Australian Broker Call

Credit Suisse rates A2M as Neutral (3) -

Credit Suisse has found its own channel checks are consitent with observations from a2 Milk's investor day. An improvement in freshness dates suggests surplus inventory issues are abating.

However promotional pricing is rising across the Chinese market ahead of the November 11 shopping holiday, and a declining Chinese birth rate is expected to lower demand over time. That said, a2 Milk still enjoys solid brand support.

Neutral and $5.75 target retained.

Target price is $5.75 Current Price is $6.34 Difference: minus $0.59 (current price is over target).
If A2M meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.2

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

Morgans rates ACF as Add (1) -

Morgans increases its target price to $0.64 from $0.58 for Acrow Formwork and Construction Services after strong 1Q growth. Management also noted momentum has continued in October with records for hire revenue, total revenue and earnings (EBITDA).

Guidance for underlying EPS was increased, and is now expected to be up 45-55% versus greater than 40% previously.

Target price is $0.64 Current Price is $0.48 Difference: $0.16
If ACF meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates APE as Buy (1) -

UBS notes new car sales in October were impacted by chip shortages and covid-19 lockdowns. However, the broker believes current disruptions won't impact the 12mth new car sales figure, with purchase/collection intentions likely pushed out 1-2 months.

The analyst maintains a Buy for Eagers Automotive on the long-term transformation opportunity. The $18.35 target price is unchanged.

Target price is $18.35 Current Price is $15.24 Difference: $3.11
If APE meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates ASG as Buy (1) -

UBS notes new car sales in October were impacted by chip shortages and covid-19 lockdowns. However, the broker believes current disruptions won't impact the 12mth new car sales figure, with purchase/collection intentions likely pushed out 1-2 months.

The analyst maintains a Buy for Autosports Group for leverage to luxury. The $3.10 target price is unchanged.

Target price is $3.10 Current Price is $2.36 Difference: $0.74
If ASG meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ASX as Outperform (1) -

ASX's monthly activity report highlighted strong futures volumes recovery in October, with per day futures contracts up 31% on October FY20 and 18% on October FY19. Macquarie notes the discontinued yield curve control should benefit continued recovery. 

Activity in equities and capital markets was also strong for the month. Earnings per share forecasts are upgraded 2.4% and 4.9% for FY22 and FY23, and 3.5% for the following years, but the broker notes slower-than-expected futures recovery presents downside risk. 

The Outperform rating is retained and the target price increases to $101.50 from $98.00.

Target price is $101.50 Current Price is $89.53 Difference: $11.97
If ASX meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $77.84, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

UBS rates BAP as Buy (1) -

UBS notes new car sales in October were impacted by chip shortages and covid-19 lockdowns. However, the broker points out sustained new vehicle shortages is a positive for used vehicle demand and leads to ageing of vehicle car parts.

The analyst retains its Buy rating and $8.50 target price for Bapcor.

Target price is $8.50 Current Price is $8.27 Difference: $0.23
If BAP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $8.91, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates CCP as Outperform (1) -

Operating performance from Credit Corp Group is exceeding Macquarie's expectations, with the company reiterating earnings per share, profit after tax and net lending guidance for the year.

The bottom end of purchased debt ledger investment guidance was lifted by $20m, with the guidance range now $220-240m, as investment share increased in all markets.

The Outperform rating is retained and the target price increases to $35.60 from $33.10.

Target price is $35.60 Current Price is $32.75 Difference: $2.85
If CCP meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $34.17, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates CCP as Add (1) -

Following Credit Corp Group's 1Q results, Morgans believes the business is on-track to deliver at or around the top-end of guidance (which was maintained). It's thought a rebound in consumer lending and grasping the US market share opportunity will assist in meeting guidance.

The analyst highlights that US collections were up 6% on the previous corresponding period and up 48% on the 1Q20 (constant currency). the broker lifts its target price to $34.90 from $33.75 and retains its Add rating.

Target price is $34.90 Current Price is $32.75 Difference: $2.15
If CCP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $34.17, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates CMW as Upgrade to Buy from Lighten (1) -

Ord Minnett upgrades its rating for Cromwell Property Group to Buy from Lighten and raises its target price to $0.95 from $0.80. The analyst believes the market is applying a -20% discount to the group's net tangible assets (NTA).

The broker is backing a refreshed board and new management to address elevated gearing, prove up external funds under management (FUM) growth and simplify the business.

