Australian Broker Call

Morgans rates AIM as Add (1) -

Morgans forecasts margin upside as a result of the integration of two acquired North American businesses (cost US$2.2m) into Access Innovation Holdings’ technology platform.

The broker notes the businesses fit the company’s sweet spot with greater than 95% of revenue coming from “Live Enterprise” where accuracy and speed matter most.

Importantly to Morgans, management reiterated the (pre-acquisitions) prospectus forecasts are on-track.

The Add rating is maintained and the target price is increased to $1.37 from $1.35.

Target price is $1.37 Current Price is $0.98 Difference: $0.39
If AIM meets the Morgans target it will return approximately 40% (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 AMI as Outperform (1) -

Aurelia Metals recently raised capital to fund the acquisition of the Dargues gold mine in New South Wales. Macquarie asserts the mine will underpin the company's future gold production and offers a number of easy improvements and optimisations that have the potential to lift production.

Macquarie retains its Outperform recommendation with a target price of $0.65.

Target price is $0.65 Current Price is $0.40 Difference: $0.25
If AMI meets the Macquarie target it will return approximately 63% (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

UBS rates AMP as Neutral (3) -

AMP is one of the top performers in the large insurer's space in 2020, observes UBS.

UBS sees near-term earnings downside risk which could be a key focus of a potential acquirer.

The recent disruption and board and management changes could see higher outflows in AMP's wealth management division continued for longer than previously expected. Further, the broker expects outflows to also be an issue for AMP Capital following this disruption.

Target rises to $1.80 from $1.45, Neutral retained.

Target price is $1.80 Current Price is $1.74 Difference: $0.06
If AMP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates ANZ as Buy (1) -

ANZ Bank will sell its merchant acquiring business into a new joint venture with European payments operator, Worldline, for $485m. Worldline will be able to acquire ANZ's 49% residual stake after 10 years.

Citi notes this is the first example of a major Australian bank ceasing control of a traditional banking product by divesting it into a JV structure. The decoupling of merchant acquiring services to specialists and away from major banks has driven the transaction.

Buy rating and $23.75 target.

Target price is $23.75 Current Price is $22.97 Difference: $0.78
If ANZ meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.25, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates ANZ as Accumulate (2) -

ANZ Bank will enter into a joint venture with Europe-based Worldline to provide payments technology and merchant services in Australia. The joint venture will be controlled by Worldline.

Ord Minnett sees strategic merit for ANZ given the venture will have more scale to invest in technology necessary to compete with the larger major banks and Tyro Payments ((TYR)).

The Accumulate rating is unchanged with a $23.40 target price.

Target price is $23.40 Current Price is $22.97 Difference: $0.43
If ANZ meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $23.25, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates AZJ as Outperform (1) -

Monthly port volumes for Aurizon Holdings were cumulatively down -12% to November with above-rail volumes continuing to face some pressure from China.

Macquarie notes Aurizon Holdings is in a sunset industry with challenging growth prospects. Even so, investors remain attracted to cash generation, surplus asset realisation and an under-geared balance sheet.

Outperform retained with a target of $4.53.

Target price is $4.53 Current Price is $4.15 Difference: $0.38
If AZJ meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.10, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates CGF as Reinstate coverage with Buy (1) -

Challenger's share price was hit the hardest in the market sell-off in March/April and has since recovered partially. UBS continues to see share price upside and the broker believes earnings risk now swings to the upside.

With the recent regulatory reviews supporting the push for higher allocation of retirement savings to annuity-style products, there are a number of institutional sale opportunities which UBS believes may benefit Challenger.

UBS reinstates coverage with a Buy rating with the target rising to $6.85 from $4.90.

Target price is $6.85 Current Price is $5.77 Difference: $1.08
If CGF meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates DOW as Outperform (1) -

Downer EDI is selling its Western Australia open-cut mining business (Mining West) to MACA ((MLD)) for $205m. This includes the sale price of $175m and circa $30m from the unwinding of working capital balances.

The sale shows further progress on Downer’s urban services strategy along with a move to more stable, predictable and cash generative businesses, assesses Macquarie. The broker expects better free cash flow conversion for the group.

