Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Results from a US peer that runs a similar fremium consumer-subscription model implies significant re-rating headroom for Life360 on further execution, believes Morgan Stanley.

The broker retains its Overweight rating and $9.80 target. Industry view is In-Line.

Target price is $9.80 Current Price is $7.85 Difference: $1.95
If 360 meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

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: 1.0

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

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

In a preview of results due on August 25, Morgan Stanley notes that companies like Adbri, with domestic manufacture competing against imported alternatives, should fare well.

The analyst expects first half profit of $57m and a dividend of 6 cents. The broker maintains its Equal-weight rating and $3.30 target. Industry view: Cautious.

Target price is $3.30 Current Price is $3.84 Difference: minus $0.54 (current price is over target).
If ABC meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.32, suggesting downside of -11.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Morgan Stanley rates AMC as Overweight (1) -

Notwithstanding the uncertainty from recent outbreaks, a number of companies in Morgan Stanley's coverage are operating below target debt levels. Included among the most likely candidates for capital management is Amcor.

Results are due on August 17, and the broker expects a profit of US$1,164m and a second half dividend of US24 cents. Overweight rating with a target of $19. Industry view: In-Line. 

Target price is $19.00 Current Price is $15.80 Difference: $3.2
If AMC meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $17.22, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Ord Minnett rates AMP as Hold (3) -

In the first half results on August 12 Ord Minnett expects an update on strategy and the transformation program as well as cost savings.

Shareholder value destruction has been significant over recent years and, while the stock now appears to be cheap, there is some uncertainty regarding whether earnings have bottomed.

Thus, there may not be a catalyst for the stock to re-rate, in the broker's view. Hold maintained. Target is reduced to $1.20 from $1.35.

Target price is $1.20 Current Price is $1.07 Difference: $0.13
If AMP meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.21, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Citi considers there is long-term potential in the US expansion yet a 53% rise in the share price over the year to date means the rating is downgraded to Neutral from Buy.

Risks in terms of a slower-than-expected contribution from the Ford partnership or weaker conditions in the Australian aftermarket as well as the supply chain challenges are not adequately factored in, the broker suggests. Target is $47.15.

Target price is $47.15 Current Price is $47.11 Difference: $0.04
If ARB meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $44.16, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates BLD as Underweight (5) -

In anticipation of FY21 results on August 24, Morgan Stanley forecasts profit of $249m and a second half dividend of 10 cents.

Morgan Stanley maintains its $6.80 target price and Underweight rating. Industry view is in-line.

Target price is $6.80 Current Price is $7.03 Difference: minus $0.23 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.05, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Morgan Stanley rates BSL as Overweight (1) -

In anticipation of August 16 results, Morgan Stanley notes its Overweight rating is based primarily on upside risk to FY22 earnings. The company pre-guided FY21 results last month to earnings (EBIT) of $1.72bn, and since that time steel prices and particularly spreads have continued to increase.

The analyst sees substantial upside to FY22 estimates should these levels be maintained and forecasts first half earnings of $1.17bn, and FY22 earnings of $2.39bn (broadly in-line with consensus).

Morgan Stanley retains its Overweight rating and $28.50 target price.The industry view is In-Line.

Target price is $28.50 Current Price is $23.60 Difference: $4.9
If BSL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $26.57, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates BXB as Overweight (1) -

In anticipation of FY21 results on August 17, Morgan Stanley forecasts profit of $549m and a second half DPS of US$0.10.

The broker's Overweight rating and $12.90 target price are retained. The industry view is In-Line.

Target price is $12.90 Current Price is $11.65 Difference: $1.25
If BXB meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.23, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining has discovered a new high-grade zone at Gonneville. Incorporating the latest drilling results has resulted in a modest lift to Macquarie's mining inventory assumptions.

Potential catalysts include the regional Hartog and Baudin targets. Outperform maintained. Target rises to $9.60 from $9.50.

Target price is $9.60 Current Price is $6.94 Difference: $2.66
If CHN meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates CIP as Hold (3) -

Centuria Industrial REIT's FY21 result was in-line with guidance and Morgans expectations. Management has guided to funds from operations (FFO) of no less than 18.1 cents and DPS of 17.3 cents.

