Australian Broker Call

Macquarie rates ALQ as Outperform (1) -

ALS Ltd will hold its AGM on July 26 and Macquarie anticipates first half guidance will be provided. Commodities were the highlight of the recent FY23 results with the price/mix driving a beat in EBIT.

This came despite weaker sample flows in the second half. Meanwhile, life sciences experienced good growth.

Earnings are typically skewed to the first half, although in recent years the broker notes this was less evident because of the juncture of the pandemic and minerals cycle.

Macquarie retains an Outperform rating and reduces the target to $13.20 from $13.60 based on global peer PE and DCF averages.

Target price is $13.20 Current Price is $10.89 Difference: $2.31
If ALQ meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.86, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

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 CAJ as Buy (1) -

Capitol Health's FY23 guidance implies only partial recovery in operating margins during the second half, Bell Potter observes, with a full year EBITDA margin of 19% anticipated.

Hence, despite applying Medicare indexation changes from FY24 onwards the broker downgrades estimates.

While system issues are expected to improve over the medium term, margins have been affected by labour costs, pandemic-related absenteeism and the flow-on effect from GP shortages. Buy rating maintained in the target is reduced to $0.30 from $0.33.

Target price is $0.30 Current Price is $0.26 Difference: $0.04
If CAJ meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $0.33, suggesting upside of 26.0% (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

Citi rates CXO as Sell (5) -

Loading is underway for Core Lithium's final 13.1kt spodumene shipment for customer Yahua, observes Citi, completing the 18.5kt total prepayment agreement.

The broker points out final pricing is settled based on the receipt date (i.e. 13.1kt priced at August prices versus April pre-pay pricing).

The Sell rating and 80c target are unchanged.

Target price is $0.80 Current Price is $0.96 Difference: minus $0.155 (current price is over target).
If CXO meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.02, suggesting upside of 4.8% (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

Shaw and Partners rates CY5 as Buy (1) -

Cygnus Metals has identified spodumene-bearing pegmatite boulders over 2.6km of strike at Auclair, Canada. The company is also advancing the Pontax and Sakami projects in the James Bay region.

A maiden resource at Pontax is expected late July or early August which Shaw and Partners believes could be a substantial share price catalyst.

The broker remains positive on the lithium price heading into the second half of 2023. Destocking appears to have given way to restocking and anecdotal evidence suggests inventory at Chinese converters is reducing.

The Buy rating and $0.46 target are maintained.

Target price is $0.46 Current Price is $0.32 Difference: $0.145
If CY5 meets the Shaw and Partners target it will return approximately 46% (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

Morgans rates DMP as Add (1) -

Morgans reviews its assumptions for several companies under its coverage within the Consumer Discretionary sector prior to the August reporting season.

The broker's three top picks in the sector are Aristocrat Leisure ((ALL)), Lovisa Holdings ((LOV)) and Universal Store ((UNI)).

The analysts increase margins for Domino's Pizza Enterprises in the A&NZ region but an increase in central costs leaves the FY23 profit forecast largely unchanged at $128.9m, versus the consensus expectation for $129.7m.

The Add rating and $60 target are unchanged.

Target price is $60.00 Current Price is $47.29 Difference: $12.71
If DMP meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $53.17, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates ILU as Sell (5) -

UBS recently downgraded Iluka Resources to Sell because of a deteriorating commodity and macro outlook. The broker has now hosted a call with mineral sands consultancy TZMI for an update on the market and, as a result, has become incrementally more negative on the outlook.

TZMI is pessimistic on global pigment demand and remains similarly cautious on the zircon outlook, given the onset of new supply and, generally, increased heavy mineral concentrate imports to China.

The broker now looks to the quarterly result on July 26 to obtain the company's view on the market. Target is $10.90.

Target price is $10.90 Current Price is $11.19 Difference: minus $0.29 (current price is over target).
If ILU meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.36, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates IPL as Neutral (3) -

Management at Incitec Pivot intends to provide a further update on demerger/potential sale timelines/agreements, if any, after confirming the receipt of a number of approaches for the acquisition of the Fertiliser business.

Citi suggests the enterprises values for the Fertiliser and Explosives businesses equate to $1.30/share and $1.80/share, respectively. The combined value comes out 3% ahead of the broker's unchanged $3 target. Neutral.

