Australian Broker Call

Morgans rates ACF as Add (1) -

Following the acquisition of screen assets from Heinrich last month for $11.5m, Acrow Formwork and Construction Services has acquired formwork assets for $12m from the same company.

Combined, management expects the two assets will contribute around $9.5m to earnings (EBITDA) in FY24. This significant contribution in FY24 will follow an immaterial impact in FY23, notes Morgans.

Separately, the company noted strong general trading and increased its FY23 earnings guidance by 3% to between $52-53m. The broker points out this makes the fourth upgrade this financial year, which now matches the four upgrades in FY22.

The target rises to $1.10 from $1.03. Add.

Target price is $1.10 Current Price is $0.79 Difference: $0.31
If ACF meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 38.0% (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

Shaw and Partners rates ACF as Buy (1) -

Acrow Formwork and Construction Services has acquired Heinrich's Ishebeck Formwork Panel System which Shaw and Partners believes is  a "major positive" in strengthening its leading market position in engineering and construction solutions.

That acquisition is expected to materially contribute in FY24 with an attractive return on capital of 45-55%. Consideration is $12m over two years.

The company has also upgraded guidance for FY23, again, and the broker assesses the stock has become very attractive, trading at substantial discounts to listed contracting peers. Buy rating maintained. Target edges up to $1.15 from $1.10.

Target price is $1.15 Current Price is $0.79 Difference: $0.36
If ACF meets the Shaw and Partners target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 38.0% (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

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

Macquarie initiates coverage on Aeris Resources with  an Outperform rating and $0.70 target. The company is the third largest copper producer by market capitalisation on the ASX and has an opportunity to fill a gap that was left by OZ Minerals after it was acquired by BHP Group ((BHP)), in Macquarie's opinion.

The broker forecasts copper production of 29,400t in FY23, growing to 34,200t in FY24. The acquisition of Round Oak Minerals in 2022 added new cash generating assets to the portfolio and there are now four in Australia, providing a diversified risk exposure across different mines and different commodities.

Target price is $0.70 Current Price is $0.41 Difference: $0.29
If AIS meets the Macquarie target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 84.4% (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

Morgan Stanley rates APM as Overweight (1) -

Morgan Stanley believes FY23 guidance eases near term concerns on cash, with visibility into FY24 de-leveraging, while news of a UK contract win reinforces medium term earnings forecasts.

Following 1H weakness, 2H cash conversion has bounced back to more than 80% for APM Human Services International.

While FY23 profit (NPATA) guidance was around -4% below February guidance, the broker is expecting normalisation of the main headwind, which is a bottleneck in Workforce Australia's online client flows to providers.

The UK contract win was for $720m over five years from the 2H of FY24 (plus a two year extension). 

The Overweight rating and target price of $3.00 are retained. Industry view: In-Line.

Target price is $3.00 Current Price is $2.04 Difference: $0.96
If APM meets the Morgan Stanley target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 50.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates APM as Buy (1) -

UBS believes the success in winning the $720m functional assessment services contract for London, South-East and East Anglia is a testament to the strength of APM Human Services International's reputation.

Along with recent contract gains in Canada and the US this bodes well for other contract opportunities.

The company has guided to FY23 underlying net profit of $175-180m, a -3-6% downgrade to consensus expectations, as it is affected by lower client flow into employment services programs as well as a shortage of allied health professionals.

UBS reduces the target to $3.65 from $3.75 and maintains a Buy rating.

Target price is $3.65 Current Price is $2.04 Difference: $1.61
If APM meets the UBS target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 50.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates ASX as Neutral (3) -

The market is questioning the slow recovery in derivatives volumes yet Citi currently forecasts volumes will recover close to pre-pandemic levels in FY25.

There are several factors, the broker observes, which could alter the timing of a recovery, including global interest rates and FX spreads as well as the appetite of international trading firms and opportunities in the Australian market.

Derivatives account for around 20% of ASX revenue and variations in the pace and level of returns are likely to be significant. The broker believes recovery will take time and reiterates a Neutral rating and target of $70.

