Australian Broker Call

Ord Minnett rates ARB as Accumulate (2) -

In a first glance at ARB Corporation's FY21 results, Ord Minnett notes a 92% increase in pre-tax profit to $150m. The result is in the top end of the company's prior guidance range.

It is Ord Minnett's view that ARB Corporation's short-term outlook is positive and demand will remain strong in the near-term.

Given ongoing restrictions related to covid are continuing to impact supply chains, shipping, retail operations and customer fulfillment, the company has not yet provided FY22 guidance. 

The Accumulate rating and target price of $45.00 are retained.

Target price is $45.00 Current Price is $48.47 Difference: minus $3.47 (current price is over target).
If ARB meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.16, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates BEN as Neutral (3) -

FY21 earnings were in line with Citi's estimates. Yet the broker notes the market reaction was "ruthless" with the share price dropping by -10%. Citi suspects this could be attributed to some unrealistic investor expectations.

FY22 remains "respectable" in terms of the outlook, the broker suggests, and the share price is now considered back at more fair levels. Neutral/High Risk retained. Target is reduced to $10.50 from $11.10.

Target price is $10.50 Current Price is $10.00 Difference: $0.5
If BEN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 4.0% (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

Credit Suisse rates BEN as Neutral (3) -

While Bendigo and Adelaide Bank delivered FY21 cash earnings of $457.2m, in-line with expectations, Credit Suisse again noted the disadvantage of a lack of scale for regional banks with increased investment required to keep up.

The broker liked strong growth in housing loans but noted strong balance sheet growth was offset by margin decline, down -5bp in second half FY21.

The net result is small downgrades to underlying profit and cash earning per share (EPS) forecasts. A final dividend per share (DPS) of $0.27 was below the broker's $0.31 estimate.

Credit Suisse maintains a Neutral rating with the target rising to $10.25 from $9.80.

Target price is $10.25 Current Price is $10.00 Difference: $0.25
If BEN meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 4.0% (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 BEN as Outperform (1) -

After FY21 results, Macquarie believes the growth strategy is delivering results, and while the return profile remains poor, it’s reflected in current multiples. The extent of the share price decline after the results release surprised the analyst.

The broker notes a weaker second half result than expected, predominantly driven by volatility in trading income and additional redundancy expenses. Margin pressures outstripped the margin benefits from improved deposit pricing trends and funding mix, explains the analyst.

The broker continues to expect front-book competition to drive margin decline though strong balance sheet momentum should drive revenue growth. Macquarie leaves the Outperform rating and $11 target price unchanged.

Target price is $11.00 Current Price is $10.00 Difference: $1
If BEN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 4.0% (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

Morgan Stanley rates BEN as Underweight (5) -

Morgan Stanley assesses the second half result and outlook were weaker than expected and retains its Underweight rating, given earnings risk and a low return profile. The price target falls to $10.20 from $10.40. Industry view: In-Line.

Pre-provision profit increased around 11% in FY21 though underlying trends were softer than forecast in the second half of the year, points out the analyst. The broker forecasts a circa 65% payout ratio over the next few years, down from 75-80% from FY16 to FY19.

The June "exit" margin was also around -4 bps below the 2H21 average. This implies to the analyst that margin pressure accelerated in the June quarter, with growing headwinds from mortgage price competition and asset mix.

Target price is $10.20 Current Price is $10.00 Difference: $0.2
If BEN meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 4.0% (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

Ord Minnett rates BEN as Hold (3) -

FY21 net profit was below Ord Minnett's estimates. Management still expects revenue growth will exceed cost growth in FY22 yet the broker is a little sceptical. Costs remain on an upward trajectory, suppressing returns.

Significant headwinds form in the second half of FY21 from re-pricing and fixed-rate flows raise the question of whether growth is simply being driven by price, Ord Minnett asserts. Hold maintained. Target is reduced to $9.70 from $10.70.

