Australian Broker Call

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

As a read through for AGL Energy, Morgan Stanley reviews results for competitor Energy Australia, after its parent CLP Group reported 1H results.

Based on Energy Australia's churn figures, the broker suggests AGL Energy may have grown market share at the margin.

Morgan Stanley reminds investors default and market retail tariffs across the National Electricity Market have increased significantly from July and expects strong revenue growth across all the Australia energy retailers.

The Equal-weight rating and $11.88 target are maintained. Industry View: Cautious.

Target price is $11.88 Current Price is $11.55 Difference: $0.33
If AGL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.76, suggesting upside of 1.8% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Bell Potter rates AIS as Buy (1) -

Aeris Resources is in a difficult position, Bell Potter asserts, after a disappointing quarterly production number for June. Although Tritton delivered a positive in terms of higher copper grades and Cracow also improved, there were further deferrals at Mount Colin.

Furthermore, Jaguar is now on care and maintenance. While this is a material setback, the broker highlights Tritton is still the largest Australian copper asset that investors can gain direct exposure to on the ASX.

While a a Buy rating is maintained, the target is reduced to $0.29 from $0.91.

Target price is $0.29 Current Price is $0.22 Difference: $0.075
If AIS meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.29, suggesting upside of 30.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Citi rates ALU as Neutral (3) -

Citi analysts conclude that Altium has made a rather soft start into the new financial year (FY24). Conclusion is based on observing website traffic for Octopart over the past two months.

The analysts note industry commentary is equally suggesting soft demand conditions at present. The analysts do not think this is a straightforward story since Octopart is a lead-generating channel for suppliers, and thus cost-per-clicks can actually benefit from present soft dynamics.

In addition, the new pricing tier aimed at single-license users might increase Altium's market share, though Citi is worried about cannibalisation.

Target $39.30. Neutral.

Target price is $39.30 Current Price is $37.84 Difference: $1.46
If ALU meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.52, suggesting upside of 6.8% (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: 0.0

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

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

From among coverage of Australian Wealth Managers, Morgan Stanley prefers Overweight-rated Insignia Financial over AMP and Challenger which both have Equal-weight ratings.

While AMP's balance sheet is stronger than Insignia's, the broker notes AMP's wealth, bank and NZ businesses require more reinvestment, as the company is sub-scale and/or facing elevated margin pressure in some segments.

After adopting a new valuation method and adjusting earnings lower, the broker sets a $1.07 target, down from $1.30. Industry view: In-Line. 

Target price is $1.07 Current Price is $1.10 Difference: minus $0.03 (current price is over target).
If AMP meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.14, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.1

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

Macquarie rates AWC as Underperform (5) -

The Western Australian Environmental Protection Authority has opened a public comment period to assess if an EIA is required into part of the Alcoa five-year mine plan.

Macquarie observes the future of the Huntly and Willowdale mine permits is unclear, with a further delay and more onerous permit processes likely restricting access to high-grade bauxite areas and resulting in higher costs.

The broker maintains a cautious outlook for Alumina Ltd amid concerns about the potential impact on production. Underperform. Target is $1.00.

Target price is $1.00 Current Price is $1.42 Difference: minus $0.415 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.34, suggesting downside of -3.8% (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

Bell Potter rates AZS as Speculative Buy (1) -

Bell Potter notes Azure Minerals has made significant progress at Andover. Going forward, the broker anticipates preliminary metallurgical test work and an initial mineral resource estimate, probably early in 2024.

The company has defined its first target area and now has approvals to commence drilling at the second and third targets. With this update, Bell Potter retains a Speculative Buy rating and increases the target to $5.15 from $3.00.

Target price is $5.15 Current Price is $2.67 Difference: $2.48
If AZS meets the Bell Potter 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

Macquarie rates BGL as Outperform (1) -

Macquarie attended a site visit to the Bellevue Gold project. The broker observes the project is on time and on budget and the processing plant is expected to reach a run rate of 1mtpa by the end of FY24.

Moreover, the recent toll-treating agreement is a positive for the company with the opportunity to bring forward cash flow and bolster the balance sheet ahead of commissioning.

Outperform maintained. Target is $1.80.

Target price is $1.80 Current Price is $1.53 Difference: $0.275
If BGL meets the Macquarie target it will return approximately 18% (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

Morgans rates CBA as Hold (3) -

Ahead of tomorrow's FY23 result, Morgans makes minor changes to its earnings forecasts and lowers its target to $95.77 from $96.08. 

The broker acknowledges several positives for the bank relative to peers including its lead in technology and the largest low or zero cost deposit base, but reminds investors it also has the highest multiples and lowest dividend yield. Hold.