Target price is $70.00 Current Price is $67.71 Difference: $2.29
If ASX meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $69.87, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates CNB as Outperform (1) -

Carnaby Resources posted strong results from the Greater Duchess copper/gold project. A recent capital raising has allowed the company to accelerate its drilling program.

Macquarie is encouraged by the update, noting the Chalcus lode is open in all directions. A Greater Duchess maiden resource is the main catalyst the broker anticipates as it could exceed 3,000t of copper.

Outperform. Target $1.70.

Target price is $1.70 Current Price is $1.13 Difference: $0.575
If CNB meets the Macquarie target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates EVT as Buy (1) -

In analysing cinema industry data, Citi observes the chance of a earnings beat in FY23 has diminished. The box office has experienced slower growth over recent months

 Moreover there are further risks for FY24 to be considered including ongoing delays in films, blockbusters not performing to expectations as well as a writers' strike persisting.

The broker remains positive on EVT Ltd's hotel business and the stock remains a key pick in the small caps. The Buy rating and target price of $17.11 are retained. 

Target price is $17.11 Current Price is $11.46 Difference: $5.65
If EVT meets the Citi target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates FPH as Neutral (3) -

Fisher & Paykel Healthcare's FY23 is labeled "largely as expected" but the FY24 guidance proved below expectations. Citi analysts explain management has pushed out margin recovery by one year, to 3-4 years for the gross margin and to 4 years for the EBIT margin.

Earnings estimates have been culled. As Citi sat above market consensus, the reductions are quite sizable: -23%-24% for FY24/25. Price target tumbles by -8% to NZ$26.50 in response.

The broker continues to see this company as High Quality, enjoying large under-penetrated markets, limited competition, and high margins but also believes the share price already reflects this. Neutral.

Current Price is $22.48. Target price not assessed.

Current consensus price target is $21.47, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

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

In the wake of the FY23 result Fisher & Paykel Healthcare has reset margin expectations and Macquarie envisages scope for incremental upside. The gross profit margin had been under pressure from a range of cost factors but the company has guided for a100 basis points recovery in FY24.

The broker believes signals from new apps and device demand should be construed as a positive for the medium term outlook for the hospital division. Rating is upgraded to Outperform from Neutral and the target is lifted to NZ$28.09 from NZ$27.82.

Current Price is $22.48. Target price not assessed.

Current consensus price target is $21.47, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

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

FY23 results for Fisher & Paykel Healthcare, revealed a strong beat for Hardware against forecasts by Morgan Stanley and consensus, while Consumables were a miss. Homecare was a beat  though largely expected following Resmed's ((RMD)) result, explains the analyst.

Following de-stocking of device inventory the broker sees positive growth for consumables, however, margin issues results in lower EPS forecasts and the target falls to $22.43 from $25.20.

The analyst had previously expected a FY24 gross margin of 62.1% (consensus 62.6%), yet first-time management guidance is around 60.4%.

The Equal-weight rating is unchanged as Morgan Stanley expects long-term growth in Nasal High Flow Therapy.

Target price is $22.43 Current Price is $22.48 Difference: minus $0.05 (current price is over target).
If FPH meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.47, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Ord Minnett rates FPH as Lighten (4) -

According to Ord Minnett, FY23 earnings for Fisher & Paykel Healthcare show ongoing headwinds for costs and margins.

Nonetheless, the broker keeps its $20.50 target after increasing its revenue forecasts by 4% on average due mainly to a faster normalisation of flu hospitalisations than expected, necessitating increased respiratory support for patients.

The analyst expects strong longer-term sales growth and margin expansion from both scale efficiencies and an increasing contribution from higher-margin consumables.

Management guided to an improvement for the FY24 margin to 60.4% yet this is well below the long-term target of 65%, notes Ord Minnett. Lighten.

Target price is $20.50 Current Price is $22.48 Difference: minus $1.98 (current price is over target).
If FPH meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.47, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

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

Media reports suggest one of HealthCo Healthcare & Wellness REIT's largest tenants (8% of the rental base), GenesisCare, is preparing to file Chapter 11 bankruptcy protection in the US.

