Australian Broker Call

Shaw and Partners rates AD8 as Downgrade to Hold from Buy (3) -

Off the back of a strong year Audinate Group's share price has demonstarted strong outperformance recently, up 87% year-on-year, benefitting from the  normalisation of covid related supply chain impacts. Given this, Shaw and Partners suggets investors wait for a better entry point.

Management has outlined a record backlog, and looking ahead suggests gross profit growth likely above 25%, alongside improved profitability and cashflow.

The rating is downgraded to Hold and the target price increases to $14.70 from $11.75.

Target price is $14.70 Current Price is $15.70 Difference: minus $1 (current price is over target).
If AD8 meets the Shaw and Partners target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.76, suggesting downside of -15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates AIZ as Accumulate (2) -

Ord Minnett notes airline profitability is normalising with pent up demand largely exhausted and previously constrained capacity is beginning to ease.

Management at Air New Zealand now expects 1H profit to be at the bottom end of the prior guidance range of NZ$180-230m.

The analyst notes domestic travel, particularly business, has deteriorated further since the original guidance in October, as cost of living pressures start to weigh on domestic and trans-Tasman leisure demand.

Pricing in the North American market is also under pressure as US carriers increase capacity, highlights the broker. The target falls by -7% to 84c and the Accumulate rating is unchanged.

Target price is $0.84 Current Price is $0.60 Difference: $0.245
If AIZ meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Shaw and Partners rates ATA as Buy (1) -

Shaw and Partners has reinitiated coverage on Atturra with a Buy rating and a target price of $1.45.

The broker notes that despite challenges the company performed well over FY23 and takes a positive outlook into FY24, with recently revised guidance suggesting 10% organic growth over the financial year.

Merger and acquisition activity will be a key growth driver for the company in FY24. Atturra closed on its Cirrus Networks acquisition in December and Shaw and Partners finds this purchase strategic, believing it will provide a platform for future growth.

Target price is $1.45 Current Price is $0.80 Difference: $0.655
If ATA meets the Shaw and Partners target it will return approximately 82% (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

Ord Minnett rates AZJ as Accumulate (2) -

In a review of the investment thesis for Aurizon Holdings, Ord Minnett highlights all segments of the business have positive outlooks and the analyst expects a continuation of solid growth over the medium-term.

The broker notes the coal haulage business is benefiting from a recovery in export volumes following a few years of heavy rain in Eastern Australia.

The Accumulate rating and $4.70 target are maintained.

Target price is $4.70 Current Price is $3.73 Difference: $0.97
If AZJ meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

UBS rates BHP as Neutral (3) -

UBS raises its 2024-26 iron ore price forecasts by 20%, 15% and 13%, respectively to US$120, US$105 and US$100t.

The broker anticipates prices will remain in the current elevated trading range (US$100-135/t) over the next two years, supported
by low inventories, robust demand and limited supply growth. The market is expected to move into surplus from 2025.

UBS also notes structural commodity price upside for copper and aluminium due to the energy transition. Copper is the broker's preferred metal as the market is set to be in deficit in 2024 after recent supply downgrades.

The broker also sees limited sustainable downside for aluminium and zinc due to cost support, while metallurgical coal prices should remain resilient.

The target for BHP Group rises to $48 from $43. Neutral.

Target price is $48.00 Current Price is $47.87 Difference: $0.13
If BHP meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $46.42, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Shaw and Partners rates BVS as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on Bravura Solutions with a Buy rating and a target price of $1.00.

The broker notes that while Bravura Solutions has good technology, an attractive customer base and capable staff, the company has lost its way and profitability has suffered. However the company is in early stages of a transformation with a new CEO.

The broker expects FY24 to be a "transition" year for Bravura Solutions, setting a base for future profitability. While management has guided to flat revenue year-on-year in FY24.

Shaw and Partners forecasts a 4% revenue compound annual growth rate through to FY26.

Target price is $1.00 Current Price is $0.83 Difference: $0.17
If BVS meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates CSS as Hold (3) -

Clean Seas Seafood recently announced a material strategy pivot, observes Bell Potter, and a $9.5m capital raise via a two
tranche placement. Funds will provide working capital to facilitate strategic initiatives to right size the business, explain the analysts.

