Australian Broker Call

Macquarie rates A2M as Underperform (5) -

Macquarie suspects a2 Milk Co remains in an uncertain environment and there is some downside risks to FY24 consensus expectations.

The broker anticipates the FY23 result, due August 21, will show continued execution and share gains in China labelling while English labelling is likely to be down with margins yet to recover.

Competition is strong and lower birth rates remain an ongoing headwind to demand for infant formula, Macquarie adds.

Heading into FY24, the broker expects revenue growth of 8% and does not believe daigou will come back in a material way, despite the return of students and travel. Underperform maintained. Target is $4.65.

Target price is $4.65 Current Price is $5.11 Difference: minus $0.46 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.84, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Ord Minnett rates ABP as Accumulate (2) -

Ord Minnett adjusts its estimates now that Abacus Group and Abacus Storage King ((ASK)), have been separated. Normal trading will begin on August 7 with Abacus Property Group changing its ticker to ABG.

The broker expects thin trading until the securities switch to an unconditional and normal settlement basis. The office assets that remain with Abacus Group are considered lower quality than the portfolios of larger rivals such as Dexus, GPT and Mirvac.

Ord Minnett retains an Accumulate rating and reduces the target to $1.90.

Target price is $1.90 Current Price is $1.37 Difference: $0.535
If ABP meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $2.70, suggesting upside of 101.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates ADH as Neutral (3) -

Adairs will assume operational control of its National Distribution Centre from DHL starting September 6, 2023 in response to deteriorating customer service and poor cost efficiencies.

The company expects the transition will require capital expenditure to deliver costs savings of $18m or $4m a year from FY25, plus $2m in transition costs.

UBS is disappointed that capex will be required and says FY24 earnings are opaque given the weaker consumer backdrop. Earnings forecasts rise from FY25 onward but fall in FY24.

The broker observes the company is most likely reaching the expiry of its debt covenants in FY24.

Neutral rating retained. Target price rises to $1.80 from $1.65 (to reflect the FY25 earnings upgrades).

Target price is $1.80 Current Price is $1.80 Difference: $0
If ADH meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting downside of -0.7% (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

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

Macquarie assesses the risk of an earnings disappointment from AGL Energy has increased. Historically, the strongest lead indicator for the performance of the utility has been the forward curve as it determines both retail and C&I pricing.

The FY25 curve is reflecting soft demand, strong coal generator performance and falling underlying commodity prices.

While retail churn has seasonally gathered momentum the broker suggests this is nothing unusual, given price rises. Rating is downgraded to Neutral from Outperform and the target lowered to $11.43 from $11.59.

Target price is $11.43 Current Price is $12.28 Difference: minus $0.85 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.76, suggesting upside of 0.6% (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

Macquarie rates AKE as Outperform (1) -

Allkem has updated on the Mount Cattlin resources and reserves. Reserve estimates are down -9% as a result of mining depletion and other modelling adjustments, using a cut-off grade of 0.3%. Resource estimates are down -27%, Macquarie notes, since the last update.

The feasibility study for potential underground mining is underway while an update on the merger proposal with Livent presents the next catalyst, in the broker's view. Outperform rating maintained. Target is $19.

Target price is $19.00 Current Price is $14.90 Difference: $4.1
If AKE meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $17.93, suggesting upside of 20.9% (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

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

First half results for Ampol are due on August 21.

Morgan Stanley will be looking for signs of recovery for Lytton refining margins for the remainder of the year, along with an
improving mix of high value products with Lytton back online after a recent outage.

Target $34.19. Equal-weight. Industry view is Attractive.

Target price is $34.19 Current Price is $33.10 Difference: $1.09
If ALD meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $34.62, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates APA as Neutral (3) -

UBS has gone the extra mile with trying to assess the prospects for APA Group's East coast pipeline network, and the overall outcome has been encouraging.

And then there's a big but... the analysts were disappointed to find out the recently commissioned Northern Goldfields Interconnector (NGI) in WA is only 10% contracted for the next 3 years.