Target price is $9.70 Current Price is $10.00 Difference: minus $0.3 (current price is over target).
If BEN meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.28, suggesting upside of 4.0% (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

Citi rates BHP as Neutral (3) -

BHP Group and Woodside Petroleum ((WPL)) have confirmed discussions regarding a deal over oil & gas assets. The discussions centre on a potential merger involving BHP Group's entire petroleum business.

Citi does not believe BHP Group and oil are well-suited, yet does not envisage any rationale for a re-rating.

The mining division would trade at a modest premium to global mining peers post any deal, based on the broker's estimates. Neutral rating and $50 target maintained.

Target price is $50.00 Current Price is $52.07 Difference: minus $2.07 (current price is over target).
If BHP meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.11, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates BHP as Outperform (1) -

Given rising ESG pressures, Macquarie is not surprised that BHP Group is now pursuing a potential exit of the Petroleum business, with a divestment to Woodside Petroleum ((WPL)) now being confirmed as a possibility.

The broker retains its Outperform rating and $60 target price and values the Petroleum business at US$15b. The division has contributed 13% of group earnings (EBITDA) on average over the last five years.

An outright sale to Woodside Petroleum would see BHP Group shareholders receive Woodside Petroleum shares via an in-specie distribution. This appears to the analyst as the cleanest exit path for the company.

Target price is $60.00 Current Price is $52.07 Difference: $7.93
If BHP meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $51.11, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates BHP as Overweight (1) -

According to media reports, Woodside Petroleum ((WPL)) is in 'advanced talks' to buy BHP Group’s petroleum division for around $20bn.

Morgan Stanley suggest an exit from petroleum and thermal coal would be a major shift in the group's ESG credentials and potentially support a re-rating of the 'RemainCo'.

The Overweight rating and target price of $53.95 are retained. Industry view: Attractive. The analyst points out the group has several levers to pull to further enhance shareholder value, thus countering the earnings headwinds from a softening iron ore price environment.

Target price is $53.95 Current Price is $52.07 Difference: $1.88
If BHP meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $51.11, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

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

Citi upgrades to Buy from Neutral. FY21 results beat estimates yet FY22 production guidance has disappointed the broker.

Citi believes the weakened share price has factored in the lows for FY22 without paying for what are considered quality growth prospects.

The broker reduces the target to $1.27 from $1.36.

Target price is $1.27 Current Price is $1.09 Difference: $0.18
If BPT meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 46.1% (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

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

Macquarie assesses Beach Energy's FY21 result was ahead of estimates and consensus though FY22 production guidance and outlook comments were disappointing.

Western Flank oil production declined -15-20% per quarter through FY22, which points to a longer production tail for the asset (i.e. lower value), explains the analyst. The broker lowers its rating to Neutral from Outperform.

Macquarie lowers its target price to $1.20 from $1.60 on a more cautious stance on Western Flank oil declines and Otway forward capex. The broker cautions on an upcoming elevated capex period, which carries a greater degree of execution risk.

Target price is $1.20 Current Price is $1.09 Difference: $0.11
If BPT meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 46.1% (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 BPT as Equal-weight (3) -

Beach Energy's FY21 numbers were marginally above Morgan Stanley's estimates though weaker FY22 guidance across production and capex sees the stock under further pressure. It's believed medium-term valuation support is building.

The broker retains its Equal-weight rating though is casting around for a near-term catalyst to drive a re-rate. Target is reduced to $1.25 from $1.50. Industry view: Attractive.

The lower production guidance in FY22 infers the Western Flank will produce near 4mmbbls in FY22 versus just under 8mmbbls in FY20, points out the analyst This is considered a significant decline but on par with the reserves previously reduced.

Target price is $1.25 Current Price is $1.09 Difference: $0.16
If BPT meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 46.1% (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

Morgans rates BPT as Add (1) -

Beach Energy's FY21 underlying profit beat Morgans by 9%, while FY22 production guidance was -17% lower than forecast. Production in the Western Flank is declining faster than assumed, and the larger increases in Otway gas production will come in FY23.

The broker maintains its Add rating and reduces its target price to $1.65 from $1.77. There's expected to be significantly lower free cash flows, meaning new debt facilities will likely be required to fund growth plans. 

