Australian Broker Call

Citi rates AMP as Neutral (3) -

A -$100m settlement in the Buyer of Last Resort class action resolves the most significant legacy matter for AMP, suggests Citi, and potentially allows for the third tranche ($350m) of capital return by year's end.

There are a further two outstanding class actions which are yet to be quantified, though the analysts would be surprised if they are as large as the above settlement.

The 90c target and Neutral rating are unchanged.

Target price is $0.90 Current Price is $0.90 Difference: $0
If AMP meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting upside of 16.8% (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

Bell Potter rates ASB as Buy (1) -

Austal is set to become the Commonwealth of Australia's strategic shipbuilder under a formal Strategic Shipbuilding Agreement (SSA). The parties have forged a Heads of Agreement, under which they will work towards the signing of a formal SSA by the last quarter of 2024. 

As a pilot program ahead of formalising the SSA, Austal will construct and deliver 18 medium landing craft vessels for the Commonwealth. Bell Potter points out it is also expected that the Commonwealth will contract the heavy landing craft program to Austal.

The Buy rating and target price of $2.75 are retained.

Target price is $2.75 Current Price is $1.93 Difference: $0.82
If ASB meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 32.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates ASG as Buy (1) -

In contrast to our earlier suspicion, Citi is still covering Autosports Group. In response to today's trading update, the broker reports the update on revenues is stronger than forecast, including by consensus.

But profit margins are under pressure because of higher interest costs. Pre-tax profit is now guided towards $50-52m for the first half. This marks a minor (-2%) miss against consensus, but is 6% better than Citi's estimate.

Citi remains positive on the company's outlook. Buy. Target $3.45.

Target price is $3.45 Current Price is $2.35 Difference: $1.1
If ASG meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $3.27, suggesting upside of 42.0% (ex-dividends)

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

Bell Potter rates BOE as Upgrade to Buy from Hold (1) -

With Boss Energy pulling back from the highs of October, Bell Potter has taken the opportunity to lift its rating on the stock with the share price tumbling -13%, and the broker points out opportunity to buy the dip. 

The broker sees a number of positive catalysts coming through for Boss Energy, including the signing of an offtake agreement ahead of production, commencement of production, and further momentum in uranium markets.

The rating is upgraded to Buy from Hold and the target price of $5.53 is retained.

Target price is $5.53 Current Price is $4.32 Difference: $1.21
If BOE meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.54, suggesting upside of 2.8% (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

Ord Minnett rates BSL as Lighten (4) -

A return in demand from US auto manufacturers has provided a nice boost for BlueScope Steel, with the company expecting to meet the top end of its $620-670m first half earnings guidance range following a significant increase in US hot rolled coil steel benchmark spreads. 

Ord Minnett estimates BlueScope Steel's US hot rolled coil spreads lifted around 50% over November. The broker lifts its full year earnings forecast by less than 5%, to $1.2bn.

The Lighten rating and target price of $16.50 are retained.

Target price is $16.50 Current Price is $20.16 Difference: minus $3.66 (current price is over target).
If BSL meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.96, suggesting downside of -6.0% (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 BXB as Buy (1) -

After reviewing the latest retailer industry stock and volumes for November, UBS concludes most retailer destocking has already occurred and elevated supplier stocks are less of a concern to Brambles, given CHEP's greater downstream exposure.

If anyone is interested, inventory/COGS is the metric the broker utilises to assess stock destocking/restocking risk since it normalises for the level of activity (COGS) and for price inflation.

The $16.55 target and Buy rating are unchanged.

Target price is $16.55 Current Price is $13.10 Difference: $3.45
If BXB meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $14.96, suggesting upside of 13.6% (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: 0.2

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

Bell Potter rates CCX as Buy (1) -

In a trading update, City Chic Collective has reported a -32% year-on-year sales decline in the first quarter, while second quarter sales are down -29% year-on-year to date. Given the run rate, Bell Potter lowers its revenue forecast and softens second half recovery expectations.

With some selective improvements in November, including US sales improving to a -13% year-on-year decline, the broker expects the retailer could see further improvements as the trading environment becomes more conducive. 

The Buy rating is retained and the target price decreases to 50 cents from 65 cents.