As the Australian business is reportedly profitable, Morgan Stanley suggests GenesisCare may be able to continue its local leases. Should it default, the broker's FY24 funds from operations (FFO) forecast would reduce by -6-7%.

Morgan Stanley leaves its $1.70 target and Equal-weight rating unchanged. Industry view: In-Line.

Target price is $1.70 Current Price is $1.39 Difference: $0.315
If HCW meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.69, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates HLI as Hold (3) -

Ord Minnett maintains its $3.20 target and Hold rating for Helia Group after allowing for the adoption of new accounting standards.

As the company currently has a large capital surplus, and dividends currently imply a low payout ratio, the broker expects management can achieve a steady, and hopefully growing, dividend.

Target price is $3.20 Current Price is $3.29 Difference: minus $0.09 (current price is over target).
If HLI meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

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

Morgan Stanley assesses near-term risks and catalysts for Overweight-rated Suncorp Group and Insurance Australia Group (Equal-weight).

The broker feels Suncorp is better placed across pricing and claims inflation while IAG has more reserving, CATs and quota share margin risks.

Negatives for Suncorp include the overhanging Bank sale and reinsurance renewal risk. More positively for IAG is a greater level of capital support. 

The Equal-weight rating and $4.75 target for IAG are maintained. Industry View: In-Line.

Target price is $4.75 Current Price is $5.20 Difference: minus $0.45 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.15, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates IVC as No Rating (-1) -

InvoCare has updated at its AGM, signalling first quarter trading is broadly in line with expectations. Volumes are cycling the demand spikes in 2022, with preliminary data indicating a -2.2% decline in Australian deaths in the first quarter of 2023.

M&A activity is gaining momentum, with investments in Picaluna, Lake Macquarie Memorial and Pets at Peace. The board unanimously recommends shareholders vote in favour of the TPG proposal and the data room opened on May 22 for due diligence.

UBS is currently restricted on providing a rating or target.

Current Price is $12.41. Target price not assessed.

Current consensus price target is $12.40, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

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

Macquarie initiates coverage of Johns Lyng with an Outperform rating and $7.50 target. The integrated building services company delivers services to the insurance, commercial, government and strata sectors.

Macquarie observes the underlying market in which the company operates is fragmented and it is able to pursue growth via equity ownership, holding equity stakes in more than 100 subsidiaries alongside operators of the businesses.

The main risks Macquarie envisages are pricing & tendering, retention of personnel, compliance & regulation as well as execution risk around acquisitions.

Target price is $7.50 Current Price is $6.46 Difference: $1.04
If JLG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.28, suggesting upside of 27.4% (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

Citi rates LFS as Sell (5) -

Latitude Group has flagged FY23 cash net profit guidance of $15-25m, materially below Citi's expectations. The difference is based on lower net interest margins and lower volumes, although it is difficult to separate the impact of the cyber incident, the broker adds.

Material earnings downgrades are made to forecasts. The company has indicated it will not pay a dividend, which the broker had already assumed.

Citi retains a Sell rating amid low earnings visibility and also notes uncertainty in the share register. Target is reduced to $0.95 from $1.10.

Target price is $0.95 Current Price is $1.25 Difference: minus $0.3 (current price is over target).
If LFS meets the Citi target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.00, suggesting downside of -20.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.7

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

Macquarie rates LFS as Underperform (5) -

Latitude Group has updated on the impact of the recent cyber incident and issued new guidance. The new guidance implies a -40-50% reduction to FY24-25 estimates, Macquarie assesses.

There is scope for cyber regulatory fines and litigation, and with macro uncertainties the broker envisages better value elsewhere, maintaining an Underperform rating.

Macquarie lowers estimates for earnings per share by -39-82% for FY23-25, incorporating lower volumes, lower margins and higher impairments. Target is reduced to $0.90 from $1.20.

