Australian Broker Call

Credit Suisse rates A2M as Neutral (3) -

Credit Suisse observes the a2 Milk Co is holding market share gains as the broader market declines.

The broker notes freshness dates improved over June, suggesting spritely sales over the China's June 18 "shopping holiday", the company ranking as the 4th most purchased brand in the holiday according to TMall, up from 7th in in 2021.

But the broker doubts the holiday fever will be repeated in the broader market, particularly given China's lockdowns, and notes Nielsen data shows the infant formula category fell during January to April, and competitors have issued profit warnings.

Neutral rating and $5.15 target price retained.

Target price is $5.15 Current Price is $4.56 Difference: $0.59
If A2M meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.45, suggesting upside of 18.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates APA as No Rating (-1) -

Macquarie was disappointed by the Australian Energy Regulator's draft decision on the Victorian Transmission System (VTS). The decision rejected any change to 30-year asset lives, despite Victoria's policy of shifting users off gas.

Separately, the broker feels the Victorian gas substation policy essentially discourages new gas connections (no longer compulsory) and will promote electrification of existing households.

FY22-24 EPS forecasts are adjusted by 0.6%,3.6% and -1.4%, respectively, to incorporate the update on the VTS decision, lower allowed depreciation and higher inflation assumptions, explains the analyst.

The broker remains on research restrictions and cannot provide a rating or target at present.

Current Price is $11.60. Target price not assessed.

Current consensus price target is $10.18, suggesting downside of -12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates APE as Add (1) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker downgrades forecasts for Eagers Automotive and the target price falls to $14.00 from $14.40, while the Add rating is unchanged.

Target price is $14.00 Current Price is $9.85 Difference: $4.15
If APE meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $14.44, suggesting upside of 41.2% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates ARB as Overweight (1) -

Morgan Stanley likes the rationale for the promotion of long term employee Mr Lachlan McCann to CEO from COO of ARB Corp. 

The broker feels the appointment signals a greater focus on international and OEM collaborations though Morgan Stanley would like more detail on the evolution of strategic priorities.

The Overweight rating and $33.00 target price are maintained. Industry view: In-Line. 

Target price is $33.00 Current Price is $29.65 Difference: $3.35
If ARB meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $39.31, suggesting upside of 30.1% (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 ARB as Buy (1) -

While observing new car sales continue to be impacted by global supply chain bottlenecks, Ord Minnett retains its Buy rating and $45 target price for ARB Corp.

New vehicle sales have now retreated for three consecutive months in Australia.

Separately, the company has appointed Lachlan McCann as Chief Executive Officer (CEO) effective immediately. McCann is a long-time employee of ARB.

Additional commentary suggests the broker is looking beyond shorter-term challenges.

Target price is $45.00 Current Price is $29.65 Difference: $15.35
If ARB meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $39.31, suggesting upside of 30.1% (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

UBS rates ASX as Sell (5) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

The broker noted within its coverage only ASX, Computershare and Steadfast Group ((SDF)) appear to have avoided mark-to-market losses given the companies have minimal shareholder capital exposed to market risk. 

UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage. The Sell rating is retained for ASX and the target price decreases to $75.00 from $77.00.

Target price is $75.00 Current Price is $82.82 Difference: minus $7.82 (current price is over target).
If ASX meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.11, suggesting downside of -4.1% (ex-dividends)

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

Morgans rates BAP as Hold (3) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker downgrades forecasts for Bapcor and the target price falls to $7.08 from $7.55, while the Hold rating is unchanged.

Target price is $7.08 Current Price is $6.26 Difference: $0.82
If BAP meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.85, suggesting upside of 24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BHP as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

While BHP Group is the broker's preferred large cap exposure, FY22 earnings forecasts are reduced by -4% and the price target falls to $50 from $51. Outperform.

Target price is $50.00 Current Price is $40.00 Difference: $10
If BHP meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $45.76, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Credit Suisse rates BKL as Neutral (3) -

Credit Suisse's channel check reveals Blackmores gained share in China's vitamins and supplements market during lockdowns.

The broker estimates that growth may be as high as 20% in the e-commerce channel, with immune health products, CoQ10, glucosamine and fish oil experiencing strong demand.

