Australian Broker Call

Macquarie rates ANZ as Upgrade to Outperform from Neutral (1) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in FY23, courtesy strong margins in response to rising interest rates. 

Beyond the March half, however, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments.

Macquarie is now underweight the banking sector.

ANZ Bank is considered the exception, given its discounted, and in the broker's view, unjustified valuation (the bank is trading at a -45% discount to the All Industrials and about -40% to some peers), the broker spying upside from market income and an uptick in margins from its institutional business.

Rating upgraded to Outperform from Neutral. Target price is steady at $26. 

Target price is $26.00 Current Price is $24.75 Difference: $1.25
If ANZ meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.54, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ARB as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley identifies some areas of uncertainty for ARB Corp and moves to an Equal-weight stance from Overweight.

The broker sees deceleration risk in recent data and from company peers, as well as risk from elevated industry inventory as supply constraints ease. US distribution uncertainty alluded to at the AGM is considered another reason for caution.

The $31 target is unchanged. Industry view: In-Line. 

Target price is $31.00 Current Price is $28.59 Difference: $2.41
If ARB meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting upside of 10.9% (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

Credit Suisse rates AWC as Outperform (1) -

Alumina Ltd's sole asset Alcoa World Alumina and Chemicals' December-quarter operating costs proved much lower than Credit Suisse forecast, while realised pricing outpaced, yielding a sharp uptick in the AWAC's margin.

Production fell a tad shy due to curtailments in Spain's San Ciprian refinery, but the broker says this was largely offset by improved production elsewhere.

But the net distribution to Alumina was small and the company's corporate costs high, so the broker doubts a dividend will be forthcoming.

The broker raises earnings forecasts for 2022 to reflect the margin uptick but lowers 2023 earnings forecasts to reflect rising costs at WA refineries.

Outperform rating and $2.05 target price retained.

Target price is $2.05 Current Price is $1.57 Difference: $0.485
If AWC meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting downside of -6.3% (ex-dividends)

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: -0.2

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

Ord Minnett rates AWC as Upgrade to Lighten from Sell (4) -

Alumina Ltd's sole asset Alcoa World Alumina and Chemicals reported higher-than-forecast December-quarter operating costs.

Alumina's EPS forecasts fall -30% for 2022 accordingly, and -50% for 2023, the broker believing costs will remain elevated longer than forecast. DPS forecasts fall -20% and -35%.

But the broker advises that modest changes to costs are having a larger impact on earnings at the moment, given the earnings cycle is at a low ebb, and remains positive for mid-cycle earnings, which it believes will be underpinned by higher energy costs, carbon capture subsidies, light-weighting vehicle trends and a robust battery market.

Ord Minnett upgrades Alumina's rating to Lighten from Sell, after cutting the target price last week to $1.20 from $1.50 (the $1.20 figure still stands).

Target price is $1.20 Current Price is $1.57 Difference: minus $0.365 (current price is over target).
If AWC meets the Ord Minnett target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.50, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in December.

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: -0.2

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

Macquarie rates BEN as Neutral (3) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in the March half, courtesy strong margins in response to rising interest rates. 

Beyond, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments, says the broker.

Macquarie is now underweight the banking sector.

The broker advises it sits above consensus on Bendigo & Adelaide Bank for FY23 but is -3% below consensus for FY24-FY25, Macquarie expects the benefits from its deposit replicating portfolio and unhedged and term deposits will unwind by then.

The broker considers the bank a sub-scale operator in an inflationary environment and in a more normalised deposit environment.  Neutral rating retained. Target price rises to $10 from $9.50.

Target price is $10.00 Current Price is $10.09 Difference: minus $0.09 (current price is over target).
If BEN 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 $10.23, suggesting upside of 0.8% (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

UBS rates BGA as Neutral (3) -

In-house assessments of food and beverages price inflation in Australia has revealed to UBS that dairy prices continue to increase across all products, including cheese, butter, flavoured milk and yoghurt.

Normally, this would be regarded excellent news for companies such as Bega Cheese, but UBS's survey also revealed milk supply is in decline. This will increase competition for procurers, including Bega, and is definitely not great news.