Target price is $0.50 Current Price is $0.34 Difference: $0.165
If CCX meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 29.5% (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

Citi rates CCX as Upgrade to Buy, High Risk from Neutral, High Risk (1) -

Citi upgrades its rating for City Chic Collective to Buy, High Risk from Neutral, High Risk, and increases its target to 62c from 55c, in the belief additional cost savings and lower marketing will offset lower sales forecasts.

An AGM trading update demonstrated to the broker progress on the strategy to make the business sustainable on a lower sales base.

Management found an additional -$3m in annualised cost savings in head office wages and by optimising labour in stores. Inventory levels are also on the improve, and the broker expects higher margins and reduced working capital.

Management continues to expect profitability in the 2H, but Citi cautions whether there can be a return to full-price sales given extended clearance activities.

Target price is $0.62 Current Price is $0.34 Difference: $0.285
If CCX meets the Citi target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 29.5% (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

Ord Minnett rates CCX as Hold (3) -

While it is City Chic Collective's plan to edge back to profitability in the second half, Ord Minnett points out market conditions remain difficult and sales continue to decline. 

The company reported a -32% year-on-year sales decline in the first quarter, but some improvement to date in the second quarter with sales down -29%. This decline is greater than Ord Minnett had anticipated. 

The retailer has upgraded its targeted annualised cost savings to -$18m, which it aims to achieve through the streamlining of its supply chain and reduced headcount. The Hold rating is retained and the target price decreases to 40 cents from 50 cents. 

Target price is $0.40 Current Price is $0.34 Difference: $0.065
If CCX meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 29.5% (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 CLV as Neutral (3) -

The infant milk formula market in China has remained challenging, notes UBS, after reviewing an AGM trading update by Clover.

Management now expects FY24 revenue of around $70m, a -14% miss compared to the broker's forecast. As a result of this disappointment, the analyst lowers the Clover target to 85c from $1.10.

The Neutral rating is unchanged due to low near-term market visibility, explains UBS.

The analyst cites two potential positives for the stock price: the upcoming 2024 Year of the Dragon, which traditionally signifies an increase in Chinese birth rates; and major competitor BASF has discontinued its docosahexaenoic acid (DHA) product.

Target price is $0.85 Current Price is $0.78 Difference: $0.07
If CLV meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

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

Macquarie rates ELD as Neutral (3) -

Macquarie notes from Elders' investor day management continues to see growth opportunities for Rural Products, the key driver of the company's earnings.

The analyst believes management is controlling the controllables well. The company reiterated its fourth eight point plan (8PP) which includes growth targets for EBIT and EPS of 5 and 10%, respectively, through the cycle.

Management has a good acquisition track record, in the broker's opinion, and M&A will remain an important part of the growth strategy.

The Neutral rating and $7.12 target are unchanged.

Target price is $7.12 Current Price is $7.30 Difference: minus $0.18 (current price is over target).
If ELD meets the Macquarie 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 6.2% (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

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

For Fisher & Paykel Healthcare's 1H results due on November 29, Morgan Stanley forecasts group revenue will rise by 14% to NZ$790m, in line with management's guidance.

The broker is also expecting a 59.3% gross margin. Target $21.50. Equal-weight rating. Industry view: In-line.

Target price is $21.50 Current Price is $20.47 Difference: $1.03
If FPH meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $21.93, suggesting upside of 6.5% (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: -0.2

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

Macquarie rates HAS as Neutral (3) -

Recently securing debt funding for the Yangibana rare earths concentrate project is a key positive catalyst for Hastings Technology Metals, in Macquarie's view.

The company has established an at-the-market equity financing facility for up to $50m with Alpha Investment Partners, giving management the option to raise capital gradually over a four-year period.

Additionally, discussions are underway with multiple credit providers, according to management. The broker also highlights potential prepayments via offtake arrangements could improve the company's cash position.

The 93c target and Neutral rating are unchanged.

Target price is $0.93 Current Price is $0.77 Difference: $0.16
If HAS meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

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

Citi rates KGN as Sell (5) -

While Citi retains its Sell rating for Kogan.com on longer-term competitive pressures and a softer consumer, the broker concedes the AGM trading update was incrementally positive.

There was a 10 percentage point expansion in gross profit margin, suggesting to the analysts that product GP margins have mostly normalised.

Commentary by management suggested to the broker the product segment is recovering, while platform segments, particularly
Kogan First, are growing rapidly.

The broker's target rises to $4.30 from $4.00, mostly on higher peer multiples.

