Australian Broker Call

Macquarie rates ALD as Outperform (1) -

Ampol looks set to have sustained a weaker second quarter because of lower refining margins and the outage at Lytton. As a result, Macquarie reduces estimates for 2023 by -7%. The target is lowered to $36.50 from $39.45 to reflect earnings downgrades.

Outperform maintained. The broker suggests any weakness stemming from "messy" second quarter results may provide an opportunity to accumulate the stock.

Target price is $36.50 Current Price is $29.25 Difference: $7.25
If ALD meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $33.76, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates ALX as Hold (3) -

Ahead of the August reporting season, Morgans updates its forecasts for infrastructure stocks under its coverage for the significant shift in interest rates since the broker's last review in April.

Since that time, forward interest rates have increased by more than 1% weighing on the cost of debt, explains Morgans, while for some stocks a decline in both the Australian dollar and the AUD/Euro exchange rate have had beneficial impacts.

Atlas Arteria does benefit from these favourable currency movements and the broker also raises its DPS outlook to reflect significant cash balances at the fund level that build up from upgraded APRR distribution forecasts.

Despite these positives, the analyst's target eases to $6.43 from $6.53. Hold.

Target price is $6.43 Current Price is $6.05 Difference: $0.38
If ALX meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.46, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

Ansell has revised FY23 guidance lower, to underlying EPS of US$1.10-1.20. This comes amid destocking across special use gloves and life sciences as well as price reductions that caused the healthcare performance to be weaker than expected.

The Equal-weight rating is retained, while the target is raised to $28.07 from $24.01. Industry view In-Line.

Target price is $28.07 Current Price is $26.37 Difference: $1.7
If ANN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.61, suggesting upside of 1.3% (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: 0.1

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

Morgans rates APA as Hold (3) -

Ahead of the August reporting season, Morgans updates its forecasts for infrastructure stocks under its coverage for the significant shift in interest rates since the broker's last review in April.

Since that time, forward interest rates have increased by more than 1% weighing on the cost of debt, explains Morgans, while for some stocks a decline in both the Australian dollar and the AUD/Euro exchange rate have had beneficial impacts.

APA Group does benefit from these favourable currency movements, and the broker's short-term earnings forecasts also rise due to a higher US CPI outlook and long-dated fixed rate hedging (which mitigates the higher interest rates).

However, the analyst's target falls to $10.05 from $10.14 due to offsetting earnings downgrades once the initial contract term of the WGP's haulage contract expires at the end of FY36. From then, higher interest rates are expected to overwhelm the CPI impact. Hold.

Target price is $10.05 Current Price is $9.54 Difference: $0.51
If APA meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.32, suggesting upside of 6.0% (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

Morgans rates AZJ as Hold (3) -

Ahead of the August reporting season, Morgans updates its forecasts for infrastructure stocks under its coverage for the significant shift in interest rates since the broker's last review in April.

Since that time, forward interest rates have increased by more than 1% weighing on the cost of debt, explains Morgans, while for some stocks a decline in both the Australian dollar and the AUD/Euro exchange rate have had beneficial impacts.

For Aurizon Holdings, the analyst lowers forecast earnings on higher debt levels and exposure to a reset of interest rate hedges last month, which also results in a downgrades to the DPS forecast.

The target falls to $3.84 from $3.95. Hold.

Target price is $3.84 Current Price is $3.85 Difference: minus $0.01 (current price is over target).
If AZJ meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.96, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates AZJ as Neutral (3) -

UBS expects Aurizon Holdings' July 18-19 investor event could trigger consensus upgrades and considers an FY23 trading update to be on the cards.

The broker anticipates a strong FY24 earnings recovery from FY23's weather-hampered results and sits at the top of consensus. The broker's FY23 EPS forecast eases to 22c from 23c in June.

Neutral rating retained on valuation grounds. Target price rises to $3.80 from $3.55 a share.

Target price is $3.80 Current Price is $3.85 Difference: minus $0.05 (current price is over target).
If AZJ 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 $3.96, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Shaw and Partners rates BC8 as Buy (1) -

Black Cat Syndicate provided a re-start study for the Paulsens gold operation which will mean production of 42,000 ozpa of gold over a three-year mine life at an AISC of $1892/oz.