As UBS points out, competition to secure enough milk has dogged the processors for multiple years by now.

UBS's forecast puts Bega's 1H23 EBITDA at $71m, some -15% below consensus of $86m.

The Neutral rating is retained with a target price of $3.75.

Target price is $3.75 Current Price is $3.94 Difference: minus $0.19 (current price is over target).
If BGA meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.74, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Ord Minnett rates BHP as Hold (3) -

BHP's December-quarter production appears to have met Ord Minnett's forecasts, thanks to a strong performance from iron ore.

The broker observes BHP's costs are returning to normal following a big capital expenditure hike during the China boom, which should start to improve returns above the cost of capital.

Hold rating retained, the broker seeing little room left in the elevated share price to warrant an upgrade heading into a likely recession.

Target price is steady at $39.50, after a rise last week to reflect the broker's upgraded commodity price forecasts.

Target price is $39.50 Current Price is $49.95 Difference: minus $10.45 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.01, suggesting downside of -11.0% (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: 0.0

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

UBS rates BHP as Sell (5) -

UBS updated its research last Friday for BHP Group's solid 2Q production results. WA iron ore production was a new record thanks to the ramp-up at the South Flank operation and good supply chain availability.

The broker considered copper production was solid, while coal was impacted by wet weather in NSW and QLD. 

Overall robust realised prices outweighed mostly higher costs, however, the broker remained cautious on currently high commodity prices and retained a Sell rating. The target was lowered to $39 from $40.

Target price is $39.00 Current Price is $49.95 Difference: minus $10.95 (current price is over target).
If BHP meets the UBS target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.01, suggesting downside of -11.0% (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: 0.0

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

Macquarie rates BOQ as Downgrade to Underperform from Neutral (5) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in the March half, courtesy strong margins in response to rising interest rates. 

Beyond, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments, says the broker.

Macquarie is now underweight the banking sector.

The broker says Bank of Queensland's relatively weak funding and margin position is likely to cap upside; and adds the bank has a relatively lower exposure to revenue offsets in an inflationary environment.

While appreciating the bank's transformation strategy, the broker's forecasts are -1% to -8% below that of consensus given perceived risk to short-term earnings.

Rating downgraded to Underperform from Neutral. Target price falls to $6.75 from $7.50.

Target price is $6.75 Current Price is $6.99 Difference: minus $0.24 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.43, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in August.

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

Macquarie rates CBA as Downgrade to Underperform from Neutral (5) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in FY23, courtesy strong margins in response to rising interest rates. 

Beyond the March half, however, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments.

Macquarie is now underweight the banking sector.

Commonwealth Bank is downgraded to Underperform from Neutral, the broker seeing little chance for earnings increases to match the company's premium valuation. Target price slips to $94 from $95. EPS forecasts rise in FY23 but are fairly steady in FY24.

Target price is $94.00 Current Price is $108.66 Difference: minus $14.66 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.28, suggesting downside of -14.4% (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

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

Following a series of misses in 2022, pre-announced 1H results for City Chic Collective were broadly in line with Morgan Stanley's forecast. It's felt sales growth, while still negative, is beginning to stabilise in the Americas and the EMEA region.

While the demand outlook is challenging and an elevated level of promotions continues, the analyst notes the company is on-track to reach net cash by the end of FY23 as inventory unwinds.

The Equal-weight rating and $1.20 target are unchanged. Industry view: In-Line.

Target price is $1.20 Current Price is $0.66 Difference: $0.54
If CCX meets the Morgan Stanley target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $0.78, suggesting upside of 8.9% (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 CCX as Neutral (3) -

Following a 1H trading update, UBS increases its target for City Chic Collective to 70c from 45c though expects an uncertain recovery will continue to weigh on the share price and retains a Neutral rating.

Sales growth of -8% versus the previous corresponding period was in line with the analyst's expectation. Competitor, and to a lesser extent City Chic discounting is thought to remain elevated.

The broker raises its estimate for 1H earnings (EBITDA) - pre AASB16 - to $3m from -$4.5m after management issued a guidance range of -$2.5m-4m.