Outperform rating retained with the target rising to $5.82 from $5.75.

Target price is $5.82 Current Price is $5.37 Difference: $0.45
If DOW meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates DOW as Overweight (1) -

Downer EDI has sold its Western Australian open cut mining business for $200m. Morgan Stanley notes the exit of mining has been a key intention of the company and its rating was upgraded recently to Overweight based on a greater likelihood of improved activity in transport.

There are still further businesses in the mining segment to be divested, including an open cut business in eastern Australia, underground exposure plus a tyre management business. Target is $5.60. Industry view: In-line.

Target price is $5.60 Current Price is $5.37 Difference: $0.23
If DOW meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates DOW as Hold (3) -

Downer EDI will sell its open-cut Mining West business to MACA ((MLD)). Ord Minnett calculates post-sale, Downer will be at the mid-point of its urban services strategy, having exited businesses representing 45% of its non-core FY19 earnings.

In the broker's view, the sale is a positive step to executing on Downer’s strategy, although Ord Minnett is disappointed that the company appears to be selling its mining services businesses at or below book value.

Ord Minnett maintains a Hold rating and trims its target price to $5.00 from $5.10.

Target price is $5.00 Current Price is $5.37 Difference: minus $0.37 (current price is over target).
If DOW meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.46, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates DOW as Buy (1) -

Downer EDI will divest its Western Australian open cut mining business, Mining West, to MACA ((MLD)) for $205m, which includes a sale price of $175m and $30m in working capital. The sale price is in in-line with UBS's expectations.

UBS notes the divestment of Mining West follows other divestments including the sale of a 70% stake in Spotless Laundries, Downer Blasting Services, Snowden Consulting and RTL Mining.

The broker views Downer EDI as a restructuring story expected to position the company to deliver enhanced cash flows of more than $350m. The restructure will enable the company to focus on its core urban services infrastructure businesses, adds the broker.

The broker retains a Buy rating with a target of $6.30.

Target price is $6.30 Current Price is $5.37 Difference: $0.93
If DOW meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates GWA as Neutral (3) -

Macquarie observes strengthening housing prices and leading indicators point to an improving outlook in FY22 for GWA Group's core detached housing and residential R&R markets.

The commercial segment outlook is less certain with softer activity rates and delays to commercial completions. The broker considers improving confidence and activity rates to be a key swing-factor in driving a re-rate.

Neutral rating retained with the target rising to $3.25 from $2.6.

Target price is $3.25 Current Price is $3.36 Difference: minus $0.11 (current price is over target).
If GWA meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.78, suggesting downside of -16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Ord Minnett upgrades its rating to Speculative Buy from Hold with the target rising to $0.30 from $0.16.

With permanent magnet raw materials prices rising 50% year to date, the rare earth thematic is firing, asserts the broker. Furthermore, project economics of the company has improved with further upside expected in operating costs and ore sorting.

Target price is $0.30 Current Price is $0.16 Difference: $0.14
If HAS meets the Ord Minnett target it will return approximately 87% (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

Credit Suisse rates HUO as Neutral (3) -

Farming conditions remain very positive for Huon Aquaculture, although Credit Suisse notes the trend in pricing has gone the opposite way with materially weaker international salmon prices.

Having previously expected growth in FY21 the broker now expects an earnings decline and a modest net loss.

On the assumption that FY22 will provide a more normal price environment, current pressures are expected to be temporary. Neutral rating retained. Target is reduced to $2.90 from $3.35.

Target price is $2.90 Current Price is $2.78 Difference: $0.12
If HUO meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates IAG as Buy (1) -

Insurance Australia Group disappointed on many fronts in 2020, leading to circa 30% underperformance to date in 2020, but with the major headwind of business interruption (BI) provisions mostly addressed, UBS is comfortable with the sustainability of the core business profitability.

The insurer raised equity to cater to the BI risk, leading to questions around the capital headwinds from the quota share. UBS clarifies the group has structured its quota share with staggered renewal dates over the next five years to reduce the risk of a capital event.

