Australian Broker Call

Ord Minnett rates A1M as Speculative Buy (1) -

AIC Mines now has the mineral inventory, scale and exploration potential to justify an expansion, Ord Minnett assesses. Significant improvements have been made at Eloise which gives the broker confidence that operation is trending in the right direction.

Current trading levels should provide a good entry point for investors seeking leveraged copper exposure, with the inherent discount likely to unwind as the business delivers on guidance, the broker adds.

The Speculative Buy rating is maintained. Target is raised to $0.70 from $0.65.

Target price is $0.70 Current Price is $0.40 Difference: $0.305
If A1M meets the Ord Minnett target it will return approximately 77% (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 AIS as Outperform (1) -

Budgerygar is progressing slower than planned which has resulted in stope ore being deferred to the first quarter of FY24. On the positive side, Aeris Resources has delivered first stope ore at Avoca Tank with higher grades of 11,000t at around 3% copper.

Tritton FY23 guidance is unchanged with the delay of first production at Budgerygar expected to be offset by development ore and stope ore from Avoca Tank.

Macquarie observes the upcoming catalyst is the Constellation prefeasibility study. Outperform rating and $0.70 target maintained.

Target price is $0.70 Current Price is $0.46 Difference: $0.245
If AIS meets the Macquarie target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 80.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates ALQ as Sell (5) -

ALS Ltd reported a 17% increase in underlying FY23 net profit, below Ord Minnett's expectations. FY24 and FY25 EPS estimates are reduced by -10% and -9%, respectively. This is based on a retreat in commodity prices and cost headwinds.

The company has indicated it is progressing towards its FY27 goal of achieving $3.3bn in revenue and $600m in EBIT. Ord Minnett is slightly sceptical about this being achieved by the said year. Sell rating is maintained. Target is $8.40.

Target price is $8.40 Current Price is $11.65 Difference: minus $3.25 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.96, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates APM as Accumulate (2) -

APM Human Services International was confirmed as the successful bidder for a GBP384m contract in the UK, commencing in 2024. The company has also provided FY23 guidance of $175-180m in underlying net profit.

Ord Minnett considers the shares oversold as the business has a strong track record of achieving superior service levels across its contracts. Target is raised to $2.90 from $2.80 and an Accumulate rating is maintained.

Target price is $2.90 Current Price is $2.00 Difference: $0.9
If APM meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 53.8% (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

Ord Minnett rates ASX as Upgrade to Accumulate from Hold (2) -

Ord Minnett transfers coverage of ASX to another analyst and raises the target to $75 from $66, upgrading to Accumulate from Hold. The broker notes ASX is a natural monopoly, providing essential infrastructure to Australia's capital markets.

The business is likely to remain well protected with a wide economic moat, despite a deteriorating regulatory environment.

Volatility is expected to increase the relative attractiveness of exchanges because of increased trading and clearing volumes, while the energy transition, the broker asserts, is also an under appreciated tailwind for ASX.

Target price is $75.00 Current Price is $68.53 Difference: $6.47
If ASX meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $71.37, suggesting upside of 5.8% (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 BSL as Buy (1) -

The analysts at Citi have returned from a site visit to BlueScope Steel's North Star operation. There's thought to be additional upside potential for steel production via debottlenecking, after the current expansion (now in ramp-up) takes output to 3mtpa.

Overall, the visit confirmed Citi's view on North Star as a well-run, low cost mini-mill.

The broker's forecasts are unchanged, as are the Buy rating and $23.50 target.

Target price is $23.50 Current Price is $18.99 Difference: $4.51
If BSL meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $21.62, suggesting upside of 16.7% (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

Shaw and Partners rates CAT as Buy (1) -

Catapult International's FY23 sharply outpaced Shaw and Partners' forecasts, as strong annualised contract value (ACV) growth combined with a big cost beat to place it on track to be free cash flow positive by FY24, a target which now appears to be derisked, advises the broker.

Shaw and Partners considers the company's Tactics and Coaching (T&C/video) opportunity to be a large, low-risk, long-term growth driver and forecasts a compound annual growth rate for ACV and T&C of 12% through to FY33. 

The broker also considers its top-line forecasts to be conservative in the light of recent investment.

Buy rating retained. Target price rises to $1.70 from $1.60.

Target price is $1.70 Current Price is $1.08 Difference: $0.625
If CAT meets the Shaw and Partners target it will return approximately 58% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates CGF as Sell (5) -

Challenger's investor day revealed a slight lift to profit guidance, while maturities guidance was better than Citi expected.

