Australian Broker Call

Bell Potter rates 4DX as Buy (1) -

4DMedical's XV LVAS scan has been approved for Medicare in the US under the 2024 Medicare Hospital Outpatient Prospective Payment System at US$299 per scan.

This means from January 1, patients receiving the scan will pay no out-of-pocket expenses.

Bell Potter observes the US$299 rate is much higher than the US$170 the company had planned to charge hospitals.

All up, the broker expects the approval should "trigger a cascade of widespread use essential for a category 1 CPT code".

The broker observes the company is well capitalised with cash burn for the September quarter sitting at -$9.3m due to low grant income.

Buy rating and $1.10 target price retained.

Target price is $1.10 Current Price is $0.79 Difference: $0.315
If 4DX meets the Bell Potter target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates A2M as Neutral (3) -

Citi's initial take on a2 Milk Co's performance during the Double II shopping event (sales are still coming in for the infant formula category), is that weakness may be creeping in compared to exceptionally strong performances in previous years.

The broker believes industry challenges are rising, notes the company is slipping in Douyin ranking and spies a risk to Citi and consensus forecasts. The broker awaits completion of sales data.

Neutral rating and $4.74 target price retained for now.

Target price is $4.74 Current Price is $3.74 Difference: $1
If A2M meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $5.32, suggesting upside of 41.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Morgans rates ACF as Add (1) -

Aligning with management's strategy of increasing exposure to the Industrial Services sector, observes Morgans, Acrow Formwork and Construction Services has acquired MI Scaffold. Significant revenue and some cost synergies are expected.

The cost is $26.4m upfront and the transaction includes deferred earn-out payments of up to $9.9m should the target hit future performance hurdles, explains the analyst. The transaction will be funded by a $15m placement and $15m in debt.

Morgans forecast the deal will be 7% EPS accretive in FY25, the first full year of ownership, and raises its target to $1.22 from $1.15. Add retained.

Target price is $1.22 Current Price is $0.88 Difference: $0.34
If ACF meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 31.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates ALL as No Rating (-1) -

UBS is expecting Aristocrat Leisure to report strength in its land-based gaming operations in its full year report, based on results from a number of competitors.

The broker does consider growth in land-based sales, and the ability to sustain the momentum of the last year, to be a key issue for investors. With the company guiding to net profit growth above that achieved in FY22, UBS is predicting 18% growth.

UBS is currently under research restrictions and offers no target price or rating.

This report was issued on 13 November 2023.

Current Price is $40.26. Target price not assessed.

Current consensus price target is $44.66, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates ANZ as Downgrade to Neutral from Buy (3) -

Citi analysts, on closer examination, conclude ANZ Bank's FY23 cash earnings have fallen short of forecasts by -4% (Citi) and -2% (consensus) respectively.

Even though the "miss" doesn't appear to be significant, the analysts highlight the point that, compositionally, this is a "weak" result.

The bank's weighting to institutional business, formerly a boon, came home to roost as institutional offshore deposits fell, leaving the bank to fall back on more expensive domestic retail TD deposits to support their above-system mortgage growth, which hit retail profits, says the broker.

Both market revenues and NIM proved a disappointment, offset by strong fee income and several one-offs. Citi also thinks opting for a bonus dividend instead of a buyback means there's no benefit in terms of shares count moving forward.

On the upside, the bank's bad and doubtful debts were nearly half consensus forecasts.

Rating is downgraded to Neutral from Buy. Target price falls to $26 from $27.

Target price is $26.00 Current Price is $24.70 Difference: $1.3
If ANZ meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates ANZ as Neutral (3) -

Macquarie saw ANZ Bank releasing a "strong" FY23 performance this week, though it did fall short of expectations, in particular the bank's margins.

Cost growth proved another disappointment (similar as with peers) and Macquarie notes the $420m in large notable items might well include a number of recurring items.

The bank's dividend is expected to return to normal in H1 FY24 (i.e. 80c) and only 60% franked as ANZ Bank doesn't have sufficient franking credits until the acquisition of Suncorp Group's ((SUN)) banking operations in FY25, when franking could increase to 75%-80%, predicts the broker.

Estimates have reduced by -2%-3% also because costs containment has not been very strong (paraphrasing the broker). Neutral. Target $24 (down -50c).

Target price is $24.00 Current Price is $24.70 Difference: minus $0.7 (current price is over target).
If ANZ meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgan Stanley rates ANZ as Overweight (1) -

Despite a weaker 2H result than expected, Morgan Stanley retains its Overweight rating for ANZ Bank on some valuation support and ongoing diversification benefits.