FY23 guidance for net cash and inventory were retained. As a result of higher sales and earnings margin forecasts, the analyst reduces the FY23 EPS loss estimate by -20% and increases the FY24 EPS forecast by 16%.

Target price is $0.70 Current Price is $0.66 Difference: $0.04
If CCX meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.78, suggesting upside of 8.9% (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 CGC as Neutral (3) -

In-house assessments of food and beverages price inflation in Australia has revealed to UBS that prices for fruit and vegetables throughout the December quarter were rather mixed.

On the broker's assessment, berries went up in prices, as did mushrooms, and mandarins, but some hefty price decreases were registered for tomatoes and oranges.

Since the survey, UBS observes prices for blueberries and raspberries have declined by -22% and -13% respectively in January.

The Neutral rating is retained for Costa Group with a target price of $2.75.

Target price is $2.75 Current Price is $2.79 Difference: minus $0.04 (current price is over target).
If CGC meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.72, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates EDV as Hold (3) -

Morgans points out shares of Endeavour Group have fallen -22% since the August 23 FY22 result. This is largely attributed to investor caution on Hotel earnings from the potential introduction of a cashless gaming system in NSW and TAS.

The broker accounts for this uncertainty by lowering earnings estimates, which reduces the target to $6.80 from $7.31.

The Hold rating is unchanged with elevated costs related to supply chain, labour and technology also expected to persist into the 1H of 2023. Promotional activity also remains high, explains the analyst.

Target price is $6.80 Current Price is $6.54 Difference: $0.26
If EDV meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.96, suggesting upside of 6.4% (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

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

Fisher & Paykel Healthcare has upgraded FY23 revenue guidance to above consensus, Citi notes, having previously suggested the year would be second half-weighted. Covid in China, an early start to the flu season, and a new mask model are contributing.

The broker upgrades its FY23 earnings forecast by 19%.

However the stock has run up 47% since its October low, hence Citi pulls back to Neutral from Buy, citing fair value at this level. Target rises to NZ$28.75 from NZ$27.00.

Current Price is $24.32. Target price not assessed.

Current consensus price target is $21.75, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.2

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

Credit Suisse rates FPH as Neutral (3) -

Credit Suisse observes that Fisher & Paykel Healthcare management upgraded revenue guidance for FY23, some 5-9% above consensus estimates.

The better than expected guidance is underpinned by the rise in China's covid cases  and an early flu season in the USA, with the broker looking to a potential inventory de-stocking which impacted on 1H23 earnings.

Credit Suisse upgrades EPS forecasts by 18% for FY23 and 3% for FY24.

A Neutral rating is retained with the share price viewed as fully valued. Thee broker's target price rises to $23.00 from $21.50.

Target price is $23.00 Current Price is $24.32 Difference: minus $1.32 (current price is over target).
If FPH meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.75, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.2

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

Macquarie rates FPH as Neutral (3) -

Fisher & Paykel Healthcare has updated revenue guidance, outpacing Macquarie's forecast by 6.6% and midpoint guidance by 5.2%, thanks to China's policy decision to end covid lockdowns, and strong US demand driven by RSV flu and signs that destocking is nearly complete.

Macquarie is cautious on gross margins, noting management did not provide a net-profit-after-tax guide, but management did say the gross profit margin would likely be comparable with November's 61%.

Input inflation, sea/air freight mix and manufacturing efficiency are all variables. Operating expenditure is forecast to be steady on previous guidance, (growth of 8%).

EPS forecasts rise 25% in FY23; 2% in FY24; and 4% in FY25. Neutral rating retained. Target price rises 10% to NZ$26.67.

Current Price is $24.32. Target price not assessed.

Current consensus price target is $21.75, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.2

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

Ord Minnett rates FPH as Lighten (4) -

Fisher & Paykel Healthcare's December-quarter trading update pleased Ord Minnett, but the broker considers the share price to be overvalued and retains a Lighten rating and $20.50 target price.

The broker upgrades earnings forecasts to reflect Fisher & Paykel's trading upgrade, which was struck on a surge in covid-19 cases in China following the end of lockdowns, and forecasts revenue increases from hospital sales in North America and a premature arrival of the region's flu season.

