Australian Broker Call

Ord Minnett rates AGL as Accumulate (2) -

Ord Minnett believes the longer-term outlook for AGL Energy remains "solid" though there are some near-term risks to both electricity demand and wholesale prices from a slowing economy.

Earnings should stay relatively flat over the long-term, suggests the analyst, as investment in renewable energy and batteries offsets the expiry of cheap long-term coal contracts and the closure of coal power stations.

Ord Minnett feels the Federal government's decision to "massively" expand the Capacity Investment Scheme encouraging green investments is more reflective of creeping desperation as the renewable transition falls behind the government's schedule.

The broker's $12.80 target and Accumulate rating are unchanged.

Target price is $12.80 Current Price is $9.68 Difference: $3.12
If AGL meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates ARB as Buy (1) -

New car sales growth of 18% on the previous corresponding period in November largely reflects the ongoing unwind of the delivery backlog, explains Citi, which should be positive for ARB Corp.

The broker returns from research restriction with a Buy rating and $35.18 target and considers ARB Corp its top pick from among coverage of small cap autos.

Target price is $35.18 Current Price is $33.05 Difference: $2.13
If ARB meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $31.85, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates AWC as Upgrade to Neutral from Underperform (3) -

Macquarie has upgraded it's commodity price outlook and raised its price forecasts for copper, zinc, lead and iron ore and downgraded  forecasts for nickel and coal.

While price forecasts for alumina and aluminium were little changed, the broker upgrades the rating for Alumina Ltd to Neutral from Underperform due to recent share price weakness.

Research was released by Macquarie on December 8.

Target price is $0.80 Current Price is $0.81 Difference: minus $0.01 (current price is over target).
If AWC 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 $1.01, suggesting upside of 27.5% (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: 0.6

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

Citi rates BAP as Neutral (3) -

New car sales growth of 18% on the previous corresponding period in November largely reflects the ongoing unwind of the delivery backlog, explains Citi.

Findings from the broker's latest consumer auto survey suggest there could be some headwinds facing Bapcor regarding service trade down and deferrals.

The Neutral rating is unchanged as the analysts are concerned the retail business, and benefits from Better than Before, could fall short of expectations due to slower growth and the economic backdrop. The $6.40 target is unchanged.

Target price is $6.40 Current Price is $5.36 Difference: $1.04
If BAP meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.79, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in June.

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 CCX as Buy, High Risk (1) -

After reviewing 3Q results for competitor Torrid, Citi sees a generally positive read-through for City Chic Collective.

Torrid's share price was up 18% in after-market trading, notes the broker after experiencing a moderation in like-for-like sales declines and less promotion expenses incurred during the Black Friday period.

Citi's Buy, High Risk rating is retained for City Chic Collective. Target 62c.

Target price is $0.62 Current Price is $0.38 Difference: $0.24
If CCX meets the Citi target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Bell Potter rates CHN as Buy (1) -

Latest results from ongoing drilling programs at Chalice Mining's Gonneville project confirm high grade extensions, and, says Bell Potter, reinforce potential for high graded underground mining. Grades are multiple times higher than the average grades of both the global resource and the current resource.

Results will inform a resource estimate expected late in the first quarter of 2024, and feed into a scoping level study for a smaller-scale, higher grade development option for Gonneville.

The Buy rating and target price of $5.40 are retained.

Target price is $5.40 Current Price is $1.71 Difference: $3.695
If CHN meets the Bell Potter target it will return approximately 217% (excluding dividends, fees and charges).

Current consensus price target is $3.71, suggesting upside of 127.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates CIA as Outperform (1) -

Following recent iron ore price strength, Macquarie raises its price forecasts by between 2-6% over the next three years.

The broker's target for Champion Iron rises to $9.20 from $7.80 on the forecast changes and a higher assumed multiple to reflect the upside potential of green iron. The Outperform rating is unchanged.

Research was released by Macquarie on December 8.

Target price is $9.20 Current Price is $7.76 Difference: $1.44
If CIA meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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

Macquarie rates CRN as Outperform (1) -

Macquarie has softened its forecasts for thermal and met coal prices in the near-term which have driven EPS downgrades for Coronado Global Resources over the next two years.

However, the broker raises its assumed multiple for Coronado Global Resources to reflect buoyant met coal prices, and the target rises by 14% to $2.50. The Outperform rating is unchanged.