Target price is $0.95 Current Price is $0.81 Difference: $0.14
If CMW meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates CSR as Buy (1) -

Citi spotted an in-line H1 performance, but nevertheless applies the 'mixed' label as company management acknowledged supply chains have become increasingly complex and constrained.

Buy rating retained on minor adjustments to forecasts. Target price loses -20c to $7.20.

Target price is $7.20 Current Price is $6.28 Difference: $0.92
If CSR meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates CSR as Neutral (3) -

CSR reported first half profit in line with Credit Suisse. Building products revenue growth fell short of expectation but earnings exceeded. FY22 guidance of $34m in earnings for the property division is ahead of forecast and some $50m is already contracted for FY23-25.

Supply issues? Margins beat consensus on an ongoing "excellent track record of cost management", with prices beating costs in the half. However, the broker does expect supply issues to pressure margins in a more moderate second half.

Neutral retained, target rises to $6.70 from $6.00.

Target price is $6.70 Current Price is $6.28 Difference: $0.42
If CSR meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates CSR as Outperform (1) -

Macqurie has highlighted strong Building Products margins have headlined a solid result for the first half of FY22 for CSR. The broker noted a weaker-than-expected top line was driven more by residual weakness in the multi-residential market than covid-impacts. 

Earnings per share forecasts revised by 0.3%, 7.6% and 7.5% through to FY24.

The Outperform rating is retained and the target price increases to $6.80 from $6.45.

Target price is $6.80 Current Price is $6.28 Difference: $0.52
If CSR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates CSR as Overweight (1) -

Morgan Stanley lifts its target price to $6.60 from $6.30 after first half results revealed "impressive" margins in the Building Products division. Residential and Property earnings are expected to provide a solid boost to earnings and cash flow.

The performance of the Aluminium and Property divisions were broadly in-line with the broker's expectations. The Overweight rating is maintained and the industry view is cautious. The interim dividend of 13.5cps exceeded the analyst's forecast for 9cps.

Target price is $6.60 Current Price is $6.28 Difference: $0.32
If CSR meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates CSR as Hold (3) -

Following CSR's first half results, Ord Minnett lifts its net profit forecasts by 8% in FY22 and 10% in FY23, to reflect a better margin result in the Building Products division and recent property sales.

The Hold rating is unchanged and the target increases to $6.30 from $5.80.

Target price is $6.30 Current Price is $6.28 Difference: $0.02
If CSR meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates CSR as Buy (1) -

UBS assesses a "strong" 1H result for CSR and believes the company will continue to gain from a growing gap between starts and completions. The lagged impact of recent price increases will also be beneficial. The target price rises to $6.70 from $6.10.

There was a better-than-expected 1H Building Products earnings (EBIT) margin on the back of strong cost control, explains the analyst. It's thought benefits will arise from a recovery in higher margin multi-family volumes as detached volumes decline. The Buy rating remains intact.

Target price is $6.70 Current Price is $6.28 Difference: $0.42
If CSR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates DHG as Downgrade to Neutral from Outperform (3) -

Domain Holdings' quarterly update revealed trends consistent with Credit Suisse's estimates. Digital revenues were up 18% year on year and total revenues up 20%, thanks to the return of Print after being non-existent a year ago.

Cost growth guidance for the main business has been lowered but acquisition costs stemming from Insight Data Solutions will balance that out, the broker notes. Growth in yield was impressive given listing volume declines in the core Sydney market.

Target rises to $5.70 from $5.40 but the broker sees limited upside from here, and pulls back to Neutral from Outperform..

Target price is $5.70 Current Price is $5.83 Difference: minus $0.13 (current price is over target).
If DHG meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.33, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgans rates DHG as Hold (3) -

Following Domain Holdings' 1Q trading update, which beat Morgans expectations, the broker believes the marketplace strategy is starting to bear fruit. Forecasts are upgraded on improved depth penetration and higher-than-expected growth in Agent and Consumer services.

The broker lifts its target price to $5.36 from $5.22 and maintains its Hold rating on valuation. Management pointed to improvement across all markets in depth penetration, with a special mention for the growth of the top-tier ‘Platinum’ product.

Target price is $5.36 Current Price is $5.83 Difference: minus $0.47 (current price is over target).
If DHG meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.33, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates DHG as Hold (3) -

Domain Holdings Australia issued a 1Q trading update in-line with Ord Minnett's expectations and consensus forecasts. The broker retains its Hold rating and $4.80 target price.