China represents about 20% to 25% of the company's sales and just under 25% of earnings, says the broker.

Meanwhile, the broker expects the record flu season should boost sales Down Under. Credit Suisse also suspects Blackmores could be a takeover target given continuing industry consolidation.

Neutral rating and $90 target price retained.

Target price is $90.00 Current Price is $70.07 Difference: $19.93
If BKL meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $79.33, suggesting upside of 6.9% (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

Macquarie rates CIA as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

The Outperform rating is maintained and the broker considers the company, along with Mineral Resources, offers unique leverage to both the iron-ore price and capex cycle. The target price falls to $7.70 from $8.00 on changed foreign exchange assumptions.

Target price is $7.70 Current Price is $5.20 Difference: $2.5
If CIA meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

This company reports in CAD. 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 COG as Buy (1) -

Ord Minnett initiated coverage on COG Financial Services, Australia's largest asset finance broker and aggregation group, in April with a Buy rating and a target price of $2.12.

COG has acquired a 70% stake in Chevron Equipment Finance for -$7m and the broker assumes an EBITDA multiple of 5x, in line
with historical averages.

Ord Minnett welcomes the acquisition.

Separately, COG management has updated FY22 NPATA guidance range to $22.4m-$23.9m - the broker's estimate is $23.8m. Ord Minnett's view is that this guidance is reflective of a level of normalisation in the asset finance market following an exceptional 2021.

The broker is banking on a continuation of solid operating conditions heading into FY23.

Target price is $2.12 Current Price is $1.58 Difference: $0.54
If COG meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates COL as Neutral (3) -

UBS is generally more positive on the grocery sector, with survey results obtained by the broker suggesting food inflation has gained momentum faster than anticipated, with the sector achieving multiple price rises in the last year. 

With cost of living pressures expected to drive a resurgence of private label goods, the broker expects Woolworths Group ((WOW)) and Aldi to make market gains, while Coles Group and IGA ((MTS)) lose share. But the broker increases its earnings per share forecasts for Coles by 5% and 11% through to FY23. 

The Neutral rating is retained and the target price increases to $18.75 from $18.00.

Target price is $18.75 Current Price is $17.99 Difference: $0.76
If COL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $19.04, suggesting upside of 3.7% (ex-dividends)

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

UBS rates CPU as Buy (1) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

The broker noted within its coverage only Computershare, ASX and Steadfast Group ((SDF)) appear to have avoided mark-to-market losses given the companies have minimal shareholder capital exposed to market risk. 

UBS likes Computershare's skew to defensive segments, recurring revenues and interest rate leverage, and the company remains the broker's preferred sector pick. The Buy rating is retained and the target price increases to $28.00 from $27.00.

Target price is $28.00 Current Price is $24.97 Difference: $3.03
If CPU meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $26.61, suggesting upside of 7.3% (ex-dividends)

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

Macquarie rates DCN as Upgrade to Neutral from Underperform (3) -

Macquarie upgrades its rating for Dacian Gold to Neutral from Underperform following an all-scrip takeover offer by Genesis Minerals ((GMD)) that values the company at $0.12.

The broker's target price rises to $0.10 from $0.09 to reflect the takeover and a $12.6m placement to Genesis Minerals, which will
enable exploration drilling and stockpile processing to continue.

Target price is $0.10 Current Price is $0.10 Difference: $0
If DCN 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 DMP as Overweight (1) -

Introduction of a 6% delivery fee across the A&NZ network by Domino's Pizza Enterprises confirms to Morgan Stanley the company has many avenues to support margins. Same store sales growth figures for FY23 are still expected to exceed the consensus forecast.

The broker feels the company is a beneficiary of inflation, as most earnings come from food margins and royalties. The Overweight rating and a $100 target are maintained. Industry View: In-Line.

Target price is $100.00 Current Price is $70.16 Difference: $29.84
If DMP meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $91.90, suggesting upside of 22.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates DRR as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

FY22 earnings forecasts for Deterra Royalties are reduced by -4%. The Outperform rating and $5.00 target price are maintained.

Target price is $5.00 Current Price is $4.22 Difference: $0.78
If DRR meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates FMG as Neutral (3) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

The broker maintains a preference for BHP Group over Fortescue Metals. For the latter, the Neutral rating and $18 target are maintained.