This research was issued by Macquarie on December 8.

Target price is $2.50 Current Price is $1.78 Difference: $0.725
If CRN meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 20.7% (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: 0.9

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

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

Macquarie has upgraded it's gold price outlook resulting in only modest upgrades to near-term earnings forecasts for stocks under coverage in the Gold sector.

Due to recent share price strength the rating for Genesis Minerals is downgraded to Neutral from Outperform.

Northern Star Resources ((NST)) is Macquarie's key pick in the sector. The target price rises to $2 from $1.90.

Research was released by Macquarie on December 8.

Target price is $2.00 Current Price is $1.84 Difference: $0.16
If GMD meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Ord Minnett rates GMD as Initiation of coverage with Hold (3) -

While a quality management team deserves a premium, Ord Minnett initiates coverage on gold miner Genesis Minerals with a Hold recommendation, as shares are currently trading at too great a premium to peers.

The broker believes the company is set for fundamental growth with the past acquisition of Dacian Minerals ((DCN)) and the Leonora assets from St Barbara Minerals ((SBM)).

Before adopting a higher rating, the analyst needs to see greater certainty on the viability of numerous upside opportunities and awaits more detail at the company's Capital Markets Day around March next year. A $1.70 target is set.

Target price is $1.70 Current Price is $1.84 Difference: minus $0.14 (current price is over target).
If GMD meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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

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

Macquarie has upgraded it's gold price outlook resulting in only modest upgrades to near-term earnings forecasts for stocks under coverage in the Gold sector.

Due to recent share price strength the rating for Gold Road Resources is downgraded to Neutral from Outperform.

Northern Star Resources is Macquarie's key pick in the sector. The $2 target price is unchanged.

Research was released by Macquarie on December 8.

Target price is $2.00 Current Price is $1.94 Difference: $0.065
If GOR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.14, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in December.

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

Bell Potter rates GSS as Buy (1) -

Genetic Signatures is anticipating a decision on its gastrointestinal parasite diagnostic test from the FDA in the first half of 2024. Bell Potter is anticipating a decision in March, but notes its could be as late as June.

The company estimates 5.5m ova and parasites (O&P) tests are completed in the US each year, and targets a 40% market share objective. The broker assumes a peak uptake of 15%, after four years, leaving clear upside should Genetic Signatures reach their target.

The Buy rating and target price of 83 cents are retained.

Target price is $0.83 Current Price is $0.48 Difference: $0.355
If GSS meets the Bell Potter target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 GUD as Buy (1) -

New car sales growth of 18% on the previous corresponding period in November largely reflects the ongoing unwind of the delivery backlog, explains Citi, which should be positive for G.U.D. Holdings' APG business.

Findings from the broker's latest consumer auto survey suggest there could be some headwinds facing G.U.D. Holdings regarding service trade down and deferrals. The Buy rating and $13.27 target are unchanged.

Target price is $13.27 Current Price is $11.28 Difference: $1.99
If GUD meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $12.88, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Shaw and Partners rates IPG as Buy (1) -

In a strategically compelling transaction, according to Shaw and Partners, IPD Group will acquire CMI Operations Pty Ltd from Excelsior Capital Limited ((ECL)). CMI is a distributor of electrical cables and manufacturer and distributor of plug brands in Australia.

CMI operates in highly complementary sectors that extends IPD Group's product suite, increases supplier diversity and strengthens the overall value proposition, suggests the broker.

IPD Group will make an upfront payment of $92.1m and a contingent payment up to a maximum of $8.9m, and the transaction will be funded by a $65m equity raise at $3.93/share and $40m in new debt.

Management at IPD Group also provided 1H guidance for underlying (EBITDA) in the range of $16-$16.5m and underlying EBIT in the range of $13.5-$14m.

The broker's target rises to $5.35 from $4.90 and the Buy rating is unchanged.

Target price is $5.35 Current Price is $4.66 Difference: $0.69
If IPG meets the Shaw and Partners target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Macquarie rates MGX as Outperform (1) -

Following recent iron ore price strength, Macquarie raises its price forecasts by between 2-6% over the next three years.

The broker's target for Mount Gibson Iron rises to 55c from 50c on the forecast changes. The Outperform rating is unchanged.