UBS maintains its Buy rating with a target price of $5.80.

Target price is $5.80 Current Price is $5.13 Difference: $0.67
If IAG meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates JMS as Neutral (3) -

Jupiter Mines' third-quarter results were stronger than Macquarie expected on all metrics. Production and sales increased for the second consecutive quarter while the cost of production was lower than expected.

Earnings forecasts for FY21-22 have been increased by 33%. On the flip side, manganese prices continue to be subdued.

Neutral retained with a target of $0.30.

Target price is $0.30 Current Price is $0.28 Difference: $0.02
If JMS meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in February.

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

Morgans rates MGH as Initiation of coverage with Add (1) -

Morgans initiates coverage of Maas Group Holdings with an Add rating and $3.05 target price.

The company is a leading independent Australian construction materials, equipment and services provider. It has diversified exposures across civil, infrastructure, mining and real estate end markets.

Over FY20-23, the broker forecasts an EPS compound annual growth rate (CAGR) of 22%, driven by material growth in quarry sales volumes and increased residential sales.

Additionally, the analyst expects strong activity levels in civil and infrastructure end markets.

The company provides exposure to a founder-led business benefitting from positive industry tailwinds and further upside potential from accretive M&A, in Morgans view.

Target price is $3.05 Current Price is $2.70 Difference: $0.35
If MGH meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates MPL as Reinstate coverage with Neutral (3) -

Medibank Private's "safe stock" status helped the stock in 2020 but UBS believes 2021 may see low growth returns.

Despite the insurer working on its expenses and non-insurance growth opportunities, the broker highlights the uncertainty surrounding the April 1, 2021 rate increase poses an elevated risk in the current environment.

Moreover, the broker does not see the risk/reward in Medibank's favour with the stock trading closer to fair value.

Neutral rating reinstated with the target rising to $2.95 from $2.70.

Target price is $2.95 Current Price is $2.88 Difference: $0.07
If MPL meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates NCM as Outperform (1) -

Credit Suisse expects gold to continue its upward trajectory and average US$2100/oz in 2021. The main supportive factor is very accommodative monetary policy along with fiscal expansion, particularly in the US.

The broker suggests investors focus on US real rates to determine the trajectory of the gold price as this has the strongest historical correlation.

Credit Suisse expects 2021 will be a better year for Newcrest Mining, which should also benefit from robust copper prices. Outperform retained. Target is reduced to $34.65 from $37.70.

Target price is $34.65 Current Price is $26.67 Difference: $7.98
If NCM meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $33.16, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

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

Reviewing Nearmap's opportunity in the US, Macquarie considers scale to be the key consideration. The inability to scale fast enough poses the greatest risk to the broker's investment thesis.

Macquarie remains attracted to Nearmap’s technology, growing market opportunity and the ability to leverage efficiencies from an enhanced capture program.

Having said that the broker also notes a continued rotation to value/cyclicals could restrict near-term outperformance.

Macquarie downgrades its rating to Neutral from Outperform with the target price falling to $2.40 from $3.20.

Target price is $2.40 Current Price is $2.22 Difference: $0.18
If NEA meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 28.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates NHF as Reinstate coverage with Neutral (3) -

nib Holdings benefitted from its "safe stock" status during 2020 and has been the best of the insurers since 1 March, asserts UBS. On the flip side, the insurer faces some earnings headwinds from its smaller divisions, including travel insurance.

While UBS thinks the stock provides an attractive opportunity at current levels, the broker also considers the near-term risk around the April premium approval too high to support a more positive stance for now.

UBS reinstates coverage on nib Holdings with a Neutral rating with the target rising to $5.85 from $5.10.

Target price is $5.85 Current Price is $5.59 Difference: $0.26
If NHF meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates PTB as Add (1) -

PTB Group has sold its Sydney property for a pre-tax profit of $5.8m, and has also upgraded FY21 net profit before tax guidance by $4m.

Morgans lifts the FY21 forecast net profit before tax to $15.1m (from $11.3m).

The analyst continues to see an overlooked covid-exit opportunity with recoveries underway in key customer markets, and potential to increase margins in the US business.

