Australian Broker Call

Citi rates ASX as Downgrade to Sell from Neutral (5) -

ASX’s volumes for both cash equities and futures fell markedly in second half FY21 by -21% and -14% respectively versus the previous period.

With the stock looking expensive again, Citi moves to Sell and increases the target price to $71.10 from $70.10.

While Citi expects some commentary on medium term growth prospects at ASX’s FY21 results, the broker suspects it will be insufficient to materially alter forecasts.

At the upcoming result Citi expects updates on DLT, commodity futures, Sympli and Datasphere.

Target price is $71.10 Current Price is $75.50 Difference: minus $4.4 (current price is over target).
If ASX meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.54, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Credit Suisse rates ASX as Neutral (3) -

Following a weaker-than-expected June quarter and month, Credit Suisse has downgraded earnings per share forecasts for ASX by -2% for FY21-23. 

$34bn in equity raisings took place throughout the quarter, around 60% above the quarterly average of the last five years. Cash equity trading also continued to normalise down, with an -8% decline on the average daily value traded quarter-on-quarter. 

The broker notes ASX's growth outlook for FY21 anf FY22 remains low, but despite this highlights that ASX could represent an interesting opportunity for longer-term investors who may see this as a reasonable entry-point for a high-quality business with stable earnings. 

The Neutral rating and target price of $75.00 are retained.

Target price is $75.00 Current Price is $75.50 Difference: minus $0.5 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.54, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates ASX as Hold (3) -

In an activity update, the ASX announced total futures and options traded rose 3% in June, while cash balances closed in June at $12.1bn, -3% lower than $12.5bn a year ago. Net listings increased to 2,228 in June versus 2,188 a year ago.

FY21 results are due on Thursday, 19 August. Ord Minnett increases the target price to $76.50 from $71.53 and maintains the Hold rating. The analyst considers the main positive in the near term is potential upside from interest rate leverage.

Target price is $76.50 Current Price is $75.50 Difference: $1
If ASX meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $71.54, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

UBS rates ASX as Neutral (3) -

UBS makes small EPS upgrades after trading statistics were released for June. This reflects stronger than expected Austraclear securities holdings, softer futures volume growth and a stronger-than-expected month for IPO’s. Neutral rating and $70 target maintained.

Target price is $70.00 Current Price is $75.50 Difference: minus $5.5 (current price is over target).
If ASX meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.54, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Morgans rates AVN as Add (1) -

As expected by Morgans, Aventus Group announced preliminary unaudited revaluations. After rising by $254m at June 2021, the portfolio is now valued at $2.3bn across 19 assets.

The broker makes minor adjustments to FY21 forecasts to reflect upgraded funds from operations (FFO) guidance of 19.4cps. The upgrade was considered driven by a mix of portfolio performance and lower debt costs.

The analyst expects the next trading update at the FY21 results in August. The Add rating is maintained and the target is increased to $3.26 from $3.12.

Target price is $3.26 Current Price is $3.14 Difference: $0.12
If AVN meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.04, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates BLD as Downgrade to Neutral from Outperform (3) -

Seven Group ((SVW)) has increased the bid for Boral to $7.40 a share having taken its stake beyond 34.5%. The offer remains open until July 15 and Macquarie suggests any alteration to the bid now is unlikely.

The broker downgrades to Neutral from Outperform, believing the upside is more limited at the current valuation. The fly ash review is due in coming weeks which presents some risk to a more cautious stance although Macquarie suggests it could go either way. Target remains $7.80.

Target price is $7.80 Current Price is $7.38 Difference: $0.42
If BLD meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.82, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates BOQ as Overweight (1) -

Morgan Stanley believes operating momentum is improving for Bank of Queensland and the bank remains in an upgrade cycle. Housing loan growth is exceeding the broker's expectations, and further deposit re-pricing is expected to limit margin decline in FY22.

Additionally, the analyst lifts FY23-FY24 EPS estimates by 5% and 8%, after the acquisition of ME Bank. The target price lifts to $10.50 from $10. Industry view: In-line.

Target price is $10.50 Current Price is $8.97 Difference: $1.53
If BOQ meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.82, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Morgan Stanley upgrades the rating for BlueScope Steel to Overweight from Equal-weight, as key steel spreads remain supportive. The spreads are considered likely to drive significant consensus upgrades and facilitate meaningful capital management.