The broker highlights industrial/logistics sectors remain resilient, given the growing shift to e-commerce which has accelerated over the past 18 months.

There has also been a focus on supply-chain resilience on the back of covid (onshoring) and a lack of investment-grade assets, which has led to a strengthening in demand. Morgans retains is Hold rating and lifts its target price to $3.87 from $3.71.

Target price is $3.87 Current Price is $3.86 Difference: $0.01
If CIP meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Cochlear is due to report FY21 earnings on August 20. Morgan Stanley expects profit to be at the top end of the $225-245m guidance range, which would be in-line with consensus of $245m. 

The broker thinks FY22 guidance will be provided and expects 25% profit growth, driven by a 17% increase in Cochlear implant (CI) units, total revenue up 15% and gross profit margins rising by 252bps.

The analyst sees momentum continuing with CI units only slightly below pre-pandemic forecasts by FY23. The Equal-weight rating and $238 target price are retained. Industry view: In-Line.

Target price is $238.00 Current Price is $249.26 Difference: minus $11.26 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $221.87, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Macquarie rates CPU as Outperform (1) -

Macquarie observes US mortgage servicing data suggests ongoing downside risk to earnings, despite Computershare reiterating FY21 guidance.

According to the data from Inside Mortgage Finance, the unpaid principal balances (UPB) fell -1.4% sequentially in the fourth quarter.

Macquarie expects first half UPB will decline by -2.5% given the lack of visibility on sub-servicing contract gains, new JV partners and amid ongoing foreclosure restrictions. Outperform maintained. Target is reduced to $21.25 from $22.00.

Target price is $21.25 Current Price is $16.05 Difference: $5.2
If CPU meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $17.96, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

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

In anticipation of FY21 results on August 18, Morgan Stanley notes the magnitude of any FY23 rebound is potentially more important for
CSL's share price than first-time FY22 guidance.

Despite this, the broker estimates any fall in FY22 profit growth and an updated collection trajectory are the two key factors to watch for.

The analyst expects CSL's plasma collection volumes could be down circa -20% in FY21 and into FY22, which suggests growth may be hard to come by in FY22. Morgan Stanley retains its Equal-weight rating and $271 price target. In-Line industry view.

Target price is $271.00 Current Price is $297.93 Difference: minus $26.93 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $301.44, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Morgan Stanley rates FBU as Overweight (1) -

Notwithstanding the uncertainty from recent outbreaks, a number of companies in Morgan Stanley's coverage are operating below target debt levels. Included among the most likely candidates for capital management is Fletcher Building.

Results are due on August 18, and the broker expects a profit of NZ$417m, and a second half dividend of NZ$0.16. The Overweight rating and target price of NZ$8.10 are unchanged. Industry view is In-Line.

Current Price is $7.38. Target price not assessed.

Current consensus price target is $7.60, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

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

Macquarie reviews forecasts ahead of the FY21 result on August 26. The earnings recovery is pushed out by 6-9 months because of prolonged border closures.

More emphasis is likely to be placed on the corporate business where Macquarie anticipates gains in market share.

The business remains loss-making for the short term and break-even is now expected in FY23. Target is reduced to $15.50 from $17.50 and the rating is downgraded to Neutral from Outperform.

Target price is $15.50 Current Price is $15.27 Difference: $0.23
If FLT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.46, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Morgan Stanley rates JHX as Overweight (1) -

Leading into results James Hardie Industries is Morgan Stanley's top exposure in the Building Materials sector. The US housing market continues to grow strongly, lumber prices have begun to ease and homebuilders are thought to be managing backlogs to sustain activity into 2022.

The broker forecasts US$128m profit for the first quarter and $572m for FY22, which sits at the top of management's guidance range of US$520-570m. Morgan Stanley's Overweight rating and $50 target price are unchanged. Industry view is In-Line.

Target price is $50.00 Current Price is $48.13 Difference: $1.87
If JHX meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $47.14, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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 MQG as Sell (5) -

Citi awaits details as to how Macquarie Group deploys excess capital, calculating FY21 profit could be a material $4bn.

While Macquarie Group has done a "fantastic" job in harvesting recent assets the question of earnings sustainability does overhang the stock, in the broker's view.

Hence, Citi retains a Sell rating and $140 target.