The analyst points out the key driver of top-line growth remains depth and yield. While 1Q controllable yield increased 17% year-on-year, Ord Minnett is cautious on extrapolating this growth.

Target price is $4.80 Current Price is $5.83 Difference: minus $1.03 (current price is over target).
If DHG meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.33, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

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

UBS downgrades its rating to Neutral from Buy for Domain Holdings Australia, with the share price now trading in-line with the broker's revised $5.80 price target, up from $5.70. The broker assesses the 1Q trading update shows the business tracking in-line with expectations.

The analyst's forecasts assume listing volumes return to around 2018 levels in FY23, though stamp duty reform has the potential to materially lift housing turnover structurally in the longer term.

Target price is $5.80 Current Price is $5.83 Difference: minus $0.03 (current price is over target).
If DHG 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 $5.33, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgans rates DMP as Hold (3) -

As part of a trading update, Domino's Pizza Enterprises has warned Japan may not achieve positive earnings growth this year. As a result, Morgans lowers its FY22 profit forecast by -11% on the rapid slowdown of Japanese sales since the October 1 reopening.

This comes despite a 4% beat for same store sales growth versus the broker's expectation for the first 18 weeks of FY22. The analyst reasures the Japanese speed bump is transitory though cautions there will be no more company updates scheduled until February 22.

Morgans retains its Hold rating and reduces its target price to $135 from $146.

Target price is $135.00 Current Price is $116.12 Difference: $18.88
If DMP meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $127.88, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Macquarie rates DOW as Outperform (1) -

Macquarie has noted flat first quarter results for Downer EDI can be considered a good outcome for the company given the impacts of lockdowns in Sydney, Melbourne and Auckland. The broker also noted the quarter is traditionally Downer EDI's quietest. 

The broker expects demand will remain strong for the remainder of FY22 and a bigger second half is on the books. Driven by first half results, Macquarie reduces its FY22 earnings per share forecast -1.4%, but FY22 and FY23 forecasts increase 0.3% and 0.6%.

The Outperform rating is retained and the target price increases to $6.84 from $6.79.

Target price is $6.84 Current Price is $6.50 Difference: $0.34
If DOW meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.41, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates DOW as Overweight (1) -

Morgan Stanley increases its price target for Downer EDI to $6.90 from $6.50 and retains its Overweight rating. Industry view: In-line. The broker expects earnings momentum over the remainder FY22 as the A&NZ economies re-open.

Management commentary at the AGM for 2022 implies to the analyst that core earnings (EBITA) are in-line with the prior year due to a strong performance from Transport.

Target price is $6.90 Current Price is $6.50 Difference: $0.4
If DOW meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.41, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates ELD as Outperform (1) -

With Elders' FY21 results imminent Macquarie forecasts earnings before tax growth of 28% to total $155m and profit after tax growth of 31% to total $141m on beneficial agricultural conditions, close-to-record planting levels and expected positive results in smaller segments.

The broker notes strong agricultural conditions are expected to continue into FY22, and is forecasting earnings before tax will total $164m and profit after tax will total $150m for the year. 

The Outperform rating and target price of $14.12 are retained.

Target price is $14.12 Current Price is $12.26 Difference: $1.86
If ELD meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates FLT as Neutral (3) -

Asking the question is providing the answer. Have the shares run ahead of fundamentals? asks Citi in today's update. The analyst sees risks to near-term earnings plus a slower recovery further out due to the shift to online.

With the shares trading at pre-pandemic level, Citi thinks the answer is a resounding 'yes' and thus the Sell rating remains in place. Target price does lift to $18.31 from $16.94, but remains well below the share price.

Target price is $18.31 Current Price is $20.06 Difference: minus $1.75 (current price is over target).
If FLT meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.40, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

UBS rates GUD as Buy (1) -

UBS notes new car sales in October were impacted by chip shortages and covid-19 lockdowns. However, the broker points out sustained new vehicle shortages are a positive for used vehicle demand and leads to ageing of vehicle car parts.

The analyst retains its Buy rating and $12.90 target price for G.U.D. Holdings.

Target price is $12.90 Current Price is $12.56 Difference: $0.34
If GUD meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.90, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates ING as Buy (1) -

As Inghams Group failed to quantify its performance to date at the AGM, but warned about feedgrain prices remaining above expectations, Citi analysts see risks to the FY22 gross margin.