In a material deviation from the previous strategy to grow volumes by double-digits, the broker notes, management will reduce biomass by around -800t (causing a $13.5-14.5m non-cash impairment).

This change will support an around 3,000t sales volume, in line with FY23 levels, explain the analysts.

Management will also consolidate farming sites and target a reduction in fixed and variable costs of around $5m.

Bell Potter materially downgrades its forward volume growth expectations, while raising selling price assumptions.

The target falls to 26c from 47c. The Hold rating is unchanged.

Target price is $0.26 Current Price is $0.26 Difference: $0
If CSS meets the Bell Potter target it will return approximately 0% (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

UBS rates DRR as Neutral (3) -

UBS raises its 2024-26 iron ore price forecasts by 20%, 15% and 13%, respectively to US$120, US$105 and US$100t.

The broker anticipates prices will remain in the current elevated trading range (US$100-135/t) over the next two years, supported
by low inventories, robust demand  and limited supply growth. The market is expected to move into surplus from 2025.

The target for Deterra Royalties rises to $5 from $4.80. Neutral.

Target price is $5.00 Current Price is $5.10 Difference: minus $0.1 (current price is over target).
If DRR meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.87, suggesting downside of -5.4% (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 FMG as Sell (5) -

UBS raises its 2024-26 iron ore price forecasts by 20%, 15% and 13%, respectively to US$120, US$105 and US$100t.

The broker anticipates prices will remain in the current elevated trading range (US$100-135/t) over the next two years, supported
by low inventories, robust demand  and limited supply growth. The market is expected to move into surplus from 2025.

The target for Fortescue rises to $24.40 from $20.80. Sell.

Target price is $24.40 Current Price is $26.71 Difference: minus $2.31 (current price is over target).
If FMG meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.95, suggesting downside of -30.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.9

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

Bell Potter rates GT1 as Speculative Buy (1) -

Bell Potter updates its estimates for Green Technology Metals  due to updated longer-term lithium price forecasts and the release of the company's preliminary economic assessment (PEA) on its lithium assets in Canada.

The PEA considered the following: A Stage 1 mine and concentrator at Seymour with circa 180ktpa SC5.5 production from 2025; a Stage 2 downstream lithium conversion facility operating from mid-2028; and the addition of further Stage 3 upstream mine and concentrator at Root from 2029.

A mining lease has been granted at Seymour, explains the broker, and a definitive feasibility study (DFS) is underway for a final investment decision (FID) and construction in 2024.

Green Technology Metals also raised $14.6m in equity utilising “flow-through shares” provisions under Canadian tax law, at 37cps to eligible Canadian investors, which were subsequently placed to sophisticated and professional investors at 25cps.

The broker lowers its target to 72c from $1.15. The Speculative Buy rating is unchanged.

Target price is $0.72 Current Price is $0.25 Difference: $0.475
If GT1 meets the Bell Potter target it will return approximately 194% (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

Shaw and Partners rates HPG as Initiation of coverage with Buy (1) -

Shaw and Partners inititates coverage on hipages Group with a Buy rating and a target price of $1.30. The company operates the largest online trades marketplace in Australia and New Zealand.

After a challenging year in FY23, the company is guiding to accelerating revenue growth, improving profitabilty and positive cashflow in FY24.

It is the broker's view that recent underperformance presents an opportunity, with the share price down -33% year-on-year. Shaw and Partners expects hipages Group can deliver a 13% revenue compound annual growth rate, with a 7% cash costs compound annual growth rate.

Target price is $1.30 Current Price is $0.72 Difference: $0.58
If HPG meets the Shaw and Partners target it will return approximately 81% (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 IMD as Neutral (3) -

Exploration projects have declined -13% month-on-month in November to a thirty-six month low, and Citi warns Imdex's second quarter results will likely reflect this trend. The broker anticipates this volatility in exploration levels to continue at least until the end of the year, and potentially into the new year.

The broker points out industry commentary suggests potential for a meaningful rebound in the new year, particularly from junior miners. Financing closing out in 2023 will be a crucial data point.

The Neutral rating and target price of $1.60 are retained.