Target price is $140.00 Current Price is $157.78 Difference: minus $17.78 (current price is over target).
If MQG 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 $161.86, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates NWS as Outperform (1) -

News Corp results were ahead of Credit Suisse estimates. The performance of Move stood out, with growth accelerating in the fourth quarter and revenue up 68%.

The broker assesses there is limited downside risk to its FY22 estimates, forecasting growth will be supported by payments from Facebook/Google and a number of acquisitions.

Management has also indicated a review of capital return policy may place greater focus on buybacks. Outperform maintained. Target rises to $40.00 from $37.50.

Target price is $40.00 Current Price is $35.20 Difference: $4.8
If NWS meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $40.13, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Macquarie rates NWS as Outperform (1) -

News Corp results were below expectations. For Dow Jones the revenue trends were better than Macquarie expected, amid an 18% increase in circulation revenue in the fourth quarter. The broker notes, overall, revenue was better while costs were also higher.

The investment thesis is unchanged and the digital businesses are expected to continue underpinning profitability.

Capital management appears on the agenda and the broker considers this a positive as it may result in a realisation of asset values that would close the gap between the market cap and valuation. Outperform maintained. Target is reduced to $49 from $51.

Target price is $49.00 Current Price is $35.20 Difference: $13.8
If NWS meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $40.13, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Morgan Stanley rates NWS as Overweight (1) -

After an initial review, Morgan Stanley estimates FY21 results were in-line. The performance and outlook for Move Inc/Realtor.com and Dow Jones, key drivers of shareholder value, were considered encouraging.

Management noted it now has options regarding Foxtel, after its improved results/outlook, and stated a capital management review is underway, given the strong cash position.

The analyst sees the results as very supportive of the Overweight rating and $32 target price, and thinks risks skew to the upside. Industry view: Attractive. Target is US$31.

Target price is $32.00 Current Price is $35.20 Difference: minus $3.2 (current price is over target).
If NWS meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.13, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

UBS rates NWS as Buy (1) -

News Corp results fell short of UBS' estimates. The miss primarily centred around litigation charges recorded in the ‘other’ segment of -$40m that the analyst had not factored-in though, even adjusting for this, earnings (EBITDA) would have been a -6% miss. 

Management announced a focus on share buybacks, after noting a strong cash position. UBS retains its Buy rating and $39.50 price target.

Target price is $39.50 Current Price is $35.20 Difference: $4.3
If NWS meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $40.13, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

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

Notwithstanding the uncertainty from recent outbreaks, a number of companies in Morgan Stanley's coverage are operating below target debt levels. Included among the most likely candidates for capital management is Orora.

Results are due on August 19, and the broker expects a profit of $154m and a second half dividend of 7cps. Morgan Stanley retains its Equal-weight rating and $3.20 target price. Industry view is In-Line.

Target price is $3.20 Current Price is $3.61 Difference: minus $0.41 (current price is over target).
If ORA meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.20, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates ORI as Buy (1) -

Citi is inclined to pull back earnings forecasts for the near term, noting continued weakness in ammonium nitrate pricing. Still, the broker believes Orica is on a recovery path.

Citi also expects price realisations will improve as legacy contracts that were set at lower levels are renewed over the next 3-4 years.

The focus of the CEO on margins over volumes also supports the broker's view and a Buy rating is reiterated. Target is reduced to $14.00 from $15.40.

Target price is $14.00 Current Price is $12.59 Difference: $1.41
If ORI meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.99, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates ORI as Outperform (1) -

Credit Suisse believes the headwinds to mining volumes are increasingly reflected in base case forecasts.

While reducing estimates for FY22 to take into account increases to cost of goods and deferring the timing for mining volume recovery, the broker emphasises this does not reflect any fundamental change in view.

The broker believes the market is underestimating the likely strength of a recovery in profit from the second half. Outperform maintained. Target is reduced to $15.66 from $16.47.

Target price is $15.66 Current Price is $12.59 Difference: $3.07
If ORI meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.99, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates PGH as Underweight (5) -

In anticipation of FY21 results on August 17, Morgan Stanley forecasts profit of $86m and a second half dividend of 5 cents.

The broker's Underweight rating and $2.70 target price are retained. The industry view is In-Line.