The broker considers APA a quality, defensive income stock, but preaches caution for the time being, given risks on the gas front, including longer term from Victorian government policies.

Were APA to be selected as the preferred bidder for Alinta's Pilbara Power Assets a $500m capital raising might be on the cards, plus APA's shares are already trading at a premium versus global peers.

Neutral. Target falls to $10.40 from $11.30. Estimates have been lowered by -1%-3%.

Target price is $10.40 Current Price is $9.98 Difference: $0.42
If APA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.34, suggesting upside of 5.5% (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

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

Morgan Stanley notes pre-liminary FY23 results for Baby Bunting were a slight beat against revised management guidance, while profit (NPATA) beat the broker's forecast by 6%.

Seven new stores were opened in FY23 against the analyst forecast for eight.

A challenging FY24 start supports Morgan Stanley's Equal-weight stance and the broker awaits greater stabilty around customer demand.

Target $1.65. Industry View: In-Line.

Target price is $1.65 Current Price is $2.02 Difference: minus $0.37 (current price is over target).
If BBN meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.67, suggesting downside of -14.4% (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

Morgan Stanley rates BPT as Underweight (5) -

Morgan Stanley forecasts FY23 earnings (EBITDA) for Beach Energy of $982m, reflecting stable production in FY23 with easing Brent oil and gas prices in the 2H.

Results are due on August 14.

The broker retains its Underweight rating and $1.52 target. Industry view: Attractive.

Target price is $1.52 Current Price is $1.65 Difference: minus $0.13 (current price is over target).
If BPT meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.92, suggesting upside of 18.1% (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

Citi rates BWP as Sell (5) -

FY23 results appear in line with Citi's estimates at first glance. Guidance for FY24 is also within expectations, expected to be similar to FY23.

The broker notes capitalisation rates have been shifted higher and the stock is now trading at a -2.1% discount to NTA and a 5% FY24 dividend yield.

While relatively more expensive than peers the broker notes BWP Trust is supported by a stable set of results and outlook.

Sell rating and $3.50 target.

Target price is $3.50 Current Price is $3.67 Difference: minus $0.17 (current price is over target).
If BWP 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 $3.60, suggesting upside of 1.1% (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

Citi rates CAR as Buy (1) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has triggered an upgrade to Citi's target for Carsales; to $28 from $25.80.

Estimates have been lifted. Rating remains Buy.

Target price is $28.00 Current Price is $25.29 Difference: $2.71
If CAR meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $25.65, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates CCP as Neutral (3) -

Macquarie expects the near-term performance of the US PDL and consumer lending segments will drive growth in FY24. Credit Corp expects the market will remain constrained in terms of volume in Australasia, despite the one-off purchases secured late in FY23.

Guidance for FY24 net profit is $90-100m which the broker suspects is conservative and stemming from the uncertainty resulting from increasing US PDL payment plan delinquencies in the fourth quarter.

The broker retains a Neutral rating and raises the target to $19.30 from $17.70.

Target price is $19.30 Current Price is $20.63 Difference: minus $1.33 (current price is over target).
If CCP meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.73, suggesting upside of 4.5% (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

Morgans rates CCP as Add (1) -

FY23 profit of $91.3m for Credit Corp was in line with Morgans' forecast and at the low-end of guidance, while the 2H dividend of 47cps compared to the broker's forecast for 43cps. FY24 guidance is for profit between $90-100m.

By division, profits varied as follows compared to the previous corresponding period: Australian purchased debt ledgers (PDL) fell by -29%, US PDL's -17% and Lending rose by 70%. Overall profit fell by -5% for the same period.

As expected by the analyst, Lending delivered a 2H uplift as book growth moderated and project opex was removed. The US division is anticipated to provide meaningful medium-term growth. 

The target falls to $23.40 from $23.60. Add.