Target price is $1.60 Current Price is $1.84 Difference: minus $0.24 (current price is over target).
If IMD meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.84, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates IPH as Outperform (1) -

Domestic filing activity for IPH has continued to improve over November, but taking cues from US filings, which Australian filings typically lag by 18-28 months, Macquarie sees potential for headwinds beyond FY25 for the company.

The broker continues to expect mid single digit earnings growth in Australia and New Zealand over FY24 in the meantime, and points out market share gains and growth initiatives may provide a buffer against the impending headwind.

The Outperform rating is retained and the target price decreases to $10.60 from $13.50.

Target price is $10.60 Current Price is $6.63 Difference: $3.97
If IPH meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $9.56, suggesting upside of 42.1% (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

Shaw and Partners rates LPD as Downgrade to Hold from Buy (3) -

Lepidico continues to consider funding options for its lepidolite to lithium hydroxide project, with one options being selling a mica concentrate to China to generate early cash flow.

This project will see Lepidico mine lepidolite and generate a mica concentrate in Namibia, before converting the mica concentrate to lithium hydroxide in Abu Dhabi, but funding processes have taken far longer than Shaw and Partners had expected.

The broker notes selling mica concentrate will have the benefit of providing early cash flow while the chemical plant is constructed and commissioned.

The rating is downgraded to Hold from Buy and the target price decreases to 2 cents from 6 cents.

Target price is $0.02 Current Price is $0.01 Difference: $0.012
If LPD meets the Shaw and Partners target it will return approximately 150% (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

UBS rates LYC as Buy (1) -

Following a review of commodity prices, UBS highlights the resources sector offers a combination of defensive dividend yields (particularly iron ore), and exposure to structural commodity price upside (copper/aluminium) anchored to the energy transition thematic.

The broker also notes potential leverage to lower interest rates in 2024.

The target for Lynas Rare Earths falls to $9.20 from $9.60. Buy.

Target price is $9.20 Current Price is $6.05 Difference: $3.15
If LYC meets the UBS target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $8.18, suggesting upside of 28.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgan Stanley rates MGR as Downgrade to Equal-weight from Overweight (3) -

Due to the cumulative impact of a number of minor but negative factors in the outlook for Mirvac Group, Morgan Stanley downgrades its rating to Equal-weight from Overweight. The target is reduced to $2.30 from $2.55. Industry view: In-Line.

Residential sales have not recovered since the slow September quarter and the broker forecasts reported gearing will be at the top half of management's targeted 20-30% range in the 1H.

The analysts also point out the company is relying heavily upon 2H EPS to meet full year guidance of between 14-14.3cps.

Target price is $2.30 Current Price is $2.11 Difference: $0.19
If MGR meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 18.2% (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 MIN as Sell (5) -

UBS raises its 2024-26 iron ore price forecasts by 20%, 15% and 13%, respectively to US$120, US$105 and US$100t.

The broker anticipates prices will remain in the current elevated trading range (US$100-135/t) over the next two years, supported
by low inventories, robust demand and limited supply growth. The market is expected to move into surplus from 2025.

UBS is cautious on lithium prices over the short-term.

The target for Mineral Resources rises to $49 from $43. Sell.

Target price is $49.00 Current Price is $61.51 Difference: minus $12.51 (current price is over target).
If MIN meets the UBS target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $74.07, suggesting upside of 13.3% (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

Macquarie rates NEM as Outperform (1) -

A recent visit to Newmont's Boddington gold-copper mine has reaffirmed the project as a tier-1 gold asset of global significance to Macquarie. The broker points out Boddington competes with Newmont's Cadia asset for title of largest gold mine in Australia.

Management has indicated mine life into the 2040s is probable via cutbacks to the current pits, but there is opportunity to extend mine life into the 2060s through near-mine exploration.

The Outperform rating and target price of $69.00 are retained.

Target price is $69.00 Current Price is $57.42 Difference: $11.58
If NEM meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $70.33, suggesting upside of 17.2% (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

Shaw and Partners rates NXL as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on Nuix with a Buy rating and a target price of $2.20.

With its refreshed leadership team achieving strong improvement on the previous year over FY23, the broker has renewed confidence in the company and its ongoing momentum into FY24.