Target price is $1.65 Current Price is $1.09 Difference: $0.56
If BPT meets the Morgans target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 46.1% (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

Ord Minnett rates BPT as Buy (1) -

Underlying net profit in FY21 was ahead of Ord Minnett's forecasts. The focus, nevertheless, was on production guidance in FY22, which is expected to be down -10-18% on FY21 levels.

Ord Minnett highlights the strong history of exploration success although notes production growth has been difficult in recent months.

While acknowledging many investors question the company's ability to execute on growth, the broker retains a Buy rating. Target is $1.70, reduced from $1.75.

Target price is $1.70 Current Price is $1.09 Difference: $0.61
If BPT meets the Ord Minnett target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 46.1% (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

Ord Minnett rates BRG as Hold (3) -

In an initial review by Ord Minnett, FY21 underlying profit was -6.2% below the broker's forecast. Normalised earnings (EBIT) increased 39.6%, in-line with the company’s guidance of $136m though below the analyst's forecast of $144m.

A reduction in dividend to 13.5 cents from 20.5 cents reflects the company’s prior decision to lower its dividend payout ratio to 40%, from 70%, explains the broker.

While not providing specific FY22 guidance, management pointed to supplier cost increases, parts challenges, as well as logistics delays.  Ord Minnett maintains its Hold rating and $28 target price.

Target price is $28.00 Current Price is $33.35 Difference: minus $5.35 (current price is over target).
If BRG meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.93, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates BSL as Buy (1) -

FY21 results were pre-released. The company has announced a $500m buyback, highlighting cash flow, which is better than Citi anticipated.

The Australian domestic market remains strong and spreads have improved. Citi cuts distribution estimates for FY22 in line with the latest guidance on dividend policy.

Capital expenditure is likely to include further expansion at North Star and a new coating line in Australia. Citi maintains a Buy rating and $27.50 target.

Target price is $27.50 Current Price is $25.65 Difference: $1.85
If BSL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates BSL as Neutral (3) -

BlueScope Steel's  FY21 earnings of $1,724m were inline with preliminary results, while earnings guidance of $1.8-2.0bn was 50% above consensus of $1.28bn.

The company announced a $500m buyback, plus a shift to 50cps in dividends for FY21, of which 31cps ordinary plus a 19cps special.

Following the result, Credit Suisse increases FY22 earnings 23%, with higher North Star spreads and better Australian Steel Products (ASP) pricing being the main differences.

The company confirmed it intends to retain more cash in the near term relative to its target of zero net debt ($400m including leases), and to declare dividends/buybacks only out of received cash rather than projected after growth capex has been provided for.

Target rises to $26.00 from $25.20, Neutral retained.

Target price is $26.00 Current Price is $25.65 Difference: $0.35
If BSL meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BSL as Neutral (3) -

Macquarie notes FY21 results were in-line with prereleased data. Nonetheless, results were considered strong, supported by buoyant demand and strong spreads. Management flagged dividend payments of 25 cents per half, subject to market conditions.

The broker highlights the strong first half outlook with underlying earnings (EBIT) guidance of $1.8-$2bn. Macquarie lifts FY22 and FY23 EPS estimates by 28% and 8% and raises its target price to $28.10 from $26.20. The Neutral rating is unchanged.

The analyst continues to believe the environment is at or near its peak, with the risk of steel prices in the US rolling over and
putting pressure on the stock, notwithstanding residual EPS momentum.

Target price is $28.10 Current Price is $25.65 Difference: $2.45
If BSL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates BSL as Overweight (1) -

Morgan Stanley assesses an in-line FY21 result, a significantly higher dividend, a $500m buyback and guidance around 50% ahead of consensus expectations. All but the latter were not considered major surprises.

Morgan Stanley retains its Overweight rating and continues to see upside to the share price from current levels. The target price rises to $29.50 from $28.50, owing to higher earnings forecasts.The industry view is In-Line.

While current steel prices and spreads are unsustainable, the analyst considers management is executing well and capitalising on strong current conditions. The company increased the dividend target to 50 cents per year.

