Australian Broker Call

UBS rates A2M as Buy (1) -

UBS analysts are of the opinion that investor caution suggests future recovery is yet to be priced in to a2 Milk Company's share price, expecting the company is approaching a three-year period of meaningful recovery.

The broker notes a2 Milk should benefit from improved online English-label infant milk formula sales and share gains in the China-label infant formula sector. Expect FY24 earnings per share to be up 122% on FY22 results. 

In the nearer-term, the broker notes the start of FY22 has been slow, driven by market headwinds, but earnings forecasts remain in reach. 

The Buy rating and target price of NZ$10.20 are retained.

Current Price is $5.45. Target price not assessed.

Current consensus price target is $6.15, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 ABP as Downgrade to Lighten from Hold (4) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker downgrades Abacus Property to Lighten from Hold. Target price rises to $3.30 from $3.20.

Target price is $3.30 Current Price is $3.43 Difference: minus $0.13 (current price is over target).
If ABP meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.63, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates AIM as Add (1) -

Ai-Media Technologies' Q2 update proved in-line with Morgans' expectations and the broker is looking forward to obtain more detail on February 23rd, when the company is scheduled to release interim financials.

Morgans makes minor adjustments only but because, internationally, investors have de-rated SaaS-companies, this now has an impact on the modeling here in Australia.

Target price tumbles to $1.09 from $1.46, while the Add rating remains in place.

Target price is $1.09 Current Price is $0.63 Difference: $0.46
If AIM meets the Morgans target it will return approximately 73% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates AIZ as Underperform (5) -

Macquarie increases FY22 loss-estimates for Air New Zealand to account for first-half lockdowns and Omicron challenges.

Strong cargo freight is providing a floor for the projected weakness in passenger freight and delays in flight resumptions.

The broker forecasts an FY22 loss of -$772m, which is set to impact debt levels and equity and may delay a return to dividend-payments (Macquarie's FY2023 dividend estimate falls from 6c to 0).

FY22-FY23 EPS forecasts fall -52% and -63%; and FY24 EPS estimates rise 4%. 

Underperform rating retained. Target price falls to NZ$1.10 from $1.20.

Current Price is $1.32. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -1.0

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

Credit Suisse rates ALL as Outperform (1) -

As tensions between the Ukraine and Russia escalate, Credit Suisse assesses Aristocrat Leisure's exposure to the region and finds it to be minimal given there is no land-based gaming in the region.

The broker estimates the company employs 2,100 staff in the region who mostly work for the Digital division, Pixel United, and notes that six of its 17 digital studios are based in the area, which contributes 2% of Pixel United's revenue and 1% of group revenue.

Outperform rating and $49 target price are retained.

Target price is $49.00 Current Price is $40.45 Difference: $8.55
If ALL meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $49.73, suggesting upside of 29.2% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates ALX as Outperform (1) -

Atlas Arteria's leverage to improving traffic (car) activity and a lower tax rate leads Macquarie to raise its target price to $7.11 from $6.87.

In addition, both the APPR tollway in France and the Dulles Greenway tollway in the US have potential for valuation upside from renegotiated concessions.

The analyst also notes the company should benefit from any near-term inflation in France. The Outperform rating is unchanged.

Target price is $7.11 Current Price is $6.36 Difference: $0.75
If ALX meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates AX1 as Neutral (3) -

According to Citi, the combined effect of less foot traffic (due to covid) and supply challenges may outweigh Accent's store-rollout upside. This comes as the group revealed a -9% miss versus the consensus estimate for 2Q results.

The broker lowers its target price by -25% to $2.24 after slashing FY22-Y24 profit estimates by between -9% and -11% to reflect the result and increasing risks for the second half. Neutral retained.

Target price is $2.24 Current Price is $2.02 Difference: $0.22
If AX1 meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates AX1 as Overweight (1) -

While Accent Group's first half earning guidance of $30-31m is in line with Morgan Stanley's expectations, the broker notes lower foot traffic driven by increased omicron cases presents downside risk to forecast realisation.