Pre-provision profit excluding notable items was a miss against forecasts by the broker and consensus of -1% and around -3.5%, respectively.

The analysts attribute the negative share price reaction to the results to the headline margin decline, the outlook for margins and confused strategy messaging by management for Australian mortgages.

No FY24 earnings guidance was provided. A final dividend of  81cps (65% franked), and a one-off 13cps (unfranked) dividend was declared.

The broker's target falls to $26.30 from $27.00.Industry View: In-Line.

Target price is $26.30 Current Price is $24.70 Difference: $1.6
If ANZ meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates ANZ as Hold (3) -

While asset quality remained resilient and capital strong, ANZ Bank experienced a larger earnings decline than Morgans anticipated, partly due to the pursuit of Australian home loan growth.

In the 2H, both pre-provision operating profit (PPOP) and cash EPS fell by -6% compared to the 1H, partly due to a -6% decline in the net interest margin (NIM) and around 3% cost growth, explains the broker.

The 94cps final dividend beat the 81cps expected by the analyst. Management explained the larger size was because the dividend could only be franked to 65% (instead of 100% previously) given a reduced availability of franking credits.

Morgans lowers its target to $24.36 from $25.50. The Hold rating is retained.

Target price is $24.36 Current Price is $24.70 Difference: minus $0.34 (current price is over target).
If ANZ 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 $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates ANZ as Accumulate (2) -

ANZ Bank's FY23 result largely met Ord Minnett's forecasts, net interest margins and loans rising, and bad debts still low.

Earnings were the main disappointment but the broker expects conditions to improve as refinancing slows, new lending rallies and the bank repays its term funding facility. Margin pressure featured due to expensive pricing and operating costs rose 5% (in line with guidance).

The institutional banking division, traditionally a stronghold for the company, disappointed. Home loan growth outpaced the market.

The bank made an extra dividend payment which offset lower franking.

Accumulate rating and $31 target price retained.

Target price is $31.00 Current Price is $24.70 Difference: $6.3
If ANZ meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

ANZ Bank has delivered a slight miss to UBS's expectations with its full year results, but the broker attributes the result to the cost of the bank growing above market during a period of heightened competition and some irrational mortgage pricing. 

Cash net profits declined -6% year-on-year to $3.6bn, with net interest income down -5% to $8,078m, but some net interest income pressure offset by stronger than expected non-net interest income.

The broker does find ANZ Bank better positioned than its peers given its relative share of institutional earnings, but sustained lending and deposit pressure in the retail business have had a greater than expected margin impact, and driven a rating downgrade.

The rating is downgraded to Neutral from Buy 

Target price is $26.00 Current Price is $24.70 Difference: $1.3
If ANZ meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $26.28, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates APM as Buy (1) -

Ord Minnett cuts its target price for APM Human Services International by -7% to $2.70 from $2.90, predicting lower revenue from higher margin Australian and United Kingdom markets.

The broker also cites disappointment with the company's recent contract wins and acquisitions, and concern about labour shortages in the health sector (which have cut case loads and triggered an Australian government review into the disability and employment sectors).

The broker notes higher interest rates and taxes (the UK company tax rate rose to 25% from 19%) are not much to write home about either, and the lack of contract wins to offset this combined with weak guidance sealed the target-price downgrade. EPS and dividend forecasts fall.

Buy rating retained, the broker considering the recent share-price retreat to be overdone given the company's track record, and forecasts a five-year compound annual growth rate of 8% (down from 9%).

Target price is $2.70 Current Price is $1.54 Difference: $1.16
If APM meets the Ord Minnett target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 80.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates APM as Buy (1) -

Expect APM Human Services International to continue to be impacted by an extended period of record low unemployment in the near-term, warns UBS.

The broker points out low unemployment not only reduces client inflow, but leaves the more challenging candidates in the program. It expects this is only exacerbated by ongoing delays to the roll out of online platform Workforce Aus, but notes this could prove a catalyst.

The Buy rating is retained and the target price decreases to $3.00 from $3.30.

This report was issued on 13 November 2023.

Target price is $3.00 Current Price is $1.54 Difference: $1.46
If APM meets the UBS target it will return approximately 95% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 80.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates AUB as Initiate coverage with a Buy rating (1) -

Ord Minnett initiates coverage on AUB Group, having previously white-labelled the company's research from Morningstar.

The broker adopts a Buy rating with a $32.20 target price, which compares with an Accumulate rating and $33 target price previously.

Ord Minnett observes strong organic growth thanks to rising insurance premiums as well as synergies and growth options from the Tysers acquisition, which added to strong operating leverage should drive EPS outperformance relative to peers.