Shaw and Partners expects first production in the first half of 2024 and believes the project is a "great starter" for the company, providing a platform to expand Paulsens, re-start Coyote and develop Kal East.

The broker expects additional resources will extend the mine life and assumes an additional two years beyond the current plan in its base case. Buy rating and $0.83 target, raised from $0.77.

Target price is $0.83 Current Price is $0.38 Difference: $0.455
If BC8 meets the Shaw and Partners target it will return approximately 121% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates BXB as Buy (1) -

UBS expects Brambles' result due in August will show the company's free cash flow recovery is likely to carry into FY24, the broker expecting a FY24 run rate of $300m down from $330m in FY23 after dividends..

The broker expects prices will "slow down but not go down" with most of the recent uptick attributable to a normalisation of lumber prices, and that better asset control and fewer replacement purchases are likely to kick in from here.

UBS foresees further upside in the target price, believing the company has not fully rerated, observing it is trading at a discount to the sector peers. Still, the broker expects August guidance to be conservative.

Buy rating and $15.90 target price retained.

Target price is $15.90 Current Price is $13.95 Difference: $1.95
If BXB meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $14.64, suggesting upside of 5.1% (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: 0.3

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

Bell Potter rates CBO as Buy (1) -

Bell Potter is reviewing Cobram Estate Olives following the Paine Schwartz offer for Costa Group ((CGC)). Many of the same traits are present such as a seasonally-depressed yield pushing the share price towards the underlying value of the agricultural assets, implying little value included for the brands.

After the company recently downgraded its FY23 yield outcome, the broker adjusts forecasts to reflect the smaller harvest and higher base interest rates.

Yet this is a portfolio of assets which are yet to reach economic maturity and the current share price, in the broker's view, ignores the uplift in asset values likely to accrue by FY30.

The Buy rating and $1.75 target are retained.

Target price is $1.75 Current Price is $1.22 Difference: $0.535
If CBO meets the Bell Potter target it will return approximately 44% (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

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

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset. Cochlear's Equal-weight rating is maintained, while the target is lifted to $222 from $214. Industry view: In-line.

Target price is $222.00 Current Price is $221.90 Difference: $0.1
If COH meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $224.77, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

CSL provided a market update recently and Morgan Stanley does not envisage any change to the long-term view despite downgrading forecasts following that update. The broker remains confident that gross margins will improve from here, albeit gradually.

The $325 target and Overweight rating are unchanged. Industry View: In-Line.

Target price is $325.00 Current Price is $264.12 Difference: $60.88
If CSL meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $328.17, suggesting upside of 23.8% (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: 0.8

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

Morgans rates DBI as Add (1) -

Ahead of the August reporting season, Morgans updates its forecasts for infrastructure stocks under its coverage for the significant shift in interest rates since the broker's last review in April.

Since that time, forward interest rates have increased by more than 1% weighing on the cost of debt, explains Morgans, while for some stocks a decline in both the Australian dollar and the AUD/Euro exchange rate have had beneficial impacts.

In the case of Dalrymple Bay Infrastructure, existing interest rate hedging and swaps largely protect against higher interest rates until FY31, observes the broker. As a result, the Add rating and $2.76 target are unchanged.

Target price is $2.76 Current Price is $2.64 Difference: $0.12
If DBI meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates DXC as Add (1) -

Morgans updates its forecasts for Dexus Convenience Retail REIT for a loss of income due to asset sales as well as a higher interest cost assumption, and the broker's target falls to $3.18 from $3.53.

Across FY23 asset sales amounted to around -5% of the total portfolio, observes the analyst, and the REIT has announced the sale of three further assets totaling $15.4m with proceeds used to pay down debt.

Preliminary revaluations of the portfolio as at June 30 have also resulted in cap rates expanding by 20bps with values falling by -2.9%.

The Add rating is unchanged.

Target price is $3.18 Current Price is $2.53 Difference: $0.65
If DXC meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates GQG as Outperform (1) -

GQG Partners reported net inflows of $1.2 bn in the June quarter and confirmed client demand is "reasonable". Macquarie notes the relative performance metrics have been more mixed in 2023, resulting in a slowing of net flows.

Emerging market equities in terms of relative performance are well ahead on a one and three-year basis, with international equities around benchmark.