Maturities are expected to fall to 27% of the un-discounted opening balance in FY24, down from 34%, which suggests to the analyst the back book run-off is slowing.

The broker also highlights wins of mandates and contracts in both businesses, and only a minor immediate negative mark-to-market for property.

Citi retains its Sell rating and believes the biggest current risk is potential downside for the company's investment exposure. Management is targeting a US dollar investment to hedge its exposure. The target rises to $6.00 from $5.90.

Target price is $6.00 Current Price is $6.29 Difference: minus $0.29 (current price is over target).
If CGF 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 $7.09, suggesting upside of 14.4% (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

Morgans rates CGF as Add (1) -

FY23 profit (NPBT) guidance for Challenger was slightly lifted at its investor day and Morgans assesses solid momentum for the business overall, with the benefit of interest rate rises yet to fully impact earnings.

A new fixed term annuities offer has been launched which will allow applications to be completed in 10 minutes versus several weeks previously, notes the analyst.

The broker also highlights new opportunities for Challenger to help superannuation funds manage both defined benefit portfolio risks and also their Lifetime Solution strategies.

Morgans raises its target to $7.70 from $7.52 and maintains its Add rating as the company is seen trading on an undemanding valuation multiple.

Target price is $7.70 Current Price is $6.29 Difference: $1.41
If CGF meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 14.4% (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

Bell Potter rates CU6 as Buy (1) -

Clarity Pharmaceuticals has reported "pleasing" progress in its phase 1/2 clinical trial investigating the use of its proprietary radiopharmaceutical for the treatment of metastatic castrate resistant prostate cancer (mCRPC), Bell Potter reports.

As is typical for a phase 1 study, the broker explains, efficacy is not a clinical endpoint for Clarity's SECURE drug, but investigators almost always look for signals. In this case the FDA has allowed patients to continue to be treated with clinicians requesting additional doses of drug.

Speculative Buy retained, target rises to $1.40 from $1.35.

Target price is $1.40 Current Price is $0.76 Difference: $0.645
If CU6 meets the Bell Potter target it will return approximately 85% (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 DEG as Upgrade to Buy from Neutral (1) -

UBS revisits its gold coverage. Following poor production performances, a preference is maintained for quality while expectations for the June quarter are conservative.

The broker is confident De Grey Mining's inventory will reach more than 10m ounces, with current resources standing at 10.6moz and 64% already in measured and indicated categories.

As the rate of material greenfield discoveries declines and portfolios struggle to replace reserves, UBS believes Mallina has significant strategic value. Rating is upgraded to Buy from Neutral and the target is steady at $1.80.

Target price is $1.80 Current Price is $1.31 Difference: $0.49
If DEG meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates GL1 as Outperform (1) -

Global Lithium Resources has completed an ore sorting trial material from the Manna spodumene project. Macquarie is encouraged by the results as the company has been able to achieve a significant uplift in the average grade.

This could mean Manna is delivered with lower expenditure compared with the broker's base case, and an Outperform rating is reiterated.

Earnings forecasts are upgraded to incorporate reduced equity dilution after the capital raising price is lifted in the funding scenario for the project. Target is raised to $2.50 from $2.20.

Target price is $2.50 Current Price is $1.44 Difference: $1.065
If GL1 meets the Macquarie 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

Shaw and Partners rates GL1 as Buy (1) -

Global Lithium Resources's first-stage ore-sorting trial results have pleased Shaw and Partners, indicating a 90% rise in lithium head grade to 1.67%, and a 93% reduction in iron to 0.4% in the mixed waste and pegmatite sample.

The results will be incorporated in the Definitive Feasibility Study, due by year end.

Buy rating retained, the broker expecting a recovery in the lithium markets in the December half. Target price steady at $3.50.

Target price is $3.50 Current Price is $1.44 Difference: $2.065
If GL1 meets the Shaw and Partners target it will return approximately 144% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates IDX as Neutral (3) -

While Citi expects margins for Integral Diagnostics will be structurally lower due to changes in the New Zealand competitive landscape, the broker's earnings (EBITDA) margin forecasts are revised upwards.

Revenue growth, operating leverage and Medicare fee indexation are expected to provide the boost to margins, explains the analyst.

Separately, Citi notes from Medicare data diagnostic imaging benefits paid were flat in April, up 6.2% on a workday adjusted basis. Benefits paid in 2023 up to the end of April rose by 10.1% year-on-year. Second half growth-to-date is in line with the broker's forecast.

The target rises to $3.45 from $2.80, while the Neutral rating is kept.