Industry wide pressure on shipping and staffing costs also continue to impact, but despite headwinds Morgan Stanley expects impacts to be temporary and bases a long-term outlook on a post-covid rebound and continued store roll out. 

The Overweight rating and target price of $2.95 are retained. Industry view: In-line.

Target price is $2.95 Current Price is $2.02 Difference: $0.93
If AX1 meets the Morgan Stanley target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates AX1 as Buy (1) -

Following Accent Group's announcement of first half underlying earnings guidance of $30-31m, a -30% miss on UBS's forecasts, UBS has lowered its earnings per share forecasts -29% and -6% for FY22 and FY23.

The broker notes trading in late December, notably including on key retail trading day Boxing Day, was down on expectations and continues to drag in January, likely impacted by increasing omicron cases. 

The Buy rating is retained and the target price decreases to $2.75 from $3.00.

Target price is $2.75 Current Price is $2.02 Difference: $0.73
If AX1 meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 33.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates BPT as Buy (1) -

Following 2Q results for Beach Energy, Citi retains its Buy rating and $1.71 target price. The company remains the broker's top pick in its Energy sector coverage.

A 2Q volume miss was offset by higher liquids pricing, leading to revenue in-line with the analyst's forecast.

Target price is $1.71 Current Price is $1.31 Difference: $0.4
If BPT meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates BPT as Outperform (1) -

Beach Energy's December-half production report missed Credit Suisse's estimates by -5% and no guidance was provided.

Despite the miss, the broker expects Beach Energy will return to a production-growth trajectory in the June half, after posting two years of production falls.

Credit Suisse expects this will be confirmed at the next guidance update in February and is positioning itself accordingly.

FY22 and FY23 Earnings (EBITDA) forecasts rise 7% and 5%.

Outperform rating and $1.55 target price retained.

Target price is $1.55 Current Price is $1.31 Difference: $0.24
If BPT meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BPT as Neutral (3) -

Production and sales volumes metrics contained within Beach Energy's 2Q report were a 4% beat versus Macquarie's forecasts.

Nonetheless, even after raising its long-term oil price forecast, the broker maintains its Neutral rating and $1.40 target price, due to an offset of increased decommissioning provisions.

The analyst cautions any share price outperformance will likely be capped by the possibility of a Seven Group ((SVW)) sell down of its holding.

Target price is $1.40 Current Price is $1.31 Difference: $0.09
If BPT meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Unplanned maintenance at the Cooper Basin and Bass Gas projects have driven a marginal miss on revenue and production from Beach Energy in the second quarter according to Morgan Stanley.

In an effort to counter Western Flank's ongoing decline Beach Energy undertook well drilling, including commencement of a fifth well, all of which should come online in the third quarter. 

Morgan Stanley reduces expected decline to -8% from -15% through to the end of FY22, noting the company plans to drill up to fifteen wells but material discoveries would be required to reverse the decline trend.

The Equal-weight rating and target price of $1.70 are retained. Industry view: Attractive.

Target price is $1.70 Current Price is $1.31 Difference: $0.39
If BPT meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates BPT as Add (1) -

Beach Energy's Q2 report surprised because of its gas portfolio with oil production dropping -3% over the first six months. A higher price meant sales grew higher than forecast.

Morgans has retained its Add rating with a slightly higher valuation. Price target has gained 1c to $1.72.

The broker sees value in the stock at the current share price and suggests increased investor confidence in the energy sector outlook might do the trick.

Also, Beach Energy is scheduled for interim results on February 14 and Morgans speculates the event might include an upgrade to guidance.

Target price is $1.72 Current Price is $1.31 Difference: $0.41
If BPT meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates BPT as Buy (1) -

Beach Petroleum's December-quarter production missed Ord Minnett's estimate by -6% but better-than-expected realised prices triggered a FY22 earnings upgrade.

The broker notes operational risks persist at Western Flank and are hard to quantify.

Buy recommendation and $1.85 target price retained, the broker appreciating the company's diversified assets and near zero debt.

Target price is $1.85 Current Price is $1.31 Difference: $0.54
If BPT meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates BPT as Buy (1) -

Beach Energy may upgrade full year production guidance according to UBS, given improved Western Flank oil production coupled with strong east coast gas demand. 