Target price is $29.50 Current Price is $25.65 Difference: $3.85
If BSL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates BSL as Buy (1) -

FY21 net profit was in line. Ord Minnett continues to envisage significant valuation support with production growth at North Star and a strong balance sheet.

Capital expenditure for the North Star expansion has been guided at 5-10% above the US$700m budget. Ord Minnett now includes the phase 2 expansion in its modelling.

The broker expects a top up of $750m to the buyback in six months time, adding to the $500m that was announced. Buy rating retained. Target rise to $35 from $34.

Target price is $35.00 Current Price is $25.65 Difference: $9.35
If BSL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates BSL as Buy (1) -

Results, which were largely pre-reported, have highlighted the strong conditions that prevailed for both North Star and Australian steel products.

Australian dispatches are the highest since 2008 although capacity constraints are starting to loom. Nevertheless, UBS notes management remains happy to use price.

The buyback announcement was not as large as anticipated although the broker is not surprised a more conservative approach was taken. UBS forecasts net cash of $1.5bn in FY22. Buy rating retained. Target rises to $28.20 from $27.99.

Target price is $28.20 Current Price is $25.65 Difference: $2.55
If BSL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates CAR as No Rating (-1) -

Driven by better-than-expected numbers in Private, Carsales.com reported FY21 earnings ahead of Credit Suisse estimates, with adjusted revenue of $437.8m, adjusted earnings of $254.2m, and underlying net profit of $152.8m.

Into FY22, management has guided to “solid” growth in adjusted revenue, earnings, and net profit, with growth likely to be second-half weighted given the impact of lockdowns and the resulting near-term disruption.

Credit Suisse interprets “solid” to mean mid-to-high single-digit growth – and while this is a slight slowdown from 9.7% growth in FY21 Adjusted earnings, the broker also expects FY22 opex to be impacted by the absence of $6m in wage subsidies that benefitted the previous period and continued investment into growth initiatives in Korea (incl. Dealer Direct).

The broker is restricted from providing a target or rating at present.

Current Price is $23.46. Target price not assessed.

Current consensus price target is $24.03, suggesting downside of -0.8% (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 CAR as Neutral (3) -

The FY21 result was slightly above Macquarie's expectations though broadly in-line with guidance. The broker highlights the opportunity could be material as Carsales Select changes the revenue model into the medium term.

This results in dealerships reducing their commission costs, which are replaced by Carsales' transaction costs, explains the analyst. Longer term, the group is looking to shift from a leads-based model to a transaction-based model.

Management believes the outlook is generally solid, excluding lockdown-impacted states. Macquarie lifts EPS forecasts to reflect better-than-expected Trader Interactive performance.

The broker lifts its target price to $25.60 from $20.80, reflecting cash flow upgrades and a terminal growth rate increase to 3.5% from 2.5%, to capture potential dealer upside.

Target price is $25.60 Current Price is $23.46 Difference: $2.14
If CAR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $24.03, suggesting downside of -0.8% (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

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

Morgans downgrades its rating to Hold from Add, after a strong recent share price run prior to yesterday's FY21 profit release, which came in at the top-end of guidance. Management pointed to a number of product initiatives to drive long-term growth.

The broker makes minor changes to near-term earnings forecasts, though larger changes in the longer term, on increased confidence in the transactional opportunities in all businesses. The price target rises to $24.03 from $20.82.

The analyst points out second half revenue growth bodes well for FY22, with the second half cost base (margins down -350bps on the first half) more reflective of a normalised cost base going forward.

Target price is $24.03 Current Price is $23.46 Difference: $0.57
If CAR meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $24.03, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates CAR as Hold (3) -

Ord Minnett is becoming incrementally positive on the stock, noting the digital retailing entity Carsales Select should enhance the economics of the business model.

The update on Trader Interactive also implies a meaningful contribution by FY23. The broker believes the impact of lockdown has been well managed yet the multiple for FY22 appears stretched versus historical averages.