Target price is $95.77 Current Price is $101.85 Difference: minus $6.08 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.30, suggesting downside of -12.6% (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 CGF as Equal-weight (3) -

From among coverage of Australian Wealth Managers, Morgan Stanley prefers Overweight-rated Insignia Financial over AMP and Challenger which both have Equal-weight ratings.

Despite benefitting from higher interest rates, Challenger's earnings are still volatile, observes the analyst. The benefit of higher rates and spreads in Life are offset by slower Life book growth.

The broker's FY23 earnings forecast is reduced by around -25% on negative property revaluations and the target falls to $7.10 from $7.25. Industry view: In-Line.

Target price is $7.10 Current Price is $6.86 Difference: $0.24
If CGF meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.98, suggesting upside of 1.0% (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 CLW as Neutral (3) -

At first glance, Citi notes the Charter Hall Long WALE REIT FY23 operating earnings were slightly below expectations. Distributions were previously announced. The miss to expectations was largely because of lower net property income.

FY24 guidance of $0.26 per security for EPS/DPS is down -7% year-on-year and -10% below the broker's forecast. In this case the driver of the disparity is higher debt costs and Citi will look for more detail at the briefing regarding the company's assumptions.

Neutral rating, with the broker expecting the stock will trade lower on the result. Target is $4.40.

Target price is $4.40 Current Price is $4.03 Difference: $0.37
If CLW meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates DDR as Neutral (3) -

Dicker Data's pre-FY23 release market update, UBS reports, was more or less in line with the broker's bottom line estimate, but, apparently, market consensus sat 10% higher at the EPS level.

Implied Q2 sales were some -6% below UBS's forecast. The broker notes organic sales growth has slowed from 10% in the prior quarter to 3% in Q2.

Devices are in decline, offset by software and other hardware products, according to the company's market update. UBS notes the softer top line growth was offset by better margins.

Given the risks from a deteriorating macro outlook, UBS finds the shares are fairly valued. Target $8.40. Neutral. Earnings estimates are unchanged.

Target price is $8.40 Current Price is $8.02 Difference: $0.38
If DDR meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

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

Morgans rates DXC as Add (1) -

Dexus Convenience Retail REIT's FY23 result was in line with guidance. Funds from operations (FFO) fell by -4.3% compared to FY22 due to higher interest costs partly offset by Property income.

The broker expects further asset sales across FY24 after -7% of the portfolio was divested in FY23 helping to reduce gearing to 31%.

In line with the analyst's forecast, management is guiding to FFO for FY24 in the range of 20.7-21.1cpu.

The target edges down to $3.17 from $3.18. Add.

Target price is $3.17 Current Price is $2.54 Difference: $0.63
If DXC meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

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 DXC as Accumulate (2) -

Dexus Convenience Retail REIT continues to strengthen its capital position through asset sales, Ord Minnett observes. FY23 results were in line with expectations and FY24 guidance for a distribution between 20.7c and 21.1c is also in line.

Although redeployment opportunities will be largely dependent on future divestments, the broker believes management has a prudent approach to capital management, while the current discount in the stock makes it an attractive investment proposition.

Accumulate rating maintained. Target is raised to $ 3.00 from $2.95.

Target price is $3.00 Current Price is $2.54 Difference: $0.46
If DXC meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

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

Macquarie rates GL1 as Outperform (1) -

Global Lithium Resources has begun assessing the potential for DSO to be sold to China ahead of its first spodumene production at Manna.

Macquarie notes the definitive feasibility study is well underway with the outcome expected in the first quarter of 2024, enabling an FID on the project to be made by mid-year.

Resource upside is expected from exploration success and adding DSO to the front end of the project presents upside risk to the broker's base case, with the possibility of bringing forward cash flow by 1-2 years. Outperform rating and $3 target retained.

Target price is $3.00 Current Price is $1.73 Difference: $1.27
If GL1 meets the Macquarie target it will return approximately 73% (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 GUD as Outperform (1) -

G.U.D. Holdings has divested Davey for $64.9m to Waterco ((WAT)), which Macquarie regards as a positive move as it reduces debt concerns while simplifying the group structure. The business is now a pure automotive entity.

With leverage under control, the broker regards the company as having increased flexibility to execute on a growth strategy although the key is realising APG earnings potential before any larger acquisitions are considered.

Outperform maintained. Target rises to $11.75 from $11.60.