Despite the share price lifting 159% over the last year, Shaw and Partners believes there remains value to be realised, with the target price implying 20% upside.

The positive investment thesis relies on a succesful roll out of the Nuix Neo platform, as well as the removal of the legal fee headwinds of recent years.

Target price is $2.20 Current Price is $1.80 Difference: $0.4
If NXL meets the Shaw and Partners target it will return approximately 22% (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

Shaw and Partners rates OCL as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on Objective Corp with a Buy rating and a target price of $14.20. The broker considers the company a high-quality business serving an attractive public sector customer base.

The broker believes the company's softer FY23 to be a "temporary blip", and recent share price underperformance an opportunity for investors.

Anticipating a re-acceleration in FY24, Objective Corp is targeting 15% annual recurring revenue growth for the financial year. Shaw and Partners forecasts a 20% earnings compound annual growth rate through to FY26.

Target price is $14.20 Current Price is $12.25 Difference: $1.95
If OCL meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.04, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates PPT as Buy (1) -

WH Soul Pattinson ((SOL)) has increased its "relevant interest" in Perpetual to 13.2m shares. This total includes 5.5m shares
announced on November 9, plus 5.7m shares bought on December 12, and 2m shares through an equity swap arrangement.

Bell Potter believes it is unlikely that WH Soul Pattinson will walk away from the offer to acquire Perpetual Corporate Trust and Wealth Management, though may need to increase the offer to have a chance of success.

While a demerger of these two divisions remains possible, according to the broker, WH Soul Pattinson clearly want these assets and would probably not want them demerged.

The target rises to $28.67 from $27.09 on a lower assumed tax rate. Buy.

Target price is $28.67 Current Price is $25.60 Difference: $3.07
If PPT meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $26.80, suggesting upside of 4.9% (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

Shaw and Partners rates QOR as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on Qoria, formerly known as Family Zone Cyber Safety, with a Buy rating and 40c target. The software company provides cyber safety solutions to schools and families in the US, UK, Europe and A&NZ.

Note: the most recent summary in the FNArena database of the broker's research on Family Zone was in May this year. The stock was then covered by a different analyst and the target price was 44c with a Buy rating.

The new analyst lists a number of positives for the company including a suite of products that are used by millions of students world-wide, and a track record of strong revenue growth over recent years.

Management's targets imply to Shaw and Partners underlying revenue growth of around 20% over the next two years and cash flow break-even in FY25.

Target price is $0.40 Current Price is $0.22 Difference: $0.18
If QOR meets the Shaw and Partners target it will return approximately 82% (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

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

Region Group has released its 1H revaluations with the portfolio capitalisation rate increasing by 18bps to 6.04%.

Given the cap rate rise for externally valued and internally valued assets was 26bps and 16bps, respectively, Morgan Stanley sought an explanation from management for the variance.

It seems around 20% of the externally valued assets (incorporating the Delacombe, Waterfront and Northgate malls) suffered a 50bps expansion. Once these are excluded, the cap rates for external and internal are similar, explains the broker.

Equal-weight and $2.25 target. Industry view: In-Line.

Target price is $2.25 Current Price is $2.26 Difference: minus $0.01 (current price is over target).
If RGN 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 $2.41, suggesting upside of 3.6% (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

Ord Minnett rates RHC as Accumulate (2) -

Ord Minnett highlights shares of Ramsay Health Care are down -23% year-to-date and are trading at a deep discount to the broker's unchanged $68 target price.

The broker expects an ongoing margin recovery as management has negotiated higher rates for both private and public work, while acitivity levels for higher-margin work are also improving, along with staff availability.

The Accumulate rating is unchanged.

Target price is $68.00 Current Price is $50.10 Difference: $17.9
If RHC meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $56.57, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates RIO as Neutral (3) -

UBS raises its 2024-26 iron ore price forecasts by 20%, 15% and 13%, respectively to US$120, US$105 and US$100t.

The broker anticipates prices will remain in the current elevated trading range (US$100-135/t) over the next two years, supported
by low inventories, robust demand and limited supply growth. The market is expected to move into surplus from 2025.