The Add rating is maintained and the target is increased to $0.89 from $0.86.

Target price is $0.89 Current Price is $0.74 Difference: $0.15
If PTB meets the Morgans target it will return approximately 20% (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

UBS rates QBE as Downgrade to Neutral from Buy (3) -

UBS notes while QBE Insurance has upside leverage to a strong premium rate environment, the group is also exposed to elevated claims currently.

Even with positive headline premium rates, the earnings benefit is less clear to the broker with the gross written premium likely to lag premium rate increases in the near-term. 

On January 1, 2021, QBE Insurance has a major reinsurance renewal which could lead to a sizeable margin headwind.

UBS downgrades its rating to Neutral from Buy. Target falls to $10.50 from $12.

Target price is $10.50 Current Price is $9.93 Difference: $0.57
If QBE meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.19, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Credit Suisse rates RRL as Outperform (1) -

Credit Suisse expects gold to continue its upward trajectory and average US$2100/oz in 2021. The main supportive factor is very accommodative monetary policy along with fiscal expansion, particularly in the US.

The broker suggests investors focus on US real rates to determine the trajectory of the gold price as this has the strongest historical correlation.

Regis Resources has announced the approval of Garden Well South underground gold mine based on a positive feasibility study. This incorporates 1.85mt mined at 3.2g/t for 190,000 ounces. First contribution is expected from the June quarter of 2022.

Credit Suisse retains an Outperform rating and reduces the target to $5.25 from $6.45.

Target price is $5.25 Current Price is $3.69 Difference: $1.56
If RRL meets the Credit Suisse target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates RRL as Add (1) -

The Garden Well South (GWS) underground mine development has been approved. The feasibility study shows a 1.85mt mine producing 3.2g/t ore for 190koz of gold in an initial three-year operation.

GWS is a broad deposit, suitable to low cost long hole open stoping mining, compared to the narrower but higher-grade underground at Rosemont.

Morgans believes the deposit will supply a stable tonnage and grade profile over the life of the mine, and may also support the eventual development of Garden Well North.

The Add rating is maintained and the target price is increased to $4.78 from $4.57.

Target price is $4.78 Current Price is $3.69 Difference: $1.09
If RRL meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates SBM as Neutral (3) -

Citi has found the cost reduction and production outlook from St Barbara ambitious. The plan incorporates a threefold increase in cash contributions by FY23, with one third from cost reductions.

Given the track record at Gwalia, permit delays at Atlantic Gold and the uncertainty surrounding fiscal terms for Simberi sulphide the broker suspects investors may wait until there is proof the goals are being achieved.

The broker retains a Neutral rating and lowers the target to $2.70 from $3.60 on the back of downgrades to gold price forecasts, with peak gold expected in 2021.

Target price is $2.70 Current Price is $2.45 Difference: $0.25
If SBM meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates SBM as Outperform (1) -

Credit Suisse expects gold to continue its upward trajectory and average US$2100/oz in 2021. The main supportive factor is very accommodative monetary policy along with fiscal expansion, particularly in the US.

The broker suggests investors focus on US real rates to determine the trajectory of the gold price as this has the strongest historical correlation.

St Barbara's strategy briefing brought some clarity to production and growth expectations, Credit Suisse notes. M&A appears off the agenda, with management intent on maximising performance and returns from existing assets.

Credit Suisse retains an Outperform rating and reduces the target to $3.30 from $4.40.

Target price is $3.30 Current Price is $2.45 Difference: $0.85
If SBM meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SBM as Underperform (5) -

St Barbara hosted an investor briefing wherein the company outlined the expected benefits from its "Building Brilliance" program. Also, the company highlighted new opportunities at its Gwalia mine, offset by a slower build-out of the Atlantic mines.

The company stated Gwalia mine will pursue a new "province strategy" to fill its underutilised mill, via toll treatment and then subsequently by developing provincial open pit and historic stockpile opportunities.

Underperform retained for St Barbara with a target of $2.40.