Even were the insurance supercycle and inflation-driven rate rises not to continue, the broker observes the company has proved particularly resilient in downturns.

Target price is $32.20 Current Price is $28.71 Difference: $3.49
If AUB meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $34.16, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates BGL as Neutral (3) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For Bellevue Gold, the Neutral rating is retained and the target price increases to $1.50 from $1.45.

This report was issued on 13 November 2023.

Target price is $1.50 Current Price is $1.37 Difference: $0.13
If BGL meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates BLD as Sell (5) -

Boral's trading update appears to have outpaced Citi's and consensus' forecasts by roughly 6% at the midpoint thanks to sticky pricing  says the broker.

Good weather and strong execution played to the company's hand, says Citi, which raises its FY24 earnings (EBIT) forecast to the top end of guidance at $300m to $330m.

But the broker says the company may find it harder to capitalise on weather shifts, pricing and the construction cycle from here on so is cautious, despite consensus forecasting continued gains.

Sell rating retained. Target price rises to $4.60 from $4.20, after applying a 50% premium to historical pandemic price-earnings multiples.

Target price is $4.60 Current Price is $4.93 Difference: minus $0.33 (current price is over target).
If BLD meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.62, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Macquarie rates BLD as Outperform (1) -

Boral has upgraded its guidance for FY24 EBIT and Macquarie, in response, reports this is as good as any signal management is successfully executing on the turnaround story.

Estimates have lifted as Boral is navigating flat and mixed markets, but higher prices and cost discipline are doing the heavy lifting.

Outperform rating retained. Target lifts to $5.60 from $5.15. 

Target price is $5.60 Current Price is $4.93 Difference: $0.67
If BLD meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.62, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Morgan Stanley rates BLD as Underweight (5) -

Boral has upgraded FY24 earnings (EBIT) guidance to $300-350m from $270-300m, a 10% beat against the consensus forecast, according to Morgan Stanley. Price traction and cost management largely drove the upgrade, explain the analysts.

While this upgrade confirms current favourable market conditions, the broker expects demand in the residential construction space will turn down in 2024.

Management expects steady volumes so far this year will continue for the remainder of FY24.

Target $3.50. The Underweight rating is maintained on valuation. Industry view is In-Line.

Target price is $3.50 Current Price is $4.93 Difference: minus $1.43 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.62, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates BLD as Neutral (3) -

Boral has upgraded guidance for FY24 but UBS is not that enthusiastic about it, observing the big driver underneath the construction company's positive momentum is cost control, plus the shares are seen as "priced for perfection".

A stronger-for-longer market dynamic is no doubtfully also contribution, the analysts acknowledge, adding "this will inevitably slow". UBS thinks the slowing will show up in FY25.

The broker also believes the next downturn is likely to be less severe than previously thought. Neutral. Target $5.15, up from $4.95. EPS and DPS estimates have been increased.

Target price is $5.15 Current Price is $4.93 Difference: $0.22
If BLD meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.62, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates CBA as Sell (5) -

Despite limited detail Citi is anticipating CommBank to deliver a better than expected net interest margin, assuming the bank is alluding to a 2.03% margin from an initial glance at its first quarter results.

The broker is anticipating a positive market reaction to the result. The bank reported cash earnings of $2.5bn for the quarter, while home lending contracted -$4.5bn and business lending added $2.2bn.

The Sell rating and target price of $82.50 are retained.

Target price is $82.50 Current Price is $101.31 Difference: minus $18.81 (current price is over target).
If CBA meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $91.25, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Bell Potter rates CHN as Speculative Buy (1) -

Chalice Mining has released an update on test works at its Gonneville nickel-copper-PGE project in WA, which Bell Potter says augurs higher recoveries than those suggested by the August scoping study.

On the downside, Bell Potter lowers its palladium price forecasts from US$1700oz to US$1500oz (still at the top end of consensus), observing 35% to 40% of global production is loss making, making it hard to sustain standing capital, let alone capital expenditure in new production.

The broker estimates Gonneville is still making money at spot prices and generating decent cash flow and that incremental improvements in metallurgical recoveries can add strong value to the project.

Speculative Buy rating retained. Target price falls to $5.40 from $7.10 to reflect the cut to palladium price forecasts.

Target price is $5.40 Current Price is $1.57 Difference: $3.83
If CHN meets the Bell Potter target it will return approximately 244% (excluding dividends, fees and charges).

Current consensus price target is $3.74, suggesting upside of 129.3% (ex-dividends)

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

Morgans rates CPU as Add (1) -

Ahead of tomorrow's AGM for Computershare, Morgans makes no changes to its forecasts but the target price is lowered to $28.28 from $28.93 on a higher assumed discount rate used for valuation.

