Australian Broker Call

Citi rates ABC as Neutral (3) -

Citi argues the quicklime supply extension with Alcoa is -of course- a positive for AdBri., but it should not have come as a surprise. The broker notes the extension is only for 12 months probably indicating Alcoa hasn't changed its mind longer term.

There is no enthusiasm at Citi and the broker's price target actually drops to $3.21 as peers trade on lower multiples these days. Increased cement competition is but one of the broker's worries.

Neutral. Previous target was $3.50.

Target price is $3.21 Current Price is $2.99 Difference: $0.22
If ABC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Overweight (1) -

Alcoa has agreed to an extension of AdBri's quicklime supply contract, for a further 12 months, and Morgan Stanley suspects the details should be beneficial for AdBri given the contract's short-term nature.

Morgan Stanley has a positive view on AdBri, as illustrated by its Overweight rating, and considers the announcement as further evidence its positive thesis is materialising.

Domestic manufacturers, of which AdBri is one, are expected to benefit from tightness in import supply chains. Price target $3.30. Industry View is In-Line.

Target price is $3.30 Current Price is $2.99 Difference: $0.31
If ABC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ABC as Neutral (3) -

Adbri and Alcoa have agreed to another extension by 12 months of the lime supply contract and UBS analysts comment this is already (largely) reflected in their forecasts.

UBS observes the share price is showing a lack of momentum, trading well below its price target, but the broker does not believe the announcement is the catalyst the share price needs.

Looking beyond short-term considerations, UBS sees structural headwinds in South Australia, coupled with increased competition in other markets, creating a challenging environment for the company.

Neutral rating retained. Price target $3.50. No changes made to forecasts.

Target price is $3.50 Current Price is $2.99 Difference: $0.51
If ABC meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

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 ANN as Overweight (1) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Ansell has declined to $47.32 from $51.35. Overweight. Industry view In-Line.

Target price is $47.32 Current Price is $34.38 Difference: $12.94
If ANN meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $40.65, suggesting upside of 21.1% (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: 0.4

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

Morgan Stanley rates APE as Overweight (1) -

Ahead of the February reporting season, analysts at Morgan Stanley highlight Eagers Automotive as one small-cap idea that comes with high conviction.

Morgan Stanley sees a high level of certainty moving into February with expectation of 2022 upgrades on an improving outlook.

Overweight and $18 target retained. Industry view is In-Line.

Target price is $18.00 Current Price is $13.00 Difference: $5
If APE meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $17.81, suggesting upside of 36.3% (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 APX as Buy (1) -

Appen has not released a trading update of late and Citi analysts believe this could mean good news for the former highflyer on the ASX. The broker suggests market consensus might be too low, implying upside risk.

Citi has opened a "positive catalyst watch" on the company. Buy rating retained. Target $14.80, down from $17.10, as earnings estimates have been reduced regardless.

Target price is $14.80 Current Price is $9.84 Difference: $4.96
If APX meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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 ARB as Upgrade to Neutral from Underperform (3) -

Backlogs for recreation vehicle manufacturers remain elevated in both the US and Europe, data which Macquarie notes could provide some read through for ARB Corporation's sales. 

Macquarie increases earnings per share forecasts 2% in FY22 and FY23 each, but notes risk remains around the normalisation of sales. The broker also highlighted a recent pullback has ARB Corporation trading in line with its valuation. 

The rating is upgraded to Neutral from Underperform and the target price increases to $46.00 from $44.00.

Target price is $46.00 Current Price is $46.30 Difference: minus $0.3 (current price is over target).
If ARB meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.69, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates CCP as Accumulate (2) -

Ord Minnett has updated its modeling for Credit Corp Group. Price target climbs to $36 from $35. Accumulate rating remains in place.

Forecasts have nudged higher.