Target price is $3.45 Current Price is $3.28 Difference: $0.17
If IDX meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.31, suggesting downside of -0.8% (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

Bell Potter rates IEL as Upgrade to Buy from Hold (1) -

Immigration, Refugees and Citizenship Canada (IRCC) has announced the approval of several other English language tests for the Student Direct Stream visa program starting in August. Previously, only IDP Education's IELTS was accepted.

Bell Potter has revised forecasts for this announcement, noting that the broker's English language testing volumes were already conservative, factoring in lost IELTS market share in both India and Canada.

IDP has stated that the IRCC’s decision is not expected to have a material impact on the company’s FY23 revenue or earnings so there is no change to the broker's forecast FY23 IELTS volumes.

Target falls to $27.40 from $30.00. On the stock's de-rating, upgrade to Buy from Hold.

Target price is $27.40 Current Price is $22.21 Difference: $5.19
If IEL meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $26.99, suggesting upside of 23.2% (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 IEL as Downgrade to Neutral from Outperform (3) -

Macquarie notes when Australia initiated new ELT tests for migration study purposes this resulted in market share losses for IELTS and a similar outcome is expected now Canada has opened to competitors.

IDP Education indicated in February that the Indian IELTS business was slower as Indian students turned to selecting Pearson because of the competitor's increased sales and marketing efforts.

Macquarie reduces estimates for FY23 by -4% amid slightly softer IELTS volumes. Rating is downgraded to Neutral from Outperform. Target is reduced to $22 from $34.

Target price is $22.00 Current Price is $22.21 Difference: minus $0.21 (current price is over target).
If IEL meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.99, suggesting upside of 23.2% (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

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

Morgan Stanley feels lower FY23 guidance provided by Latitude Group is broadly conservative given new management is probably aiming to reset market expectations.

The broker notes the March cyber attack has proven more costly than initially expected, while the underlying business was also significantly impacted. Management flagged a 1H dividend is unlikely.

In the 1H, -$7m (post tax) of costs are expected to be incurred for containment and remediation, while an additional provision for -$46m of costs is also made. The broker points out these costs don't include potential regulatory fines, class actions or insurance proceeds.

The Equal-weight rating is retained. Target is reduced to $1.10 from $1.15. Industry View: In-line.

Target price is $1.10 Current Price is $1.26 Difference: minus $0.16 (current price is over target).
If LFS meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.98, suggesting downside of -21.3% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates LIC as Hold (3) -

Lifestyle Communities expects settlements will be lower than originally forecast although maintains medium-term guidance. Ord Minnett believes this indicates FY23 is being affected by volatility stemming from the residential property market.

The broker continues to believe the business is supported by its underlying business fundamentals although it is considered fairly valued on a 12-month basis. Hold rating maintained. Target is lowered to $17.96 from $18.20.

Target price is $17.96 Current Price is $15.47 Difference: $2.49
If LIC meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

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

UBS rates LIC as Neutral (3) -

Lifestyle Communities has indicated FY23 settlements are likely to now be in the range of 355-365 compare with prior guidance of "similar to FY22". UBS calculates this represents a downgrade of -10%.

Slower settlements are stemming from the Wallert and Deanside projects, with residents taking longer to start selling, and not attributable to difficulty achieving sales or any production delays.

The main issue for the broker is a slight deterioration in underlying business versus high expectations but the longer-term situation remains sound. Neutral maintained. Target is reduced to $17.50 from $17.80.

Target price is $17.50 Current Price is $15.47 Difference: $2.03
If LIC meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

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 MXI as Initiation of coverage with Accumulate (2) -

Ord Minnett initiates coverage of MaxiPARTS with an Accumulate rating and $3 target, noting the business is established as one of the leading operators in the commercial vehicle replacement parts industry.

Moreover, demand for parts and accessories remains robust because of increased vehicle complexity, an ageing truck fleet, and an increase in the number of registered commercial vehicles in Australia amid increasing demand for road freight transport.

Target price is $3.00 Current Price is $2.69 Difference: $0.31
If MXI meets the Ord Minnett target it will return approximately 12% (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

UBS rates NCM as Neutral (3) -

UBS revisits its gold coverage. Following poor production performances a preference is maintained for quality while expectations for the June quarter are conservative.

The broker prefers Newcrest Mining over the Northern Star Resources ((NST)) and Evolution Mining ((EVN)) because of the improved quality offered by the Newmont CDIs. The takeover looks on track for October/November, making short-term production less material.

UBS retains a Neutral rating and reduces the target to $26.60 from $30.15.