Hold maintained. Target is reduced to $22.00 from $22.58.

Target price is $22.00 Current Price is $23.46 Difference: minus $1.46 (current price is over target).
If CAR meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.03, suggesting downside of -0.8% (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

UBS rates CAR as Buy (1) -

FY21 results were in line with guidance. The FY22 outlook statement was positive, UBS assesses, although the lockdowns will create near-term uncertainty.

The new digital used car offering, Carsales Select, is expected to allow dealers to bring more of the car buying process online. UBS believes this business can become a meaningful contributor, with the potential to double the company's yield per transaction.

Buy rating retained. Target rises to $25.50 from $24.00.

Target price is $25.50 Current Price is $23.46 Difference: $2.04
If CAR meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $24.03, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates CL1 as Buy (1) -

In an initial review of FY21 results, Ord Minnett assesses earnings (EBITDA) were broadly in-line with the broker's forecast and guidance. A final dividend of 2.5cps was declared, as expected.

Management is targeting FY22 revenue growth of 18% versus the broker's forecast for 13%, though the analyst's FY22 earnings forecast of $24.9m compares with guidance of $25m. The earnings margin target of 39% in FY22, compares with 40% in FY21.

The company flagged a review of “the company’s capital management strategy, including dividend payout, in the first half of FY22 to maintain a strong balance sheet”. A number of further acquisition opportunities have been identified.

Ord Minnett's Buy rating and $2.40 target price are under review.

Target price is $2.40 Current Price is $1.80 Difference: $0.6
If CL1 meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates COL as Resume coverage with Sell (5) -

UBS resumes coverage with a Sell rating and $16.50 target. The broker observes food market share has been lost via both local distribution and online and Coles continues to trail Woolworths ((WOW)).

While Coles has increased its investment in online and the supply chain, the broker notes Woolworths continues to do so as well, with the risk that the gap narrows only slightly.

Target price is $16.50 Current Price is $18.50 Difference: minus $2 (current price is over target).
If COL meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.64, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates CQR as Accumulate (2) -

At a first glance, Ord Minnett reports Charter Hall Retail REIT's full-year results are in line with expectations. It is the broker's view that FY21 results are solid, with strong comparables and high rent collection

Operating earnings per share of 27.3 cents was expected, but an -11% decline on the previous corresponding period. The broker notes the decrease in operating earnings was driven by the company's equity raising in April 2020.

Charter Hall Retail REIT has not provided FY22 guidance given uncertainty of covid impacts.

The Accumulate rating and target price of $3.97 are under review.

Target price is $3.97 Current Price is $3.81 Difference: $0.16
If CQR meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.72, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates DHG as Hold (3) -

In an initial assessment, the FY21 result at the top line was broadly in-line with consensus and Ord Minnett's estimates. Profit was a beat, due to lower than expected depreciation and amortisation, while core digital earnings (EBITDA) were considered a stand out.

Management noted that in FY22 year to date, national listings were slightly up versus the prior corresponding period, and July delivered a strong national depth performance.

The analyst expects consensus to downgrade earnings forecasts, given higher cost guidance, which is expected to increase by high single digit to low double digit range from the FY21 base. Ord Minnett maintains its Hold rating and $4.80 target price.

Target price is $4.80 Current Price is $4.67 Difference: $0.13
If DHG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.02, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in May.

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 DXS as Neutral (3) -

At first glance, FY21 results were in line with Macquarie's estimates while guidance for FY22 is slightly ahead of expectations. Guidance is for distribution growth of no less than 2% implying 52.8c per security.

Dexus reported 97.9% of rent was collected in office and 99% in industrial in FY21. Occupancy was down -80 basis points to 95.2%. Property management fees were lower than Macquarie expected. Neutral rating and $11.04 target maintained.

Target price is $11.04 Current Price is $10.70 Difference: $0.34
If DXS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.63, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates DXS as Hold (3) -

At first glance, today's Dexus FY21 result looks solid to Ord Minnett, with the group well positioned for growth in FY22. The growth is expected to stem from second half acquisitions of assets and funds management business and funds.