Target price is $11.75 Current Price is $10.37 Difference: $1.38
If GUD meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

UBS rates GUD as Buy (1) -

G.U.D. Holdings will sell its water business, Davey, to Waterco ((WAT)) for $64.9m. The sale has come sooner than UBS anticipated and at a higher price.

As the company's gearing level is a major driver of its valuation discount compared with peers, and even though the numbers are relatively small in the context of the larger business, the broker believes this is an incremental positive development.

The company is targeting gearing of around 2.0x and on the broker's forecast it currently sits at 2.16x. The company will report its FY23 results on August 15. Buy rating and $10.50 target maintained.

Target price is $10.50 Current Price is $10.37 Difference: $0.13
If GUD meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Morgan Stanley rates IFL as Overweight (1) -

From among coverage of Australian Wealth Managers, Morgan Stanley prefers Overweight-rated Insignia Financial over AMP and Challenger which both have Equal-weight ratings.

Management at Insignia Financial last month issued a business update showing a pathway to drive cost efficiencies and simplify the business model, notes the broker. Annual opex efficiences of around $100m are expected for an upfront cost of -$340m.

The analyst believes the shares offer compelling value and lowers the target by -9% to $3.50 after incorporating the new investment spend. Industry view: In-line.

Target price is $3.50 Current Price is $2.91 Difference: $0.59
If IFL meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.43, 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 JHX as Buy (1) -

In a first glance at today's 1Q result for James Hardie Industries, Citi highlights a 16% beat compared to the consensus forecast for profit, driven by a materially improved margin across all segments. A positive share price reaction is expected.

The broker notes declining input costs and lower selling, general and administrative (SG&A) expenses drove the profit improvement, despite lower volumes.

As the North American margin exceeded 30% on -9% lower volumes and a new housing-dominant lower price/mix, the analyst is optimistic for when capacity returns.

There is a note of near-term caution, as the company reduced the time period for guidance and modestly downgraded R&R expectations, though management has improving expectations for new housing, explains the broker.

Target $42.5. Buy.

Target price is $42.50 Current Price is $40.76 Difference: $1.74
If JHX meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $43.70, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates JHX as Buy (1) -

Today's first quarter profit for James Hardie Industries was a 14% beat compared to the forecast by UBS, driven by beats in the US and APAC region. Second quarter guidance for profits of between US$170-190m also exceeded the consensus estimate by 20%.

First impressions by the analyst are of benefits from reallocating expenditure, with some assistance from a lower SG&A spend in the US and APAC, though higher in the EMEA region. US volumes were also well ahead of guidance.

Management is taking advantage of an improving US market, in the broker's view, and key positives are in the outlook for the US margin along with improving volumes.

Buy rating. Target $49.50.

Target price is $49.50 Current Price is $40.76 Difference: $8.74
If JHX meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $43.70, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in March.

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 MSB as Downgrade to Speculative Hold from Speculative Buy (3) -

The US FDA has rejected the biological licence application for remestemcel-L. While the drug is sufficiently safe and efficacious to give away via the expanded assess program in the US and available in Japan, Bell Potter contends it seems it was not good enough for FDA approval.

The broker finds the FDA decision to withhold a life-saving therapy confusing and there are substantial downgrades to revenue and earnings following the announcement.

Additional effficacy data have been requested in the form of a controlled trial in adults and Mesoblast now plans to conduct the study in the highest risk patients with the greatest prospect of mortality.

Rating is downgraded to Speculative Hold from Speculative Buy and the target is reduced to $0.60 from $2.00.

Target price is $0.60 Current Price is $0.41 Difference: $0.19
If MSB meets the Bell Potter 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:

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

Market Sentiment: 0.0

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

Ord Minnett rates NSR as Hold (3) -

Ord Minnett observes National Storage REIT securities have declined -18% from the peak in March 2022 and the results on August 23 may signal early signs of the spending slowdown seen in other discretionary sectors of the economy.

The broker suspects, if not in the actual results, then in the outlook for management. Meanwhile, the chance of the business, and indeed other local storage A-REITs, being acquired at a material premium to book value is fading.

Ord Minnett asserts, even if conditions remain strong in Australia there are early signs of soft conditions in the US that make it less likely foreign interests will be willing to pay large premiums for an Australian self-storage business. Hold rating. Target is $2.20.

Target price is $2.20 Current Price is $2.23 Difference: minus $0.03 (current price is over target).
If NSR meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.27, suggesting upside of 3.8% (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 NST as Neutral (3) -

Citi assesses the KCGM site has come a long way in terms of operating performance since the acquisition in 2020. Northern Star Resources is spending big now to set up for a 27mtpa future and the broker observes the asset is being optimised for margin, not ounces.