Target price is $2.70 Current Price is $3.89 Difference: minus $1.19 (current price is over target).
If PGH meets the Morgan Stanley target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.56, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates QAN as Overweight (1) -

In anticipation of FY21 results on August 26, Morgan Stanley forecasts a loss of -$1,577m.

Overweight maintained. Target is $7.00. Industry view: In-line.

Target price is $7.00 Current Price is $4.57 Difference: $2.43
If QAN meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $5.75, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates REA as Neutral (3) -

FY21 results were below Credit Suisse estimates. The core Australian operations were lower while Asia performed better than expected.

Commentary surrounding the impact on listings of the Sydney lockdown, tougher comparables and the looming federal election in the second half of FY22 may have caused some of the sell-off in the stock, the broker assesses.

Expectations for volume growth in FY22 are eased back while the ultimate outcome for listings is considered far from certain. Credit Suisse retains a Neutral rating and increases the target to $152.50 from $152.00.

Target price is $152.50 Current Price is $159.42 Difference: minus $6.92 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $164.65, suggesting upside of 7.1% (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

Macquarie rates REA as Outperform (1) -

Upon review of FY21 results, factors underpinning listings into FY22 were softer than Macquarie expected for REA Group, which underpins the broker's EPS downgrades.

However, earnings (EBITDA) were broadly in-line with expectations though tax was slightly higher-than-expected, resulting in a minor miss versus the broker and consensus.

Macquarie maintains its Outperform rating and $185 price target, as the outlook remains solid, with depth penetration seeing a healthy jump in the second half.

Target price is $185.00 Current Price is $159.42 Difference: $25.58
If REA meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $164.65, suggesting upside of 7.1% (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

Morgan Stanley rates REA as Overweight (1) -

While REA Group reported a solid FY21 result, Morgan Stanley notes an extended Sydney lockdown will likely lead to negative revisions to both first quarter and first half estimates for FY22. 

Despite this, the broker remains positive and expects quick recovery in listings and revenue following lockdown. 

REA Group closed out FY21 with revenue of $928m, a 13% beat on forecasts, and exceeded expectations for underlying earnings and earnings per share by 13% and 21% respectively.

The broker notes FY22 estimate revisions may weigh on the share price in the near term. The Overweight rating and target price of $185.00 are retained. Industry view: Attractive.

Target price is $185.00 Current Price is $159.42 Difference: $25.58
If REA meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $164.65, suggesting upside of 7.1% (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

Morgans rates REA as Hold (3) -

REA Group's FY21 result was slightly ahead of Morgans and consensus expectations at the revenue and earnings (EBITDA) lines, with a higher effective tax rate leading to a -3% EPS miss.

Given the broker has increased its long-term forecasts, there's considered a buying opportunity on any further share price weakness. The near-term outlook is thought to be clouded by the impact of eastern seaboard lock downs and a second half federal election.

The analyst maintains a Hold rating despite a valuation upgrade and the negative share price reaction, due to a low single digit estimated total shareholder return. Morgans lifts its target price to $160.4 from $139.4.

Target price is $160.40 Current Price is $159.42 Difference: $0.98
If REA meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $164.65, suggesting upside of 7.1% (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

Ord Minnett rates REA as Hold (3) -

FY21 net profit was below Ord Minnett's forecast, albeit up 18%. The broker remains positive on the stock but finds it difficult to be upbeat regarding the outlook for FY22.

The listings outlook appears difficult and is considered unlikely to recover to support revenue growth for a second year in a row.

Ord Minnett reduces forecasts for FY22 by -13.4% amid a decrease in listing assumptions related to lockdowns and restrictions. Hold rating with a target price of $145.

Target price is $145.00 Current Price is $159.42 Difference: minus $14.42 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $164.65, suggesting upside of 7.1% (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 REA as Neutral (3) -

UBS retains its Neutral rating and $160 price target after REA Group's FY21 result was a slight miss on the broker's forecasts though in-line with consensus. 

The broker believes the long-term picture is unchanged, despite near-term uncertainty around lock downs, and commentary about the potential for second half volume declines as a result of a federal election. 

The above-mentioned uncertainties makes accurately forecasting FY22 virtually impossible, notes the analyst.

