Australian Broker Call

Bell Potter rates ALC as Reinstate Coverage with Speculative Buy (1) -

Alcidion Group has been proven a global leader in developing and implementing solutions required by hospitals and Bell Potter expects positive numbers in FY23, or by the latest FY24. The company's approach to acquisitions has also proven successful.

Bell Potter reinstates coverage with a Speculative Buy rating and $0.20 target.

Target price is $0.20 Current Price is $0.12 Difference: $0.085
If ALC meets the Bell Potter target it will return approximately 74% (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 ASX as Outperform (1) -

Macquarie was disappointed with the futures volumes in the monthly activity report for March and notes growth occurred because of weak comparables.

The broker expects interest income for ASX will grow sequentially in the second half from higher cash rates. Earnings remain very defensive against a weakening macro outlook yet after recent strength the broker assesses the stock is close to fair value.

Outperform retained. Target is reduced to $72.00 from $75.50.

Target price is $72.00 Current Price is $69.94 Difference: $2.06
If ASX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $70.05, suggesting upside of 0.2% (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

UBS rates ASX as Neutral (3) -

UBS notes March activity volumes were mixed as strong derivatives countered ongoing weakness in capital raising and cash equities.

Interest-rate futures have been "surprisingly soft" over the past 12-18 months, the broker points out, and this changed in March with increasing volatility in sovereign bond markets globally.

Cash market activity and total capital raisings are both still below long-term trends. Neutral and $70 target retained for ASX.

Target price is $70.00 Current Price is $69.94 Difference: $0.06
If ASX meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $70.05, suggesting upside of 0.2% (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

Shaw and Partners rates BCB as Buy (1) -

Bowen Coking Coal has completed the refurbishment of the first module of its Burton plant. Extreme rain events in the second half of 2022 mean that Bowen is running around three months behind original production estimates although the ramp up is now accelerating.

Shaw and Partners expects coal prices to stay elevated amid a lack of investment in new supply and robust demand. The broker notes the company has also deferred two US$11m payments to Taurus from March and June 2023 to December and March 2024, respectively.  Buy rating and $0.49 target maintained.

Target price is $0.49 Current Price is $0.26 Difference: $0.23
If BCB meets the Shaw and Partners target it will return approximately 88% (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

UBS rates CGF as Neutral (3) -

Challenger has made a deal with Elanor ((ENN)) to sell its real estate management business and become an exclusive distribution partner. Consideration of $42m will be settled in ENN scrip with a three-year clawback.

UBS assesses, at first glance, the deal is strategically sensible given Challenger has been unable to grow its third-party property funds in recent years. The broker retains a Neutral rating with a $7.50 target.

Target price is $7.50 Current Price is $6.20 Difference: $1.3
If CGF meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.57, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.1

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

Macquarie rates HLS as Outperform (1) -

The FY24 fee indexation of 3.6% for diagnostic imaging is ahead of Macquarie's previous assumptions. Combined with positive contributions from the mix and an assumed recovery in utilisation the broker considers the industry outlook favourable for FY24.

The broker increases the target for Healius to $4.10 from $4.00. Outperform maintained.

Target price is $4.10 Current Price is $3.23 Difference: $0.87
If HLS meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.23, suggesting upside of 0.4% (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

Macquarie rates IDX as Outperform (1) -

The FY24 fee indexation of 3.6% for diagnostic imaging is ahead of Macquarie's previous assumptions. Combined with positive contributions from the mix and an assumed recovery in utilisation the broker considers the industry outlook favourable for FY24.

The broker increases the target for Integral Diagnostics to $3.50 from $3.30. Outperform maintained.

Target price is $3.50 Current Price is $3.01 Difference: $0.49
If IDX meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting downside of -2.9% (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

Citi rates JHG as Upgrade to Neutral from Sell (3) -

Citi observes some progress has occurred in Janus Henderson's strategy and stability should be demonstrated in the management fee margin.

Reduced outflows are likely and the broker lifts its rating to Neutral from Sell ahead of the first quarter result on May 3.