While the analyst believes a spin-off may have incremental upside value, a softer pricing environment poses a key risk.

Target price is $3.00 Current Price is $2.92 Difference: $0.08
If IPL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates IPL as Neutral (3) -

Macquarie lowers forecasts for diammonium phosphate and ammonia prices in the second half of 2023, reflecting the recent downward moves in fertiliser prices.

The broker notes volatility of production, higher gas sourcing costs and higher labour costs are pushing up the Phosphate Hill expenses and impinging on plant profitability.

The broker notes the focus for Incitec Pivot remains on the timing of the buyback, with the stock having fallen since the recent NT gas news that reduces the earnings outlook in the medium to longer term for Phosphate Hill.

Neutral maintained. Target is reduced to $3.00 from $3.10.

Target price is $3.00 Current Price is $2.92 Difference: $0.08
If IPL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Bell Potter rates IRI as Buy (1) -

The FY23 update from Integrated Research was mixed, Bell Potter notes, with revenue below estimates albeit up 7-11%. All geographic regions and product lines grew, an improvement on the first half result when the Americas was flat.

The highlight for the broker was the cash balance of $18.6m. Earnings forecasts for FY23-25 are downgraded, driven by a reduction in margin assumptions and revenue downgrades.

The broker expects there will be no final dividend but a resumption of payments in FY24 is likely because of the improved cash position. Buy rating maintained. Target is reduced to $0.60 from $0.65.

Target price is $0.60 Current Price is $0.45 Difference: $0.15
If IRI meets the Bell Potter target it will return approximately 33% (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 KMD as Equal-weight (3) -

KMD Brands provided FY23 guidance with sales flagged at NZ$1.1bn, while noting trading slowed from the fourth quarter because of softer consumer sentiment and warmer weather in Australia that affected winter trade.

Morgan Stanley believes the risk continues to skew to the downside for FY24 earnings. Equal-weight retained. Target is $1.05. Industry view is In-Line.

Target price is $1.05 Current Price is $0.88 Difference: $0.17
If KMD meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.01, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

UBS rates KMD as Buy (1) -

KMD Brands has guided to sales of NZ$1.1bn for FY23, well below UBS estimates, resulting from a significant shift in Australian consumer sentiment during the key fourth quarter trading.

Still, commentary suggests gross margins remain resilient and should be in line with the prior year. UBS lowers FY23-24 underlying EBITDA estimates by -20-30%.

The broker expects a re-rating of the share price once the market obtains greater clarity and comfort surrounding Australian consumer sentiment.

The Buy rating is maintained and the target is reduced to NZ$1.15 from NZ$1.50. 

Current Price is $0.88. Target price not assessed.

Current consensus price target is $1.01, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Citi rates LLC as Buy (1) -

Citi retains its Buy rating for Lendlease Group given a strong earnings growth outlook in FY24 and a cheap valuation.

The broker is less concerned than many in the market around potential funding needs, given the potential sale of a stake in the company's communities and retirement businesses.

The target price slips to $9.80 from $10 as Citi applies a lower multiple to development earnings (given an uncertain outlook) and also applies a higher overall discount rate to reflect more general uncertainties.

Target price is $9.80 Current Price is $7.89 Difference: $1.91
If LLC meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $10.42, suggesting upside of 24.7% (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

Morgans rates LOV as Add (1) -

Morgans reviews its assumptions for several companies under its coverage within the Consumer Discretionary sector prior to the August reporting season.

The broker's three top picks in the sector are Aristocrat Leisure, Lovisa Holdings and Universal Store.

The analysts adjust currency assumptions and slightly lower Lovisa's store opening forecast after the latest disclosure by the CEO on social media celebrating the opening of the 800th store.

For FY23, Morgans forecasts profit of $65.1m compared to the consensus estimate for $65.4m.

The Add rating and $26 target are unchanged.

Target price is $26.00 Current Price is $19.56 Difference: $6.44
If LOV meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $26.85, suggesting upside of 34.3% (ex-dividends)

The company's fiscal year ends in June.

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 MP1 as Downgrade to Neutral from Buy (3) -

Despite the tailwind from generative AI for Megaport, Citi suggests risk/reward is currently not compelling given the need for increased spending to ward off competition. Additional investment of around -$8m is assumed for FY24.

Moreover, the broker sees execution risk for the operational turnaround and decides to downgrade its rating to Neutral from Buy.