Target price is $36.00 Current Price is $34.07 Difference: $1.93
If CCP meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $35.93, suggesting upside of 2.1% (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

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

Store closures and supply chain issues will drive a miss on growth forecasts in the first half for City Chic Collective, Ord Minnett predicted back in November, and that prophecy has become reality through the retailer's latest trading update.

Ord Minnett has in response reduced estimates by -11% and -5% for FY22/FY23, which pushes the price target back to $6.30 from $6.70.

Rating upgraded to Buy from Accumulate. The broker maintains its investment case hasn't changed.

Target price is $6.30 Current Price is $5.03 Difference: $1.27
If CCX meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 17.8% (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

UBS rates CGC as Neutral (3) -

UBS is keeping track of prices for Costa Group key products, including berries, mushrooms, tomatoes and avocadoes. With the exception of the latter, prices have been strong, reports the broker.

Avocadoes are battling with serious over-supply and prices are down by some -50% versus a year ago, reports UBS.

Earnings estimates have been lifted with management's guidance considered "achievable". However, the analysts are of the view the improving growth outlook is already reflected in the share price.

Neutral rating retained. Target price $3.10, versus $3 previously.

Target price is $3.10 Current Price is $2.90 Difference: $0.2
If CGC meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates CIP as Neutral (3) -

Centuria Industrial REIT announced the acquisition of a portfolio of six assets for $132m on an initial yield of 4.0%.

Credit Suisse has a few less enthusiastic comments to share about the deal, but also acknowledges there's not much out there when one's looking for bargains inside the industrial sector.

Only small accretion, post FY22, is assumed. Neutral rating retained. Price target unchanged at $3.83.

Target price is $3.83 Current Price is $3.91 Difference: minus $0.08 (current price is over target).
If CIP meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.95, suggesting upside of 1.2% (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

Morgan Stanley rates COH as Underweight (5) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Cochlear has declined to $180 from $196. Underweight. Industry view In-Line.

Target price is $180.00 Current Price is $204.11 Difference: minus $24.11 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.08, suggesting upside of 10.6% (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 CSL as Equal-weight (3) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare. Industry view In-Line.

The Equal-Weight rating and target price of $280.000 are retained for CSL. No changes were made to forecasts.

Morgan Stanley sees FY22 as a look through year for CSL with a strong rebound to follow in FY23, but the analysts have no difficulty in questioning their own thesis, probably showing their lack of overall enthusiasm (which has been in place for some time).

Target price is $280.00 Current Price is $278.10 Difference: $1.9
If CSL meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $320.45, suggesting upside of 17.1% (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 EBO as Overweight (1) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Ebos Group sits at NZ$44.30. Overweight. Industry view In-Line.

Current Price is $37.90. Target price not assessed.

Current consensus price target is $37.42, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates GUD as Outperform (1) -

Macquarie has revised its forecasts for G.U.D. Holdings taking the AutoPacific Group acquisition into consideration, with earnings per share forecasts increasing 1%, 10% and 11% through to FY24.

The broker notes AutoPacific Group is the 4WD towing market leader with an approximate 85% market share, leveraged to a large and growing total addressable market. G.U.D. Holdings should benefit from diversification as new vehicle sales normalise. 

The Outperform rating is retained and the target price increases 4% to $16.40.

Target price is $16.40 Current Price is $12.28 Difference: $4.12
If GUD meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $14.84, suggesting upside of 19.7% (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

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

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Healius has lifted to $5.10 from $4.90. Equal-weight. Industry view In-Line.

Target price is $5.10 Current Price is $4.68 Difference: $0.42
If HLS meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates IAG as Buy (1) -

Citi has sliced off a further -5% from its FY22 EPS forecast for Insurance Australia Group, but the broker nevertheless remains hopeful 2022 might be a better year for the share price.

The broker retains its Buy rating with a price target of $5.60 (unchanged). Benign weather with no events occurring in November and December adds to that optimism.