The positive offset is that extended lockdowns have impacted and consumer spending should recover from here onwards. Increased sales through supermarkets during lockdowns will be a positive for overall volumes, but a negative for average price received, points out Citi.

Target remains $4.55 with an unchanged Buy rating.

Target price is $4.55 Current Price is $3.60 Difference: $0.95
If ING meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates ING as Neutral (3) -

Covid impacts have been an early part of Ingham Group's story in FY22, but the company expects consumer activity to recover post-restrictions. While no guidance has been provided, Macquarie is expecting a -7% year-on-year decrease in underlying net profit.

Feed costs have increased above the company's expectations, driving updates in Macquarie's earnings per share forecasts of -2.5%, -4.0% and -3.7% through to FY24. 

The Neutral rating is retained and the target price decreases to $3.70 from $4.10.

Target price is $3.70 Current Price is $3.60 Difference: $0.1
If ING meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.25, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates MFG as Sell (5) -

After Magellan Financial Group reported quarterly funds under management (FUM) numbers, UBS continues to see risks around net outflow and retail fee pressure. The Sell Rating is unchanged and the target price rises to $29.50 from $29.

The broker notes underperformance for the global fund investment continues.

Target price is $29.50 Current Price is $34.43 Difference: minus $4.93 (current price is over target).
If MFG meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.11, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates MMS as Hold (3) -

Ord Minnett notes the lowest October new car sales figures for 19 years though the broker is not overly surprised as supply chain pressure has seen demand outstrip supply, delaying vehicle deliveries.

The analyst believes supply issues will persist until 2022, providing a slight headwind for the novated lease sector. Nonetheless, McMillan Shakespeare's novated lease volumes were considered resilient over FY21 and the broker lifts its target to $13.62 from $12.30.

The Hold rating is maintained.

Target price is $13.62 Current Price is $14.06 Difference: minus $0.44 (current price is over target).
If MMS meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.81, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates NHF as Neutral (3) -

Health insurance claims were lower for nib Holdings in the Sep-Q FY22 than they were in the same period in pre-pandemic FY20, Credit Suisse notes. While this is encouraging given 5% more policyholders, the broker does expect the return of elective surgery to impact from here.

But high margins are expected to continue, although policyholder growth was underwhelming in the quarter. Premium revenues grew 8.5% but were cycling premium freezes a year ago.

Neutral and $6.70 target retained.

Target price is $6.70 Current Price is $7.14 Difference: minus $0.44 (current price is over target).
If NHF meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.95, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates NHF as Neutral (3) -

nib Holdings' first quarter update highlighted group premium growth of 8.5% and arhi policy holder growth of 0.6%, although Macquarie noted a -0.8% decline in iihi policy holders on the previous quarter was attributed entirely to international students. 

The company continues to expect business from international students to experience a quick recovery following the removal of travel restrictions. Higher arhi margins and premiums have driven earnings forecast upgrades of 5.2% and 5.5% for FY22 and FY23.

The Neutral rating is retained and the target price increases to $7.50 from $7.15.

Target price is $7.50 Current Price is $7.14 Difference: $0.36
If NHF meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.95, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

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

Morgan Stanley feels 1Q results for nib Holdings suggest material upside for FY22 estimates, though the operating environment remains "dynamic".

Australian resident household insurance (ARHI) policyholder growth implies ongoing growth on the back of a good FY21, notes the analyst. The Equal-weight rating and $6.45 target price are retained. Industry view: In-line.

Target price is $6.45 Current Price is $7.14 Difference: minus $0.69 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.95, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates NHF as Hold (3) -

Following a 1Q trading update from nib Holdings, Morgans upgrades its EPS forecasts by more than 10% over the next three years. This  reflects more favourable Australian resident health insurance (ARHI) margin forecasts. The target rises to $7.63 from $6.81.

There was 8.5% 1Q group revenue growth on the previous corresponding period (pcp), while ARHI claims were down -2.4% on the pcp. The Hold rating is unchanged.

Target price is $7.63 Current Price is $7.14 Difference: $0.49
If NHF meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.95, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

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

Turquoise Hill reported 3Q financials. Rio Tinto has a 51% interest in the company, good for a 34% economic interest in the Oyu Tolgo copper mine. Morgan Stanley sees risks over a lack of visibility on the project timeline and the re-sequencing of the open-pit development.