The broker lifts forecasts to reflect the much-improved price and spread environment in the US, an earlier start to the Northstar expansion and to align with revised Morgan Stanley commodity price forecasts.

The analyst lifts EPS estimates for FY22 and FY23 by 11% and 67%, and raises the target price to $27 from $24.50. Industry view: In-line.

Target price is $27.00 Current Price is $21.25 Difference: $5.75
If BSL meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $24.49, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates BTH as Overweight (1) -

Morgan Stanley sees the announcement of the retention of one of the largest customers, T-Mobile, on a two year contract extension as a positive, but not incremental to annual recurring revenue (ARR).

However, a further announcement that the company has sold its Learning Hub solution into a subset of the 23k mobile device users at T-Mobile is truly incremental for annual recurring revenues (ARR). It's also considered to deepen the customer relationship, explains the broker.

The Overweight rating and $1.50 target are unchanged. Industry view is In-Line.

Target price is $1.50 Current Price is $1.17 Difference: $0.33
If BTH meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates CCX as Accumulate (2) -

Ord Minnett believes City Chic Collective should be a beneficiary of strong retail sales momentum in A&NZ, North America and the UK. Gross profit margins are also expected to recover, following a high level of discounting and promotional activity in the pcp.

Given stronger than expected trading offshore, the broker upgrades FY21-FY23 forecasts by 7%, 9% and 16%, respectively. The analyst lifts the target price to $5.50 from $4.50. The Accumulate rating is maintained.

Target price is $5.50 Current Price is $5.15 Difference: $0.35
If CCX meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.94, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates FPH as Neutral (3) -

Rapid declines in covid-related hospitalisations in the US and Europe has seen Credit Suisse decrease earnings estimates for Fisher & Paykel Healthcare by -10% for FY22 and -6% for FY23, as US hospitalisations reach their lowest levels in 12-months.  

Covid-related hospitalisations have been a key driver for demand for the company's Optiflow product during the covid pandemic.

Credit Suisse notes that with vaccinations trending upwards hospitalisations are unlikely to increase, but notes some volatility in the market as economies open up and potential new covid variants emerge. 

The Neutral rating is retained and the target price decreases to $29.50 from $30.00.

Target price is $29.50 Current Price is $28.18 Difference: $1.32
If FPH meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.50, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Morgans rates HDN as Add (1) -

HomeCo Daily Needs REIT has completed an institutional placement of $70m to help fund the $160m acquisition of a large neighbourhood asset in Queensland. Morgans notes potential development upside for the property, currently anchored by leading national retailers.

The broker makes only minor changes to forecasts. The Add rating is unchanged and the target prices edges up to $1.56 from $1.55.

Target price is $1.56 Current Price is $1.45 Difference: $0.11
If HDN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.54, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates IEL as Buy (1) -

UBS sees the British Council India IELTS business as a strategically important acquisition. Apart from being significantly accretive, the transaction is thought to raise questions regarding what happens with the rest of British Council’s IELTs business.

The gradual sale of geographic regions could potentially provide an attractive runway of highly accretive acquisitions in future years, points out the broker.

After the analyst incorporates the acquisition into forecasts, and allows for a more moderate recovery within the underlying business in FY22, EPS estimates for FY22-FY24 rise by 1%, 8% and 12%, respectively. The target rises to $31.60 from $28.25. Buy rated.

Target price is $31.60 Current Price is $28.27 Difference: $3.33
If IEL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $31.67, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates LRK as Buy (1) -

An independent revaluation of whisky under maturation has resulted in a 55% uplift to average net sales value per litre. This was largely driven by limited releases and a shift toward the direct-to-consumer channel, explains Ord Minnett.

The broker now forecasts $304m of gross profit under maturation by 30 June 2022, representing circa 50% upside to the company's current market capitalisation.

Also, gross margin guidance improved for FY22, leading to earnings upgrades for FY22-23 estimates. Ord Minnett retains a Buy rating and raises the target to $3.98 from $3.39.

Target price is $3.98 Current Price is $3.24 Difference: $0.74
If LRK meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates MIN as Hold (3) -

Ord Minnett believes consensus remains too low for iron ore prices in FY22. The broker's $1.6bn earnings estimate is 37% above consensus estimates.

Also, the analyst forecasts the company will report net cash of $400m at the end of FY21, significantly higher than Bloomberg consensus for $32m net debt.

Ord Minnett raises the target price to $64.00 from $51.70 though maintains the Hold recommendation, given the share price has increased 51% in the year-to-date.

