Australian Broker Call

Morgans rates AGL as Downgrade to Hold from Add (3) -

Morgans has used a general sector update, released on January 5th, to downgrade AGL Energy to Hold from Add.

As the broker also lowered forecasts, the target price has dropped to $7.88, down by -11%.

The broker holds a relatively positive view on AGL inside the sector, but highlights higher investment uncertainty in the sector makes it harder to identify upside for shareholders.

Target price is $7.88 Current Price is $7.81 Difference: $0.07
If AGL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 10.5% (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

Macquarie rates ASX as Outperform (1) -

Following the release of the exchange's monthly activity report, Macquarie finds volumes in futures trading were disappointing in December (reverting back to decline) while elsewhere activity in trading of equities and in capital markets remained weak.

Regarding the latter, the broker highlights IPOs in December amounted to $1.2bn in total value, while one year ago the corresponding value was $20.2bn. Capital raisings for the month stopped at $10.4bn compared with $41.2bn in the prior December.

Macquarie has reduced forecasts, which pulls back the price target to $76.50 from $83. Outperform rating retained as the broker maintains earnings at the ASX are "very defensive" against a weakening macro-outlook.

Macquarie sees upside risk to consensus Interest Income from FY24.

Target price is $76.50 Current Price is $66.63 Difference: $9.87
If ASX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $74.19, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates BKW as Add (1) -

Catching up on the December update on the company's property division, Morgans communicated on January 5th it sees shares in Brickworks trading at an implied -40% discount to Net Tangible Assets (NTA) valuation.

In addition, points out the broker, the cross-holding with Washington Soul Pattinson ((SOL)) represents no less than $16 of the share price, meaning the discount for the remaining assets trade at a -50% discount.

Add rating retained while the price target has gained 50c to $24.50.

Target price is $24.50 Current Price is $22.92 Difference: $1.58
If BKW meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $26.46, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates BPT as Buy (1) -

Citi has a new analyst in charge of the Australian energy sector, but at this point no changes are made to prior ratings, targets or forecasts.

Target price is $2.20 Current Price is $1.56 Difference: $0.645
If BPT meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates GNX as Upgrade to Add from Hold (1) -

Morgans has used a general sector update, released on January 5th, to upgrade Genex Power to Add from Hold with a price target of 27c, up from a prior 20c.

While still considered a risky proposition, the broker is of the view the share price has fallen too deeply after corporate suitors decided not to proceed with their intention to acquire the company.

Target price is $0.27 Current Price is $0.14 Difference: $0.13
If GNX meets the Morgans target it will return approximately 93% (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 LGI as Hold (3) -

Morgans has used a general sector update, released on January 5th, to reduce forecasts for Green energy producer LGI.

This has reduced the price target to $1.75 from $1.81. Hold rating retained.

Target price is $1.75 Current Price is $1.84 Difference: minus $0.09 (current price is over target).
If LGI meets the Morgans target it will return approximately minus 5% (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 M7T as Add (1) -

Following Mach7 Technologies announcing it had signed the largest contract in the company's history to date with Nasdaq-listed Akumin, good for $16.7m over 10 years, Morgans made no changes to forecasts.

The broker does highlight it believes current guidance for FY23 is achievable. Last financial year proved rather disappointing, but sticking with an Add rating, Morgans believes FY23 will be much stronger.

Price target of $1.34 remains unchanged. This update was released on January 4th.

Target price is $1.34 Current Price is $0.68 Difference: $0.665
If M7T meets the Morgans target it will return approximately 99% (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 MGH as Add (1) -

The board at Maas Group announced an on-market buy back of up to 10% of outstanding shares in December, and Morgans, as communicated on January 5th, has updated its forecasts to account for it.

Add rating retained while the price target remains at $4.

Target price is $4.00 Current Price is $2.76 Difference: $1.24
If MGH meets the Morgans target it will return approximately 45% (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 ORG as Hold (3) -

Morgans communicated on January 5th it's time for shareholders to take some profits on their Origin Energy shares. The broker has retained its Hold rating but lowered its price target to $7.51.

Target price is $7.51 Current Price is $7.69 Difference: minus $0.18 (current price is over target).
If ORG meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.90, suggesting upside of 2.4% (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

Morgans rates PIQ as Speculative Buy (1) -

Morgans initiated coverage in December. On January 4th the broker updated following Proteomics International Laboratories achieving what has been described as an important milestone.

The company received approval of a new reimbursement code for its predictive test for diabetic kidney disease. The broker has made no changes.

Speculative Buy. Target $1.77.

Target price is $1.77 Current Price is $1.10 Difference: $0.675
If PIQ meets the Morgans target it will return approximately 62% (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 SLC as Add (1) -

In an update published last Friday, January 6th, Morgans finds the acquisition of the NBN customer base from MyRepublic Australia concluded at a price that represents great value for Superloop shareholders.

The broker projects the deal will generate earnings from H2 this year and skew Superloop's earnings even more to the second half.

Forecasts have been updated, but because the risk free rate has also been lifted, there is no change to the $1.05 price target. Add rating retained.

Target price is $1.05 Current Price is $0.70 Difference: $0.355
If SLC meets the Morgans target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 67.9% (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 STO as Buy (1) -

Citi has a new analyst in charge of the Australian energy sector, but at this point no changes are made to prior ratings, targets or forecasts.

Target price is $10.00 Current Price is $7.02 Difference: $2.98
If STO meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $9.21, suggesting upside of 31.2% (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

Citi rates TCL as Upgrade to Buy from Neutral (1) -

Citi started the new calendar year with an upgrade to Buy from Hold for Transurban Group, communicated to its clientele on January 3rd.

The moves seems to have been inspired by growing concerns, worldwide, that inflation might prove stickier in 2023, and Transurban should be a primary beneficiary as its operations offer protection.

Equally important, while debt costs are rising, the analysts highlight Transurban's longer debt maturity of circa 8 years means the full impact will take multiple years before impacting on the financial numbers.

Target price increased to $15.70 from $14.52.

Target price is $15.70 Current Price is $13.15 Difference: $2.55
If TCL meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.24, suggesting upside of 8.3% (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

Citi rates WDS as Buy (1) -

Citi has a new analyst in charge of the Australian energy sector, but at this point no changes are made to prior ratings, targets or forecasts.

Target price is $38.50 Current Price is $34.61 Difference: $3.89
If WDS meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $37.69, suggesting upside of 7.5% (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: 0.4

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

Citi rates WOR as Buy (1) -

Citi has a new analyst in charge of the Australian energy sector, but at this point no changes are made to prior ratings, targets or forecasts.

Target price is $17.00 Current Price is $14.81 Difference: $2.19
If WOR meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.61, suggesting downside of -3.1% (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

Citi rates XRO as Buy (1) -

The UK government has delayed the next phase of its Making Tax Digital initiative, and Citi analysts, in response, have reduced their forecasts for growth in subscriptions for Xero in the country.

As Xero is also slowing further hiring of staff, the analysts believe the end outcome might actually be positive.

Acknowledging the weak macro-context represents risk to forecasts, Citi retains its Buy rating adopting the view that, medium to longer term, Xero should continue to achieve solid growth in earnings.

Target price drops to $92.40 from $97.90. These changes were communicated on January 5th.

Target price is $92.40 Current Price is $72.65 Difference: $19.75
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 15.0% (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