Target price is $23.40 Current Price is $20.63 Difference: $2.77
If CCP meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $21.73, suggesting upside of 4.5% (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

Ord Minnett rates CCP as Hold (3) -

Credit Corp's decline in FY23 net profit was slightly worse than Ord Minnett expected, largely because of higher expenses. The broker expects earnings will trough in FY24 but it appears the market had anticipated a rebound as the share price has dropped around -13%.

Ord Minnett expects US debt ledger business will grow earnings, albeit with declining profitability. While consumer lending EBITDA grew at 32% compound over the past three years, the broker expects a moderation to around 8% per year over the next five years.

Hold rating. The target is reduced to $22.50 from $24.00.

Target price is $22.50 Current Price is $20.63 Difference: $1.87
If CCP meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.73, suggesting upside of 4.5% (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

Macquarie rates CHN as Outperform (1) -

Chalice Mining has new high-grade zones at Gonneville. The deposit remains open and Macquarie notes the areas beyond 600m in depth are not adequately drilled out.

The company has indicated that new zones are at the base of the intrusion and could be associated with a gabbro unit. Plans are underway to study underground mining options but will not be included in the current scoping study, scheduled for the September quarter.

The $9.20 target and Outperform rating are unchanged.

Target price is $9.20 Current Price is $6.00 Difference: $3.2
If CHN meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $8.40, suggesting upside of 41.2% (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

Macquarie rates COL as Outperform (1) -

Macquarie seeks relative safety in staples, particularly Coles Group, being concerned about the rising cost of living and the erosion of consumer discretionary expenditure in the second half of 2023.

The company's supermarkets are expected to deliver comparable sales of growth of 5.5% in the second half of FY23 while margins are likely to level out in FY24 as food inflation passes its peak.

Liquor is expected to have 2% comparable sales growth in the second half as off-premises liquor purchases continue to cede share to venues.

Outperform. Target is steady at $20.

Target price is $20.00 Current Price is $18.33 Difference: $1.67
If COL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $17.76, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates CTM as Outperform (1) -

Centaurus Metals has launched a $46.9m equity raising to progress with Jaguar, particularly the definitive feasibility study that is expected in the December quarter.

The company has also commenced strategic funding and partnerships assessment for future volumes of nickel sulphate.

Macquarie considers the DFS a major catalyst that should significantly increase mine life to more than 20 years at around 20,000tpa of nickel. Outperform rating maintained. Target is reduced to $1.50 from $1.55.

Target price is $1.50 Current Price is $0.73 Difference: $0.77
If CTM meets the Macquarie target it will return approximately 105% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates DHG as Neutral (3) -

Post general review of Australia's technology, Internet and communications sector, ahead of the August results season, Citi has downgraded its rating for Domain Holdings Australia, as reported yesterday already, to Neutral.

The price target has moved to $4.40 on higher forecasts.

Target price is $4.40 Current Price is $4.14 Difference: $0.26
If DHG meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting downside of -13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates DRR as Outperform (1) -

Deterra Royalties has received royalties of $72.9m in the June quarter, below Macquarie's forecasts, as sales volumes from the MAC royalty were lower.

The royalty included a $13m capacity payment, as the ramp up of South Flank lifted the demonstrated annual capacity to 118m dmt.

Macquarie considers the dividend announcement with the annual report to be the next catalyst and anticipates free cash flow and dividend yields of around 8% from FY24 at spot prices.

Outperform maintained. Target is $4.80.

Target price is $4.80 Current Price is $4.77 Difference: $0.03
If DRR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

Citi is not joining the euphoria stemming from Barbie and Oppenheimer releases and has downgraded EVT Ltd to Neutral from Buy.

The analysts justify their decision through increased risks to EVT’s cinema business, regardless of the large ticket sales because of both movie blockbusters.

The broker cites the ongoing writers and actors’ strike, potentially adversely impacting the box office in 2024/25, on top of a potential slowdown in customer spend on entertainment due to cost-of-living pressures.

Citi remains more positive on the hotel business, but adds here industry data also point to slower growth. Corporate cost out programs could represent downside risk.