Target price is $4.30 Current Price is $4.80 Difference: minus $0.5 (current price is over target).
If KGN meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.63, suggesting upside of 35.4% (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

Ord Minnett rates KGN as Buy (1) -

Given the ongoing structural shift to e-commerce, Ord Minnett believes the market is being overly cautious on Kogan.com's ability to expand profit margins and its long-term sales growth potential. 

According to Ord Minnett, Australian e-commerce retailers are starting to see the emergence of a renaissance, and Kogan.com is one such retailer benefitting from the shift back to online.

The broker's investment thesis for Kogan.com relies on the assumption that sales growth accelerates beyond FY24. The Buy rating and target price of $10.70 are retained. 

Target price is $10.70 Current Price is $4.80 Difference: $5.9
If KGN meets the Ord Minnett target it will return approximately 123% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 35.4% (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

UBS rates KGN as Neutral (3) -

UBS increases its gross sales forecasts for Kogan.com only marginally following a 1Q trading update hot on the heels of the recent October trading update.

The broker points to an ongoing (key) positive trend for gross profit dollars and margins, with Kogan First fees the main contributor. It's felt the main challenges are revenue growth and marketing efficiency.

The Neutral rating and $4.90 target are retained.

Target price is $4.90 Current Price is $4.80 Difference: $0.1
If KGN meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 35.4% (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

Macquarie rates KLS as Outperform (1) -

The analyst at Macquarie envisages more defensive growth for Kelsian Group's after attending the investor day.

Over the 1H, organic growth continued across both new and existing markets, while momentum at All Aboard America! Holdings Inc (AAAHI) presents upside risk, suggests the broker.

The $7.70 target and Outperform rating are retained.

Target price is $7.70 Current Price is $6.50 Difference: $1.2
If KLS meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.29, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Bell Potter rates LOV as Buy (1) -

A trading update covering the first twenty weeks of Lovisa Holdings' year has outlined a -6.2% year-on-year dip in global comparative sales, but a 17% increase in total sales. 

The retailer delivered 35 net new stores, comprised 50 openings and 20 closures; a miss to Bell Potter's expectations. Accounting for the miss, Bell Potter softens its first half expectations. 

The broker expects Lovisa Holdings' China launch to prove a key network growth catalyst, identifying it as the largest market in the company's global store opportunity. 

The Buy rating is retained and the target price decreases to $25.00 from $29.00.

Target price is $25.00 Current Price is $18.71 Difference: $6.29
If LOV meets the Bell Potter target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $23.02, suggesting upside of 25.9% (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

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

It is Citi's view that the unexpected sale of 42% of Nick Scali's major shareholder stake has created uncertainty, leaving the broker to downgrade on the stock.  The broker feels it is prudent to wait until the first half results release before considering a more positive outlook.

Citi does point out Nick Scali's fundamentals, including key housing indicators and long duration roll out opportunities, remain positive. 

The rating is downgraded to Neutral from Buy and the target price decreases to $11.57 from $13.35.

Target price is $11.57 Current Price is $10.84 Difference: $0.73
If NCK meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Market Sentiment: 0.5

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

Morgans rates ORG as Hold (3) -

The resolution of proposed takeover offers for Origin Energy has been deferred to a shareholder vote on December 4. Bidders are proposing an alternate way to split the company.

Morgans would be surprised if Origin Energy's key shareholder AustralianSuper were to change direction and agree to the current scheme structure, given ongoing opposition. It's thought the proposal will be voted down.

The Hold rating is retained. By blending 50:50 the consortium's lower price bid of $9.08 with the broker's valuation, the target falls to $8.25 from $9.00.

Target price is $8.25 Current Price is $8.33 Difference: minus $0.08 (current price is over target).
If ORG 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 $8.83, suggesting upside of 3.4% (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 PFP as Buy (1) -

With its first quarter trading update, Propel Funeral Partners has outlined 20% revenue growth for the period, bolstered by 15% growth in funerals conducted and 4.3% growth in average revenue per funeral. 

Bell Potter anticipates a return to organic volume growth in the second quarter, given NSW and Victoria October death statistics.

The broker also expects mid-long term growth to be supported by aging baby boomers, with older cohorts reaching life expectancy within three years.

The Buy rating and target price of $5.70 are retained.