Research was released by Macquarie on December 8.

Target price is $0.55 Current Price is $0.55 Difference: $0.005
If MGX meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 MIN as Buy (1) -

Citi's commodities team has responded to lithium pricing pulling back faster and further than expected, reducing its lithium forecasts by -20-30% in the next calendar year and anticipating spodumene pricing will track sideways in the coming year.

Within its lithium coverage, Mineral Resources fairs the best, benefitting from higher iron ore. The broker is Buy rated with a target price of $78.00, although most recent updates are unclear from incomplete research.

Target price is $78.00 Current Price is $62.49 Difference: $15.51
If MIN meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $74.07, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Morgans rates NHF as Add (1) -

Morgans suggests the Independent Review into the National Disability Insurance Scheme is broadly negative for the NDIS Plan Management industry in general, as well as nib Holdings' Thrive business.

The broker highlights the days of Plan Managers being paid to process payments are drawing to a close, and Thrive will need to provide real customer value to succeed.

Changes will take time to implement, and the broker notes nib Holdings is still trading at an around -10% discount to the unchanged $8.38 target price, so the Add rating is unchanged. No forecast changes are made.

Target price is $8.38 Current Price is $7.46 Difference: $0.92
If NHF meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.26, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

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

Citi's commodities team has responded to lithium pricing pulling back faster and further than expected, reducing its lithium forecasts by -20-30% in the next calendar year and anticipating spodumene pricing will track sideways in the coming year.

Citi pulls back its rating on Pilbara Minerals, noting the stock has tracked sideways since October. The broker does, however, note Pilbara Minerals should be most leveraged to any price bounce back.

The rating is downgraded to Neutral from Buy and the target price decreases to $3.90 from $4.40.

Target price is $3.90 Current Price is $3.71 Difference: $0.19
If PLS meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in June.

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 PTM as Sell (5) -

Citi's initial view is that a shift in board structure, announced by Platinum Asset Management today, is incrementally positive, though it may be some time before any meaningful strategy change is implemented.

In aiming for more independence, suggests the analyst, Jeff Peters is appointed as the new CEO and Managing Director, with a withdrawal clause should his visa not be granted by March 31 next year.

The broker believes Mr Peters' international background aligns with Platinum's current strategy to grow it's international products.

The Sell rating and $1 target price are retained.

Target price is $1.00 Current Price is $1.29 Difference: minus $0.29 (current price is over target).
If PTM meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Citi rates SIQ as Buy (1) -

Smartgroup Corp has won a tender with the South Australian government for salary packaging and novated leasing. While the company did not provide details on contract value, it commented it did not expect meaningful earnings uplift in FY24.

As noted by Citi, McMillan Shakespeare ((MMS)) has stated the contract was worth around $16m in normalised revenue in FY23. The broker estimates Smartgroup Corp discounted the fee by around -40%, equating to $6.5m in earnings.

Citi estimates a mid-single digit increase to FY25 earnings forecasts as a result of the contract. The Buy rating and target price of $9.70 are retained.

Target price is $9.70 Current Price is $8.33 Difference: $1.37
If SIQ meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates SKC as Outperform (1) -

Revised full year earnings guidance of NZ$290-301m from SkyCity Entertainment equates to around a -7% downgrade to consensus expectations at the midpoint, points out Macquarie.

Contributing to this is slowing New Zealand slot revenues, weaker performance from SkyCity Adelaide amid cost pressures, a delay in the Auckland car park settlement, and accelerated investment in New Zealand online gaming operations.

Macquarie remains comfortable with the balance sheet, and sees medium-term upside past short-term volume and cost headwinds. The Outperform rating is retained and the target price decreases to NZ$2.75 from NZ$3.05.

Current Price is $1.67. Target price not assessed.

Current consensus price target is $3.20, suggesting upside of 92.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Ord Minnett rates SKC as Buy (1) -

Due to a weaker discretionary spending environment, explains Ord Minnett, management at SkyCity Entertainment have updated FY24 earnings (EBITDA) guidance to a range of between NZ$290-310m, from previous guidance of a modest year-on-year increase.

The analyst notes the earnings outlook has also been negatively impacted by a delayed settlement of the Auckland car park concession. Ongoing compliance and legal costs also continue to weigh.

The Buy rating is retained on significant undervaluation and the $3.20 target is unchanged.