The Otway Geographe 4 and 5 wells were commissioned during the quarter, and Lang Lang gas maintenance brought forward, allowing for increased production capacity in the second half. 

While December quarter production from Beach Energy was in line with UBS's forecasts, sales revenue of $398m was a -2.5% miss. The broker notes unplanned downtime at the BassGas project caused by weather events likely drove the revenue miss. 

The Buy rating is retained and the target price increases to $1.65 from $1.60.

Target price is $1.65 Current Price is $1.31 Difference: $0.34
If BPT meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates CDA as Outperform (1) -

Codan's 1H trading update revealed misses of -10 and -5% for revenue and profit compared to Macquarie's forecasts. An outlook statement will be provided at results on February 17.

In the meantime, the broker lowers its target price to $12.10 from $15.20 after incorporating lower earnings estimates and the valuation multiple. Outperform retained.

More positively, the update suggests margins were higher in the core businesses with some outperformance by direct-to-consumer (DTC) and the recently acquired (March 31, 2021) US-based Zetron business.

Target price is $12.10 Current Price is $9.78 Difference: $2.32
If CDA meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates CHC as Upgrade to Buy from Accumulate (1) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% fall in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker upgrades Charter Hall Group to Buy from Accumulate. Target price steady at $23.

Target price is $23.00 Current Price is $16.58 Difference: $6.42
If CHC meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $21.96, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates CHL as Add (1) -

The company's Q2 trading update surprised on the upside and stockbroker Morgans believes it is a clear signal of the underlying momentum and overall resilience that is embedded in the business.

Morgans has slightly reduced estimates while the price target has gained 4c to $5.04. Add rating retained.

Camplify is scheduled to report interim financials on February 28.

Post recent acquisitions, Morgans sees integrations now part of the risk profile.

Target price is $5.04 Current Price is $3.66 Difference: $1.38
If CHL meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates CNI as Upgrade to Buy from Accumulate (1) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% fall in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker upgrades Centuria Capital Group to Buy from Accumulate. Target price steady at $3.70.

Target price is $3.70 Current Price is $2.89 Difference: $0.81
If CNI meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates CSL as Buy (1) -

Citi now incorporates earnings estimates for Vifor Pharma into CSL's forecasts. The business was acquired last December and the deal is expected to close this June.

After allowing for this transaction and after adjusting for a slower plasma collection ramp up due to omicron, the $340 target price and Buy rating are unchanged.

Target price is $340.00 Current Price is $258.35 Difference: $81.65
If CSL meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $320.45, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Morgan Stanley rates CTD as Overweight (1) -

Morgan Stanley notes potential downside risk to its bullish outlook on Corporate Travel Management, including ability to increase scale advantage through mid-sized acquisitions, but remains confident of its thesis on the company.

With peers making big acquisitional moves, available acquisition targets are fewer but the broker expects industry consolidation should be sustained for a number of years. Steep margins and a perceived de-rating compared to peers also add risk to the broker's outlook. 

The Overweight rating and target price of $28.00 are retained. Industry view: In-line.

Target price is $28.00 Current Price is $20.33 Difference: $7.67
If CTD meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $26.04, suggesting upside of 31.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates DXS as Upgrade to Buy from Hold (1) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker switches favour to Dexus from GPT Group ((GPT)) and upgrades to Buy from Hold. Target price steady at $12.

Target price is $12.00 Current Price is $10.22 Difference: $1.78
If DXS meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates FMG as Sell (5) -

After 2Q iron ore price realisations for Fortescue Metals Group disappointed Citi, the target price is trimmed to $17 from $17.20 on lower earnings estimates that also incorporate further pricing disappointment. The Sell rating is maintained.

While conceding dividends remain attractive, the broker warns the market is too optimistic in valuing Fortescue Future Industries (FFI).