On the broker's estimates, global cash rates on a weighted average basis have/are tracking only marginally below management's FY24 guidance expectations.

The Add rating is maintained.

Target price is $28.28 Current Price is $25.02 Difference: $3.26
If CPU meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $28.66, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley's Plasma Collection Centre data for October show US and EU centres for CSL increased by 3% year-on-year.

In FY23, CSL opened 12 new centres in line with the broker's expectations. No guidance provided for FY24.

The Overweight rating and $334 target are unchanged. Industry View: In-Line.

Target price is $334.00 Current Price is $252.00 Difference: $82
If CSL meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $329.70, suggesting upside of 29.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

UBS rates DEG as Buy (1) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For De Grey Mining, the Buy rating is retained and the target price increases to $1.55 from $1.50.

This report was issued on 13 November 2023.

Target price is $1.55 Current Price is $1.14 Difference: $0.41
If DEG meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $1.72, suggesting upside of 44.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates ELD as Buy (1) -

Elders' FY23 result outpaced Bell Potter's forecasts as retail offset weakness in wholesale and feed-and-processing, says the broker.

Lease adjust operating cash flow proved a significant beat and the company closed FY23 with -$259.7m in net debt, ahead of Bell Potter's forecast of -$279.5m - a sharp improvement on the -$424.7m logged at March 31.

No formal guidance was provided but management did advise that some challenging conditions are expected to persist in FY24 but that this should be ameliorated by the company's backward integration, acquisitions and business investment.

Buy rating retained. Target price jumps to $8.35 from $6.70.

Target price is $8.35 Current Price is $7.31 Difference: $1.04
If ELD meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates ELD as Sell (5) -

Elders FY23 result appears to have outpaced Citi's forecasts, particularly given challenging seasonal conditions and agri-input and livestock prices.

Citi, previously a sceptic, now expresses greater confidence in the company's earnings prognosis, particularly given the Elders' backward integration and diversification.

The company's demonstrated resilience to tough conditions in FY23 bodes well for FY24 posits the broker and guidance suggest the company's earnings (EBIT) are tracking 17% to 22% above consensus forecasts.

Rating is upgraded to Neutral from Sell. Target price rises to $7.30 from $6.

Target price is $7.30 Current Price is $7.31 Difference: minus $0.01 (current price is over target).
If ELD meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates ELD as Neutral (3) -

Elders' underlying net profit beat Macquarie's forecast, as well as market consensus. No guidance was given for FY24, but management has an 8 point plan for FY24-FY26, the broker highlights.

That plan includes the ambition to lift EBIT by 5%-10% CAGR through the cycle. Positive cash flow of $256m was welcomed.

Macquarie suggests Elders' product, channel & geographical diversification helped mitigate headwinds and should do so again in FY24.

Estimates have been lifted, more so in outer years as the burden of net debt and interest costs is expected to lessen. Neutral. Target $7.12 (was $6.72).

Target price is $7.12 Current Price is $7.31 Difference: minus $0.19 (current price is over target).
If ELD meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates ELD as Hold (3) -

While the FY23 result for Elders was at the mid-point of the guidance range, it was still better than Morgans had feared. There was a material decline in earnings reflecting the company cycling very strong comparisons, explains the broker.

No formal guidance was provided. Management expects the negative impacts from El Nino and a weakening crop outlook will be largely mitigated by diversification, acquisitions and market share gains, explain the analysts.

A final dividend of 23cps (30% franked) was declared.

Morgans leaves its earnings (EBIT) forecasts unchanged. The Hold rating is maintained and the target rises to $7.40 from $7.00.

Target price is $7.40 Current Price is $7.31 Difference: $0.09
If ELD meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Shaw and Partners rates ELD as Buy (1) -

Elders' FY23 result outpaced consensus and Shaw and Partners' forecasts by 2%, managing a 50% beat on operating cash flow.

The company's dividend also outpaced.

Sales fell (consensus had forecast a rise) but operating cash flow saved the day, outpacing consensus forecasts by 52% and guidance.

Challenging conditions persist and Shaw and Partners cuts earnings forecasts over the next year due to an uncertain outlook for livestock, and FY24 EPS forecasts fall sharply. Overall, the broker retains its positive view expecting positive earnings growth through the cycle, including backward integration and acquisitions.

Buy rating and $9 target price retained.

Target price is $9.00 Current Price is $7.31 Difference: $1.69
If ELD meets the Shaw and Partners target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates ELD as Neutral (3) -

UBS saw Elders delivering an in-line result (in-line with prior profit warning) and with no FY24 guidance attached. Management did state market headwinds from FY23 are likely to continue in FY24, the broker adds.