Target price is $17.11 Current Price is $12.18 Difference: $4.93
If EVT meets the Citi target it will return approximately 40% (excluding dividends, fees and charges).

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 FCL as Buy (1) -

Post a general review of Australia's technology, Internet and communications sector, ahead of the August results season, Citi has upgraded Fineos Corp to a Buy, as reported yesterday already, with a revised price target of $2.95.

Forecast losses have been reduced.

Target price is $2.95 Current Price is $2.33 Difference: $0.62
If FCL meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in EUR. 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

Bell Potter rates FDV as Buy (1) -

Frontier Digital Ventures’ June quarter update was highlighted by a 60% year on year increase in portfolio earnings, albeit down -15% from March due to troubles in Pakistan, Bell Potter reports.

All up, 13 of 15 portfolio companies recorded positive earnings, the broker notes. June also marked the second consecutive quarter of positive operating cash flows with all three regions cash flow positive.

While Bell Potter recognises the current environment is difficult for emerging market exposure, it believes Frontier Digital's valuation is undemanding at 1.7x 2023 enterprise value to revenue.

Buy and 83c target retained.

Target price is $0.83 Current Price is $0.43 Difference: $0.405
If FDV meets the Bell Potter target it will return approximately 95% (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

Morgans rates FDV as Add (1) -

Group revenue for Frontier Digital Ventures' 2Q fell by -34% on the previous corresponding period due mainly to weakness in the key business Zameen. Ignoring Zameen, revenue actually rose 10%.

Zameen is being impacted by both a challenging economic environment in Pakistan and also a significant appreciation of the Australian dollar versus the Pakistan Rupee, explains the analyst.

The company produced a second consecutive quarter of positive group operating cashflow and the cash balance of around $15m is healthy, in Morgans view.

The target falls to 71c from 82c. Add.

Target price is $0.71 Current Price is $0.43 Difference: $0.285
If FDV meets the Morgans target it will return approximately 67% (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 FMG as Underperform (5) -

Fortescue Metals has provided an update on the engagement with traditional custodians in the Pilbara region of Western Australia. Macquarie notes there are seven agreements with native title groups in the area where the company operates.

Management has indicated that the Eliwana mine plan and scheduling was negatively affected by the incident at Juukan Gorge, with changes to the product mix.

Despite this, West Pilbara fines are expected to remain stable in the short term. Underperform rating and $16.70 target maintained.

Target price is $16.70 Current Price is $21.98 Difference: minus $5.28 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.85, suggesting downside of -21.8% (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: -1.0

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

Bell Potter rates GNC as Buy (1) -

Bell Potter has reviewed the drivers of GrainCorp, which in general, despite the threat of El Nino, continue to seem generally favourable to the broker in grain and oilseed basis.

Considering the uplift in baseline profit and improved corporate net cash position, GrainCorp is already trading at levels consistent with previous seasonal lows, the broker estimates, with multiples likely to contract further as cash is released in lower crop volume years.

Buy and $9.45 target retained.

Target price is $9.45 Current Price is $8.06 Difference: $1.39
If GNC meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in September.

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

Bell Potter rates GOR as Buy (1) -

Gold Road Resources produced 76koz of gold in the June quarter compared to Bell Potter's forecast of 74koz. FY23 production guidance had been previoulsy updated and cost guidance remains unchanged.

Gold Road owns 50% of Gruyere, a large, long-life, operating Tier-1 gold mine, which is yielding increasing cash flow as production expands to greater than 350kozpa (100% basis) over ten years, with scope to extend mine-life, the broker notes.

Target rises to $2.05 from $1.95, Buy retained.

Target price is $2.05 Current Price is $1.71 Difference: $0.34
If GOR meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.06, suggesting upside of 23.5% (ex-dividends)

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

Citi rates HUB as Neutral (3) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has led to an increased price target for Hub24, to $30.20 from $29.60.

Citi's rating remains Neutral on slight amendments to forecasts.