Target price is $18.00 Current Price is $17.32 Difference: $0.68
If FMG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.54, suggesting upside of 6.1% (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: -0.3

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

Ord Minnett rates INR as Speculative Buy (1) -

Ord Minnett argues a secondary listing on the Nasdaq will prove an important step for ioneer in that awareness will rise of the company's "All American" lithium potential.

There are risks involved but the broker maintains the stock appears oversold. Several adjustments have been made to the model, including deferring project timeline by 12 months and raising the AUD/USD forecast to 0.73.

The broker has sliced -10c off its target to $0.70 and retains its Speculative Buy recommendation.

Target price is $0.70 Current Price is $0.44 Difference: $0.26
If INR meets the Ord Minnett target it will return approximately 59% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates JBH as Underperform (5) -

May retail trade data show Consumer Electronics declined by -1.6%, while Hardware and Liquor Retailing only grew 0.6% and 0.16%, respectively. This subdued outcome is likely driven by a shift to services, suggests Macquarie.

The broker remains cautious on JB Hi-Fi and maintains its Underperform rating and $40.90 target price.

Target price is $40.90 Current Price is $38.92 Difference: $1.98
If JBH meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $48.50, suggesting upside of 24.2% (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 JDO as Buy (1) -

Less than one week ago, Ord Minnett initiated coverage expressing the view that Judo Capital will continue to take share in the SME lending market. That view has been repeated in today's update.

In between, Judo has updated on loan growth, which proves in-line with the broker's trajectory and better than forecast in the IPO prospectus.

Buy rating and $1.70 target price remain in place.

Target price is $1.70 Current Price is $1.26 Difference: $0.44
If JDO meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 61.0% (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

UBS rates MFG as Sell (5) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage, and Magellan Financial is its least preferred sector pick. The Sell rating is retained and the target price decreases to $10.60 from $13.50.

Target price is $10.60 Current Price is $12.27 Difference: minus $1.67 (current price is over target).
If MFG meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.90, suggesting upside of 8.1% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

Macquarie rates MGX as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

The broker maintains its Outperform rating and $0.70 target price for Mount Gibson Iron.

Target price is $0.70 Current Price is $0.52 Difference: $0.18
If MGX meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

Mineral Resources' earnings estimates increase by 2% for FY22 after adjusting for June shipments.

The Outperform rating and $82.00 target price are maintained and the broker considers the company, along with Champion Iron, offers unique leverage to both the iron-ore price and capex cycle.

Target price is $82.00 Current Price is $45.51 Difference: $36.49
If MIN meets the Macquarie target it will return approximately 80% (excluding dividends, fees and charges).

Current consensus price target is $69.83, suggesting upside of 62.8% (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

UBS rates MPL as Neutral (3) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage, such as insurance brokers and health insurers including Medibank Private. 

The Neutral rating is retained and the target price increases to $3.35 from $3.25.

Target price is $3.35 Current Price is $3.29 Difference: $0.06
If MPL meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 6.7% (ex-dividends)

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

Morgans rates MTO as Add (1) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker downgrades forecasts for Motorcycle Holdings and the target price falls to $3.23 from $4.21, while the Add rating is unchanged.

Target price is $3.23 Current Price is $2.10 Difference: $1.13
If MTO meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates NHF as Neutral (3) -

Macquarie estimates travel volumes for nib Holdings' Travel Division will return to around 91% of pre-covid levels by the first half of FY25
compared to company guidance for a full recovery by FY24.

While the broker maintains its Neutral rating, open borders are supporting a rebound in growth. There's considered to be upside risk to consensus earnings. The $7.55 target price is unchanged.

Target price is $7.55 Current Price is $7.39 Difference: $0.16
If NHF meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.97, suggesting downside of -7.3% (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 NTD as Hold (3) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker makes no changes to forecasts for National Tyre & Wheel. The Hold rating and $1.54 target price are maintained.

Target price is $1.54 Current Price is $1.02 Difference: $0.52
If NTD meets the Morgans target it will return approximately 51% (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

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

As a direction for value investors, Morgans upgrades its rating for OZ Minerals to Add from Hold. Traders are cautioned to delay investment until there's more clarity around the Carrapateena mine and the direction of the copper price.