Cash generation proved "strong", which is seen as a positive following a number of periods in which cash generation had been poor.

Given El Nino outlook and weakness in cattle prices, UBS is not surprised management preferred to remain cautious. Neutral. Target $7.20.

Target price is $7.20 Current Price is $7.31 Difference: minus $0.11 (current price is over target).
If ELD meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates EVN as Buy (1) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For Evolution Mining, the Buy rating is retained and the target price increases to $4.15 from $3.70.

This report was issued on 13 November 2023.

Target price is $4.15 Current Price is $3.62 Difference: $0.53
If EVN meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.77, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates FPR as Outperform (1) -

FleetPartners Group's FY23 revealed a better-than-expected EBITDA outcome and Macquarie believes the outlook remains positive, supported by "robust" demand, a pipeline to clear, as well as supportive government policy.

Macquarie notes the strong cash conversion (123%) despite $18.7m in software development. The share buyback has continued, with up to $30m to be executed in H1 FY24.

The portfolio credit quality continues to be "strong", the broker observes, while the Novated Leasing segment was the FY23 standout performer.

The broker's target price has lifted to $3.01 from $2.84. Estimates have gone up. Outperform rating retained.

Target price is $3.01 Current Price is $2.70 Difference: $0.31
If FPR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgan Stanley rates FPR as Upgrade to Overweight from Equal-weight (1) -

Following FleetPartners Group's FY23 results, Morgan Stanley upgrades its rating to Overweight from Equal-weight and raises its target to $3.20 from $2.70 on growth momentum. Industry View: In-line.

Strong order intakes across fleet and novated are now complemented by supply improvements, note the analysts.

FY23 NPATA  was an 11% beat versus the consensus estimate driven by elevated end of lease (EOL), while 2H new business writings (NBW) rebounded on both increased supply and ongoing robust demand, explains the broker.

Morgan Stanley suggests a high likelihood of ongoing elevated EOL supporting further buyback programs. A 2H $30m buyback was launched.

Target price is $3.20 Current Price is $2.70 Difference: $0.5
If FPR meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates FPR as Buy (1) -

FleetPartners Group's FY23 result appears to have outpaced Ord Minnett's forecasts, thanks to a 13% jump in new business writing as novated leases grew 38% and fleet posted growth of 4.5%.

Most of this is expected to fall in the second half.

The broker says the company is benefitting from the electric vehicle transition, particularly in novated leases, and expects this will be extended into the fleet business over time.

Management announced a $30m buyback, as expected, which the broker expects will last for two years.

Buy rating retained. Target price rises to $3 from $2.85.

Target price is $3.00 Current Price is $2.70 Difference: $0.3
If FPR meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates GOR as Buy (1) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For Gold Road Resources, the Buy rating is retained and the target price increases to $2.20 from $2.15.

This report was issued on 13 November 2023.

Target price is $2.20 Current Price is $1.80 Difference: $0.4
If GOR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.14, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates IPL as Neutral (3) -

Macquarie believes Incitec Pivot's FY23 performance beat consensus by some 8% while its own forecast was bettered by 10% at the net profit level.

Shareholders can look forward to $1bn in capital return if the fertiliser business is sold, with talks still ongoing. A sale would place Incitec Pivot in a net cash position, explains the broker.

The broker has lowered forecasts as both fertiliser and Dyno Nobel are staring into a tougher outlook. This weighs down the price target to $3 from $3.10. Neutral.

Target price is $3.00 Current Price is $2.94 Difference: $0.06
If IPL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Morgan Stanley assesses a "solid" FY23 result for Incitec Pivot. Group earnings (EBIT) ex individually material items (IMIs) and group underlying profit were beats against consensus forecasts by 3% and 8%, respectively.

Management reconfirmed the $400m buyback, and, subject to the completion of the WALA sale, a return of up to $1bn worth of capital to shareholders is expected via a $500m pro-rata capital return and a $500m on-market buyback.

The broker not only likes the capital management initiatives but also the current trajectory for the Explosives business and momentum for fertiliser prices. Dislikes include: another production shortfall at Phosphate Hill  and lack of clarity around the Fertiliser sale.

The target falls to $3.10 from $3.29. Equal-weight. Industry view: In-Line.

Target price is $3.10 Current Price is $2.94 Difference: $0.16
If IPL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates IPL as Hold (3) -

Incitec Pivot's FY23 result exceeded Morgans expectations. As the company was comparing a record result in FY22 due to high fertiliser prices, all business units reported lower earnings except Dyno Nobel Asia Pacific and Dyno Nobel North America, explains the broker.