Target price is $17.00 Current Price is $19.50 Difference: minus $2.5 (current price is over target).
If FMG meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.76, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Credit Suisse rates FMG as Downgrade to Underperform from Neutral (5) -

Credit Suisse downgrades Fortescue Metals Group to Underperform from Neutral, noting the company is trading at a significant premium to peers (whose valuations the broker considers to be stretched), and to reflect a -8% decline on December actuals and a weaker June half price realisation.

Target price rises to $14 from $13.50 to reflect stretched valuations but remains below the Fortescue share price

The broker notes spending on Fortescue Future Industries is rising and the broker spies a near-term thematic opportunity here but believes it is premature to ascribe value just yet.

Target price is $13.50 Current Price is $19.50 Difference: minus $6 (current price is over target).
If FMG meets the Credit Suisse target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.76, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Macquarie rates FMG as Outperform (1) -

Macquarie assesses solid 2Q production and shipment figures for Fortescue Metals Group though notes softer realised prices weighed. After the broker makes modest changes to earnings forecasts, the Outperform rating and $21 target price remain the same.

Realised pricing of US$74.36/dmt was -5% lower than the analyst had forecast. Realised pricing discounts are the key risk to Macquarie's base case valuation.

Target price is $21.00 Current Price is $19.50 Difference: $1.5
If FMG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.76, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Ord Minnett rates FMG as Hold (3) -

Fortescue Metals Group December-quarter production report broadly met Ord Minnett's forecast.

Management raised capital expenditure guidance to reflect the Williams Advanced Engineering US$223m acquisition.

The broker notes China's steel output is recovering faster than it had expected, lifting iron ore prices, but remains cautious given Fortescue Future Industries (FFI) is set to approve several as-yet unquantified major projects, and doubts the iron-ore price strength will be sustained given China's recent restocking.

Hold recommendation and $20 target price retained ahead of FFI announcements.

Target price is $20.00 Current Price is $19.50 Difference: $0.5
If FMG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $16.76, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

UBS rates FMG as Sell (5) -

A cyclical iron grade decline saw Fortescue Metals Group's realised prices fall -37% quarter-on-quarter, but shipments remained strong in the December quarter and UBS expects elevated iron ore pricing to drive a solid return at the interim result. 

Looking ahead, the Iron Bridge project remains on track for first production in the FY22 December quarter, although extended hard border closures in Western Australia present risk.

The company portfolio continues the transition from iron ore to integrated renewable energy and resources, with a memorandum of agreement with Sinosteel for the Midwest Magnetite Project now in place. 

The Sell rating and target price of $14.90 are retained.

Target price is $14.90 Current Price is $19.50 Difference: minus $4.6 (current price is over target).
If FMG meets the UBS target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.76, suggesting downside of -13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Ord Minnett rates GPT as Downgrade to Hold from Accumulate (3) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker downgrades GPT Group to Hold from Accumulate, and switches favour to Dexus ((DXS)). Target price steady at $5.70.

Target price is $5.70 Current Price is $4.97 Difference: $0.73
If GPT meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.40, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates HPI as Upgrade to Buy from Accumulate (1) -

Ord Minnett revises property share recommendations after the sector posted a -10.4% decline compared to the S&P/ASX200's -6.5% fall in the first few weeks of 2022.

Rate fears and the associated expectation of higher long bond yields drove the fall but Ord Minnett believes fundamentals remain sound after the re-rating, that real-estate offers an inflation hedge, and that conditions support earnings growth.

The broker upgrades Hotel Property Investments to Buy from Accumulate. Target price steady at $4.

Target price is $4.00 Current Price is $3.42 Difference: $0.58
If HPI meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates IEL as Buy (1) -

While impacts of the omicron variant may have presented some temporary headwinds, UBS reiterates IDP Education's continuing covid recovery. Although mobility in key source markets is down, international student visas are trending up in markets excluding Australia. 

Although December quarter international student visa lodgments in Australia remained down -25% on the same quarter in FY19, UBS notes this is an improving trend. A -6% decrease to FY22 earnings per share forecasts leaves UBS 3% ahead of consensus forecasts. 

The Buy rating is retained and the target price decreases to $36.05 from $36.40.