Target price is $64.00 Current Price is $56.69 Difference: $7.31
If MIN meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $54.76, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates MWY as Buy (1) -

Newly agreed wood fibre export prices with major customers in Japan for the 2021 calendar year, show an increase of around 5% effective 1 January 2021 to 30 June 2021.  A second price increase, effective 1 July 2021 through 31 Dec 2021 reflects a 7.5% increase from 2020. 

Ord Minnett believes these pricing agreements reflect a change in fortunes for Midway following substantial disruption from pulp market volatility and the impact of covid. The analyst reiterates the Buy recommendation and increases the target price to $1.18 from $1.10.

Despite the recent slippage of a shipment into July, which negatively impacts earnings, the analyst believes investors should focus upon the improved pricing.

Target price is $1.18 Current Price is $1.07 Difference: $0.11
If MWY meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates PNI as Outperform (1) -

Pinnacle Investment's affiliates have crystallised $40.7m in gross performance fees for the second half, ahead of Macquarie's estimates. The company's net profit share was $8.4m, representing around 21% of the gross affiliate performance fee versus an historical average of around 25%.

The broker observes performance fees are a greater component, while more reliable part of earnings plus there is an attractive growth outlook with potential to add accretive M&A. Outperform maintained. Target rises to $12.28 from $12.26.

Target price is $12.28 Current Price is $11.12 Difference: $1.16
If PNI meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

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

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates QUB as Reduce (5) -

Morgans considers the acknowledgement of deteriorating economics at the Moorebank IMEX terminal of more import than confirmation of binding transaction documents for the sale of Moorebank property assets.

The analyst raises the target to $2.80 from $2.48, after FY21-22 earnings (EBITDA) upgrades of 9% and 3%. This comes after the removal of Moorebank Property, without factoring-in the cashflow impact of the asset sale, explains the analyst. 

The broker maintains the Reduce rating on valuation grounds.

Target price is $2.80 Current Price is $3.07 Difference: minus $0.27 (current price is over target).
If QUB meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.16, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates RHC as Buy (1) -

Ramsay Health Care has increased its final cash offer for Spire Healthcare by 4% to 250 pence per share from 240 pence per share.

This increases the value of the Spire equity by GBP40m to GBP1,040m, or $75m.

Citi previously calculated that for Ramsay to maintain its investment grade rating, it will need to raise $850m in capital, but given the variables, the broker thinks the final capital gap could be between -$600m and -$1bn.

Despite risks to the FY21 result, given the pandemic and more recently Australian lock downs, post the August result, Citi believes the
market will focus on the recovery phase and integration of Spire, which will result in a re-rating of the stock.

Citi maintains a Buy rating and $76 target price, which implies Ramsay should trade on FY23 (normal year) PE of 23x.

Target price is $76.00 Current Price is $62.90 Difference: $13.1
If RHC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $71.62, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates RMS as Outperform (1) -

Production in the June quarter was -9% below Macquarie's expectations and below guidance. This stemmed from several problems at Edna May, which produced 26,600 ounces.

Mount Magnet produced 35,200 ounces, also below estimates. While the end to FY21 was softer than the broker expected, first ore from Tampia is on schedule and remains a key de-risking event for FY22. Outperform rating and $2 target maintained.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If RMS meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.16, suggesting upside of 28.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates RMS as Overweight (1) -

Pre-released fourth quarter gold production was -8% below Morgan Stanley's estimate due to heavy rainfall and personnel shortages at Edna May. It's considered operating issues are temporary, and despite the production miss, the original FY21 guidance was met.

The broker's Overweight rating and $2.25 price target are maintained. Industry View: Attractive.

Target price is $2.25 Current Price is $1.65 Difference: $0.6
If RMS meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $2.16, suggesting upside of 28.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates SVW as Upgrade to Buy from Accumulate (1) -

Ord Minnett lifts the rating for Seven Group Holdings to Buy from Accumulate, after identifying significant potential upside to the unchanged $26.50 target price. Applying the average peer multiple for WesTrac and Coates Hire implies a $27.50 share price, estimates the analyst.

The broker also sees significant value creation from Seven Group’s listed investments. The Buy rating is maintained.

Target price is $26.50 Current Price is $20.14 Difference: $6.36
If SVW meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $27.14, suggesting upside of 33.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates SYD as Upgrade to Neutral from Underperform (3) -

Sydney Airport has received a non-binding indicative cash bid of $8.25 per share from a consortium that comprises IFM Investors, Conyers, QSuper and Global Infrastructure Management. 