Target price is $160.00 Current Price is $159.42 Difference: $0.58
If REA meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $164.65, suggesting upside of 7.1% (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

Morgans rates RED as Add (1) -

After a recent site visit, Morgans was impressed with the progress at King of the Hills. Management updates on the Siana project divestment and Darlot strategy were also considered to provide a clearer path for the company to focus on King of the Hills.

The broker lifts its target price to $0.33 from $0.31 and increases its rating to Add from Speculative Buy and sees risks reducing during FY22. However, market reaction is expected to be slow while King of the Hills is being constructed.

Target price is $0.33 Current Price is $0.19 Difference: $0.14
If RED meets the Morgans target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates REH as Underweight (5) -

In anticipation of FY21 results, Morgan Stanley forecasts profit of $356m and a second half dividend of 12 cents.

The broker retains its Underweight rating and $16.40 target price. Industry view: In-line.

Target price is $16.40 Current Price is $24.08 Difference: minus $7.68 (current price is over target).
If REH meets the Morgan Stanley target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.76, suggesting downside of -34.9% (ex-dividends)

The company's fiscal year ends in June.

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 RMD as Neutral (3) -

For Citi's initial take: see Friday's Report. Upon further consideration, Citi analysts have lifted forecasts by 2%-3% for the years ahead, which lifts the price target to $36.50 from $32.50.

The reason for the increase is almost completely related to the product recall by major competitor Philips, on expected additional market share grab by ResMed as a result.

Citi assumes US$450m in additional sales, of which US$350m in devices and an extra US$100m in masks. As the valuation already is well above historical average, Citi maintains its Neutral rating.

Target price is $36.50 Current Price is $37.27 Difference: minus $0.77 (current price is over target).
If RMD meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Credit Suisse rates RMD as Outperform (1) -

The results in the fourth quarter beat Credit Suisse estimates. ResMed has guided to US$300-350m in incremental device sales in FY22 as a result of the recall by Philips.

Yet, the company is constrained by chip shortages and this will limit its ability to ramp up production significantly in the short term. Credit Suisse believes there is a multi-year opportunity for ResMed, particularly with the launch of the AirSense 11 in the next quarter.

Outperform rating maintained. Target is raised to $40.50 from $37.00.

Target price is $40.50 Current Price is $37.27 Difference: $3.23
If RMD meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

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

Earnings in the fourth quarter were slightly below Macquarie's estimates. Management has indicated potential upside from the recall of the Philips device.

Combining expectations for higher market share with revised assumptions in relation to masks/accessories revenue for new patients associated with the recall, Macquarie raises the target to $37.40 from $34.85.

As a result of a 14% outperformance to the ASX200 since June, Macquarie downgrades to Neutral from Outperform.

Target price is $37.50 Current Price is $37.27 Difference: $0.23
If RMD meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

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

Looking to FY22, ResMed is confident in its ability to benefit from a competitor recall and is guiding to a weighted revenue contribution of US$300-350m in the second half of FY22 accordingly. 

It is Morgan Stanley's view that the premium valuation on ResMed will be retained given the competitor recall affecting 30% of the market, a platform launch, and a management team with a long record of execution. 

The company reported fourth quarter revenue of US$876m, a 14% beat on forecasts, driven by a $60-70m benefit from the DS1 recall. 

The Equal-Weight rating is retained and the target price increases to $33.90 from $33.78. Industry view: In-Line.

Target price is $33.90 Current Price is $37.27 Difference: minus $3.37 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Morgans rates RMD as Add (1) -

Despite gross margins contracting, the fourth quarter was better than Morgans expected, on recovering sleep patient flows and Philips’ device recall gains. Management noted "unprecedented demand" as device/mask growth increased by double-digits.

The broker suggests fundamentals are improving, with US$300-350m flagged in incremental gains from the device recall, pointing to an improving medium-term earnings outlook. Morgans forecasts are raised materially higher and its target price rises to $41.34 from $29.14.

That said, ResMed's ability to fully benefit from pent-up demand may be in question, as it faces bottlenecks in global supply chains, explains the analyst.

Target price is $41.34 Current Price is $37.27 Difference: $4.07
If RMD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Ord Minnett rates RMD as Hold (3) -

Revenue in the fourth quarter was ahead of Ord Minnett's forecast. The benefit came from Philips being unable to supply, given a large recall.