Target price is $36.05 Current Price is $29.85 Difference: $6.2
If IEL meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $36.61, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates ILU as Neutral (3) -

While 4Q production for Iluka Resources was assessed as strong by Citi, it's thought near-term price momentum for zircon, rutile and synthetic rutile is unsustainable into 2023.

Despite the highlighting 2Q cash flow fell short for the quarter, the broker raises its target price to $10.50 from $9.50 due to improved 2022 forecasts prices. The Neutral rating is unchanged.

Target price is $10.50 Current Price is $10.25 Difference: $0.25
If ILU meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.12, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates ILU as Neutral (3) -

Iluka Resources' December-quarter production outpaced consensus by 14% and sales outpaced by 5%, driven mainly by an inventory drawdown, which Credit Suisse suspects may not be repeated in 2022.

The broker considers strong zircon prices to be driven by supply shortages rather than demand spikes, and spies several headwinds, including grade declines and weaker demand from China.

However, with producers cutting supply in response to China's property downturn, the broker expects zircon prices may remain resilient for longer and raises it 2022-2025 estimates 6% to 25%.

Target price rises to $9.50 from $9. Neutral rating retained.

Target price is $9.50 Current Price is $10.25 Difference: minus $0.75 (current price is over target).
If ILU meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.12, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates ILU as Outperform (1) -

Following Iluka Resources' 4Q results, Macquarie lifts its 2021 EPS forecast by 1% though 2022-2024 forecasts rise by 6-8%. The latter results from upgraded zircon and rutile price assumptions and extending the timeline for operations in Sierra Leone.

The analyst expects short and medium-term benefits from increasing zircon, rutile and rare earth prices. The Outperform rating is unchanged while the target price rises $12.40 from $12.

Target price is $12.40 Current Price is $10.25 Difference: $2.15
If ILU meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $10.12, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

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

While Iluka Resources delivered a 41% beat on Morgan Stanley's production forecast in the fourth quarter, and a 10% beat to calendar year forecast, sales remained in line with with the broker's expectations and realised prices were lower than expected. 

Morgan Stanley notes the negative correlation between production and sales suggests some inventory build in the fourth quarter. Positively, the notice to cease production at the Sierra Leone project has been withdrawn.

The Equal-weight rating and target price of $8.80 are retained. Industry view: Attractive.

Target price is $8.80 Current Price is $10.25 Difference: minus $1.45 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.12, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates ILU as Hold (3) -

Iluka Resources' December-quarter product report outpaced Ord Minnett's forecasts.

The broker says the buoyant pricing outlook is coinciding with lower-than-average inventory, winter restocking and higher utilisation.

Ord Minnett appreciates the company's leading position in the mineral sands market and growing rare-earths exposure; notes Eneabba Phase 2 is on track despite rising costs; and that a Sierra Rutile spin-off may be on the cards.

Hold rating retained. Target price rises to $9.40 from $9.20 to reflect the brokers' commodity-price and mark-to-market review.

Target price is $9.40 Current Price is $10.25 Difference: minus $0.85 (current price is over target).
If ILU meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.12, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates ING as Buy (1) -

In anticipation of the outlook statement at 1H results due on February 18, Citi estimates Inghams Group's 3Q sales may be impacted by around -$80m due to the omicron-induced labour shortage. The target price falls to $4 from $4.55. Buy.

The broker forecasts 1H underlying earnings (EBITDA) of $230m and underlying profit of $48m.

Target price is $4.00 Current Price is $3.26 Difference: $0.74
If ING meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.83, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates LYC as Lighten (4) -

Lynas Rare Earths December-quarter production outpaced Ord Minnett's forecast by 10%, coinciding with record prices, but higher costs and working capital triggered a material earnings miss.

The broker doubts price momentum can be sustained, notes a long-awaited capital expenditure splurge is building, and believes its poor prognosis remains valid.

Lighten recommendation retained. Target price eases to $4.50 from $4.60.