Target price is $26.60 Current Price is $25.69 Difference: $0.91
If NCM meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $28.91, suggesting upside of 12.6% (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: 0.2

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

UBS rates NST as Upgrade to Neutral from Sell (3) -

UBS revisits its gold coverage. Following poor production performances a preference is maintained for quality while expectations for the June quarter are conservative.

The broker assesses Northern Star Resources will require a strong fourth quarter to reach FY23 guidance, which was maintained at 1.56-68m ounces at the March quarter, and hopes for an improved and undisrupted FY24 delivering 1.76moz.

Rating is upgraded to Neutral from Sell and the target is steady at $12.70.

Target price is $12.70 Current Price is $12.70 Difference: $0
If NST meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $13.28, suggesting upside of 3.1% (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

Bell Potter rates PEB as Hold (3) -

Pacific Edge's FY23 revenue was in line with Bell Potter while the net after tax loss was not as extensive as forecast. The result was driven by US testing volumes.

Bell Potter retains Hold (Speculative) with a 50c target. Key potential catalysts include completion of Kaiser EMR integration, clinical utility/validity data from multiple study programs underway and expansion into new markets (APAC, Israel).

However, the most critical issue is whether US Medicare/Medicaid reimbursement is retained, the broker warns.

Target price is $0.50 Current Price is $0.38 Difference: $0.12
If PEB meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates QAN as Neutral (3) -

Citi leaves its forecasts unchanged after the investor day held by Qantas Airways, where management outlined expectations for structurally higher earnings, though limited details were provided on fleet renewal.

The company expects FY23 domestic earnings (EBIT) profit of around $1.6bn and circa 11% margins for FY23 for the International segment, compared to the consensus forecast of 10%.

The broker retains its Neutral rating and $6.90 target.

Target price is $6.90 Current Price is $6.59 Difference: $0.31
If QAN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.61, suggesting upside of 14.4% (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 QAN as Outperform (1) -

Qantas Airways has focused on its competitive advantages at the investor briefing. Macquarie notes the domestic market structure and limited competition in international routes underpins the business, in particular, Project Sunrise and the earnings contribution from loyalty.

Demand continues to be strong, and international remains below pre-pandemic levels. Nevertheless, the broker points out there is a debate regarding the sustainability of the revenue environment, which is holding back some investor conviction on the investment thesis.

Management has signalled incremental EBIT of $960m across Project Sunrise, freight and loyalty to FY30. Macquarie retains an Outperform rating and raises the target to $7.90 from $7.40.

Target price is $7.90 Current Price is $6.59 Difference: $1.31
If QAN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.61, suggesting upside of 14.4% (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

Morgan Stanley rates QAN as Overweight (1) -

Following the Qantas Airways' investor day, Morgan Stanley now has confidence in a sustainably higher earnings base (and meaningful growth as well) and feels consensus forecasts are too conservative.

Management expects long-run earnings above the historical average via fleet optimisation, commencement of Project Sunrise, growth in Loyalty and investment in customer experience.

Target $8.50. The Overweight rating is maintained on a compelling valuation, according to Morgan Stanley. Industry View: In-line.

Target price is $8.50 Current Price is $6.59 Difference: $1.91
If QAN meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $7.61, suggesting upside of 14.4% (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 QAN as Buy (1) -

The investor briefing from Qantas Airways provided a longer-than-usual outlook, UBS notes. The broker believes it takes confidence to look through the near-term concerns of peak earnings or a cyclical downturn, and the market rarely focuses on the longer term for Qantas.

The airline believes its strategy will add around 30% to FY23 EBITDA using loyalty,  Project Sunrise and eliminating temporary costs.

Following substantial hiring to return capacity, a further 2300 roles are expected to be added in the next 18 months, bringing the workforce to -10-15% below pre-pandemic levels.

Project Sunrise is targeting EBIT of $400m per annum by FY20. UBS retains a Buy rating and $7.95 target.

Target price is $7.95 Current Price is $6.59 Difference: $1.36
If QAN meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.61, suggesting upside of 14.4% (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

Morgan Stanley rates QBE as Overweight (1) -

Morgan Stanley notes there are no changes to FY23 guidance and capital strength, resulting from the adoption by QBE Insurance of new accounting standard AASB17. There is also considered to be minimal impact on the balance sheet.

The broker maintains its Overweight rating and $17.50 target. Industry View: In-Line.

Target price is $17.50 Current Price is $14.85 Difference: $2.65
If QBE meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $16.22, suggesting upside of 10.8% (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: 0.8

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

UBS rates RRL as Upgrade to Buy from Neutral (1) -

UBS revisits its gold coverage. Following poor production performances a preference is maintained for quality while expectations for the June quarter are conservative.