Target price is $30.20 Current Price is $28.01 Difference: $2.19
If HUB meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $32.02, suggesting upside of 16.4% (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

Morgan Stanley rates IEL as Overweight (1) -

IDP Education's UK-based competitor Pearson has released interim results and Morgan Stanley notes volumes were up 76%.

The growth was due to a weak previous corresponding period, favourable migration policy in Australia and market share gains in India, according to the broker's UK analyst.

Of relevance to IDP Education, management at Pearsons estimates the size of the Canada testing opportunity at GBP200-250m. The main benefits from changes in testing acceptance for Canadian visas are expected in 2024.

The Overweight rating and $32.10 target for IDP Education are unchanged. Industry View: In-Line.

Target price is $32.10 Current Price is $24.76 Difference: $7.34
If IEL meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $26.83, suggesting upside of 9.9% (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

Morgan Stanley rates KAR as Overweight (1) -

Morgan Stanley forecasts FY23 earnings (EBITDA) of US$337m when results for Karoon Energy are released on August 23.

This forecast reflects FY23 production of 7.0MMbbl and incorporates a 42-day unplanned outage.

Morgan Stanley's Overweight rating and $2.76 target are maintained. Industry view: Attractive.

Target price is $2.76 Current Price is $2.24 Difference: $0.52
If KAR meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 30.3% (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: 0.8

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

Bell Potter rates LYC as Buy (1) -

Lynas Rare Earths delivered record NdPr production in the June quater, but revenue missed Bell Potter by -19% due to depressed pricing and stockpiling of NdPr and other rare earths. Lynas intends to continue to stockpile material over the coming quarters to maintain continuity of supply for key customers.

Management anticipates first mixed rare earth carbonate from Kalgoorlie in September (previously August) as it continues to commission the facility. In response to adjustments in cost and revenue drivers, target falls to $7.80 from $8.55.

Buy retained for what Bell Potter perceives as a high-quality business, and a key supplier of separated rare earths to Western economies.

Target price is $7.80 Current Price is $6.93 Difference: $0.87
If LYC meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.62, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgans rates M7T as Add (1) -

Morgans is mystified by the overly negative share price reaction to the 4Q cashflow report of Mach7 Technologies after a small miss versus market expectations and guidance for cashflow breakeven.

The miss was largely the result of a one business day lag between a $2.5m invoice transfer and when it appeared in the accounts, explains the analyst. The miss would have been only -$270,000 if the $2.5m was included.

The broker considers it a good time to buy on share price weakness. Add. The target falls to $1.65 from $1.67.

Target price is $1.65 Current Price is $0.86 Difference: $0.795
If M7T meets the Morgans target it will return approximately 93% (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

Shaw and Partners rates M7T as Buy (1) -

Mach7 Technologies just missed its target for FY23 cash flow yet Shaw and Partners observes this appears largely related to timing. Moreover, FY24 has started strongly which should alleviate any concerns going forward.

The company has guided to 20% growth in sales orders in FY24 and with over $15.4m secured in the first month this appears achievable.

Meanwhile, costs continue to be well contained. The broker reiterates a Buy rating and $1.30 target.

Target price is $1.30 Current Price is $0.86 Difference: $0.445
If M7T meets the Shaw and Partners target it will return approximately 52% (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

Macquarie rates MEI as Outperform (1) -

Meteoric Resources completed its acquisition of the Caldeira rare earths project in the June quarter. A super high-grade zone of 115mt at 4,072ppm exists within the global resource using cut-off grades 2-3x higher than other ionic clay rare earth deposits in Brazil.

The diamond drilling program has been expanded to test depth extensions below the maiden resource. Macquarie believes this should enable the company to deliver a development that will generate strong returns in most pricing scenarios.

Outperform rating and $0.45 target maintained.

Target price is $0.45 Current Price is $0.23 Difference: $0.225
If MEI meets the Macquarie target it will return approximately 100% (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 MME as Upgrade to Speculative Buy from Hold (1) -

As a gap has opened up between Morgans target of 28c and the current share price of MoneyMe, the broker's rating is upgraded to Speculative Buy from Hold.