Target price is $20.50 Current Price is $24.32 Difference: minus $3.82 (current price is over target).
If FPH meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.75, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.2

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

Macquarie rates IMD as Outperform (1) -

Imdex has announced the purchase of Devico for $324m, to be funded by a $120m senior secured loan and a $224m equity raising.

Macquarie advises the company will be 3% accretive in FY24 and 5% accretive in FY25, expecting $2m in recurring cost synergies, and the broker spies upside risk.

From a strategic perspective, the broker says the acquisition increases Imdex's global market (Devico is strong in Europe, where Imdex's position is less so) and strengthens Imdex's mining production position given more than 50% of Devico's revenues derive from resources companies.

EPS forecasts fall -1% in FY23; rise 8% in FY24; and 8% in FY25.

Outperform rating retained. Target price eases 5% to $2.70 to reflection increased debt. 

Target price is $2.70 Current Price is $2.47 Difference: $0.23
If IMD meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 6.1% (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 IMD as Neutral (3) -

Last Friday UBS raised its target for Imdex to $2.50 from $2.28 on news of a binding agreement to acquire Norway-based Devico for -$324m. The acquisition is considered both compelling and highly strategic. Neutral.

Financing will be largely via a $224m equity raise at $2.20 and $120m of debt.

Devico owns high quality Directional Drilling Technologies (DeviDrill) and Sensor Technologies (DeviGyro), which the broker suggests
will help Imdex position as a dominant leader in the exploration Tools & Sensors market.

Target price is $2.50 Current Price is $2.47 Difference: $0.03
If IMD meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 6.1% (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 ING as Neutral (3) -

In-house assessments of food and beverages price inflation in Australia has revealed to UBS that meat prices in Australia are stabilising, but the % increase is still high versus twelve months ago.

Lamb and pork registered the highest price increases throughout the December quarter, according to UBS's survey, with beef a distant third and with chicken prices increasing 6%.

This leads the broker to once again observe that chicken continues to present itself as "the best value protein". With reference to pressure on household budgets, the broker will be curious to find out whether this has any impact on sales volumes.

At this point, UBS's forecast of 1H23 EBITDA of $207m for Inghams Group  is in line with market consensus. If correct, underlying there might be 1% growth in volume and 14% growth from price and product mix.

Neutral. Target $3.

Target price is $3.00 Current Price is $2.88 Difference: $0.12
If ING meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting downside of -0.8% (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 LYC as Neutral (3) -

With lithium pricing having remained buoyant throughout the year, Macquarie has assessed its lithium coverage. The broker notes pricing has translated to strong share price performance for all lithium stocks within its coverage (and other EV battery materials).

Lynas Rare Earths' share price declined -13% over the year, but the decline was consistent with other rare earth miners given recent commodity price weakness.

The Neutral rating is retained and the target price increases to $9.20 from $9.10.

Target price is $9.20 Current Price is $8.70 Difference: $0.5
If LYC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.03, suggesting downside of -8.7% (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

Citi rates MHJ as Buy (1) -

Citi's key takeaway from Michael Hill's first half trading update was that cost of doing business was higher than forecast, likely driven by a return to a more normalised opex level following covid distortions.

The broker has nevertheless maintained a Buy rating given the stock is trading at an undemanding 9x FY23 PE multiple with a net cash position that could facilitate M&A and measured international expansion which, if successful, could lead to PE re-rating.

The broker has cut its FY23-25 profit forecasts by -10% to -18% to reflect softer than expected first half earnings guidance and slower than expected sales. Target falls to $1.58 from $1.65.

Target price is $1.58 Current Price is $1.12 Difference: $0.46
If MHJ meets the Citi target it will return approximately 41% (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 NAB as Neutral (3) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in the March half, courtesy strong margins in response to rising interest rates. 

Beyond, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments, says the broker.

Macquarie is now underweight the banking sector.

The broker sits shy of consensus on National Australia Bank, expecting it is more exposed than peers given its funding requirements and short-term skew and points out NAB is no longer a value-play, particularly as the economy deteriorates.

Neutral rating retained. Target price eases to $31 from $32.50.