Target price is $0.90 Current Price is $1.25 Difference: minus $0.35 (current price is over target).
If LFS meets the Macquarie target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.00, suggesting downside of -20.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.7

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

Ord Minnett rates LOV as Initiation of coverage with Hold (3) -

Ord Minnett expects a long runway of organic growth opportunities for global jewellery retailer Lovisa Holdings. Relatively high operating margins are expected to underpin strong sales and earnings growth over the next decade.

The broker likes the company's proven and standardised business model and initiates coverage with a $22 target price.

As shares are currently trading around fair value, the analyst begins with a Hold recommendation, along with a High Uncertainty rating to reflect cyclical demand for discretionary consumer products.

Also, the pace of yearly store openings should reduce to 100 in FY24 and FY25 from an expected 130 in FY23, forecasts Ord Minnett. The increase in stores will largely occur in the US and to a lesser extent Europe.

By FY30, the broker expects 1,500 stores, up from 700 currently.

Target price is $22.00 Current Price is $21.33 Difference: $0.67
If LOV meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $28.21, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates MPL as Buy (1) -

UBS reviews non-resident private health insurer forecast and concludes that the market is "overly conservative". Migration trends remain strong while residential continues to enjoy rising participation and benign claims.

Medical claims costs continue to track well below pre-pandemic levels and the broker suspects a meaningful share of "deferred" claim reserves will turn out to be permanent savings. Buy rating retained for Medibank Private. Target rises to $4.00 from $3.70.

Target price is $4.00 Current Price is $3.57 Difference: $0.43
If MPL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates MQG as Neutral (3) -

Citi expects a slowdown in revenue and earnings growth will lead to a reduction in capital invested, particularly in commodity markets where growth has been strongest.

This will expand the surplus capital, driving a below-average group return on equity unless Macquarie's management undertakes buybacks or acquisitions. Given buybacks rarely occur this provides the business with significant acquisition "firepower".

Longer term, Citi expects ROE will return to around 14.5-15%. Neutral rating and $175 target maintained.

Target price is $175.00 Current Price is $174.00 Difference: $1
If MQG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $193.36, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in March.

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) -

UBS reviews non-resident private health insurer forecast and concludes that the market is "overly conservative". Migration trends remain strong while residential continues to enjoy rising participation and benign claims.

Medical claims costs continue to track well below pre-pandemic levels and the broker suspects a meaningful share of "deferred" claim reserves will turn out to be permanent savings. Buy rating retained for nib Holdings. Target rises to $9.20 from $8.00.

Target price is $9.20 Current Price is $8.22 Difference: $0.98
If NHF meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Bell Potter rates NIC as Buy (1) -

Nickel Industries is unique in that among ASX-listed producers its business is dominated by the value of the downstream processing facilities, with multiple nickel product exposures and a strong growth outlook.

It continues to offer exposure to low-cost nickel mining and production in Indonesia and the recent listing of two companies on the Indonesian stock exchange, in Bell Potter's view, now provides a comparable valuation and highlights the compelling proposition of Nickel Industries. 

The broker retains a Buy rating, reducing the target to $1.73 from $1.87 as it makes allowances for sustained higher input costs and reduced price realisations.

Target price is $1.73 Current Price is $0.85 Difference: $0.885
If NIC meets the Bell Potter target it will return approximately 105% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Morgans rates POS as Speculative Buy (1) -

The final investment decision on Poseidon Nickel's 1.1Mtpa Black Swan Restart Project is nearing and Morgans now also incorporates into its forecasts the 2.2Mtpa mill feed Expansion Project.

The broker anticipates the transition to the Expansion Project will begin in FY27 and produce on average 8ktpa of nickel in concentrate per annum for an eight-year mine life.

The target falls to 10c from 11c. Speculative Buy.

Target price is $0.10 Current Price is $0.04 Difference: $0.06
If POS meets the Morgans target it will return approximately 150% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates RIO as Overweight (1) -

While Morgan Stanley's rating for ASX-listed Rio Tinto shares remains at Overweight, the broker upgrades its rating for UK-listed shares to Overweight from Equal-weight.