Funds from operations (FFO) for FY21 were down -0.9% and in-line with the analyst's forecast. Management expects DPS growth of not less than 2% for FY22, and no FFO guidance has been provided.

The broker highlights like for like growth was a healthy 3.7% in industrial and 2.3% in office, excluding the impact of rent relief and provisions for expected credit losses. Ord Minnett maintains its Hold rating and $10.90 target price.

Target price is $10.90 Current Price is $10.70 Difference: $0.2
If DXS meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.63, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates FBU as Neutral (3) -

After a strong performance over recent months, UBS notes the share price is 38% above pre-pandemic levels. This follows earnings upgrades as NZ construction activity rebounded.

The broker now expects NZ construction expenditure will lift by 15% in 2022-23. UBS upgrades estimates for FY22 and FY23, driven by stronger NZ sales and margins.

UBS retains a Neutral rating which is under review. Target is raised to NZ$7.65 from NZ$6.55.

Current Price is $7.51. Target price not assessed.

Current consensus price target is $7.60, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Morgans rates GDF as Add (1) -

FY21 results revealed funds from operations (FFO) of 7.8 cents versus 8.2 cents in the previous corresponding period. A dividend of 7.2 cents was declared. Management’s DPS guidance is for 7.2 cents, which is below the 7.5 cents assumed by Morgans.

The analyst expects there is near-term upside given the strong industrial market fundamentals. Morgans retains its Add rating and edges up its target price to $1.47 from $1.46.

Target price is $1.47 Current Price is $1.39 Difference: $0.08
If GDF meets the Morgans 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: 1.0

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

Citi rates GPT as Neutral (3) -

First half results were slightly ahead of Citi's estimates. The broker notes management continues to re-weight the portfolio to industrial and away from retail. Recent lockdowns particularly cloud the retail outlook.

The broker reflects the accretion from the potential Ascot acquisition/development and also notes management appears more willing to make use of gearing, while activity on the buyback appears less likely in the short term.

Neutral rating retained. Target rises to $4.90 from $4.73.

Target price is $4.90 Current Price is $4.80 Difference: $0.1
If GPT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates GPT as Neutral (3) -

Macquarie assesses first half results were a 2% beat, driven by solid retail net property income (NPI). The broker reduces FY21 funds from operations (FFO) by -6%, due to the reintroduction of the leasing code of conduct.

A fall in the analyst's forecast FFO for FY21 is driven by increased rental relief in FY21, while a positive revision in FY22 is driven by higher
occupancy assumptions across industrial and retail. The target price rises to $4.88 from $4.81.

While utilising the balance sheet provides upside risk to FFO near term, downside risks include the outlook for retail and office, explains the broker. The Neutral rating is retained.

Target price is $4.88 Current Price is $4.80 Difference: $0.08
If GPT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates GPT as Underweight (5) -

GPT Group delivered first half funds from operations (FFO) slightly ahead of Morgan Stanley's estimate, with the beat largely driven by lower interest/overhead costs. First half DPS was declared at 13.3 cents versus the analyst's estimate of 12.2 cents.

FY21 guidance remains withdrawn. The broker still sees risks around Retail rents and declining occupancy levels into the second half and retains its Underweight rating and $4.70 target price. Industry view is In-Line.

The analyst highlights retail rent collection has fallen to 81% in July versus 104% (of net billings) in the first half and 13% of tenants have agreed rent relief so far. Leasing spreads were -9.4%, improving from -14.1% in 2020.

Office occupancy is now just 89% (a historic low for the group) albeit leasing volumes were strong in the first half, points out the broker.

Target price is $4.70 Current Price is $4.80 Difference: minus $0.1 (current price is over target).
If GPT meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.95, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Ord Minnett rates GPT as Accumulate (2) -

First half funds from operations were up 23.6% and marginally ahead of Ord Minnett's estimates. The broker considers the results firm but notes guidance was withdrawn because of the uncertainty of the lockdown impact on retail.