Target price is $4.50 Current Price is $9.27 Difference: minus $4.77 (current price is over target).
If LYC meets the Ord Minnett target it will return approximately minus 51% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Following Mineral Resources' 2Q production report, Citi lifts its target price to $61 from $57. Despite raising FY22 and FY23 spodumene price forecasts by 42% and 30%, the broker reduces its rating to Neutral from Buy after a recent share price rally.

The analyst expects lithium deficits in the coming few quarters.

Meanwhile, Citi points out low-grade iron ore discounts remained elevated.

Target price is $61.00 Current Price is $57.12 Difference: $3.88
If MIN meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $54.77, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates MIN as Outperform (1) -

Weaker 2Q realised prices for both iron ore and spodumene offset Mineral Resources' stronger iron ore production and shipments, explains Macquarie. Despite near-term discounting, realised iron ore prices are set to improve (with the current stronger spot prices).

The broker lowers its target price to $75 from $79 and maintains its Outperform rating.

Target price is $75.00 Current Price is $57.12 Difference: $17.88
If MIN meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $54.77, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates MIN as Downgrade to Sell from Hold (5) -

Mineral Resources' December-quarter production report disappointed Ord Minnett on several counts and the broker downgrades from Hold to Sell, noting the share price is trading 30% ahead of the broker's target.

While iron ore production met expectations, the company reported average iron ore revenue was -43% below the average spot price and spodumene shipments missed the broker's forecast by -8%.

Ord Minnett shaves its target price to $45 from $46.

Target price is $45.00 Current Price is $57.12 Difference: minus $12.12 (current price is over target).
If MIN 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 $54.77, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

With National Australia Bank set to present a first quarter trading update in early February, Morgan Stanley notes while flat cash earnings growth won't surprise the broker does expect higher revenue and quarter-on-quarter loan growth of around 1.5%.

The broker expects margins to be a feature of the update, anticipating a margin fall to 1.65% in the fourth quarter from 1.74% in the third quarter, noting potential further downside to expectations.

The Equal-weight rating and target price of $28.50 are retained. Industry view: Attractive.

Target price is $28.50 Current Price is $27.35 Difference: $1.15
If NAB meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $29.58, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

Following Nearmap's recent market update, Citi sees a buying opportunity (recent share price underperformance) as management guidance appears conservative. Thus, the rating lifts to Buy from Neutral. The target price falls to $2.10 from $2.20.

The analyst estimates FY22 will be the peak year for cash burn. This issue is believed to be one of the key investor concerns held by the wider market.

Target price is $2.10 Current Price is $1.33 Difference: $0.77
If NEA meets the Citi target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 95.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates OGC as Outperform (1) -

Macquarie retains its Outperform rating and $3.30 target for OceanaGold Corp after 4Q results, which were notable for a production beat versus the analyst's estimate. Otherwise, it was considered a mixed result with higher overall production offset by higher costs.

Both of the New Zealand assets underperformed the broker's expectations though an ongoing ramp-up of their respective underground mines is expected to assist productivity in 2022.

Target price is $3.30 Current Price is $2.15 Difference: $1.15
If OGC meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Credit Suisse rates PRU as Outperform (1) -

Perseus Mining's December-quarter production outpaced consensus by 4% and Credit Suisse by 5% thanks to a strong performance from Yaoure, despite a disappointing showing from Edikan, which again reported reconciliation problems.

The real star was all-in-sustaining-costs, which delivered a 3% beat on consensus and a 7% beat on the broker.

Second-half guidance suggests stronger prices may outweigh weaker production and the broker says management hinted at M&A activity.

The company paid a maiden dividend in the December quarter, repaid US$50m debt and closed with a $269m cash balance.

Target price is steady at $1.80. Outperform rating retained.

Target price is $1.80 Current Price is $1.50 Difference: $0.3
If PRU meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates PRU as Outperform (1) -

Perseus Mining's 2Q results revealed a 7% and 6% beat for production and all-in sustaining costs (AISC) compared to Macquaries forecasts.

After allowing for these results and taking into account changes in the company's hedge book, the analyst retains the $1.90 target price. Outperform.