Target price is $31.00 Current Price is $31.60 Difference: minus $0.6 (current price is over target).
If NAB meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.94, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates NST as Neutral (3) -

Northern Star Resources's December-quarter production met consensus forecasts but fell -2% shy of Credit Suisse's forecasts. Unit costs exceeded both the broker and consensus forecasts.

Projects turned in mixed performances, Thunderbox mill outpacing consensus by 20% thanks to a strong ramp-up; Pogo missing by -13% as a result of lower grades, and stope ore as a percentage of mined ore was higher than guidance.

Management reiterates FY23 guidance and all projects generated positive net mine cash flow in the December half and the company closed the quarter with net cash (excluding leases) of $145m.

Neutral rating retained. Target price rises to $11.50 from $11.30.

Target price is $11.50 Current Price is $12.55 Difference: minus $1.05 (current price is over target).
If NST meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.05, suggesting downside of -5.3% (ex-dividends)

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

UBS rates NST as Neutral (3) -

Following in-line December quarter production, UBS concluded (last Friday) Northern Star Resources remains on track for FY23 guidance of 1.56-1.68moz at an all-in sustaining cost (AISC) of $1,630-1,690/oz. 

Sales of 404koz at AISC $1,746/oz were in line with the analyst's estimate.

The Neutral rating and $11.10 target were unchanged.

Target price is $11.10 Current Price is $12.55 Difference: minus $1.45 (current price is over target).
If NST meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.05, suggesting downside of -5.3% (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

Credit Suisse rates NWL as Outperform (1) -

Netwealth Group's December-quarter trading update missed consensus and Credit Suisse's forecasts, and the broker downgrades EPS forecasts -4% to -5% accordingly.

Larger outflows from high net worth individuals led to weaker net flows and net account growth was weaker.

Management guided to a kick-up in June-half flows to $6bn from $5bn. 

The broker observes the company renegotiated a more attractive rate with its bank, but a sharper-than forecast uptick in costs combined with a higher cash administration fee did not help the cash margin.

Outperform rating retained, Credit Suisse expecting the company will continue to grow market share. Target price falls to $13.70 from $15.20.

Target price is $13.70 Current Price is $12.42 Difference: $1.28
If NWL meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.68, suggesting upside of 18.7% (ex-dividends)

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

UBS rates NWL as Buy (1) -

UBS noted last Friday 2Q flows for Netwealth Group were below expectations yet funds under administration (FUA) were ahead of the broker's and the consensus estimate. The latter was attributed entirely to marking-to-market as net fund flows disappointed.

The broker anticipated a positive revenue surprise, which was duly delivered, thanks to improved cash margins. 

The Buy rating and $17 target are retained.

Target price is $17.00 Current Price is $12.42 Difference: $4.58
If NWL meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $14.68, suggesting upside of 18.7% (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

Credit Suisse rates PLS as Underperform (5) -

Credit Suisse highlights strong 2Q23 results from Pilbara Minerals with production beating consensus estimates by 12%, while unit costs came in -18% lower than expected.

The broker considers there is potential for production upgrades in excess of 600kt (versus the existing guidance of 540-580kt).

Credit Suisse lifts its production forecast for FY23 to 600kt from 580kt and upgrades FY23 earnings by 45% which includes higher realised prices in 2H23.

An Underperform rating is retained with better than expected results already reflected in the share price appreciation post announcement, the broker suggests.

The target rises to $3.10 from $2.60.

Target price is $3.10 Current Price is $4.55 Difference: minus $1.45 (current price is over target).
If PLS meets the Credit Suisse target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.88, suggesting upside of 0.9% (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

Morgans rates PLS as Add (1) -

Pilbara Minerals' 2Q production was a 15% beat versus the consensus forecast and exceeded Morgans estimate by 10%. While sales exceeded the analyst's estimate by 2%, stronger pricing led to a 10% revenue beat.

Morgans lifts its mid-term lithium price forecast in the expectation of ongoing tight market conditions.

A growing cash pile allows capital management options, according to the broker. The target rises to $5.40 from $4.70. Add.