A 4Q trading update highlighted to the analyst management's ongoing focus to maintain profitability and temper book growth given the current macro environment. The credit quality of the book has continued to improve, with net losses down on the sequential quarter.

Minimal changes are made to the broker's forecasts, yet the target falls to 28c from 33c after applying a lower multiple due to a sector/peer de-rating.

Target price is $0.28 Current Price is $0.07 Difference: $0.213
If MME meets the Morgans target it will return approximately 318% (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

Macquarie rates MND as Neutral (3) -

Macquarie forecasts net profit in FY23 of $53m for Monadelphous Group, relatively steady with the prior year. A slight uptick in EBITDA margins to 6.1% is anticipated.

The broker notes the company was awarded the $200m Kemerton lithium contract, one of three it was bidding for. New contracts are required to meet the broker's 16% revenue growth forecast for FY24.

Target is reduced to $13.26 from $13.60 and a Neutral rating is maintained.

Target price is $13.26 Current Price is $13.67 Difference: minus $0.41 (current price is over target).
If MND meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.84, suggesting upside of 3.1% (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

UBS rates NEC as Buy (1) -

UBS conducts a review of the Australian Media Sector. The broker observes advertising markets worsened in the June quarter, the market falling -17% on the previous year. The good news is the broker was expecting a fall of -22% and raises its assumptions accordingly.

But the brakes remain on given weak consumer confidence and business confidence data and the broker expects weakness to persist for six months before the markets start to recover in the next June half, before hitting full stride in FY25.

Nine Entertainment is UBS's top sector pick, the broker appreciating the company's defensive earnings profile and its strong share of revenue in the main TV advertising markets (the most recent OzTam figures showing the company continues to gain market share at the expense of competitors) not to mention its 5.6% dividend. UBS also notes that more than 70% of the company's income comes from digital media.

Buy rating retained. Target price rises to $2.50 from $2.40. 

Target price is $2.50 Current Price is $2.16 Difference: $0.34
If NEC meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.47, suggesting upside of 16.1% (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

Citi rates NXT as Buy (1) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has triggered a small increase in Citi's price target for NextDC; to $14.90 from $14.45.

The underlying reason can be found in higher forecasts with Citi's forecast losses disappearing, replaced with small positive EPS numbers.

Target price is $14.90 Current Price is $13.05 Difference: $1.85
If NXT meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.84, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates REA as Neutral (3) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has triggered slightly higher forecasts for FY23, which has pushed up Citi's price target for REA Group to $157.50 from $145.20.

The broker's rating remains Neutral.

Target price is $157.50 Current Price is $158.22 Difference: minus $0.72 (current price is over target).
If REA meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $128.77, suggesting downside of -16.9% (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

Macquarie rates RMD as Outperform (1) -

Ahead of the results on August 4, Macquarie anticipates a continuation of solid revenue trends as well as a sequential improvement in gross margins.

The broker remains positive on the outlook for ResMed, underpinned by the likelihood of more new patient set-ups.

Forecasts imply a slight improvement in device revenue quarter on quarter while the resupply of existing patients accounts for the majority of masks/accessories sales.

Outperform retained. Target is $38.

Target price is $38.00 Current Price is $33.65 Difference: $4.35
If RMD meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $38.00, suggesting upside of 11.7% (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: 0.8

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

Morgan Stanley rates SLC as Overweight (1) -

Superloop has made a non-binding indicative proposal to acquire Symbio Holdings with a 50:50 mix of cash and shares. The proposal values Symbio Holdings at $3.00/share and is subject to a number of conditions.

The companies have entered a four-week reciprocal exclusive period.

Morgan Stanley questions the modest multiple for Symbio Holdings and the extent of revenue/cost synergies. It's noted operational complexity for Superloop may be increased by returning to Asia and by Symbio Holdings going back to the consumer.

The Overweight rating and $1.10 target for Superloop are maintained. Industry view: In-Line.

The company also noted it is expecting underlying earnings (EBITDA) for FY23 of around $37m, above guidance for 33-36m, in line with Morgan Stanley's expectations.