The recent de-rating of the UK shares (and Australian ones) now price in a long-term price of US$60/t, below the broker's forecast incentive price of US$75/t (real). Best-in-class capital return prospects are also noted.

The Overweight rating and $124.50 target are unchanged in Australia. Industry View: Attractive.

Target price is $124.50 Current Price is $107.77 Difference: $16.73
If RIO meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $114.08, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.0

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

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

Rex Minerals has the second-largest undeveloped copper reserve in Australia at Hillside which Macquarie believes could become a 40,000tpa-plus copper producer by FY27.

The company is progressing a minority sell-down in Hillside followed by a final investment decision that is targeted for mid 2023. Macquarie initiates coverage with an Outperform rating and $0.32 target.

Target price is $0.32 Current Price is $0.23 Difference: $0.095
If RXM meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Market demand is robust and the outlook for Supply Network remains positive with strong activity in all regions, highlights Ord Minnett, following a trading update and upgraded FY23 guidance. The rating is upgraded to Buy from Accumulate.

An exceptionally strong 2H performance is expected by management, and the broker sees strong demand from commercial vehicle customers for parts. It's thought demand partly derives from ageing vehicle fleets and the increasing complexity of those vehicles.

Management guided to FY23 sales of $250m, 7% above the analyst's forecast, and noted growth “will remain above the long-term trend for at least the next year”.

The target rises to $15.40 from $12.90.

Target price is $15.40 Current Price is $13.29 Difference: $2.11
If SNL meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates SUN as Overweight (1) -

Morgan Stanley assesses near-term risks and catalysts for Overweight-rated Suncorp Group and Insurance Australia Group (Equal-weight).

The broker feels Suncorp is better placed across pricing and claims inflation while IAG has more reserving, CATs and quota share margin risks.

Negatives for Suncorp include the overhanging Bank sale and reinsurance renewal risk. More positively for IAG is a greater level of capital support. 

For Suncorp Group, the Overweight rating and $14.50 target are unchanged. Industry View: In-Line.

Target price is $14.50 Current Price is $13.06 Difference: $1.44
If SUN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.59, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates TLC as Initiation of coverage with Buy (1) -

Citi has initiated coverage of Lottery Corp with a Buy rating and maiden price target of $5.70.

The broker explains, lottery earnings can be volatile depending on jackpots but they are defensive over time with no correlation to the business cycle.

Currently, the broker believes, the market is underestimating the increase to the contribution margin following the increase in the commission rate and cut to third party digital commissions.

Citi does not anticipate the company to benefit from a (potential) introduction of cashless gaming in NSW.

Target price is $5.70 Current Price is $4.95 Difference: $0.75
If TLC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates TLS as Hold (3) -

Ord Minnett upgrades its FY23 earnings (EBITDA) forecast for Telstra Group by 3% and lifts its target to $4.50 from $4.20. Forecasts rise for mobile earnings due to a Telstra-led industry-wide price recovery, offset by a fall in estimates for fixed-line units.

The analyst believes Telstra is favoured by the current economic backdrop, with investors searching for defensive growth characteristics. It's thought (estimated) underlying earnings growth of 11% in FY23 and increasing dividends (edging up) will appeal.

While the company has recently increased SIM-only mobile plans by 6-7%, the broker feels the essential nature of mobiles for the consumer will outweigh a reversion to lower price or pre-paid plans. The Hold rating is unchanged.

Target price is $4.50 Current Price is $4.36 Difference: $0.14
If TLS meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.65, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates WES as Buy (1) -

Wesfarmers will host a strategy briefing on May 30. While UBS does not expect a trading update, the FY23 capex range could be narrowed and the Catch FY23 losses could be quantified. The company could also confirm the OneDigital FY23 operating loss of -$100m.

UBS raises FY23-24 estimates by 2-2.7% because of higher earnings at Kmart and remains confident it can gain share in a tough consumer environment. Buy rating and $55.50 target maintained.

Target price is $55.50 Current Price is $48.93 Difference: $6.57
If WES meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $49.85, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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