Target price is $5.70 Current Price is $4.84 Difference: $0.86
If PFP meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 20.7% (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

Macquarie rates PFP as Outperform (1) -

The impact of acquisitions has offset lower organic volumes, highlights Macquarie, after reviewing in-line 1Q results, released as part of the company's AGM.

Average revenue per funeral (ARPF) of 4.3% is tracking ahead of FY24 guidance for greater than 3%, and management's long-term targeted compound annual growth rate (CAGR) of 3%.

The $5.95 target and Outperform rating is maintained.

Target price is $5.95 Current Price is $4.84 Difference: $1.11
If PFP meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 20.7% (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

Morgan Stanley rates PFP as Overweight (1) -

An AGM trading update by Propel Funeral Partners revealed year-on-year increases for revenue and earnings (EBITDA) of 20% and 11%, respectively.

A key highlight for Morgan Stanley were record funeral volumes. The average revenue per funeral rose by 4.3% compared to 6% in the previous corresponding period.

Management reiterated FY24 guidance for revenue of between $200-220m and an earnings range of $54-60m.

The broker's Overweight rating and target price of $6.10 are retained. Industry view: In-Line.

Target price is $6.10 Current Price is $4.84 Difference: $1.26
If PFP meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 20.7% (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

Macquarie rates PLS as Outperform (1) -

In a key positive at Pilbara Minerals' AGM, suggests Macquarie, management confirmed the P680 and P1000 projects remain on time and on budget. The strategic partnering process is also well progressed, according to the company.

The analyst believes the trading premium relative to peers for Pilbara Minerals is justified, due to a solid balance sheet, quality asset,
and track record of project execution. Lithium prices have declined at a faster price than the Pilbara share price, notes Macquarie.

Outperform and $7.10 target retained.

Target price is $7.10 Current Price is $3.62 Difference: $3.48
If PLS meets the Macquarie target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 28.8% (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 PSQ as Overweight (1) -

Morgan Stanley notes elevated uncertainty (due to "choppy" trading conditions) as indicated by the absence of FY24 guidance by Pacific Smiles at its AGM.

While there were tougher comparatives and softer customer attendance during September/October, management noted a more favourable appointment outlook into year end, the peak trading period.

Morgan Stanley has a high conviction this profitable-at-scale operator has strategic value materially in excess of the current share price.

Overweight rating and $2.10 target price. Industry view is In-Line.

Target price is $2.10 Current Price is $0.93 Difference: $1.175
If PSQ meets the Morgan Stanley target it will return approximately 127% (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 PWH as Buy (1) -

Citi expects PWR Holdings will be able to fill the underutilised space at its Rugby facility with Motorsport and Aerospace and Defence (A&D) work, following the announced withdrawal from the EV battery cold plate program.

Because the program was set to be a significant earner, the broker expects a negative share price reaction to the announcement.

Buy and $11.75 target retained.

Target price is $11.75 Current Price is $10.30 Difference: $1.45
If PWH meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting upside of 15.4% (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

Morgans rates PXA as Add (1) -

Pexa Group's investor day was broadly positive, in Morgans view, with FY24 guidance reaffirmed and a cost-out plan announced, cutting the group's global workforce by -12%.

Regarding PEXA UK, the company also revealed it is dealing with two of the top 10 banks on a product launch scheduled for mid-2024.

The broker lowers its FY24 EPS forecast by -13% to align with management's increased outlook for business spend.

The target falls to $13.36 from $13.45. Add.

Target price is $13.36 Current Price is $11.90 Difference: $1.46
If PXA meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.60, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Citi rates SHL as Buy (1) -

Reacting to last week's AGM trading update and commentary, Citi lowers its target for Sonic Healthcare to $33 from $38 due to lower margin forecasts. The Buy rating is retained.

Underlying revenue growth of 7% for the first four months of FY24 was broadly in line with the broker's forecasts.

Management maintained FY24 earnings (EBITDA) guidance but flagged a higher-than-usual 2H skew due to the timing of cost-out and synergies from recent acquisitions, explain the analysts.

The company also announced it will acquire Pathology Watch for -US$130m, which has annualised revenue of US$15m per annum.

Target price is $33.00 Current Price is $28.79 Difference: $4.21
If SHL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

UBS rates SHV as Neutral (3) -

It appears, judging from UBS's first reading of today's interim report release, Select Harvests' FY23 loss has roughly met the broker's and market expectations.

Management sees a more normal crop size for FY24 and this too is in line with expectations, comments the broker. El Nino weather should be a positive.