Target price is $1.10 Current Price is $0.65 Difference: $0.45
If SLC meets the Morgan Stanley target it will return approximately 69% (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 STO as Overweight (1) -

Regarding 1H results due on August 23, Morgan Stanley believes Santos is on track to meet FY23 production guidance
of 89-93MMboe, having reached 50% of the midpoint by the 2Q.

Overweight rating. Target is $8.88. Industry view: Attractive.

Target price is $8.88 Current Price is $8.02 Difference: $0.86
If STO meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $9.42, suggesting upside of 19.6% (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: 0.9

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

Macquarie rates SVW as Outperform (1) -

Macquarie expects Seven Group will generate a strong FY23 result with strong performances of core businesses that provide earnings visibility into FY24. WesTrac has a market opportunity that continues to grow and the broker expeccts 16% growth in underlying EBIT.

For Coates, underlying EBIT growth of around 19% is anticipated, with the business considered well-positioned to leverage its footprint and fleet size.

Boral's transformation plan will also support the valuation. The target is raised to $30.00 from $26.70. Outperform retained.

Target price is $30.00 Current Price is $26.18 Difference: $3.82
If SVW meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $28.47, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

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

UBS conducts a review of the Australian Media Sector. The broker observes advertising markets worsened in the June quarter, the market falling -17% on the previous year. The good news is the broker was expecting a fall of -22% and raises its assumptions accordingly.

But the brakes remain on given low consumer confidence and business confidence data and the broker expects weakness to persist for six months before the markets start to recover in the next June half, before hitting full stride in FY25.

The broker expects Seven West Media will suffer most from these trends, noting the company is experiencing falls in revenue in key TV markets, mainly metro FT where viewership kept falling in FY23.

Rating is downgraded to Neutral from Buy. Target price falls to 41c from 60c.

Target price is $0.41 Current Price is $0.38 Difference: $0.03
If SWM meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.48, suggesting upside of 27.0% (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

Morgan Stanley rates SYM as Overweight (1) -

Superloop has made a non-binding indicative proposal to acquire Symbio Holdings with a 50:50 mix of cash and shares. The proposal values Symbio Holdings at $3.00/share and is subject to a number of conditions.

The companies have entered a four-week reciprocal exclusive period.

Morgan Stanley questions the modest multiple for Symbio Holdings and the extent of revenue/cost synergies. It's noted operational complexity for Superloop may be increased by returning to Asia and by Symbio Holdings going back to the consumer.

The Overweight rating and $2.20 target price for Symbio Holdings are retained. Industry view: In-line.

The company also noted it is expecting earnings (EBITDA) for FY23 to come in at the upper end of the guidance range of 27-28m, a beat against Morgan Stanley's expectations.

Target price is $2.20 Current Price is $2.34 Difference: minus $0.14 (current price is over target).
If SYM meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 TPG as Equal-weight (3) -

In the evemt TPG Telecom sells its fibre and enterprise assets, Morgans notes the twin positives of a reduction in debt and the potential return of capital, but suggests the remaining business would be of lesser quality and lower growth.

Management has confirmed an indicative non-binding offer to acquire its Enterprise, Government & Wholesale (EGW) assets plus associated fibre infrastructure for $6.3bn.

Given the company would remain the No 3 mobile network operator in Australia, the sale would result in the loss of some assets viewed as premium by the market (e.g. a significant fibre network)

The Equal-weight rating and $5.60 target are maintained. Industry View: In-line.

Target price is $5.60 Current Price is $5.60 Difference: $0
If TPG meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates TPG as Accumulate (2) -

Ord Minnett believes the indicative offer from Vocus for the fixed assets of TPG Telecom is a potential catalysts to unlock the inherent value. The $6.3bn enterprise value offer is estimated to value the fixed line fibre assets at 11.5x EBITDA.

Critically, the broker believes, if a deal ends up being done the current price of the stock still values the rest of the business at 7.2x EBITDA, considered too low given the material earnings recovery potential in both mobile and consumer fixed line operations.