While the Explosives result was "solid", according to the analysts, Fertilisers was weak due to lower fertiliser prices and poor currency hedging, along with manufacturing and gas supply issues.

A final dividend of 5cps unfranked was declared.

Following the sale of Waggaman and shareholder approval (AGM December 20) management intends to distribute up to $1bn via a capital return ($300m), special unfranked dividend ($200m) and a $500m on-market share buyback.

The broker's target rises to $3.15 from $3.10. Hold.

Target price is $3.15 Current Price is $2.94 Difference: $0.21
If IPL meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates IPL as Accumulate (2) -

Incitec Pivot's FY23 result outpaced consensus forecasts mainly due to lower depreciation, observes Ord Minnett, and therefore relatively immaterial to longer term earnings.

Net debt rose 40% to $1.3bn but the broker observes the balance sheet remains solid with gearing sitting at 21%, and should improve with the ramp-up of the Louisiana ammonia plant.

Otherwise the result was broadly in line, says the broker.

The big ticket item was a $1.4bn buyback which promises a return of 25% of the current share price, says Ord Minnett, pending the sale of the WALA ammonia plant.

If Incitec were to complete the buybacks at the current market price, the broker estimates this would increase its valuation by 4%.

The broker also speculates about the potential sale of the company's fertiliser segment.

Accumulate rating and $3.50 target price retained.

Target price is $3.50 Current Price is $2.94 Difference: $0.56
If IPL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates MAF as Buy (1) -

MA Financial's operating update for the four months to October largely met Ord Minnett's forecasts for Asset Management and Lending & Technology but says Corporate Advisory shouldered the brunt of the macro fallout.

The broker downgrades EPS forecasts -5% to -6% accordingly.

Buy rating retained on valuation. Target price eases to $7.50 from $7.60.

Target price is $7.50 Current Price is $4.78 Difference: $2.72
If MAF meets the Ord Minnett target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting upside of 38.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates MAF as Buy (1) -

MA Financial's market update showed better-than-forecast conditions for asset management with credit strategies and domestic distribution outperforming.

UBS observes this is a positive from a recurring revenue perspective and has thus upgraded forecasts for both. Other parts of the business are battling headwinds.

The broker has taken a more cautious stance nearer-term, while retaining its positive bias medium term. This has resulted in reduced EPS and DPS forecasts for FY23 and FY24.

The strong net flows in asset management and strong recurring revenue growth, coupled with MA Money moving to profitability should, in the broker's view, deliver meaningful operating leverage in FY25.

Buy rating retained. Target decreases to $6.10 from $6.60.

Target price is $6.10 Current Price is $4.78 Difference: $1.32
If MAF meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $6.62, suggesting upside of 38.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates MTS as Neutral (3) -

Metcash has lifted the option to acquire the remainder in Total Tools and will be 100% owner. Macquarie observes this might be one of the best actions undertaken by management as Total Tools has significantly outperformed expectations.

As per Macquarie, Total Tools has grown sales from $585m in FY20 to $1,085m in FY23, with the store count increasing from 81 stores to 112 stores over the period.

Metcash still has outstanding put options with a number of JV-owned Total Tools stores and Macquarie estimates the value of these options at $172.8m as per end-FY23.

Small amendments have been made to forecasts (negative for FY25 and FY26). Neutral. Target remains $3.90.

Target price is $3.90 Current Price is $3.71 Difference: $0.19
If MTS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.10, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgan Stanley rates NEC as Overweight (1) -

Following Nine Entertainment's AGM commentary and trading update, Morgan Stanley lowers its target to $2.40 from $2.75 as the advertising markets remain weak, particularly for TV.

TV advertising revenues fell -12%, with no sign of improvement in Q2, suggest the analysts. It's thought the Nine Entertainment share price is in need of a cyclical recovery in advertising markets before there is any outperformance.

The broker points to the company's strategic advantage versus peers due to the balance sheet, a diversified asset mix and free cash flow (FCF).

The Overweight rating is maintained. Industry View: Attractive.

Target price is $2.40 Current Price is $1.91 Difference: $0.495
If NEC meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

UBS rates NHF as Buy (1) -

nib Holdings has detailed a solid start to the new year, with overall volume and topline momentum "upbeat" says UBS. The broker points out no detail was provided on claim costs or margin performance.

The broker notes growth in arhi policies are tracking towards the top end of the full year guidance range, up 1.3% since June, while growth in iihi policies remain ahead of UBS's expectations.

The Buy rating is retained and the target price decreases to $9.50 from $9.70.

This report was issued on 13 November 2023.