Target price is $5.40 Current Price is $4.55 Difference: $0.85
If PLS meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates PLS as Sell (5) -

UBS points out 2Q production has Pilbara Minerals tracking well ahead of FY23 guidance and notes grades continue to hold up, with no impact from the wet season as yet.

Mining and processing were ahead of the analyst's expectation in 2Q, with spodumene production a 12% beat. Good sales combined with a higher realised price, explains the broker. The cash balance now stands at $2.2bn.

The target rises to $3.40 from $3.15. Despite a Sell rating, UBS sees upside to its near term lithium price forecasts.

Target price is $3.40 Current Price is $4.55 Difference: minus $1.15 (current price is over target).
If PLS meets the UBS target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.88, suggesting upside of 0.9% (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

Citi rates PME as Neutral (3) -

Pro Medicus has signed a contract with the University of Washington for its products to be deployed in the cloud. This is the fifth win announced in FY23, Citi notes. New contracts take on average six months to contribute to revenue.

Neutral and $55 target retained.

Target price is $55.00 Current Price is $62.12 Difference: minus $7.12 (current price is over target).
If PME meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Morgans rates PME as Hold (3) -

Following the signing of a $25m, seven year contract with another tier 1 academic institution, Morgans raises its target for Pro Medicus to $61.35 from $58.18 due to a higher contract win rate.

The new contract includes the full stack of modules, namely Open Archive, Workflow, and the Viewer products.

The Hold-rated broker considers the current $61.00 share price represents a full valuation and would be tempted to buy shares should they retrace to around $55.00. 

Target price is $61.35 Current Price is $62.12 Difference: minus $0.77 (current price is over target).
If PME meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates PPT as Buy (1) -

Perpetual remains reasonably inexpensive with an attractive dividend yield and cost synergies to come from its Pendal ((PDL)) acquisition, Citi suggests.

But with no guidance until April and a significant question mark over recent fund flows at Pendal, it may take some time for value to crystallise.

First half profit guidance is significantly above consensus, but allowing for lower Pendal funds under management, the broker lowers its target to $28.60 from $29.10, Buy retained.

Target price is $28.60 Current Price is $26.20 Difference: $2.4
If PPT meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 10.9% (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 PPT as Overweight (1) -

Given currently low multiples for Perpetual, Morgan Stanley expects a positive share price reaction to the 2Q business update that came in well ahead of consensus estimates.

Outflows were the smallest for 15 months and funds under management (FUM) were a slight beat, notes the analyst. Corporate Trust funds under administration (FUA) rose 1% quarter-on-quarter and Private Wealth experienced 4% FUA growth.

Management expects 1H FY23 underlying profit of $65-70m, 15% ahead of consensus though in line with the broker's forecast. 

Overweight rating and $29.80 target. Industry view: In-Line.

Target price is $29.80 Current Price is $26.20 Difference: $3.6
If PPT meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 10.9% (ex-dividends)

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

Credit Suisse rates RMD as Outperform (1) -

ResMed is due to report 2Q23 results on January 27 and Credit Suisse is looking for 17% growth in revenue and Non-GAAP earnings growth of 9% with a US$0.44 dividend per share.

The broker notes there should be evidence of improving supply chains and there is upside to earnings with better chip supplies and AirSense 11s.

In addition, Credit Suisse looks to the Phillips' earnings report on January 30 and the consent decree being negotiated with the DoJ but believes a swift return to the market unlikely as the FDA still harbors concerns around quality and safety controls for the newly modeled ventilators.

An Outperform is retained alongside a $37.50 target price.

Target price is $37.50 Current Price is $33.37 Difference: $4.13
If RMD meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.71, suggesting upside of 10.0% (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: 0.6

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) -

For ResMed's 2Q results, due on January 27, Morgan Stanley believes the focus will be upon the outlook for the supply chain, operating leverage and demand from the rest of the world (ROW).

The broker forecasts revenue of $US980m (consensus US$967m), US device revenue of US$335m (consensus US$333m) and ROW device revenue of US$176m (consensus US$191m).

The analyst feels investors may have to wait until FY24 for leverage with ongoing supply constraints, component costs and freight minimising the positive impact from the Philips recall.