The broker retains an Accumulate rating and $7.40 target.

Target price is $7.40 Current Price is $5.60 Difference: $1.8
If TPG meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates TPG as Neutral (3) -

TPG Telecom is considering a strategic review of its non-mobile assets after Vocus Group (backed by Macquarie Capital) submitted an indicative, highly conditional, non-binding offer to buy the bulk of TPG's Enterprise, Government and Wholesale Assets (excluding mobile wholesale), advised UBS.

The bid also includes the division's fixed infrastrucure assets, such as Vision Network, for roughly $6.3bn.

UBS, which is advising Vocus, says a deal would sharply strengthen TPG's balance sheet and improve its toppy gearing.

The broker expects it could yield a return for shareholders in the region of 9c to 25c a share, assuming a paydown of $3.9bn in debt and the holding of roughly $2.1bn to $2.4bn in cash to fund lease liabilities.

TPG would continue to hold its consumer, active mobile infrastructure and mobile wholesale businesses.

Neutral rating and $5.55 target price retained.

Target price is $5.55 Current Price is $5.60 Difference: minus $0.05 (current price is over target).
If TPG meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.93, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

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

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

First half results for Viva Energy are due on August 22.

Morgan Stanley sees emerging signs of earnings recovery in the 2H from stable refining margins, management targeting a return-to-service at the Geelong refinery in early-September.

Also, aviation demand is set to drive retail and commercial fuel sales, with the analyst forecasting a rise of 15% for the 1H versus the previous corresponding period.

The $3.20 target and Equal-weight rating are maintained. Industry view is Attractive.

Target price is $3.20 Current Price is $3.17 Difference: $0.03
If VEA meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.34, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates WDS as Overweight (1) -

Regarding 1H results due on August 22, Morgan Stanley believes Woodside Energy is on track to meet FY23 production guidance
(180-190MMboe) having attained 49% of the midpoint by Q2.

Adding further confidence, key maintenance activities were completed in the first half, notes the analyst.

The Overweight rating and $40 target are maintained. Industry View is Attractive. 

Target price is $40.00 Current Price is $38.18 Difference: $1.82
If WDS meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $36.58, suggesting downside of -3.3% (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: 0.3

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

Macquarie rates WOR as Outperform (1) -

Macquarie expects underlying net profit of $341m in FY23 amid strong revenue growth and flat EBITA margins for Worley.

The company has guided to FY24 EBITA margins of 7.5% which drives 26% forecast EPS growth in FY24. Macquarie raises the target to $18.23 from $17.50 and maintains an Outperform rating.

Target price is $18.23 Current Price is $17.49 Difference: $0.74
If WOR meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.21, suggesting downside of -0.8% (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 WTC as Neutral (3) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has seen Citi lifting its forecasts for WiseTech Global.

As a result, the price target has increased to $85.95 from $64.10. Rating remains Neutral.

Target price is $85.95 Current Price is $86.54 Difference: minus $0.59 (current price is over target).
If WTC meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $77.18, suggesting downside of -10.7% (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

Citi rates XRO as Buy (1) -

A general review of Australia's technology, Internet and communications sector, ahead of the August results season, has led to increased forecasts for Xero.

Citi's rating remains Buy, while the price target shifts to $141.90 from $120.

Investors note: Xero does not report financials this month.

Target price is $141.90 Current Price is $123.88 Difference: $18.02
If XRO meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $113.27, suggesting downside of -8.4% (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: 0.3

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

Citi rates ZIP as Neutral (3) -

Post a general review of Australia's technology, Internet and communications sector, ahead of the August results season, Citi analysts have upgraded their rating for Zip Co to Neutral, as reported yesterday already.

The price target has softened slightly to 46c (-1c) while estimated losses increased for FY23, decreased for FY24.

Target price is $0.46 Current Price is $0.48 Difference: minus $0.02 (current price is over target).
If ZIP meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.79, suggesting upside of 67.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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