There's expected to be a six month delay to ramp-up and Turquoise Hill anticipates first production from the undercut in the 1H23. Morgan Stanley retains an Equal-weight rating, $101 target and In-Line industry view.

Target price is $101.00 Current Price is $88.32 Difference: $12.68
If RIO meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $108.43, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Ord Minnett rates SIQ as Upgrade to Buy from Accumulate (1) -

In the wake of the disbanded takeover of SmartGroup Corp, Ord Minnett upgrades its rating to Buy from Accumulate and lowers its target price to $8.80 from $9.85. The broker remains attracted to the pure exposure to salary packaging and novated leasing.

The analyst was also pleased by management commentary that included  “the company is currently on track to deliver 2021 financial performance in-line with consensus expectations”.

Target price is $8.80 Current Price is $8.03 Difference: $0.77
If SIQ meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates SLH as Add (1) -

Silk Logistics Holdings has begun warehouse site consolidation and capacity expansion in NSW, and while Morgans downgrades forecasts it expects attractive growth in coming years. The target price eases to $2.71 from $2.82. The Add rating is unchanged.

The broker feels the business provides attractive small cap container logistics exposure, which is leveraged to growth in economic activity.

Target price is $2.71 Current Price is $2.18 Difference: $0.53
If SLH meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates SUN as Upgrade to Buy from Neutral (1) -

Suncorp has been increasing its hazard allowances in significant fashion in recent years but yesterday the insurer had to concede it still wasn't enough for the running financial year.

The profit warning represents a circa -10% reduction of Citi's EPS forecast, explains the analyst. Citi continues to view Suncorp as a medium-term opportunity with margins likely to improve in H2.

Share price weakness has created a reasonable entry point, suggests the analyst. Upgrade to Buy from Neutral. Price target $12.80 (unchanged).

Target price is $12.80 Current Price is $11.60 Difference: $1.2
If SUN meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.22, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates SUN as Outperform (1) -

Wild weather in October has led to a -9% earnings guidance downgrade from Suncorp, with net perils expected to exceed the set payout allowance of $980m. Credit Suisse estimates a -150 basis point impact on insurance margins in FY22.

It is the seventh year in ten Suncorp has missed its allowance, and if you've been to Glasgow recently you'd assume things won't get any better from here. Higher perils costs lead to higher reinsurance costs, the broker notes.

Target falls to $13.60 from $13.90 but it is the banking business keeping the broker on Outperform, on a tightening rate cycle, earnings momentum and capital management.

Target price is $13.60 Current Price is $11.60 Difference: $2
If SUN meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.22, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates SUN as Outperform (1) -

Suncorp Group has updated its FY22 hazard costs guidance to $1.105-1.130bn, which Macquarie notes is $125-150m above the company's allowance. The company highlighted recent hail and wind costs were expected to total $225-250m. 

Macquarie notes Suncorp Group's three dropdown covers have not yet been impacted. The cost guidance increase drives a -5.5% decrease in Macquarie's FY22 earnings per share forecasts.

The Outperform rating and target price of $14.30 are retained.

Target price is $14.30 Current Price is $11.60 Difference: $2.7
If SUN meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $13.22, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates SUN as Hold (3) -

Morgans downgrades its FY22 EPS forecast by -11% and lowers its target price to $11.91 from $12.85 after Suncorp Group increased its guidance for full year natural hazard costs. With shares trading close to valuation, the broker retains its Hold rating.

The analyst reminds investors of a very strong reinsurance program for FY22, which should limit further downside.

Target price is $11.91 Current Price is $11.60 Difference: $0.31
If SUN meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.22, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates SUN as Buy (1) -

UBS believes the implications from the natural hazard update by Suncorp Group, in the wake of recent events in Adelaide and Victoria, are better than expected. The broker retains its Buy rating and $13.85 target price.

Target price is $13.85 Current Price is $11.60 Difference: $2.25
If SUN meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.22, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates SWP as Hold (3) -

After a recent capital raising by Swoop Holdings, Morgans assumes in its target price that funds will be deployed into M&A, which in theory triples earnings (EBITDA). The latter is thought to be already factored into the share price, and the Hold rating is retained.

The broker lowers its target price to $2.16 from $2.43 after also incorporating the capital raise into forecasts. Management guidance is for 42% year-on-year (YoY) revenue growth and earnings (EBITDA) growth of 119% YoY. 

Target price is $2.16 Current Price is $2.05 Difference: $0.11
If SWP meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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