Target price is $2.40 Current Price is $2.45 Difference: minus $0.05 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.06, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates SBM as Overweight (1) -

St Barbara has provided greater clarity on the outlook in its update, particularly at Atlantic Gold, Morgan Stanley notes. At Gwalia toll treatment will provide an earnings uplift, with guidance lifted to 1.4mtpa by FY25.

Both the Gwalia and Simberi production guidance now exceed the broker's longer-term estimates. Gwalia production guidance is for 215-240,000 ounces by FY25.

At Simberi guidance is for 100,000ozpa of oxides until FY24 with sulphide commencing the following year.

The focus is now on operational sustainability and Morgan Stanley maintains an Overweight rating. Target is raised to $3.70 from $3.55. Industry view is Attractive.

Target price is $3.70 Current Price is $2.45 Difference: $1.25
If SBM meets the Morgan Stanley target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates SRJ as No Rating (-1) -

Morgans initiates coverage of SRJ Technologies with a Speculative Buy rating and a target price of $0.66.

The company provides specialised engineering services and containment solutions for the energy sector, with a particular focus on oil and gas, LNG and mining. 

It has also developed a range of weldless couplings and leak containment solutions for the oil and gas industry.

The company has built a network of partnerships with industry (including Mitsui and Co) to ramp up sales.

The balance sheet is debt free with GBP5.1m of cash at the end of the September quarter.

Target price is $0.66 Current Price is $0.47 Difference: $0.19
If SRJ meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

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

UBS rates SUN as Buy (1) -

UBS notes Suncorp Group did a lot of work before the pandemic including resetting its reinsurance program, cleaning up its general insurance portfolio and divesting the non-core assets.

The broker views Suncorp as the "cleanest" of the general insurers, providing an attractive opportunity. Also, the macro concerns that have been impacting the group's share price appear to be reducing, adds UBS.

UBS retains its Buy rating with the target price rising to $11.15 from $10.60.

Target price is $11.15 Current Price is $10.15 Difference: $1
If SUN meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.72, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates TGR as Outperform (1) -

Conditions are favourable for Tassal Group amid increased production and lower unit costs. This is being offset by pricing pressures as weak international salmon prices affect the export channel.

The broker revises down expectations for growth and now anticipates a flat result in FY21.

Outperform rating maintained as a longer-term call, although the valuation is still supportive, the broker adds. Target is reduced $4.05 from $4.30.

Target price is $4.05 Current Price is $3.65 Difference: $0.4
If TGR meets the Credit Suisse target it will return approximately 11% (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 TWE as Neutral (3) -

Treasury Wine Estates released its annual fact book for 2020 but did not provide any trading update.

The company reiterated five elements that are key to deliver its long-term group operating income margin target of 25%. These include investing in brand-building initiatives, optimising routes to market in Asia, US and AU, supply chain optimisation and cost savings of more than $100m.

Macquarie maintains a Neutral rating and $10.60 target.

Target price is $10.60 Current Price is $9.21 Difference: $1.39
If TWE meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.43, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates WHC as Add (1) -

Morgans increases the target price to $2 from $1.86 after a surprise spike in Newcastle coal price (NEWC) thermal pricing to above US$80/t, with the higher Australian dollar providing a partial offset.

The broker applies US$2-9/t upgrades to forecast NEWC coal prices over FY21- 23 based on the spike, and a sense among traders that tightness can continue into 2021.

The Add rating is maintained and Morgans still identifies compelling value for assertive investors.

Target price is $2.00 Current Price is $1.52 Difference: $0.48
If WHC meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.76, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates WOW as Outperform (1) -

Woolworths announced acquiring a 65% interest in PFD Food Services on August 19. The Australian Competition and Consumer Commission has highlighted that the proposed acquisition is likely to increase Woolworths' already substantial bargaining power.

Furthermore, Woolworths and PFD both acquire food and groceries from common suppliers and the acquisition would remove PFD as an alternative customer in the food sector, potentially affecting downstream competition.

The ACCC will announce its final decision on the acquisition on April 22 2021. Target is $40.75. Outperform retained.

Target price is $40.75 Current Price is $39.07 Difference: $1.68
If WOW meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $42.18, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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