Citi believes shareholders will need to look through the material expenditure over the next three years because of value creation for the longer term.

After the visit, the broker concluded its medium-term production estimates may well prove conservative. Neutral retained. Target is $12.

Target price is $12.00 Current Price is $11.14 Difference: $0.86
If NST meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.24, suggesting upside of 12.7% (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 NST as Outperform (1) -

Northern Star Resources hosted a site tour of its KCGM project. Macquarie expects the expansion plans, with the mill expected to reach 27mtpa by FY26 at a cost of $1.5bn, will boost production, lower costs and drive key regional synergies.

The company has stressed the regional significance of the upgraded facility, as any gold deposit within a 30 km radius can be processed. While there is the prospect to shut down, divest or relocate the Kanowna Belle mill, the company expects the plant will run for at least the next five years.

Outperform rating and $14 target maintained.

Target price is $14.00 Current Price is $11.14 Difference: $2.86
If NST meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $12.24, suggesting upside of 12.7% (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

Morgan Stanley rates ORG as Overweight (1) -

As a read through for Origin Energy, Morgan Stanley reviews results for competitor Energy Australia, after its parent CLP Group reported 1H results.

Based on Energy Australia's churn figures, the broker suggests Origin Energy may have grown market share at the margin.

Morgan Stanley reminds investors default and market retail tariffs across the National Electricity Market have increased significantly from July and expects strong revenue growth across all the Australia energy retailers.

The $8.88 target and Overweight rating are unchanged. Industry view: Cautious.

Target price is $8.88 Current Price is $8.45 Difference: $0.43
If ORG meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.74, suggesting upside of 3.4% (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

Macquarie rates PLS as Outperform (1) -

Pilbara Minerals has upgraded the resource estimate for Pilgangoora to 440mt at 1.15% lithium oxide, lifting tonnage and grade by 36% and 2%, respectively.

 A reserve upgrade is imminent and Macquarie believes a material upgrade will drive further organic growth, supported by reduced constraints on mining and amid ample land space at the Pilgangoora processing plant area.

The stock remains the broker's preferred Australian lithium producer and an Outperform rating is retained. Target is raised to $7.50 from $7.30.

Target price is $7.50 Current Price is $5.18 Difference: $2.32
If PLS meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $5.40, suggesting upside of 1.5% (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

Ord Minnett rates SEK as Lighten (4) -

Ord Minnett suspects Seek will experience material operating deleverage in the short term as the listing environment normalises. The broker reduces its target by -17% to $19 following transfer of coverage to a new analyst.

This reduction largely because of an evolved understanding of the relative weakness of network effects in employment listing platforms as compared with real estate or automotive platforms.

The broker forecasts revenue to grow at a 10-year compound rate of 6%. In the longer term, Ord Minnett expects Seek will continue to invest heavily in its platform to protect its Australasian business. Lighten rating.

Target price is $19.00 Current Price is $24.75 Difference: minus $5.75 (current price is over target).
If SEK meets the Ord Minnett target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.16, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Shaw and Partners rates STN as Buy, High Risk (1) -

A scoping study released by Saturn Metals for the Apollo Hill Gold project reveals an initial 10.5-year mine life, producing an average 122koz of gold per annum at a cost of -$304m.

Shaw and Partners suggests the large tonnage, low-grade, shallow resource (most suited to bulk open-pit mining) could become a highly strategic asset in the Eastern Goldfields of WA.

The first stage will be construction of a pilot plant for circa -$20m, which could be producing gold by the end of 2024, according to the broker.

Buy, High Risk rating and 44c target price retained.

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

Ord Minnett rates UMG as Hold (3) -

Malteries Soufflet's bid for United Malt has now been cleared by both the Canadian and Australian competition regulators.

Ord Minnett increases the target to $5.00 from $4.75 and anticipates clearance of the remaining regulatory hurdles, including the Australian FIRB and the UK competition regulator, is imminent.

The broker also expects the offer will receive shareholder support. Hold maintained.

Target price is $5.00 Current Price is $4.79 Difference: $0.21
If UMG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.00, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in September.

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 XRO as Buy (1) -

Citi is now more confident in revenue growth forecasts after the UK price increase from Xero. Although this only increases average revenue per unit by 2% it is important in the case of subscriber growth being weaker because of soft macro conditions.

Also it indicates the company's market position in the UK is firm and this was a key issue for investors when the last price increase was only delivered in Australasia. Citi maintains a Buy rating with a $141.90 target.

Target price is $141.90 Current Price is $120.80 Difference: $21.1
If XRO meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $113.27, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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