The broker believes the performance history and recent flows warrant a premium multiple and an Outperform rating is maintained. Target rises to $2.15 from $2.05.

Target price is $2.15 Current Price is $1.51 Difference: $0.64
If GQG meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgans rates GQG as Add (1) -

Morgans marks-to-market its forecasts for GQG Partners and makes EPS forecasts upgrades over FY23-25 of 3.2-3.7%. The target price is raised to $2.00 from $1.95. Add.

The broker observes the investment performance is generally positive and the company continues to significantly outperform domestically listed peers in the area of funds flow.

Target price is $2.00 Current Price is $1.51 Difference: $0.49
If GQG meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Ord Minnett rates GQG as Buy (1) -

GQG Partners delivered a robust quarterly update, amid resilient net flows and a strong investment performance that came despite a difficult industry backdrop.

Ord Minnett expects this strong investment performance should support longer-term net flows. Estimates for EPS are raised by 4-7% for FY23-25.

The stock is considered inexpensive and the broker retains a Buy rating, raising the target to $2.20 from $2.10.

Target price is $2.20 Current Price is $1.51 Difference: $0.69
If GQG meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

UBS rates GQG as Buy (1) -

UBS marks to market Australian fund managers and GQG Partners remains the broker's top sector pick, the broker appreciating the company's 9.5% dividend yield and strong funds under management trajectory.

EPS forecasts ease a smidgeon.

Buy rating and $2.25 target price retained.

Target price is $2.25 Current Price is $1.51 Difference: $0.74
If GQG meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Morgan Stanley rates HLS as Underweight (5) -

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

As high-margin covid testing continues to decline, Morgan Stanley envisages a slower recovery in the base business for Healius and remains sceptical the company will achieve its sustainable investment program target margins at the end of FY23.

Underweight maintained. Target is reduced to $2.60 from $2.75. Industry View: In-Line.

Target price is $2.60 Current Price is $3.05 Difference: minus $0.45 (current price is over target).
If HLS meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.27, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Morgan Stanley rates IDX as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

Slow volume growth characterised Integral Diagnostics in the first half of FY23, and while the company has indicated an inflection point has now been passed, the broker finds it difficult to project the trajectory of an assumed recovery in margins.

The rating is downgraded to Underweight from Equal-weight. Target is steady at $2.70. Industry view In-Line.

Target price is $2.70 Current Price is $3.17 Difference: minus $0.47 (current price is over target).
If IDX meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.29, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Morgans rates MFG as Hold (3) -

Morgans marks-to-market its forecasts for Magellan Financial and lowers its target to $9.85 from $10.02 on FY24/25 downgrades of around -3-4% due to lower funds under management (FUM). Hold.

The group experienced outflows of -$2.1bn in June-23 and -$10.2bn in the calendar year-to-date. While the broker believes the peak for outflows has passed, they still continue and present risks to the Retail FUM base.

Target price is $9.85 Current Price is $8.38 Difference: $1.47
If MFG meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $8.84, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

UBS rates MFG as Buy (1) -

UBS marks to market Australian fund managers and downgrades Magellan Financial's FY23 and FY24 EPS forecasts by -3.5% and -1.2% as institutional outflows and lower performance fees persisted in May and June.

But the broker retains the faith, noting positive markets are driving mark to market gains in cash and investments and believes catalysts may emerge to unlock balance sheet value, which the broker posits has been largely overlooked by the market.

Buy rating retained. Target price rises to $10 from $9.50.

Target price is $10.00 Current Price is $8.38 Difference: $1.62
If MFG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.84, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

Morgan Stanley adjusts estimates for EPS to include higher longer-term claims assumptions, while noting cash claims for residents in FY23 were significantly below forecasts. The recent update has indicated Medibank Private sustained a strong fourth quarter in FY23.

Equal-Weight rating retained. Target is raised to $3.68 from $3.43. Industry view is In-Line.

Target price is $3.68 Current Price is $3.43 Difference: $0.25
If MPL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 4.7% (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

Macquarie rates MVF as Outperform (1) -

Medicare data shows total cycles grew 10.6% in May with fresh growth of 13.5% and frozen growth of 6.7%. Macquarie upgrades market share expectations for Monash IVF for FY24 and believes growth will be supported by recent acquisitions and specialist recruitment.