The Equal-weight rating and $32.50 target are unchanged. Industry view: In-line.

Target price is $32.50 Current Price is $33.37 Difference: minus $0.87 (current price is over target).
If RMD 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 $36.71, suggesting upside of 10.0% (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: 0.6

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

Credit Suisse rates STO as Outperform (1) -

The outlook for Santos remains challenged according to Credit Suisse with the broker able to isolate more than 15 risks to 2023 earnings including operational issues post a period of sustained cost cutting, problems with funding Papua, and delays at Barossa.

The broker estimates downside earnings risk of -$0.50 to -$1.00 per share and as a result the target is lowered to $8.34 from $8.54.

An Outperform rating is maintained allowing for a -4% fall in earnings in FY23 and a 3% increase in FY24 plus a positive outlook for the LNG market from higher prices.

Target price is $8.34 Current Price is $7.35 Difference: $0.99
If STO meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.53, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates STO as Add (1) -

Morgans assesses a steady 4Q operational result from Santos (2022 group production and revenue were close to consensus forecasts) and a bumper cashflow performance.

The strong cashflows leave open capital management alternatives such as cash dividends and buybacks, believes the analyst, with gearing now down to 18.7%.

Management reduced base capex and major capex guidance, driven largely by timing issues.

The Add rating is unchanged and the broker's target is adjusted down to $8.75 from $9.00.

Target price is $8.75 Current Price is $7.35 Difference: $1.4
If STO meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.53, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in December.

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 STO as Buy (1) -

UBS adjudged last Friday the December quarter update by Santos was in line with its production expectation. Revenue was considered a slight miss due to lower sales volumes at PNG LNG (timing issue) and lower third party sales from Cooper Basin oil.

The broker reduced its 2022 EPS estimates by -3% due to the 4Q miss on sales and lowered the 2023 forecast partly due to lower forecast production from the John Brookes gas field in WA.

The target was reduced to $8.30 from $8.40. Buy.

Target price is $8.30 Current Price is $7.35 Difference: $0.95
If STO meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.53, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates VEA as Outperform (1) -

Viva Energy's December-quarter operational update appears to have fallen a tad shy of Credit Suisse's forecasts.

A sharper than forecast upswing in retail and commercial fuel volume (above consensus) encountered a -6% fall in the company's refining margin.

EPS forecasts fall -0.8% in FY22 and ease -0.2% in FY23 and -0.3% in FY24.

The broker expects capital management could be on the cards for 2023, which, combined with a likely recovery in the aviation fuel market and refining margins, leads Viva Energy to be Credit Suisse's preferred pick over Ampol ((ALD)).

Outperform rating and $3.25 target price retained. 

Target price is $3.25 Current Price is $2.93 Difference: $0.32
If VEA meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.20, suggesting upside of 10.3% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates VEA as Buy (1) -

Last Friday, UBS updated research for Viva Energy and increased its target to $3.45 from $3.40 following a 4Q operational update that slightly beat expectations. Buy.

A rise in Geelong Refining Margins (GRM) was largely offset by a -7% production miss in Geelong and a -4% miss in sales volumes, explained the analyst. 

A slower recovery in commercial volume and a decline in retail volumes outside the Alliance channel was responsible for the sales miss, noted the broker.

Target price is $3.45 Current Price is $2.93 Difference: $0.52
If VEA meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.20, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates WBC as Downgrade to Underperform from Neutral (5) -

Macquarie reviews the Australian banking sector and concludes it is peaking, with only one last upgrade left in it (if that).

The broker considers the sector's longer-term leverage to high interest rates to be overstated; and does not consider the banks to be a great inflation hedge.

But the banks are set for their last hurrah concludes the broker, expecting they will deliver their strongest pre-provision profit and growth in more than a decade in the March half, courtesy strong margins in response to rising interest rates. 

Beyond, stubborn inflation and higher interest rates are eventually likely to impact asset quality and raise impairments, says the broker.

Macquarie is now underweight the banking sector.

The broker expects Westpac's discount valuation to tighten but says franchise issues continue to drag and the broker suspects consensus expense forecasts may be overblown and that the bank's sustainable mortgage returns might also be under pressure.