A s a result of the recall, Ord Minnett suspects ResMed's dominance of the sleep apnoea treatment market will increase over the next 12 months yet this has largely been priced into the stock. Hold maintained. Target rises to $35.20 from $33.50.

Target price is $35.20 Current Price is $37.27 Difference: minus $2.07 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.49, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Macquarie rates RSG as Outperform (1) -

Resolute Mining will sell Bibiani for US$90m. Macquarie considers the transaction a de-leveraging catalyst as it also removes US$117m in capital from development assumptions.

Syama sulphide is performing well and the broker believes the continued performance of this mine is key to deleveraging. Outperform retained. Target rises to $0.65 from $0.60.

Target price is $0.65 Current Price is $0.56 Difference: $0.09
If RSG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

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: 0.5

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

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

In anticipation of FY21 results on August 23, Morgan Stanley forecasts profit of $193m and a second half dividend of 6 cents.

The Equal-weight rating and target price of $5 are maintained. Industry view is Cautious. 

Target price is $5.00 Current Price is $5.66 Difference: minus $0.66 (current price is over target).
If RWC meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.66, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

In anticipation of FY21 results on August 17, Morgan Stanley forecasts profit of $265m and a second half DPS of 51 cents.

The broker's Equal-weight rating and $19.50 target price are retained. The industry view is In-Line.

Target price is $19.50 Current Price is $15.81 Difference: $3.69
If SGM meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $19.00, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates SUN as Buy (1) -

In an early response to the results Citi notes FY21 cash earnings were ahead of estimates. This stemmed from slightly better claims together with a stronger bank result. The bad debt provision release was also slightly above expectations.

Guidance for FY22 margins are broadly in line with current estimates. The total dividend of $0.40 plus an $0.08 special is ahead of Citi's forecasts. Buy rating maintained. Target is $11.80.

Target price is $11.80 Current Price is $11.86 Difference: minus $0.06 (current price is over target).
If SUN meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.12, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates SUN as Hold (3) -

In an early response, Ord Minnett assesses Suncorp Group's FY21 result is quite strong in General Insurance (GI), perhaps slightly above flattish guidance given on Strategy Day. This was considered helped by investment income and better-than-expected reserve releases.

A risking-up of assets in GI could lead to some increase in forecast returns, believes the broker. Bank net interest margins (NIM) were also considered strong by the analyst. While capital returns/share buy backs were expected, they are six months quicker than estimated.

The company declared a dividend of 74cps, including the special of 8cps, above the broker's estimate for 56.9cps and consensus of 61 cps. The analyst feels investors may like the strong headline figures. The Hold rating and $13 target price are retained.

Target price is $13.00 Current Price is $11.86 Difference: $1.14
If SUN meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.12, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates TCL as Buy (1) -

At first glance FY21 results were below Ord Minnett's forecasts. Demand for long-duration assets is strong, the broker notes, given pricing of the sell-down of the company's stake in the US assets, as well as privatisations and direct transactions across a range of assets in Australia.

The broker believes this aspect is more important than the short-term impact of lockdowns on traffic and cash flow. Buy rating maintained. Target is $16.

Target price is $16.00 Current Price is $14.31 Difference: $1.69
If TCL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.45, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates TPW as Overweight (1) -

Morgan Stanley has defended Temple & Webster Group's high premium through comparison to global leader, Wayfair. The broker highlighted Temple & Webster Group's 26% year-on-year sales increase compared to Wayfair's -10% decline. 

The broker further notes Wayfair is operating on a bigger revenue base of $17bn, compared to Temple & Webster Group's $0.3bn, implying less leverage in the former. Temple & Webster further operated in a less competitive market, underpinning higher terminal margins.

The Overweight rating and target price of $16.00 are retained. Industry view: In-Line.

Target price is $16.00 Current Price is $12.21 Difference: $3.79
If TPW meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $14.41, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

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 WGX as Outperform (1) -

Production guidance for FY22 is in line with Macquarie's estimates while costs are ahead of expectations. As a result of lifting long-term cost forecasts at all three operations the broker lowers the target to $2.30 from $2.50.

Big Bell is the main component in the broker's expectations for improved cash flow over the longer term. Outperform maintained.

Target price is $2.30 Current Price is $1.79 Difference: $0.51
If WGX meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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