Target price is $9.50 Current Price is $7.47 Difference: $2.03
If NHF meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $8.26, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates NST as Neutral (3) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For Northern Star Resources, the Neutral rating is retained and the target price increases to $11.95 from $11.20.

This report was issued on 13 November 2023.

Target price is $11.95 Current Price is $11.35 Difference: $0.6
If NST meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.75, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates NWS as Buy (1) -

News Corp's first quarter result has demonstrated ongoing momentum on cost control, says UBS, alongside stronger growth on the Dow Jones. The broker has lowered its revenue forecasts through to FY26 by an average -2%, but lifted earnings by an average 5%.

The company also announced it is in advanced discussions with tech companies for an AI content deal. While an agreement would bring revenue upside for News Corp, the broker sees a deal as being more beneficial for industry peers.

The Buy rating is retained and the target price increases to $40.20 from $37.63.

This report was issued on 13 November 2023.

Target price is $40.20 Current Price is $34.12 Difference: $6.08
If NWS meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $35.33, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.5

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

Ord Minnett rates PME as Sell (5) -

While Pro Medicus has announced a $20m contract with Oregon Health & Science University over eight years, Ord Minnett leaves its constant currency earnings estimates unchanged, having already assumed contract wins.

The broker still anticipates wider uptake of the company's products will be slow, and suggests shares are materially overvalued as the market is likely under appreciating competitive pressures.

The Sell rating and $34.50 target are maintained.

Target price is $34.50 Current Price is $85.27 Difference: minus $50.77 (current price is over target).
If PME meets the Ord Minnett target it will return approximately minus 60% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.88, suggesting downside of -25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Macquarie rates PMT as Outperform (1) -

It is Macquarie's view that Patriot Battery Metals is making solid progress, as also per Q3 financial update and management discussion.

It is also the broker's observation the shares continue to trade at a discount to senior lithium producers, with the share price implying a spodumene price of US$1050/t while senior lithium producers are trading at an implied US$1400/t.

Macquarie has made minor upgrades to forecasts (smaller losses). Outperform rating retained. Target $2.10 (or CA$18).

Target price is $2.10 Current Price is $1.08 Difference: $1.025
If PMT meets the Macquarie target it will return approximately 95% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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

UBS rates REA as Neutral (3) -

A solid first quarter result from REA Group, according to UBS, with volumes in line with expectations. Yields were a miss, partly on an -8% deferral impact expected to start unwinding over the year.

Commentary from REA Group around vendor marketing budgets remaining healthy was well recieved by the broker, providing a positive backdrop for UBS's anticipated 17% full year yield growth.

The Neutral rating and target price of $167.00 are retained.

This report was issued on 13 November 2023.

Target price is $167.00 Current Price is $152.91 Difference: $14.09
If REA meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $157.50, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Ramsay Health Care has reached an agreement on the sale of its 50% holding in Ramsay Sime Darby Health Care (RSD) joint venture.

Management is now guiding to the low end of the FY24 range of $570-600m for net interest, with annualised interest savings expected to be around $55m, notes the broker.

The company stated FY24 net debt will be less than 2.5x post this sale completion.

The Equal-weight rating and $53.60 target are unchanged. Industry view: In-Line.

Target price is $53.60 Current Price is $52.44 Difference: $1.16
If RHC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $58.20, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates RHC as Accumulate (2) -

For a price of around $2bn and a profit of circa $630m, Ramsay Health Care has agreed to sell its share of the Ramsay Sime Darby Health Care joint venture in Asia.

The broker assumes the sale will be finalised by the end of the 3Q FY24 and sees the transaction as value neutral, though strategically sound given the adequate price received and opportunities elsewhere for Ramsay in the main geographies.

In the analyst's opinion, the majority of proceeds will be used to pay down debt and now forecasts net debt/EBITDA will be below 2.5 times by FY24, as guided by management.

The Accumulate rating and $68 target are unchanged.

Target price is $68.00 Current Price is $52.44 Difference: $15.56
If RHC meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $58.20, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates RRL as Neutral (3) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For Regis Resources, the Neutral rating is retained and the target price increases to $1.86 from $1.65.

This report was issued on 13 November 2023.

Target price is $1.86 Current Price is $1.75 Difference: $0.11
If RRL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates SEK as Outperform (1) -

Seek's AGM is scheduled for 15 November and Macquarie predicts revenue guidance will be downgraded by some -7%, largely because of fewer listings. Cost control should offer partial offset.

The Seek Job Ad Index has been weaker than expected, and the broker points out this weakness has now been in place for a number of months.

Macquarie's updated forecast is for job listings to decline by -18% in FY24. The broker thinks management will change focus from ongoing investments towards lowering costs.