Rating downgraded to Underperform from Neutral. Target price eases to $23.50 from $24.00.

Target price is $23.50 Current Price is $24.00 Difference: minus $0.5 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.24, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates WHC as Buy (1) -

Whitehaven Coal's Dec quarter production was lower than Citi's forecast due to wet weather but up 21% on the Sep quarter. With
weather now improved, FY production and cost guidance is unchanged and Dec half costs are tracking at the lower end of guidance.

Whitehaven has pre-released Dec half earnings in line with Citi estimates. Target rises to $11.50 from $11.10, Buy retained.

Target price is $11.50 Current Price is $9.48 Difference: $2.02
If WHC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.66, suggesting upside of 24.8% (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 WHC as Outperform (1) -

Whitehaven Coal's December-quarter production and sales outpaced Macquarie's forecasts by 18% and 28% respectively (set against a -15% fall in the coal price), and management reiterated FY23 volume guidance.

Macquarie observes the company generated $1bn in cash in the FY23 December quarter (taking the December half cash-take to $2.6bn), and that coal-price strength augurs well, despite the affect of poor weather on shipments and operations.

On the capital management front, the company has bought $955m in shares and will resume its buyback post the results. EPS forecasts rise 2% in FY23; and ease up to -2% from FY24 onward.

Outperform rating and $12.50 target price retained.

Target price is $12.50 Current Price is $9.48 Difference: $3.02
If WHC meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $11.66, suggesting upside of 24.8% (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

Morgan Stanley rates WHC as Overweight (1) -

Management at Whitehaven Coal made no changes to FY23 guidance following the release of 2Q production results, which were broadly in line with Morgan Stanley's forecasts.

A strong performance at Narrabri (13% beat versus the broker) offset La Nina-induced weather problems at Maules Creek where production was a -16% miss.

In short, weather impacted open cut operations while a shortage of labour impacted all operations, explains the analyst. Cost are considered to be tracking well.

The Overweight rating and $12.55 target are unchanged. Industry View: Attractive.

Target price is $12.55 Current Price is $9.48 Difference: $3.07
If WHC meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $11.66, suggesting upside of 24.8% (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

Morgans rates WHC as Add (1) -

Whitehaven Coal's 2Q sales exceeded Morgans forecast by 3% and management left FY23 guidance unchanged. 

The broker also raises its FY24-25 NEWC forecasts on a tight outlook for the energy market due to a re-arranging of Russian exports.

The target rises to $11.60 from $11.20 even after Morgans applies a -5% discount for 2023 regulatory/royalty risks. It's felt NSW coal royalties will be raised in 2023.

Target price is $11.60 Current Price is $9.48 Difference: $2.12
If WHC meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.66, suggesting upside of 24.8% (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

Ord Minnett rates WHC as Buy (1) -

Whitehaven Coal's December-quarter production outpaced Ord Minnett's forecasts, despite the impact of poor weather on shipping and operations

The company generated $1bn in cash, taking its net cash balance by the end of the half to $2.5bn.

Sales also outpaced an upswing in costs, despite a switch to low-value thermal coal, but weaker met coal sales did at least attract a 30% premium over the benchmark due to shipment timing, observes Ord Minnett.

The broker warns that consensus forecasts of US$280/t for the thermal coal price sit well below spot prices of US$385/t and the broker's forecast of US$300/t. 

Buy rating retained. Target price rises to $12.30 from $11.70.

Target price is $12.30 Current Price is $9.48 Difference: $2.82
If WHC meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $11.66, suggesting upside of 24.8% (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

Citi rates XRO as Buy (1) -

Insolvencies/bankruptcies were up significantly in Australia (46% year on year), New Zealand (27%) and the US (7%) but interestingly, Citi notes, voluntary dissolutions are flat in the UK on a year on year basis.

Except for NZ, the increase in second half insolvencies to date is below the broker's churn assumptions for Xero. Citi expects churn to pick up as macro conditions worsen but notes that Xero’s churn has historically been well below system.

Buy and $92.40 target retained.

Target price is $92.40 Current Price is $72.84 Difference: $19.56
If XRO meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $82.84, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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