UBS notes strategic initiatives undertaken are progressing as per plan, but also believes more insights about the cost outlook are required.

Neutral. Target $4.70.

Target price is $4.70 Current Price is $4.37 Difference: $0.33
If SHV meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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

Citi rates STO as Buy (1) -

Despite the initial appearance of few surprises at the Santos investor day, Citi gleans a medium-term production and cashflow downgrade.

The broker reduces its target to $8.25 from $9.00 on weaker production for PNG and WA. Longer term, explain the analysts, PNG LNG decline rates have worsened materially, resulting in Papua LNG only keeping PNG production flat.

Even though the Barossa project is currently experiencing difficulties, Citi believes Santos is currently inexpensive with a low-US$60's implied oil price, and the Buy rating is retained. 

Target price is $8.25 Current Price is $7.00 Difference: $1.25
If STO meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $9.38, suggesting upside of 32.1% (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: 0.8

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

UBS rates SWM as Neutral (3) -

As visibility in advertising markets remains extremely short, UBS lowers its FY24 metropolitan free-to-air (FTA) advertising market
outlook to -7.5% from -2%.

In reaction to this new industry forecast, the broker lowers its target for Seven West Media to 27c from 38c, despite raising the company's share of FY24 metro FTA revenue share to 38% from 37.5% due to an improved performance.

Management will implement a new cost-out program for -$60m of savings between FY24-25. The Neutral rating is unchanged.

Target price is $0.27 Current Price is $0.23 Difference: $0.04
If SWM meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 46.0% (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

UBS rates TLS as Buy (1) -

In the final allocation of new mid-band spectrum licences for the foreseeable future, results were released yesterday for the 3.4/3.7Ghz metro/regional spectrum auction.

As Telstra Group has acquired 326 lots across both 3.4 and 3.7Ghz spectrum, UBS lowers its target to $4.50 from $4.55 on an increased FY24 capex forecast. The Buy rating is unchanged.

Target price is $4.50 Current Price is $3.80 Difference: $0.7
If TLS meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 16.6% (ex-dividends)

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 TPG as Neutral (3) -

In the final allocation of new mid-band spectrum licences for the foreseeable future, results were released yesterday for the 3.4/3.7Ghz metro/regional spectrum auction.

As TPG Telecom has acquired 44 lots in the 3.7Ghz band, UBS lowers its target to $5.14 from $5.70 on an increased FY24 capex forecast and higher assumed interest payments.

The analyst now expects flat dividend growth over the next two years. The Neutral rating is unchanged.

Target price is $5.14 Current Price is $4.67 Difference: $0.47
If TPG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 23.1% (ex-dividends)

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

Citi rates TWE as Neutral (3) -

Industry feedback sourced by Citi suggests challenging conditions in higher margin channels for Treasury Wine Estates, including on-premise and cellar doors.

Recent Nielsen data suggests to the broker improved momentum for the challenging off-premise channel in the US.

The broker notes Australian wine exports data are suggesting ongoing weakness in the UK, while Asia (ex-China) could be relatively more resilient.

The Neutral rating and $11.80 target are maintained.

Target price is $11.80 Current Price is $10.58 Difference: $1.22
If TWE meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.14, suggesting upside of 24.2% (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

Citi rates VUK as Buy (1) -

Citi expects statutory consensus EPS will remain broadly unchanged for Virgin Money UK following FY23 results, with a better net interest margin (NIM) and loan losses offset by higher costs.

Underlying costs rose by 4% half-on-half and were -3% worse than the consensus expectation, according to the analysts.

The broker believes capital return prospects are key to the investment case, so the market may be disappointed by a lower-than-expected dividend.

Buy/High Risk retained. Target is GBP2.65.

Current Price is $2.96. Target price not assessed.

Current consensus price target is $3.60, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

This company reports in GBP. 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

Citi rates VVA as Buy (1) -

Citi likes management's greater focus on returns, evident in Viva Leisure' recent trading update, which has resulted in a greater number of gym closures than forecast. 

Positively, the broker feels spending on gyms is less discretionary than originally envisaged.

The target rises to $2.97 from $2.52 largely due to higher forecast margins, partially offset by lower peer multiples. Buy.

Target price is $2.97 Current Price is $1.41 Difference: $1.565
If VVA meets the Citi target it will return approximately 111% (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