This advice follows the recent 2022 management guidance downgrades, combined with weaker copper prices and higher assumed 2022-24 cost assumptions.

The broker lowers its 2022-23 earnings (EBITDA) forecasts by -8-13% and the target price falls to $23.12 from $26.65.

Target price is $23.12 Current Price is $17.45 Difference: $5.67
If OZL meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $22.27, suggesting upside of 31.3% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates PDL as Buy (1) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

Looking at Pendal Group, UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage. 

The Buy rating is retained and the target price decreases to $5.25 from $6.45.

Target price is $5.25 Current Price is $4.38 Difference: $0.87
If PDL meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 24.9% (ex-dividends)

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

UBS rates PNI as Buy (1) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

Looking at Pinnacle Investment Management, UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage. 

The Buy rating is retained and the target price decreases to $10.00 from $12.65.

Target price is $10.00 Current Price is $7.48 Difference: $2.52
If PNI meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $11.41, suggesting upside of 50.4% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

UBS rates PPT as Neutral (3) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

For Perpetual, UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage. 

The Neutral rating is retained and the target price decreases to $30.00 from $37.65.

Target price is $30.00 Current Price is $28.46 Difference: $1.54
If PPT meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $37.26, suggesting upside of 31.8% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates PTM as Sell (5) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

Looking at Platinum Asset Management, UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage. 

The Sell rating is retained and the target price decreases to $1.58 from $1.90.

Target price is $1.58 Current Price is $1.73 Difference: minus $0.15 (current price is over target).
If PTM meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.14, suggesting upside of 23.2% (ex-dividends)

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

Morgans rates PWR as Add (1) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker downgrades forecasts for Peter Warren Automotive and the target price falls to $3.08 from $3.95, while the Add rating is unchanged. The multiple applied to FY24 earnings was also reduced.

Target price is $3.08 Current Price is $2.17 Difference: $0.91
If PWR meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates PXA as Buy (1) -

A volatile market has driven investment and mark-to-market losses to UBS's domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

UBS prefers companies offering a skew to defensive segments, recurring revenues and interest rate leverage, with PEXA Group its fourth preferred sector pick. 

The Buy rating is retained and the target price decreases to $20.50 from $21.50.

Target price is $20.50 Current Price is $14.11 Difference: $6.39
If PXA meets the UBS target it will return approximately 45% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates RIO as Outperform (1) -

Macquarie adjusts shipment forecasts for iron ore miners under its coverage, as well as marking-to-market for exchange rates and price assumptions for the June quarter. Overall, near-term earnings forecasts have been reduced by -3-8%.

The broker remains positive on Rio Tinto and the Outperform rating and $124 target price are maintained.

Target price is $124.00 Current Price is $100.78 Difference: $23.22
If RIO meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $119.21, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates RRL as Sell (5) -

Regis Resources' June-quarter pre-release proved a plus for Citi, cash and bullion at June 30 rising to $227m from $180m at December 31, including a $28m tax refund.

The broker is awaiting July 26 for a full cost breakdown, but expects all-in-sustaining costs will come out at the high end of guidance; and the broker is assuming a -$40m stamp duty bill for Tropicana, which falls due this December half.

Quarter-on-quarter production improved. Sell and $1.90 target retained.

Target price is $1.90 Current Price is $1.61 Difference: $0.29
If RRL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 40.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates RRL as Outperform (1) -

Macquarie increases its price target for Regis Resources by 5% to $2.30 following 4Q production results that exceeded expectation by 13%, resulting in a 15% beat for cash generation. All-in sustaining costs (AISC) were adjudged to be in-line.

The Outperform rating is maintained. The broker awaits FY23 production and cost guidance on 26 July for a potential near-term catalyst.

Target price is $2.30 Current Price is $1.61 Difference: $0.69
If RRL meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 40.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates SIQ as Hold (3) -

Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.

While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.

The broker makes no changes to forecasts for Smartgroup Corp. The Hold rating and $7.79 target price are maintained.