Structural tailwinds for the industry continue and the stock is considered well-placed to make share gains. Outperform rating maintained. Target is raised to $1.35 from $1.30.

Target price is $1.35 Current Price is $1.14 Difference: $0.215
If MVF meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 19.0% (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 NHF as Equal-weight (3) -

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

System growth continues to show an upward trend and nib Holdings has maintained policyholder growth above system. This is supportive of guidance for FY23 ARHI net policyholder growth of 4-5%, and Morgan Stanley expects 3.0% growth over the longer term.

Equal-weight rating retained. Target is raised to $8.50 from $6.95. Industry view: In-Line.

Target price is $8.50 Current Price is $8.48 Difference: $0.02
If NHF meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.16, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates NXD as Buy (1) -

NextEd Group provided FY23 guidance that was slightly below Ord Minnett's expectations. EBITDA is expected to include the cost of short-term licensing of third-party classrooms, which the broker had modelled as an amortisation/interest charge.

This drives the bulk of downgrades to estimates. Still, with a healthy net cash position, the broker asserts the business should be well-placed to pursue bolt-on acquisitions over time and supplement its organic growth trajectory.

Buy rating maintained. Target is reduced to $1.65 from $1.90.

Target price is $1.65 Current Price is $1.24 Difference: $0.415
If NXD meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Bell Potter rates PFP as Buy (1) -

Propel Funeral Partners has made two acquisitions in New Zealand for -$38m, considered another milestone by Bell Potter, given the lift in market share and track record of the past three transactions.

The broker estimates a 6% incremental contribution to forward revenue and 3% accretion to net profit.

The target is reduced to $5.60 from $5.90, stemming from a decrease in the acquisition-related premium and given the substantial increase in M&A deployed so far in 2023. Buy rating retained.

Target price is $5.60 Current Price is $4.11 Difference: $1.49
If PFP meets the Bell Potter target it will return approximately 36% (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

Morgan Stanley rates PFP as Overweight (1) -

Propel Funeral Partners has acquired Harbour City Funeral Home, Wellington, and Terry Longley & Son, Hawkes Bay, for up to -$38m. Consideration is split evenly between the 11 properties and the operating businesses.

Morgan Stanley considers the transaction consistent with continuing industry consolidation of long-duration structural growth assets. The company has signalled earnings accretion in the first year and the broker expects upgrades to EBITDA estimates will result.

The Overweight rating and $5.85 target are retained. Industry View: In-Line.

Target price is $5.85 Current Price is $4.11 Difference: $1.74
If PFP meets the Morgan Stanley target it will return approximately 42% (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

Morgans rates PNI as Add (1) -

Morgans marks-to-market its forecasts for Pinnacle Investment Management and lowers its target to $10.50 from $10.60.

While the analyst's underlying affiliate contribution expectation for FY23 is largely unchanged, the implied composition is weaker.

The Add rating is retained with the broker admiring the group's diversified business model and expecting strong long-term growth.

Target price is $10.50 Current Price is $9.20 Difference: $1.3
If PNI meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.96, suggesting upside of 7.2% (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 PNI as Neutral (3) -

UBS marks to market Australian fund managers.

The broker upgrades EPS forecasts for Pinnacle Investment Management by 12.5% in FY23; and 2.4% in FY24 to reflect strong second half performance fees and improvements in principal investments.

But given the difficult operating climate, particularly in retail, the broker remains circumspect and largely retains its FY24 flow expectations of $4bn.

Target price rises to $9.20 from $8.80. Neutral rating retained.

Target price is $9.20 Current Price is $9.20 Difference: $0
If PNI meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.96, suggesting upside of 7.2% (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 PPT as Neutral (3) -

UBS marks to market Australian fund managers and upgrades Perpetual's EPS forecasts for FY23 and FY24 by 2% and 5%.

Neutral rating retained, the broker sitting below consensus.

Target price rises to $27.75 from $27, to reflect the mark to market.

Target price is $27.75 Current Price is $25.22 Difference: $2.53
If PPT meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $30.46, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates PTM as Sell (5) -

UBS marks to market Australian fund managers.