Target price is $5.60 Current Price is $4.51 Difference: $1.09
If IAG meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 13.7% (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

Credit Suisse rates IAG as Outperform (1) -

Given stronger than expected market movements in the second quarter, Credit Suisse has reviewed earnings for the insurance sector. The quarter saw the ASX accumulation index rise 2.5% and global equities rise 7.5% as the AUD and USD exchange rate strengthened.

Despite this all insurers in Credit Suisse's coverage underperformed the market in the second quarter, with Insurance Group Australia leading the pack at -18% underperformance, but the broker remains constructive on the sector.

Cash profit after tax for Insurance Group Australia increases approximately 7% for FY22 and approximately 6.5% for later years, and the broker notes continued value appeal given the company is trading at a -20% discount to the market.

The Outperform rating is retained and the target price increases to $5.94 from $5.60.

Target price is $5.94 Current Price is $4.51 Difference: $1.43
If IAG meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $5.04, suggesting upside of 13.7% (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

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

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Integral Diagnostics has remained untouched at $5.05. Equal-weight. Industry view In-Line. No changes were made to forecasts.

Target price is $5.05 Current Price is $4.50 Difference: $0.55
If IDX meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 16.6% (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

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

With global drilling projects increasing 49% in the final quarter of 2021 versus a year ago, UBS has lifted forecasts for Imdex believing there is upside risk to the company's interim result to be released in February.

The broker believes we could still be in an early phase of a new upswing with the outlook for exploration spending believed to be "solid".

However, remaining positive at the current share price requires more conviction around the commercialisation of new technologies, the broker argues and has thus decided to downgrade to Neutral from Buy.

Target price has lifted to $3.10 from $2.90. Imdex is scheduled to release interim financials on February 7th.

Target price is $3.10 Current Price is $2.93 Difference: $0.17
If IMD meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

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 MAF as Buy (1) -

One day after its initial update, Ord Minnett has lifted its price target by 50c to $12.50 while -again- reiterating its Buy rating for MA Financial Group.

The latest upgrade in profit guidance, explains the broker, follows a mark-to-market increase in the value of the company's shareholding in Redcape.

Ord Minnett believes MA financial is enjoying a buoyant business environment.

Target price is $12.50 Current Price is $9.53 Difference: $2.97
If MAF meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MPL as Outperform (1) -

Given stronger than expected market movements in the second quarter, Credit Suisse has reviewed earnings for the insurance sector. The quarter saw the ASX accumulation index rise 2.5% and global equities rise 7.5% as the AUD and USD exchange rate strengthened.

Despite this all insurers in Credit Suisse's coverage underperformed the market in the second quarter, with Medibank Private reporting approximately -1% underperformance, but the broker remains constructive on the sector.

Cash profit after tax forecasts for Medibank Private increases 1.6% in FY22, remains largely flat in FY23 and increases 1.5% in FY24. The broker also notes tailwinds for the private health insurance industry are expected to continue.

The Outperform rating is retained and the target price increases to $3.70 from $3.48.

Target price is $3.70 Current Price is $3.49 Difference: $0.21
If MPL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates MPL as Overweight (1) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Medibank Private remains $3.80. Overweight. Industry view In-Line.

Target price is $3.80 Current Price is $3.49 Difference: $0.31
If MPL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates MVF as Overweight (1) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Monash IVF Group remains $1.10 while forecasts have lifted. Overweight. Industry view In-Line.

Target price is $1.10 Current Price is $1.00 Difference: $0.1
If MVF meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.11, suggesting upside of 11.3% (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

Ord Minnett rates NGI as Buy (1) -

Navigator's recent trading update proved somewhat of a disappointment, but Ord Minnett has stuck with its Buy rating and $2.40 price target.

Ord Minnett points out, the stock has sold off in line with other funds managers and its shares are now trading on an implied dividend yield of 9.5%, unfranked.

The broker doesn't remember whether this stock has ever traded cheaper, despite a positive outlook in combination with potential for accretive acquisitions.