Target price is $1.90 Current Price is $1.50 Difference: $0.4
If PRU meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates PSQ as Overweight (1) -

Given impacts of the omicron variant in December, Morgan Stanley warns Pacific Smiles Group's first half results will be below previous guidance but notes the company was on track to reach the upper end of guidance range before impacts.

Given persisting impacts, including current patient feeds down 15-20% in January, Morgan Stanley notes FY22 guidance has been withdrawn. More positively, the longer-term outlook is maintained supported by a reaffirmed 15-20 centre openings for the year. 

The Overweight rating and target price of $3.40 are retained. Industry view: In-Line.

Target price is $3.40 Current Price is $2.61 Difference: $0.79
If PSQ meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates PSQ as Buy (1) -

Pacific Smiles Group has delivered a trading update in response to the impacts of omicron.

Booking cancellations in January have triggered a -15% to -20% decline in patient fees (to the lower end of guidance), and labour costs have risen given a large proportion of the company's workforce has been forced into isolation.

The resulting operating deleverage has yielded a sharp fall in earnings (-23% below Ord Minnett's forecasts) and a hit to FY22 cash flow.

Ord Minnett cuts earnings forecasts but retains a $3.10 target price and Buy rating, admiring the industry fundamentals and clinic maturation.

Target price is $3.10 Current Price is $2.61 Difference: $0.49
If PSQ meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates RED as Add (1) -

Red 5 is owner and operator of one of the mines with the most iconic names in Australia; King of the Hills, sometimes referred to as KOTH. The operation should deliver first gold in the June quarter.

Morgans finds the Q2 performance overall in-line. Company suggests it is doing well with finding workers despite the tight labour market in WA.

Red 5 is and remains the broker's key pick for investors looking to add a gold developer on the ASX. Add rating retained, with a price target of 34c (up 1c).

Target price is $0.34 Current Price is $0.27 Difference: $0.07
If RED meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates RED as Buy (1) -

Red 5's December-quarter production report broadly met Ord Minnett's forecasts and guidance is steady.

The broker notes construction at KOTH is more than 83% complete, on track and within budget but spies potential labour concerns.

Ord Minnett considers Red 5 to be trading at a discount relative to peers and expects this will unwind as the company approaches maiden commercial production.

Speculative Buy rating and 40c target price retained.

Target price is $0.40 Current Price is $0.27 Difference: $0.13
If RED meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto and Turquoise Hill Resources have signed agreements with the Mongolian government to restart production from its Hugo North underground copper mine at Oyu Tolgoi and to increase production.

Concessions included waiving the US$2.4bn equity loan to the government, settling on a longer term power agreement and cancelling the Oyu Tolgoi Mine Development and Financing Plan.

Rio Tinto will start re-profiling the debt and will provide an extra US$750m in debt. Macquarie says that, combined with the recent US$0.5bn senior supplemental debt issue, this should cut Turquoise's equity funding requirement from US$1.5bn to US$650m.

Macquarie upgrades the company's iron-ore earnings 33% in 2022 and 88% in 2023 to reflect strong forecast iron-ore prices. 

All up, the broker tinkers with EPS (a smidgeon higher out to 2028). Outperform rating and $130 target price are retained.

Target price is $130.00 Current Price is $107.08 Difference: $22.92
If RIO meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $106.86, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates RIO as Overweight (1) -

Having reached agreement with Turquoise Hill Resources and the Government of Mongolia, and received approval for commencement of underground mining, Morgan Stanley reports that Rio Tinto's Oyu Tolgoi project will be able to move forward. 

While current capital expenditure for the project has been forecast at US$6.925bn expenditure is being re-forecast to account for further covid implications and time impacts. 

The Overweight rating and target price of $109.00 are retained. Industry view: Attractive.

Target price is $109.00 Current Price is $107.08 Difference: $1.92
If RIO meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $106.86, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates S32 as Overweight (1) -

South32 reported softer than expected production in the fourth quarter, with manganese and met coal notably down -7% and -11% on Morgan Stanley's forecasts, but a 20% production beat at the Cannington mine was a positive and guidance for the site increased 5%.

While the company has flagged impacts on cost guidance, increases are in line with Morgan Stanley's estimates. The broker found stock price movements an overreaction, with production increases and strong December quarter sales supporting a positive outlook. 