The group introduced a price cut of -2% in early October. Is this the first experiment to try to revive volumes through lower pricing? Macquarie thinks there will be higher prices forthcoming.

With cost outs anticipated to largely offset fewer listings, the broker has slightly increased forecasts. Price target climbs 4% to $29. Outperform.

Target price is $29.00 Current Price is $21.52 Difference: $7.48
If SEK meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $26.42, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

UBS rates SSR as Buy (1) -

UBS has lifted its gold forecast by around US$200 per ounce through to 2026, now assuming the commodity fetches prices of US$2,085, US$2,200 and US$1,950 per ounce in 2024, 2025 and 2026 respectively, driving upgrades across the broker's gold coverage.

The broker anticipates gold will benefit as we approach the end of the Fed's rate hiking cycle, and expects prices to reach new heights over 2024 and 2025 as the US economy faces a recession.

For SSR Mining, the Buy rating is retained and the target price decreases to $25.60 from $27.00.

This report was issued on 13 November 2023.

Target price is $25.60 Current Price is $18.09 Difference: $7.51
If SSR meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates SUN as Buy (1) -

Suncorp Group's reported loans data for the September quarter suggest a sharp slowdown in volume growth, disappointing UBS's expectations. Gross loans fell -0.3% quarter-on-quarter, compared to the broker's expected 1.2% growth.

The broker highlights numerous references to "intense competition" in Suncorp Group's release, which it reads as a clear negative implication for net interest margins. UBS sees downside risk to its first half net interest margin forecast of 185 basis points.

The Buy rating and target price of $15.00 are retained.

This report was issued on 13 November 2023.

Target price is $15.00 Current Price is $13.22 Difference: $1.78
If SUN meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $15.23, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Bell Potter rates SVW as Buy (1) -

Bell Potter expects Boral's ((BLD)) upgrade to FY24 guidance should prove a plus for Seven Group, setting the company on a trajectory to breach the top end of its Industrial Services business guidance.

The broker expects Boral will be Seven Group's second-largest contributor behind Westrac.

Bell Potter is bullish on the company's core markets in which it holds leading positions such as mining, engineering construction, transition construction, green energy markets, critical minerals and gas. EPS forecasts edge higher.

Buy rating and $33 target price retained.

Target price is $33.00 Current Price is $28.98 Difference: $4.02
If SVW meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $31.16, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates SWM as Underweight (5) -

Morgan Stanley conducts a read-through from the US reporting season for Seven West Media, and it's not pleasant viewing, the broker observing cyclical weakness in the TV ad market; structural risks as TV audiences fall faster than forecast; and risks posed by regulation on gambling adds.

EPS forecasts fall -3% to -12% across FY24 to FY26.

Underweight rating retained. Target price falls to 26c from 30c. Industry view: Attractive.

Target price is $0.26 Current Price is $0.28 Difference: minus $0.015 (current price is over target).
If SWM meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.39, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

TPG Telecom has ended discussions with Vocus Group to acquire TPG's Enterprise, Government, Wholesale assets and Vision Networks for $6.3bn.

Morgan Stanley says the deal would have gone a long way to cutting the company's lofty -$3.5bn in debt.

The broker also forecasts structural declines in the company's Enterprise division and pressure on market share as competition from SD-WAN favours global software players.

Equal-Weight rating and $5.60 target price retained. Industry View: In-Line.

Target price is $5.60 Current Price is $4.81 Difference: $0.79
If TPG meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in December.

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 TPG as Accumulate (2) -

Ord Minnett is not particularly surprised TPG Telecom's discussions with Vocus Group to sell non-mobile fiber assets have ended.

The original approach was only announced after media speculation and the offer was highly conditional and non-binding, explains the broker. It's felt the complexity of the transaction was a further obstacle.

While shares slumped to below $5.00, Ord Minnett has a target of $7.40 and also reminds investors there remains potential upside from the Optus outage.

Also, management notes "ongoing strong interest from potential strategic and financial investors in the company's fixed infrastructure assets." The broker's Accumulate rating is unchanged.

Target price is $7.40 Current Price is $4.81 Difference: $2.59
If TPG meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 26.5% (ex-dividends)

The company's fiscal year ends in December.

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

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

Morgan Stanley issues a heads-up, expecting a positive reaction to Viva Energy's investor day.

The company is targeting FY28 earnings (EBITDA) of $1.25bn as it cuts its percentage of earnings from energy.

The broker considers execution is critical from here, in particular the transition of Coles Express to Reddy Express to OTR.

Equal-Weight rating and $3.21 target price retained. Industry view: Attractive.

Target price is $3.21 Current Price is $2.96 Difference: $0.25
If VEA meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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