Target price is $2.40 Current Price is $1.62 Difference: $0.78
If NGI 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 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 NHF as Neutral (3) -

Given stronger than expected market movements in the second quarter, Credit Suisse has reviewed earnings for the insurance sector. The quarter saw the ASX accumulation index rise 2.5% and global equities rise 7.5% as the AUD and USD exchange rate strengthened.

Despite this all insurers in Credit Suisse's coverage underperformed the market in the second quarter, although nib Holdings remained largely flat, but the broker remains constructive on the sector.

Profit after tax forecasts for nib Holdings increase 2.6% for FY22 with minimal changes to later years. The broker also notes tailwinds for the private health insurance industry are expected to continue.

The Neutral rating is retained and the target price increases to $6.85 from $6.70.

Target price is $6.85 Current Price is $6.82 Difference: $0.03
If NHF meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $6.95, suggesting upside of 3.1% (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

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

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for nib Holdings remains $6.45 on slight increases to estimates. Equal-weight. Industry view In-Line.

Target price is $6.45 Current Price is $6.82 Difference: minus $0.37 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.95, suggesting upside of 3.1% (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

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

Panaoramic Resources has made its first shipment of 10,800 tonnes of nickel, copper and cobalt concentrate to offtake partner Jinchuan in late December, raising a provisional invoice for US$20.4m which Morgans notes is expected to be paid in January. 

The company is set to ramp up production during 2022, and with nickel pricing at its highest level in a decade, Morgans has lifted short-term price assumptions accordingly.

The rating is downgraded to Hold from Add and the target price increases to $0.28 from $0.24.

Target price is $0.28 Current Price is $0.28 Difference: $0
If PAN meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

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 PPS as Buy (1) -

SMA Platforms in Australia continue enjoying buoyant conditions and Praemium's recent market update provides yet more concrete evidence, suggest analysts at Ord Minnett.

As the broker remains positive on the sector, and with Praemium enjoying excellent organic growth numbers, the stock is seen as a prime target for corporate appeal.

Suggests the broker: the International sale and this latest quarterly result may prompt Netwealth ((NWL)) to revisit its previous proposal, and maybe another party too?

Ord Minnett reiterates its Buy rating, with a price target of $1.70 (unchanged). 

Target price is $1.70 Current Price is $1.38 Difference: $0.32
If PPS meets the Ord Minnett target it will return approximately 23% (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

Credit Suisse rates QBE as Outperform (1) -

Given stronger than expected market movements in the second quarter, Credit Suisse has reviewed earnings for the insurance sector. The quarter saw the ASX accumulation index rise 2.5% and global equities rise 7.5% as the AUD and USD exchange rate strengthened.

Despite this all insurers in Credit Suisse's coverage underperformed the market in the second quarter, although QBE Insurance Group remained largely flat, but the broker remains constructive on the sector.

Earnings forecasts for QBE Insurance Group increase 4%, 7% and 5% for FY21, FY22 and FY23. Credit Suisse notes the company benefited from rising global bond yields this year and offers preferred earnings momentum and general insurers rate cycle exposure.

QBE Insurance is the broker's top sector pick. The Outperform rating is retained and the target price increases to $16.60 from $15.60.

Target price is $16.60 Current Price is $12.17 Difference: $4.43
If QBE meets the Credit Suisse target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $14.77, suggesting upside of 21.8% (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: 0.9

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

Ord Minnett rates QBE as Accumulate (2) -

QBE Insurance is scheduled for release of 2021 financials on February 18th and Ord Minnett retains its Accumulate rating with a slightly increased price target; $15.50 instead of $14.55.

On the broker's projections, pricing momentum is likely to stay strong, with flow-on effects for QBE's financial metrics.

Some uncertainty exists as nobody knows yet what the new CEO's plans are.