The offer implies an equity value of $22.3bn and an enterprise value of $30.6bn, and is at a 42% premium to Sydney Airport's closing price on Friday. Credit Suisse notes a 67% probability of a successful deal at the current indicative offer. 

Among a number of conditions attached to the offer, the offer is conditional on UniSuper joining the consortium with its current 15% stake. Credit Suisse also notes that given Australian airport cross holding limits, IFM will be unable to hold more than 15% of the equity. 

The rating is upgraded to Neutral and the target price increases to $7.70 from $5.30.

Target price is $7.70 Current Price is $7.71 Difference: minus $0.01 (current price is over target).
If SYD meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates SYD as Overweight (1) -

Morgan Stanley lifts the target price for Sydney Airport to $8.28 from $6.66, in view of the non-binding consortium bid. The broker sees ownership restrictions under the Airports Act 1996 as a source of uncertainty for the proposal.

This may potentially require simultaneous sell-downs of stakes in the unlisted Melbourne and Brisbane airports, explains the analyst.

Overweight. Industry View: Cautious.

Target price is $8.28 Current Price is $7.71 Difference: $0.57
If SYD meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates SYD as No Rating (-1) -

UBS sees the proposal from a consortium of infrastructure investors to acquire Sydney Airport as designed to seek cashflow that is both long term and growing. This is despite ongoing uncertainty around the earnings recovery profile over the next 3-5 years.

The bid of $8.25 implies to the analyst a $30bn enterprise value, which is slightly higher than the $29bn previous peak valuation of Sydney Airport in December 2019.

The rating and price target are restricted due to UBS acting as financial advisor to Sydney Airport on any approach received.

Current Price is $7.71. Target price not assessed.

Current consensus price target is $7.93, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates TPG as Overweight (1) -

Morgan Stanley thinks just the possibility for a sale of either mobile towers or TPG Telecom's wider infrastucture assets could prove a positive catalyst for the stock. This comes after Telstra's ((TLS)) recent sale and leaseback of its mobile towers.

The analyst estimates a potential incremental positive.The company owns a significantly smaller mobile tower portfolio than Telstra though, importantly, does own substantially wider telco infrastructure assets.

The Overweight rating and $9.50 target are retained. Industry view: In-line.

Target price is $9.50 Current Price is $6.01 Difference: $3.49
If TPG meets the Morgan Stanley target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $7.55, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Universal Store is an omni channel retailer in the youth apparel market and Macquarie observes parallels between this business and that of City Chic ((CCX)) back in 2018-19.

The broker is excited about the prospects of the stock and initiates coverage with an Outperform rating and $8.60 target.

Universal Store currently trades in line with pre-pandemic two-year forward averages at 10.5x FY22. The broker believes a premium to current trading and pre-pandemic multiples is justified, given the company's position in youth apparel.

Target price is $8.60 Current Price is $7.03 Difference: $1.57
If UNI meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates VRT as Add (1) -

Morgans sees little sign of slowing in cycle volumes, after monthly Medicare statistics again showed strength. As a result, the broker raises the underlying profit forecast for FY21 by 6.4% to $35.6m, which is in-line with consensus. The target price increases to $7.04 from $7.01.

The broker maintains the Add rating and recommends the stock for investors seeking both yield and capital growth.

Target price is $7.04 Current Price is $6.26 Difference: $0.78
If VRT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates WBC as Overweight (1) -

Morgan Stanley notes the sale of Westpac Life NZ to Fidelity Life Assurance Company for around $373m was expected. The broker estimates the sale will reduce group earnings by less than -0.5%, and completion is expected by the end of 2021, subject to approvals.

The $29.20 target price and Overweight rating are unchanged. Industry view: In-line.

Target price is $29.20 Current Price is $25.45 Difference: $3.75
If WBC meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett notes Westpac continues to make good progress divesting its non-core business, as part of its broader restructuring plan, after the announced sale of the New Zealand life insurance business. Management expects the sale will add 7bp to its CET1 ratio.

The broker currently allows for a $5bn buyback in FY22, which will likely be off-market, given the bank has the largest franking balance of the major banks. Hold rating and $27.50 target retained.

Target price is $27.50 Current Price is $25.45 Difference: $2.05
If WBC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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