Target price is $3.20 Current Price is $1.67 Difference: $1.535
If SKC meets the Ord Minnett target it will return approximately 92% (excluding dividends, fees and charges).

Current consensus price target is $3.20, suggesting upside of 92.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Macquarie rates STO as Outperform (1) -

Woodside Energy ((WDS)) and Santos have confirmed they are in early stage merger discussions, but Macquarie anticipates interest from other parties now Santos is officially in-play.

The broker also expects the Santos board will accelerate consideration of alternative options, such as a de-merger. The broker expects more value to be recognised in Santos in coming months.

The Outperform rating is retained and the target price decreases to $9.60 from $9.70.

Target price is $9.60 Current Price is $7.25 Difference: $2.35
If STO meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $9.17, suggesting upside of 25.4% (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: 0.6

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

UBS rates STO as Buy (1) -

While acknowledging merger discussions between Woodside Energy and Santos are only preliminary in nature, UBS estimates synergies may range from between $150-300m.

Such synergies would be derived from corporate costs, exploration capex and a 20-30 basis points savings on cost of debt plus
trading synergies via the larger portfolio, suggests the broker.

To arrive at the above figures, UBS assumes an all scrip merger and a 20-30% premium to the Santos closing share price on December 7.

The analyst believes a merger could be EPS accretive from year 1. Given Santos' heavier relative capex burden over the next three
years, it's felt the proposed merger would be free cash flow (FCF)/share accretive from 2027.

Buy. Target $9.05.

Target price is $9.05 Current Price is $7.25 Difference: $1.8
If STO meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $9.17, suggesting upside of 25.4% (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: 0.6

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

Citi rates TLC as Buy (1) -

Lottery revenue for the five months of FY24 to November is down -6% on the previous corresponding period, according to Citi 's proprietary Lottery Tracker, and below the broker's forecasts.

The broker notes Oz Lotto has again endured a weak jackpot run while Powerball is tracking below the previous corresponding period on very tough comparatives.

The analyst lowers earnings forecasts and the target falls to $5.60 from $5.70. Buy.

Target price is $5.60 Current Price is $4.61 Difference: $0.99
If TLC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.39, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates WDS as Sell (5) -

Reacting to the announcement of preliminary merger talks between Woodside Energy and Santos, Citi believes a hurdle will be Woodside's board finding the right value to appease frustrated Santos shareholders. A more than $9/share outcome is considered plausible.

The broker suggests a positive for Woodside is rectifying the existing stagnating portfolio. However, the analysts are unconvinced a merged entity will have the scale to maintain or create value through the energy transition.

The $26.50 target and Sell rating are unchanged.

Target price is $26.50 Current Price is $29.81 Difference: minus $3.31 (current price is over target).
If WDS meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.40, suggesting upside of 13.7% (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: 0.1

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

Macquarie rates WDS as Neutral (3) -

Woodside Energy and Santos ((STO)) have confirmed they are in early stage merger discussions, but Macquarie anticipates interest from other parties now Santos is officially in-play.

The broker also expects the Santos board will accelerate consideration of alternative options, such as a de-merger. Having delivered strongly on its BHP Petroleum acquisition in recent years, Macquarie feels Woodside Energy has some credibility around merger and acquisitions.

The Neutral rating is retained and the target price decreases to $31.00 from $32.00.

Target price is $31.00 Current Price is $29.81 Difference: $1.19
If WDS meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $34.40, suggesting upside of 13.7% (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: 0.1

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

UBS rates WDS as Neutral (3) -

While acknowledging merger discussions between Woodside Energy and Santos are only preliminary in nature, UBS estimates synergies may range from between $150-300m.

Such synergies would be derived from corporate costs, exploration capex and a 20-30 basis points savings on cost of debt plus
trading synergies via the larger portfolio, suggests the broker.

To arrive at the above figures, UBS assumes an all scrip merger and a 20-30% premium to the Santos closing share price on December 7.

The analyst believes a merger could be EPS accretive from year 1, which would be a positive for Woodside Energy shareholders given recent and considerable consensus downgrades to DPS.

Neutral. Target $35.40.

Target price is $35.40 Current Price is $29.81 Difference: $5.59
If WDS meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $34.40, suggesting upside of 13.7% (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: 0.1

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