The broker observes the performance of Platinum Asset Management's International fund has been disappointing, underperforming the market for six straight months and UBS doubts outflows will improve in FY24.

EPS forecasts rise 0.2% in FY23; and 2.3% in FY24 to reflect the market to market and flow and funds under management downgrades.

Sell rating retained. Target price eases to $1.50 from $1.55.

Target price is $1.50 Current Price is $1.60 Difference: minus $0.095 (current price is over target).
If PTM meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.75, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Morgan Stanley rates RHC as Underweight (5) -

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

Morgan Stanley is concerned about Ramsay Health Care's gearing levels, although believes a potential sale of the Sime Darby joint venture and the new revolving facility should help alleviate some of the market's uneasiness.

The broker adjusts estimates for FY23 EPS up by 1.0% and reduces FY24 by -4.8%, factoring in currency assumptions, higher interest expense and  lower capital expenditure forecasts.

Underweight rating retained. Target is reduced to $53.60 from $57.60. Industry view: In-Line.

Target price is $53.60 Current Price is $55.21 Difference: minus $1.61 (current price is over target).
If RHC 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 $65.53, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

Morgan Stanley observes, for most healthcare companies, volume recovery post the pandemic has been sluggish, accompanied by higher costs, although PE multiples across the healthcare sector are considered inflated.

Hence, the broker favours those stocks where FY23 guidance has been recently affirmed and FY24 expectations have been reset.

Morgan Stanley points out Sigma Healthcare provided FY24 EBIT guidance at its FY23 result that was materially below expectations although concedes it showed some grappling with the operating issues.

The industry could also be facing some uncertainty, as the government allowance from September 2023 for the purchase of 60-day's supply of chronic medication, up from 30 days, may have some negative effect on industry profitability.

Equal-weight rating maintained. Target is raised to $0.80 from $0.75. Industry view: In-Line.

Target price is $0.80 Current Price is $0.79 Difference: $0.01
If SIG meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates TCL as Hold (3) -

Ahead of the August reporting season, Morgans updates its forecasts for infrastructure stocks under its coverage for the significant shift in interest rates since the broker's last review in April.

Since that time, forward interest rates have increased by more than 1% weighing on the cost of debt, explains Morgans, while for some stocks a decline in both the Australian dollar and the AUD/Euro exchange rate have had beneficial impacts.

Transurban Group does benefit from these favourable currency movements, explains the analyst, and existing interest rate swaps protect against higher forward interest rates.

Nonetheless, the target falls by -72c to $13.75 as the higher rates impact when the swaps expire and the broker also factors in a higher opex outlook than previously forecast. Hold.

Target price is $13.75 Current Price is $13.69 Difference: $0.06
If TCL meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 4.9% (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

Macquarie rates VEA as Outperform (1) -

Macquarie expects a weaker June quarter for Viva Energy compared with the March quarter, given the ongoing outage at Geelong.

Completion and integration of the OTR acquisition is considered the major catalyst in 2023 with more clarity expected on the strategic path for the enlarged group.

Outperform maintained. The broker suggests any weakness stemming from "messy" second quarter results may provide an opportunity to accumulate the stock. Target is steady at $3.40.

Target price is $3.40 Current Price is $2.90 Difference: $0.5
If VEA meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.32, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Bell Potter rates VIT as Buy (1) -

Vitura Health has solidified its position as the market leader in medical cannabis distribution, Bell Potter observes. Product sales estimates for FY23 are set at $119.1m.

Gross margins are to be maintained by balancing new suppliers with select rebates across existing product lines and the functionality of CanView 2.0 creates the potential for additional services like telehealth appointments as well as other products such as smoking cessation and veterinary.

Bell Potter retains a Buy rating and $0.90 target.

Target price is $0.90 Current Price is $0.54 Difference: $0.36
If VIT meets the Bell Potter target it will return approximately 67% (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

Morgans rates WPR as Add (1) -

Preliminary June revaluation of Waypoint REIT's portfolio has had an immaterial impact, according to Morgans, with values falling by around -1%, on a cap rate expansion of 12bps.

The broker expects 2023 guidance will be reiterated (flat growth on 2022) during the 1H results release on August 28.

The target falls to $2.82 from $2.90. Add.

Target price is $2.82 Current Price is $2.50 Difference: $0.32
If WPR meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

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