Target price is $15.50 Current Price is $12.17 Difference: $3.33
If QBE meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $14.77, suggesting upside of 21.8% (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: 0.9

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

Morgan Stanley rates RHC as Underweight (5) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Ramsay Health Care has declined to $61 from $65 on reduced FY22 forecasts. Underweight. Industry view In-Line.

Target price is $61.00 Current Price is $67.34 Difference: minus $6.34 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.85, suggesting upside of 5.8% (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

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

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for ResMed has declined to $37 from $37.30. Equal-weight. Industry view In-Line.

Target price is $37.00 Current Price is $34.65 Difference: $2.35
If RMD meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $39.05, suggesting upside of 12.3% (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

Citi rates S32 as Buy (1) -

Following South32's market update on the Taylor deposit at the company's Hermosa project, Citi points out capex proved higher-than-expected but the overall internal rate of return should remain at circa 15%, excluding the $1.8bn in acquisition costs.

Citi analysts have treated the acquisition cost as sunk and assume it won’t ultimately impact on the final investment decision.

The broker's updated modeling, with Taylor's risked valuation now incorporated at 75%, has pushed up the valuation to $4.70 from $4.50. Citi has elected to keep its target unchanged at $4.45. Buy.

Target price is $4.45 Current Price is $4.05 Difference: $0.4
If S32 meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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 S32 as Outperform (1) -

In line with peers elsewhere, Credit Suisse analysts were negatively surprised by the capex guidance for the Taylor deposit, part of the Hermosa project in Arizona.

Credit Suisse is convinced the project will go ahead given the immediate capital to de-water the orebody. Net Present Value (NPV) for Hermosa falls by -40%.

The broker has made no changes to near-term earnings estimates. Target price falls to $5.30 from $5.40. Outperform rating retained.

Target price is $5.30 Current Price is $4.05 Difference: $1.25
If S32 meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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

Macquarie rates S32 as Outperform (1) -

Macquarie has reviewed South32's prefeasability study for the Taylor Deposit, a development option at the Arizona Hermosa project, noting estimated production of 111,000 tonnes zinc and 138,000 tonnes lead per annum for 22 years.

First production is slated for FY27, with nameplate capacity to be reached from FY30 which is later than Macquarie expected. Notably, estimated capital expenditure of US$1.7bn was 36% higher than forecast by the broker.

Earnings per share forecasts decrease -4%, -9% and -7% for FY25, FY26 and FY27.

The Outperform rating is retained and the target price decreases to $5.00 from $5.20.

Target price is $5.00 Current Price is $4.05 Difference: $0.95
If S32 meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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

Morgan Stanley rates S32 as Overweight (1) -

Morgan Stanley considers South32's announcement of much greater than anticipated capex for the company's Hermosa project in Arizona as a negative.

Any improvements in production and grade profile are likely to be more than offset, argues the broker, while the projected starting date has also been pushed out to FY27 (the broker had penciled in FY25).

The Overweight rating remains in place. Target price $4.85. Industry view: Attractive.

Target price is $4.85 Current Price is $4.05 Difference: $0.8
If S32 meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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 described South32's latest update as mixed, with prefeasibility for the Hermosa project Taylor Deposit detailing increases to expected capital and operating expenditure and a delayed schedule alongside larger operating scale and base metal outlook. 

Development capital expenditure for the project has been estimated at US$1.7bn, 70% higher than consensus on Morgans' estimates. More positively was an increase in estimated throughput to 4.3m tonnes per annum from 3.3m tonnes per annum. 

Macquarie notes South32 remains a preferred mining sector exposure. The Add rating is retained and the target price increases to $5.00 from $4.10.

Target price is $5.00 Current Price is $4.05 Difference: $0.95
If S32 meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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

Ord Minnett rates S32 as Buy (1) -

South32's pre-feasibility study surprised with a big rise in capex for the Hermosa underground zinc-silver-lead project in Arizona, explains Ord Minnett.

The broker is disappointed and calculates, all in, an internal rate of return of no more than 5%, "highlighting the lack of shareholder returns".