Citi's target rises to $9.05 from $7.40 on lower cost forecasts and a lower Australian dollar. The company's new FY23 guidance implies to the analysts 4Q earnings (EBITDA) of around $12m.

Target price is $9.05 Current Price is $9.48 Difference: minus $0.43 (current price is over target).
If MP1 meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.31, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates MP1 as Neutral (3) -

Megaport has upgraded its FY23 EBITDA guidance to $19-21m, and 18% increase at the mid point. The upgrade stems from cost reductions and lower churn.

Macquarie believes good cost management and lower churn demonstrate the quality of the company's product, although remains concerned about the pace of sales, including the acquisition and ramp up of 8-10 new sales personnel.

Neutral maintained. Target is raised to $9 from $6 to reflect higher terminal revenue and EBITDA margin.

Target price is $9.00 Current Price is $9.48 Difference: minus $0.48 (current price is over target).
If MP1 meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.31, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates MP1 as Accumulate (2) -

Ord Minnett observes the Megaport share price jump sharply on July 11 (33%) after the company updated on expectations for FY23 and guidance for FY24, leading to the stock more than doubling over the last three months.

The broker believes the market had become too bearish on the stock anyway and it remains undervalued, trading at a -30% to its $13 target.

Megaport now expects normalised EBITDA of $19-21m in FY23 with FY24 to exceed the prior guidance range of $41-46m. Its first year of positive free cash flow is expected in FY24 and a $25m debt facility has been cancelled. Accumulate rating.

Target price is $13.00 Current Price is $9.48 Difference: $3.52
If MP1 meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Bell Potter rates MSB as Speculative Buy (1) -

Bell Potter observes the share price of Mesoblast has started to rally, likely in anticipation of the approval of remestemcel-L.

While acknowledging approval of any new class of therapy cannot be taken for granted, the broker notes the data package is substantially stronger this time than in 2020.

The company has aat least US$30m of cryo-preserved product in storage for immediate delivery into the US market following approval. Speculative Buy rating maintained with a $2 target.

Target price is $2.00 Current Price is $1.25 Difference: $0.755
If MSB meets the Bell Potter target it will return approximately 61% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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: 1.0

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

Macquarie rates PMT as Outperform (1) -

Patriot Battery Metals' assay results from the final winter drilling highlight wide widths and strong grades across CV5.

The pegmatite footprint has grown significantly and the initial resource estimate is set to be released in coming weeks with Macquarie expecting the initial resource will exceed 100mt at 1% lithium.

Target is steady at $2.30. Outperform maintained.

Target price is $2.30 Current Price is $1.70 Difference: $0.6
If PMT meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgan Stanley rates PSQ as Overweight (1) -

Pacific Smiles has pre-released FY23 results with patient fees and EBITDA in line with guidance. The company has also indicated it will consolidate its two Chatswood centres taking total centres to 130. Morgan Stanley estimates a four-chair net reduction in capacity.

The company is positioned to achieve on expectations of $33m in EBITDA in FY24 and, while there are significant inflationary pressures, a rebound in FY24 should drive a re-rating, in the broker's view.

Overweight rating and $2 target price retained. Industry view is In-Line.

Target price is $2.00 Current Price is $1.42 Difference: $0.58
If PSQ meets the Morgan Stanley target it will return approximately 41% (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 RHC as Neutral (3) -

While Citi feels concerns over Ramsay Health Care's gearing levels are overly pessimistic, given a gradual recovery in FY24 earnings should help, a divestiture of the Asia joint venture would be positive for near-term sentiment.

Nonetheless, the broker weighs the potential sale against the need for increased spending in the Australian Digital & Data segment and cuts its FY23-25 EPS forecasts accordingly. 

The target falls to $58 from $66 and the Neutral rating is unchanged.

Target price is $58.00 Current Price is $55.76 Difference: $2.24
If RHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $63.93, suggesting upside of 14.1% (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

Citi rates RWC as Neutral (3) -

Citi sees potential downside for its Reliance Worldwide FY24 forecast after noting a re-acceleration of housing headwinds in the UK, which accounts for around 30% of group profit.

The Bank of England recently re-accelerated the pace of its most recent rate rise to 50bps, explain the analysts, leading to a rise in mortgage rates.