Regis Resources is expected to be challenged by costs at Duketon going forward and the broker forecasts AISC for the group staying above $1800/oz. This may pressure margins if gold prices were to push lower but for now the risk/reward is considered more attractive.

Rating is upgraded to Buy from Neutral and the target is steady at $2.35.

Target price is $2.35 Current Price is $2.00 Difference: $0.35
If RRL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 24.6% (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

Macquarie rates SYA as Outperform (1) -

Macquarie was surprised by Sayona Mining undertaking a $200m equity raising, having assumed the existing cash balance would cover working capital requirements during production ramp up in Quebec.

Assumptions for the capital build and ramp up expenditure are increased. The company has reiterated guidance for first half spodumene shipments of 85-105,000t.  Outperform rating maintained. Target is reduced to $0.25 from $0.30.

Target price is $0.25 Current Price is $0.19 Difference: $0.065
If SYA meets the Macquarie target it will return approximately 35% (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 TCL as Outperform (1) -

Macquarie revises revenue forecasts for WestConnex. The road is almost fully open with the Rozelle interchange expected in the second half of FY24, that should lift trips by 10% and trip length by 20%. Gross revenue for the third quarter was $160m, up 24%.

Meanwhile, the M2 main line traffic has been soft, reflecting roadworks on the Warringah Expressway in the corridor.

Macquarie retains an Outperform rating for Transurban Group, raising the target to $14.72 from $14.65.

Target price is $14.72 Current Price is $14.71 Difference: $0.01
If TCL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $14.66, suggesting downside of -0.3% (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 TSK as Buy (1) -

TASK Group posted underlying EBITDA in FY23 that was in line with guidance. The partnership with McDonald's is producing "impressive" results, Ord Minnett asserts, in terms of active user numbers and the volume of purchases executed through the loyalty program.

The broker expects management will double down on its growth strategy in Australasia and the US.

Ord Minnett allows for higher operating costs and capital expenditure to support the commercialisation of the payments and transaction platform. Buy rating retained. Target increased to $0.66 from $0.59.

Target price is $0.66 Current Price is $0.57 Difference: $0.09
If TSK meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates WES as Sell (5) -

Wesfarmers' strategy day highlighted the path to profitability is still unclear for Catch, and Citi also believes there are too many competing marketplaces.

Management noted the ammonia business will likely experience FY24 headwinds after a fall in commodity pricing.

The analyst feels productivity measures cited on the day will be insufficient to offset margin erosion from rising wages and other costs-of-doing-business.

The Sell rating and $43 target are maintained.

Target price is $43.00 Current Price is $49.30 Difference: minus $6.3 (current price is over target).
If WES meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.38, suggesting upside of 3.3% (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

Macquarie rates WES as Neutral (3) -

Wesfarmers focused on productivity gains to offset rising inflation at its strategy briefing. Macquarie notes the balance sheet is robust and cash from the lithium assets should provide support.

Discretionary retail sales for the remainder of 2023 are expected to come under pressure but the value focus in the company's retail operations appears to be gaining new customers, Macquarie observes.

The next six months are considered a key risk period for Australian consumers and the broker retains a Neutral rating. Target is reduced to $52.80 from $55.60.

Target price is $52.80 Current Price is $49.30 Difference: $3.5
If WES meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $49.38, suggesting upside of 3.3% (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

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

Morgan Stanley's key takeaways from Wesfarmers' strategy day include management's expectation for a 12-18 month ramp-up to full nameplate capacity at Mt Holland, and the signing of off-take agreements with tier-1 lithium hydroxide customers.

Management noted FY24 earnings will be negatively impacted by lower ammonia pricing and the impact of the sales-price lag built into customer contracts.

The bottom-end of guidance for FY23 net capex was also increased to $1.1-1.2bn from $1-1.2bn.

The Equal-weight rating and $47.50 target are unchanged. Industry View: In-line.

Target price is $47.50 Current Price is $49.30 Difference: minus $1.8 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $49.38, suggesting upside of 3.3% (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

UBS rates WES as Buy (1) -

Wesfarmers did not provide a trading update at its strategy briefing but narrowed FY23 capital expenditure guidance to $1.1-1.2bn. The OneDigital operating loss is expected to be less than previously assessed and FY24 will be less than FY23.

Growth options centre on covalent lithium, health transformation, Bunnings commercial and new ranges & store investment in retail outside of Target.

UBS observes retail is well-positioned but there are headwinds in the non-retail side of the business. Buy rating and $55.50 target maintained.

Target price is $55.50 Current Price is $49.30 Difference: $6.2
If WES meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $49.38, suggesting upside of 3.3% (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