UBS also notes structural commodity price upside for copper and aluminium due to the energy transition. Copper is the broker's preferred metal as the market is set to be in deficit in 2024 after recent supply downgrades.

The broker also sees limited sustainable downside for aluminium and zinc due to cost support, while metallurgical coal prices should remain resilient.

The target for Rio Tinto rises to $130 from $115. Neutral.

Target price is $130.00 Current Price is $129.50 Difference: $0.5
If RIO meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $125.67, suggesting downside of -3.5% (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: 0.5

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

Shaw and Partners rates SMP as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage on SmartPay with a Buy rating and $2.20 target. The company provides facility for in-store payments for small-to-medium sized enterprise (SME) merchants in the retail and hospitality sectors.

Note: the most recent summary in the FNArena database of the broker's research on SmartPay was in June this year. The stock was then covered by a different analyst and the target price was $2.35 with a Buy rating.

The company's surcharging proposition enables payment fees to be passed onto the end customer, explains the analyst, who
forecasts the business will grow revenue to over NZ$143m by FY26.

Shaw and Partners sees a near-term catalyst via a New Zealand opportunity which provides a potential upside option of 80cps, which the broker believes is not priced into today’s share price.

Target price is $2.20 Current Price is $1.30 Difference: $0.9
If SMP meets the Shaw and Partners target it will return approximately 69% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates STO as Buy (1) -

UBS lowers its average 2024 Brent oil price forecast to $82/bbl from $87/bbl to reflect rising inventories globally, due to stronger-than-expected non-OPEC production growth.

Despite mixed investor feedback, the broker sees the rationale for Santos to merge with Woodside Energy.

The target for Santos falls to $8.90 from $9. Buy.

Target price is $8.90 Current Price is $7.30 Difference: $1.6
If STO meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $9.14, suggesting upside of 21.4% (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: 0.6

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

Macquarie rates WAF as Outperform (1) -

Alongside a scoping study for its M5 South underground project, West African Resources has provided a maiden resource for the asset of 2.4m tonnes at 3.8 grams of gold per tonne, or 289,000 ounces of gold, with 67% of the resource in the indicated category.

As per the scoping study, notes Macquarie, the project is expected to deliver 35,000 ounces per year over a five-year mine life at a cost of US$1,098 per ounce. The broker feels this highlights strong development opportunity and an easy brownfield expansion.

The Outperform rating and target price of $1.60 are retained.

Target price is $1.60 Current Price is $0.85 Difference: $0.755
If WAF meets the Macquarie target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates WDS as Neutral (3) -

With discussions of a merger continuing between Woodside Energy and Santos ((STO)), it is Macquarie's opinion that Woodside Energy needs to make the case to shareholders that this is the right deal, or risk it falling through.

The merger has merit, according to the broker, including creating gas scale that could compete with majors and improving free cash flow, as well as the potential to create 45-75 cents per Santos share in synergies.

The Neutral rating and target price of $31.00 are retained.

Target price is $31.00 Current Price is $30.02 Difference: $0.98
If WDS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $33.98, suggesting upside of 12.5% (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: 0.1

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

UBS rates WDS as Neutral (3) -

UBS lowers its average 2024 Brent oil price forecast to $82/bbl from $87/bbl to reflect rising inventories globally, due to stronger-than-expected non-OPEC production growth.

Despite mixed investor feedback, the broker sees the rationale for Woodside Energy to merge with Santos.

The target for Woodside Energy falls to $32.90 from $33.50. Neutral.

Target price is $32.90 Current Price is $30.02 Difference: $2.88
If WDS meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $33.98, suggesting upside of 12.5% (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: 0.1

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

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

Following recent share price outperformance, UBS downgrades its rating for Wesfarmers to Neutral from Buy.

Shares have rallied by around 18.4% from the start of 2023 and outperformed large cap retail peers such as Coles Group ((COL)) and Woolworths Group ((WOW)) whose shares have changed by -4.9% and 8.6%, respectively.

The broker's FY24 and FY25 EPS forecasts are reduced partly due to lower lithium price forecasts and a higher net interest expense estimate. The target falls to $55 from $56.50.

Target price is $55.00 Current Price is $54.38 Difference: $0.62
If WES meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $50.11, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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