Target price is $7.79 Current Price is $6.22 Difference: $1.57
If SIQ meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $7.48, suggesting upside of 17.2% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates STO as Outperform (1) -

Macquarie believes Santos could capture value in the post-combustion capture space via Direct Air Capture (DAC) in the Cooper Basin. This view follows the company announcing it will be deploying solar powered DAC units in the Cooper around the Moomba CCS project.

The broker assesses the tentative capex allocation is appropriate. The Outperform rating and $11 target price are maintained.

DAC use regular air and run it through a liquid chemical solution or solid sorbent filters to chemically bind the CO2. This can then be injected into the CCS geological formation, explains the analyst.

Target price is $11.00 Current Price is $7.48 Difference: $3.52
If STO meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $9.84, suggesting upside of 39.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Credit Suisse rates TWE as Outperform (1) -

Credit Suisse expects Treasury Wine Estates should gain cost-of-goods-sold savings (COGS) in FY23 and FY24 from the continuation of Australia's grape oversupply. Grapes represent about 50% of COGS. 

The broker notes the 2022 harvest came in at 1.7m tonnes, triggering a -30% fall in the price of commercial grade red grapes year on year.

To date, the broker expects the company should be able to raise prices on in the US and Asia in line with inflation, yielding stronger margins.

Outperform rating and $13.50 target price retained.

Target price is $13.50 Current Price is $11.27 Difference: $2.23
If TWE meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $13.41, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates VCX as Underweight (5) -

While timing and returns are uncertain, Morgan Stanley assesses Vicinity Centres' $2.9bn redevelopment pipeline plans are attractive.

The broker likes the substantial mixed use portion (preferred to further capitalising retail) and the geographically diverse capex plans. If the plans are executed on time, 4.3% accretion for funds from operations (FFO) is anticipated by FY28.

The Underweight rating and $1.80 target price are maintained. Industry View: In-line.

Target price is $1.80 Current Price is $1.82 Difference: minus $0.02 (current price is over target).
If VCX meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.90, suggesting upside of 2.8% (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

Citi rates WDS as Neutral (3) -

Citi notes the BHP Petroleum merger has boosted Woodside Energy's scale, supporting investment into Scarborough/Pluto 2 to the point that production can be sustained out until 2029.

Then it will witness a return to normal as decarbonisation pressures hold sway, says the broker.

In a nod to higher prices, Citi raises the target price to $33.40 from $29.35 and EPS estimates jump sharply.

Neutral rating retained given the 40% share price rally in the past six months.

Target price is $33.40 Current Price is $32.44 Difference: $0.96
If WDS meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $34.13, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Macquarie rates WES as Underperform (5) -

May retail trade data show Consumer Electronics declined by -1.6%, while Hardware and Liquor Retailing only grew 0.6% and 0.16%, respectively. This subdued outcome is likely driven by a shift to services, suggests Macquarie.

The broker remains cautious on Wesfarmers and maintains its Underperform rating and $43.30 target price.

Target price is $43.30 Current Price is $43.45 Difference: minus $0.15 (current price is over target).
If WES meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.43, suggesting upside of 9.7% (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

Macquarie rates WGX as Outperform (1) -

Macquarie assesses a mixed 4Q FY22 preliminary result for Westgold Resources with production in-line though all-in sustaining costs (AISC) were a miss.

While the broker lowers its earnings forecasts and reduces its target to $2.00 from $2.10, cash flow multiples remain attractive and the Outperform rating is kept.

Target price is $2.00 Current Price is $1.29 Difference: $0.71
If WGX meets the Macquarie target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates WOW as Upgrade to Neutral from Sell (3) -

UBS is generally more positive on the grocery sector, with survey results obtained by the broker suggesting food inflation has gained momentum faster than anticipated, with the sector achieving multiple price rises in the last year. 

With cost of living pressures expected to drive a resurgence of private label goods, and the broker expects Woolworths Group and Aldi to make market gains, while Coles Group and IGA ((MTS)) lose share.

Coupled with a strong trading result for Woolworths Group in April and May, the broker increases its earnings per share forecasts 6% and 9% through to FY23. 

The rating is upgraded to Neutral from Sell and the target price increases to $37.00 from $36.00.

Target price is $37.00 Current Price is $35.90 Difference: $1.1
If WOW meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $37.22, suggesting upside of 1.3% (ex-dividends)

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