Buy rating retained, with a fresh price target of $4.90, up from $4.60 previously.

Target price is $4.90 Current Price is $4.05 Difference: $0.85
If S32 meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.6% (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

Morgan Stanley rates SHL as Overweight (1) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Sonic Healthcare has lifted to $48.10 from $46.10. Industry view In-Line.

Target price is $48.10 Current Price is $40.27 Difference: $7.83
If SHL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $46.08, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SRL as Neutral (3) -

Sunrise Energy Metals has reported receiving conditional finance support from Export Finance Australia to fund its nickel-cobalt-scandium greenfield project up to $400m. While non-binding, Macquarie notes this support could be a catalyst for the battery materials project.

The broker highlights securing an equity and offtake partner is key for Sunrise Energy Metals given the project is execution ready once a funding solution is secured. 

The Neutral rating is retained and the target price increases to $2.20 from $1.80.

Target price is $2.20 Current Price is $2.20 Difference: $0
If SRL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

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 STO as Overweight (1) -

Morgan Stanley analysts observe 2021 has been a frustrating year for shareholders in Santos. Their belief is that 2022 could prove a much better experience assuming the company divests some assets and reviews its dividend policy.

A different policy could double dividends for shareholders as oil prices are expected to remain high, on the broker's calculations (long term Brent forecast US$70/bbl).

Morgan Stanley would like Santos to fully divest its presence in Alaska, but has as yet not incorporated this move in its base case scenario.

Price target moves to $10.40 from $10.20. Overweight. Industry view Attractive.

Target price is $10.40 Current Price is $7.06 Difference: $3.34
If STO meets the Morgan Stanley target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 22.3% (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: 0.7

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

Citi rates SUN as Buy (1) -

Citi suspects investors might have to be patient before witnessing genuine upside appearing in Suncorp's share price. The reason is the broker continues to believe Suncorp's financial performance, underlying, retains a skew towards H2.

Shorter-term, the bankinsurer's 1H22 result is likely to benefit from a favourable contribution from inflation linked bonds, on top of circa $80m of covid benefits as well as likely collective provision releases in the bank, the broker suggests.

Marking-to-market has added 1% to the FY22 forecast. Buy. Target $12.80 (unchanged).

Target price is $12.80 Current Price is $11.70 Difference: $1.1
If SUN meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates SUN as Outperform (1) -

Given stronger than expected market movements in the second quarter, Credit Suisse has reviewed earnings for the insurance sector. The quarter saw the ASX accumulation index rise 2.5% and global equities rise 7.5% as the AUD and USD exchange rate strengthened.

Despite this all insurers in Credit Suisse's coverage underperformed the market in the second quarter, with Suncorp Group recording 12% underperformance, but the broker remains constructive on the sector.

Forecast cash profit after tax for Suncorp increases 0.9% in FY22 and up to 3% in later years. The Outperform rating is retained and the target price increases to $14.00 from $13.60.

Target price is $14.00 Current Price is $11.70 Difference: $2.3
If SUN meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates VRT as Underweight (5) -

In a sector preview ahead of the upcoming February reporting season, Morgan Stanley expresses its preference for owning stocks in healthcare companies that are still reasonably priced and have near term business momentum.

High-growth offshore earners are seen as priced-for-perfection, with valuation challenges.

The broker thus has Overweight ratings for Ansell, Ebos Group, Medibank Private, Monash IVF Group, and Sonic Healthcare.

Price target for Virtus Health is $6.50. Underweight rating retained as margin pressures are expected to stick. Industry view In-Line.

Target price is $6.50 Current Price is $6.70 Difference: minus $0.2 (current price is over target).
If VRT meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.91, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

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 WES as Sell (5) -

Despite market concerns, Wesfarmers' trading update proved in-line with market consensus. Citi does observe both Kmart and Target were impacted by covid-related matters, but Bunnings once again outperformed.

