial, being just a recent entrant to the market.

Overall, Ord Minnett conssiders the announcement an incremental negative for retail banking industry margins. Buy rating and $218 target maintained.

Target price is $218.00 Current Price is $178.68 Difference: $39.32
If MQG meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $202.50, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates NAB as Outperform (1) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Outperform rating and $34.00 target price for National Australia Bank.

Target price is $34.00 Current Price is $28.25 Difference: $5.75
If NAB meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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) -

Following the decision by the RBA to increase the cash rate by 50bps on June 7, banks have raised rates on some deposits by more than 50bps, points out Morgan Stanley.

The broker feels the higher term deposit rates and a deposit mix shift could negatively impact the margin benefit from rate hikes.

Morgan Stanley retains its Equal-weight rating and $31.80 target price for National Australia Bank. Industry View: Attractive.

Target price is $31.80 Current Price is $28.25 Difference: $3.55
If NAB meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $33.14, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates NCM as Outperform (1) -

Newcrest Mining has one of the highest earnings risk exposure to higher Australian east coast electricity prices within Macquarie's coverage universe. 

In 2021, the broker estimated that around 3% of operating costs for gold miners in general were related to electricity consumption.

The Outperform rating and $33.00 target price are maintained.

Target price is $33.00 Current Price is $23.76 Difference: $9.24
If NCM meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $29.63, suggesting upside of 26.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.7

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

Credit Suisse rates SEK as Outperform (1) -

Recent data suggests strong volumes have continued both domestically and at Seek Asia. As a result, Credit Suisse upgrades FY22 estimates, now expecting EBITDA of $530.5m, which is ahead of guidance.

Minimal changes are made to FY23 estimates, although the broker points out the business is yet to experience any benefit from dynamic pricing and this could provide yield support.

The broker observes the recent share price performance does signal the market is expecting volumes will drop off significantly into FY23, amid tougher comparables and rising interest rates affecting the employment market. Outperform maintained. Target is lowered to $36.90 from $38.50.

Target price is $36.90 Current Price is $22.33 Difference: $14.57
If SEK meets the Credit Suisse target it will return approximately 65% (excluding dividends, fees and charges).

Current consensus price target is $31.87, suggesting upside of 42.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates SSG as Accumulate (2) -

Ord Minnett found the latest trading update positive, with Shaver Shop achieving solid sales and earnings even while cycling an elevated performance.

The company reported total sales growth of 5.7% for January to the end of May 2022. Like-for-like sales growth was 3.7%. The broker observes the business has a strong market position and generates strong cash flow and high returns on capital.

Moreover,  expansion into complimentary adjacencies to create further value is anticipated. Accumulate rating and $1.30 target maintained.

Target price is $1.30 Current Price is $1.07 Difference: $0.23
If SSG meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates WBC as Neutral (3) -

Macquarie sees the recent bank sell-off as a tactical buying opportunity in the context of the broader market. Rising interest rates and an upward sloping yield curve are expected to provide upside to banks’ margins, due to improved deposit profitability.

Banks' “lazy” customers (who are not chasing “special rates”) contribute to margin upside as “lazy” term deposits are currently one of the more profitable bank segments, explains the analyst. An around 4-9bps tailwind is expected from this apathy over the next twelve months.

The broker maintains its Neutral rating and $24.50 target price for Westpac.

Target price is $24.50 Current Price is $21.17 Difference: $3.33
If WBC meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $25.34, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates WBC as Overweight (1) -

Following the decision by the RBA to increase the cash rate by 50bps on June 7, banks have raised rates on some deposits by more than 50bps, points out Morgan Stanley.

The broker feels the higher term deposit rates and a deposit mix shift could negatively impact the margin benefit from rate hikes.

Morgan Stanley retains its Overweight rating and $25.70 target for Westpac. Industry view: Attractive.

Target price is $25.70 Current Price is $21.17 Difference: $4.53
If WBC meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $25.34, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates WHC as Buy (1) -

Queensland is seeking to increase coal royalties, with the Treasurer flagging an increase at the upcoming state budget, which Ord Minnett interprets as a new risk for the sector. 

Yet, the broker notes Whitehaven Coal has no immediate exposure, and the focus remains on record coal prices and the windfall cash that is being generated in time for the upcoming second half result. Ord Minnett expects second-half cash flow of $1.2bn.

Buy rating retained. Target rises to $7 from $6.

Target price is $7.00 Current Price is $5.41 Difference: $1.59
If WHC meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates XRO as Buy (1) -

Citi believes the company's decision to increase prices in Australasia and the UK, after the last price increase came into effect less than a year ago, signals confidence in its position in core markets.

The broker estimates the changes represent an 8% uplift to group ARPU, representing upside to forecasts. Business edition pricing is up 7-9% in Australasia and 8-17% in the UK.

Citi also notes the frequency of price changes is ramping up, as Xero historically used to increase prices in Australia every 18 months.

The Buy rating and target price of $108 are retained.

Target price is $108.00 Current Price is $79.72 Difference: $28.28
If XRO meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $110.50, suggesting upside of 33.2% (ex-dividends)

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: 0.5

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