The broker lowers its FY24 earnings estimate for Reliance Worldwide by around -4% and the price target eases to $4.05 from $4.10. Neutral.

Target price is $4.05 Current Price is $3.99 Difference: $0.06
If RWC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates SGR as Hold (3) -

Morgans reviews its assumptions for several companies under its coverage within the Consumer Discretionary sector prior to the August reporting season.

The analysts adjust forecasts for Star Entertainment for the recent capital raise, regulatory fines, asset impairments and interim result. For FY23, earnings (EBITDA) of $352m are forecast versus the consensus expectation for $335m.

The Hold rating is retained and a $1.20 target set.

Target price is $1.20 Current Price is $1.07 Difference: $0.13
If SGR meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.46, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Bell Potter rates SMP as Initiation of coverage with Buy (1) -

Bell Potter initiates coverage on Smartpay with a Buy rating and $2.16 target. The company has an existing customer base in New Zealand and is growing its Australian merchant terminals business.

The broker envisages upside from end-user demand for point-of-sale solutions as well as better unit economics in Australia.

Smartpay recently entered a non-binding letter of intent with its Australian processing partner, Cuscal, to fully unlock the value embedded in its 30,000 NZ terminal fleet.

Target price is $2.16 Current Price is $1.70 Difference: $0.46
If SMP meets the Bell Potter target it will return approximately 27% (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

Shaw and Partners rates STN as Buy (1) -

Saturn Metals as a resource upgrade for Apollo Hill gold project. The resource has increased 25%, large enough to warrant full evaluation of mining options. Shaw and Partners observes the most likely option is a large, bulk mining, heap leach operation.

The broker also notes a heap leach operation, while common internationally, is unusual in Western Australia, yet Apollo Hill could become a centralised processing hub for the region. Buy rating retained. Target is $0.44.

Target price is $0.44 Current Price is $0.17 Difference: $0.27
If STN meets the Shaw and Partners target it will return approximately 159% (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 highlights the upside risk that may skew from an ACCC decision, due July 28, to approve the acquisition of the bank division by ANZ Bank ((ANZ)), with the downside risk for the Suncorp Group share price limited by strong pricing and insurance personal lines.

The broker calculates that, if approved in full, the potential change in the stock price could be more than 10% while outright rejection could provide a potential reduction of just -5%. The $14.50 target and Overweight rating are unchanged. Industry View: In-Line.

Target price is $14.50 Current Price is $13.42 Difference: $1.08
If SUN meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.62, suggesting upside of 8.9% (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

Macquarie rates SYA as Outperform (1) -

Sayona Mining has a significant increase in the lithium footprint at Moblan. Mineralisation now extends to an area of around 1km north-south and 2km east-west.

A resource upgrade is expected in the first half of 2024 and the company is targeting further growth in the resource base to support future downstream processing and the production of lithium hydroxide.

A definitive feasibility study is planned for November. Recent wildfires have affected drilling but Sayona Mining expects to recommence quickly once approval to re-enter the area is obtained.

Macquarie retains an Outperform rating with a $0.24 target.

Target price is $0.24 Current Price is $0.19 Difference: $0.05
If SYA meets the Macquarie target it will return approximately 26% (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 TCL as Upgrade to Buy from Neutral (1) -

Citi upgrades Transurban Group to Buy from Neutral amid upside to CPI-linked tolls. The passing through of CPI occurs with a delay in half-yearly increases in Brisbane and annual increases in WestConnex so the broker envisages upside to EBITDA and free cash forecasts.

While toll usage is not immune to the consumer pressures that exist, Citi suspects growth in toll roads could hold up because of the time savings involved.

Some share price risk exists with the company participating in a bid for a stake in Horizon Roads, which owns EastLink, given the potential for equity raising. Target is steady at $16.20.

Target price is $16.20 Current Price is $13.96 Difference: $2.24
If TCL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 3.1% (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

Morgans rates TLC as Add (1) -

Morgans reviews its assumptions for several companies under its coverage within the Consumer Discretionary sector prior to the August reporting season.

The analysts make only minor changes to forecasts for Lottery Corp and increase the final dividend forecast to 7cps from 3cps.

For FY23, Morgans forecasts earnings (EBITDA) of $742m compared to the consensus estimate of $739m.

The Add rating and $5.60 target are unchanged.

Target price is $5.60 Current Price is $5.10 Difference: $0.5
If TLC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

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