As the two main contributing funds, Research and Forty, a close to or at maximum negative, Citi considers it unlikely the drag from fulcrum fees will materially worsen. Target is raised to $37.80 from $34.50.

Target price is $37.80 Current Price is $37.85 Difference: minus $0.05 (current price is over target).
If JHG 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 $37.78, suggesting downside of -4.7% (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: 0.0

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

Macquarie rates SHL as Underperform (5) -

The FY24 fee indexation of 3.6% for diagnostic imaging is ahead of Macquarie's previous assumptions. Combined with positive contributions from the mix and an assumed recovery in utilisation the broker considers the industry outlook favourable for FY24.

The broker increases the target to $32.00 from $31.50 and maintains an Underperform rating.

Target price is $32.00 Current Price is $36.22 Difference: minus $4.22 (current price is over target).
If SHL meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.70, suggesting downside of -7.3% (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

Ord Minnett rates SHL as Downgrade to Lighten from Hold (4) -

As the share price of Sonic Healthcare has moved through the trigger level, Ord Minnett downgrades to Lighten from Hold.

While coronavirus testing has been a boon for the business over the longer term the broker assesses high vaccination rates and testing fatigue will lead to fewer tests related to travel and compliance while the majority will be related to symptomatic infection.

Over a 10-year outlook Ord Minnett forecasts underlying non-coronavirus revenue growth of 4% for the base business. Target is $32.

Target price is $32.00 Current Price is $36.22 Difference: minus $4.22 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.70, suggesting downside of -7.3% (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

Ord Minnett rates SIG as Downgrade to Lighten from Hold (4) -

As the Sigma Healthcare share price has moved through the trigger level, Ord Minnettt downgrades to Lighten from Hold. Target is $0.63.

The broker projects subdued organic growth for the pharmaceutical industry, given ongoing PBS price reform and excess industry capacity.

Target price is $0.63 Current Price is $0.72 Difference: minus $0.09 (current price is over target).
If SIG meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.64, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in January.

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

Shaw and Partners rates SND as Buy (1) -

Crawley Australia has issued Saunders International a "notice of termination for convenience" in respect to the $165m contract relating to the US Defence fuel storage facility in Darwin, Northern Territory. Saunders now expects FY23 revenue at the lower end of its $190-220m guidance with EBIT in the range of 6.5-7.5%.

As a result, Shaw and Partners reduces its target to $1.35 from $1.50 but reiterates a Buy rating given the outlook for the engineering & construction sector and the discount in the share price versus the revised target.

Target price is $1.35 Current Price is $1.07 Difference: $0.285
If SND meets the Shaw and Partners target it will return approximately 27% (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

UBS rates VEA as Buy (1) -

Viva Energy has signed a binding agreement to acquire OTR Group for $1.15bn. UBS believes the deal de-risks and improves potential upside for the Coles Express acquisition by capturing branding rights and capabilities from the OTR team.

The broker models strong earnings and cash flow accretion once synergies are realised although remains a little cautious that there could be challenges from the competition regulator, the ACCC.

The broker anticipates the transaction will require formal authorisation, and the ACCC is focused on competitive dynamics in retail fuel markets.  Buy rating and $3.50 target maintained.

Target price is $3.50 Current Price is $3.19 Difference: $0.31
If VEA meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.36, suggesting upside of 4.3% (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

Macquarie rates WAF as Outperform (1) -

The updated production outlook from West African Resources was largely in line with Macquarie's expectations. There was a "healthy" increase in reserves and resources at Sanbrado. A large increase in the reserve at M1S was a highlight.

Incorporating the outlook lifts the broker's estimates for earnings per share by 2% for 2023 and 17% for 2024.

The production base is adjusted to align with the outlook, which includes bringing Kiaka forward to start production in early 2025 and pushing Toega out to 2026. Outperform rating and $1.70 target price retained.

Target price is $1.70 Current Price is $1.01 Difference: $0.685
If WAF meets the Macquarie 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