The Overweight rating is retained and the target price increased to $4.95 from $4.85. Industry view: Attractive.

Target price is $4.95 Current Price is $3.74 Difference: $1.21
If S32 meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates S32 as Add (1) -

Morgans has retained its Add rating with a price target of $5 (unchanged) post the release of a rather "mixed" quarterly report, whereby weaker volumes from coal and manganese were offset via a stronger performance at Carrington.

The broker notes the company has now reduced guidance for manganese and upgraded guidance for Carrington.

Any flaws operationally are currently compensated for through exceptional strength in metal prices, points out Morgan, but inflation pressures are real and South32 only has limited ability to defend itself.

Target price is $5.00 Current Price is $3.74 Difference: $1.26
If S32 meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates SBM as Outperform (1) -

St Barbara Mining's December-quarter production missed consensus and Credit Suisse estimates, due to wet weather, a tight labour and supply environment, a delay in resurrecting the Simba plant and a geotechnical event at Gwalia (although the company dealt with this by mining a much shallower front).

The broker believes the company's strategy in reacting to the Gwalia event could improve flexibility, reduce cycle times and improve mining rates.

Management expects a strong performance from Gwalia, relative weakness at Simberi (at the low end of guidance), and downgrades Atlantic guidance to reflect a poor weather outlook.

Credit Suisse cuts FY23 EPS -33% and FY24 EPS -3% to reflect revised production and cost forecasts.

Target price falls to $1.50 from $1.65. Outperform rating retained.

Target price is $1.50 Current Price is $1.30 Difference: $0.2
If SBM meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 37.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates SBM as Hold (3) -

St Barbara Mines' December-quarter production report broadly met Ord Minnett's forecasts.

Management downgrades FY22 production guidance to reflect delays in rock permits and Ord Minnett downgrades FY22 earnings forecasts -4% accordingly.

Target price eases to $1.45 from $1.50. Hold recommendation retained, the broker believing the company reflects an attractive long-term prospect despite short-term risks.

Target price is $1.45 Current Price is $1.30 Difference: $0.15
If SBM meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 37.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates SEK as Outperform (1) -

In anticipation of Seek's 1H results on February 15, Macquarie expects profit guidance to be upgraded by around 11% to $200-220m, which is thought to be around 1% ahead of the consensus estimate.

The analyst believes the key to the results is an update on the execution of the price to value strategy strategy. The Outperform rating and $37 target price are unchanged.

Target price is $37.00 Current Price is $28.82 Difference: $8.18
If SEK meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $35.65, suggesting upside of 32.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates SFR as Add (1) -

Stockbroker Morgans is of the view that the cost pressures bugging Sandfire Resources in Q2 should not have come as a surprise; it's an industry-wide phenomenon.

The broker has now incorporated Matsa in its forecasts, together with higher price forecasts for metals. Price target has lifted to $7.81 from $6.85.

Add rating retained.

Target price is $7.81 Current Price is $6.51 Difference: $1.3
If SFR meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.29, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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 report delivered material misses across most metrics and management downgraded output (-5%) and cost guidance (-10%) but coal prices hit record highs, dulling the blow.

Poor weather, a longwall change-out and labour shortages took their toll on production.

While Ord Minnett doubts recent extreme coal prices can be maintained, they should be healthy and debt is low, suggesting it's "all-aboard" the cash-flow train.

Target price rises 10% to $4.40. Buy rating retained.

Target price is $4.00 Current Price is $2.63 Difference: $1.37
If WHC meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 39.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates Z1P as Neutral (3) -

Citi makes significant downgrades to Zip Co's forecasts to reflect higher net bad debts, slower growth from reduced e-commerce activity and a shift in spending toward services. The target price is slashed to $3.65 from $5.65. The Neutral rating is unchanged.

While the broker likes certain aspects of the potential acquisition of Sezzle, including increased scale, the transaction is not seen as altering the company's competitive position.

Target price is $3.65 Current Price is $3.21 Difference: $0.44
If Z1P meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 77.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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