The analysts highlight industry feedback suggests consumer spending in shopping centres has been weak since late December in response to the high number of covid cases, but they also see this as a short-term headwind only.

Covid-related higher costs will prove stickier, Citi suggests. Sell rating retained. Target price unchanged at $50.

Target price is $50.00 Current Price is $55.38 Difference: minus $5.38 (current price is over target).
If WES meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $57.13, suggesting upside of 3.3% (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

Credit Suisse rates WES as Neutral (3) -

Post Wesfarmers' trading update, Credit Suisse suggests investors will likely continue to seek safety in the stock, despite an outlook of relatively low earnings growth in the near term.

Softness in Department Stores is expected to continue through 2H22 as Australian consumers remain cautious of major centres and supply chain costs remain elevated.

While Chemicals should continue to benefit from elevated ammonia prices, Credit Suisse is unsure whether there is, or has been any affect from lithium prices as yet on the share price.

Earnings estimates rejigged post update, with the new price target of $58.08 comparing with $58.38 previously. Neutral rating retained.

Target price is $58.08 Current Price is $55.38 Difference: $2.7
If WES meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $57.13, suggesting upside of 3.3% (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

Macquarie rates WES as Neutral (3) -

Macquarie reports Wesfarmers' first half trading update was largely in line with expectations, with the company guiding to profit after tax of $1,180-1,240m for the half. Strength in both Bunnings and WESCEF offset a softer period for Kmart Group and Officeworks.

The broker highlighted Kmart Group lost a quarter of first half trading days to covid closures, while inventory levels were impacted by staff absenteeism, and supply chain issues and rising staffing costs present near-term margin risk.

Earnings forecasts are updated -0.4%, 0.5% and 0.5% for FY22, FY23 and FY24.

The Neutral rating and target price of $60.00 are retained.

Target price is $60.00 Current Price is $55.38 Difference: $4.62
If WES meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $57.13, suggesting upside of 3.3% (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

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

A better-than-expected trading update was released by Wesfarmers according to Morgans, noting the company guided to first half profit after tax of $1,180-1,240, a beat on its own prior forecast despite covid impacts on some retail businesses. 

Retail trading conditions weakened in the final two weeks of the half, and are yet to recover. Kmart and Target were most impacted, with sales down -10.3% in the period and distribution centre staffing issues impacting in-store stock, but online sales increased 44.2%. 

Earnings before tax forecasts are increased 4% for FY22, but decrease around -1% each for FY23 and FY24.

The rating is upgraded to Add from Hold and the target price increases to $60.80 from $59.00.

Target price is $60.80 Current Price is $55.38 Difference: $5.42
If WES meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $57.13, suggesting upside of 3.3% (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

Ord Minnett rates WES as Accumulate (2) -

Ord Minnett has responded to Wesfarmers' trading update by reducing forecasts by -7.6% in FY22 and by -5% in both FY23 and FY24. Accumulate rating retained, while the target falls to $60 from $64.

Part of the broker's positive thesis rests on the assessment that high-quality retailers like Bunnings should navigate current challenges better than implied by current low market expectations.

Target price is $60.00 Current Price is $55.38 Difference: $4.62
If WES meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $57.13, suggesting upside of 3.3% (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

UBS rates WES as Neutral (3) -

UBS found Wesfarmers' trading update, delivered yesterday, better-than-expected, even though Kmart and Officeworks operations were impacted by covid-lockdowns.

Commentary also suggests UBS had positioned itself below market consensus. The broker points out higher labour and supply chain costs, as well as operating deleverage depressed operations for Kmart and Target below recently downgraded forecasts.

It appears Bunnings and WESCEF delivered positive offset, though the broker remains sceptical, while admitting last week's reduction in forecasts might have been too negative.

Estimates have been lifted. Target $59. Neutral.

Target price is $59.00 Current Price is $55.38 Difference: $3.62
If WES meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $57.13, suggesting upside of 3.3% (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