The broker expects earnings to rebound once restrictions are lifted. Accumulate maintained. Target rises to $5.40 from $5.20.

Target price is $5.40 Current Price is $4.80 Difference: $0.6
If GPT meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates GPT as Neutral (3) -

Further to the initial response to the first half results, see yesterday's Report, UBS notes GPT is in exclusive discussions to acquire the Ascot portfolio, which would strategically increase the weighting to logistics and provide accretion to earnings.

The company will also consider funding the acquisition via debt. Neutral rating maintained. Target rises to $5.00 from $4.80.

Target price is $5.00 Current Price is $4.80 Difference: $0.2
If GPT meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates GWA as Neutral (3) -

FY21 results highlight strong delivery of price increases in the second half that offset soft top-line momentum. Citi expects earnings will remain subdued until FY23.

Sales visibility is low while there are industry capacity constraints in residential and continued weakness in commercial and multi-residential business. Citi forecasts flat sales growth in FY22. Neutral maintained. Target is raised to $3.15 from $3.12.

Target price is $3.15 Current Price is $2.88 Difference: $0.27
If GWA meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates GWA as Neutral (3) -

GWA Group delivered FY21 net profit of $42.3m, 2% above consensus, and earnings of $68.5m, 3% above consensus.

Management expects an FY22 earnings margin of 17.5%, in line with second half FY21 and approximately in line with the prior consensus of 17.7%, with $3m in carryover annualised cost savings offset by freight.

Second half FY21 revenue growth was 8%, better than Credit Suisse estimates (4.6%), though boosted by 32%/34% growth in NZ/UK versus the covid impacted previous period. In the broker’s view, 3-4% is a clearer estimate of second-half FY21 momentum, with Australia growth 4% on the previous period, and NZ/UK actually declining sequentially versus first half F21.

Given this, and management comments regarding a continuation of second-half FY21 outcomes, Credit Suisse decreased FY22 revenue growth forecast to 6% (from 7%).

Neutral rating with the target lowering to $3.09 from $3.15.

Target price is $3.09 Current Price is $2.88 Difference: $0.21
If GWA meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates GWA as Outperform (1) -

Having delivered a better second half, GWA Group's FY21 results were slightly ahead of Macquarie's expectations. The company closed out the year with underlying earnings of $68.5m, a -5% year-on-year decline. 

While the company didn't provide FY22 guidance, it is Macquarie's view that a stronger second half in FY21 will provide momentum going into the new financial year. GWA Group management aims to maintain underlying earnings margins at second half FY21 levels. 

Macquarie has updated earnings per share forecasts by -5% and -2% for FY22 and FY23 respectively. 

The Outperform rating is retained and the target price decreases to $3.25 from $3.55.

Target price is $3.25 Current Price is $2.88 Difference: $0.37
If GWA meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

GWA Group’s FY21 result was ahead of Morgans and Bloomberg consensus estimates, with improvement in the balance sheet and strong operating cash flow being key highlights. The broker lifts its rating to Add from Hold and adjusts its target to $3.28 from $3.30.

Despite the result being above expectations, the analyst is more conservative on growth in FY22 due to the uncertainty around lock downs  and timing of a recovery in the higher margin commercial segment. However, the balance of risks is thought to be to the upside.

Management expects continued momentum in detached housing on the back of HomeBuilder and healthy consumer sentiment. Residential/commercial repair and remodel (representing around 61% of revenue) is expected to be stable to slightly positive.

Target price is $3.28 Current Price is $2.88 Difference: $0.4
If GWA meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

Despite covid-related challenges, Imdex delivered strong FY21 results, beating Macquarie expectations by 16%. Revenue was up 11% to $264m and underlying earnings were up 39% to $75.5m. 

It is Macquarie's view that solid industry demand will continue accelerating into FY22. The broker notes Imdex has also reported a positive start to the new financial year, with strong demand for ImdexHub-IQ connected technologies. 

Macquarie has increased earnings per share forecasts by 17% and 12% for FY22 and FY23 respectively. The rating is downgraded to Neutral and the target price increases to $2.56 from $2.10.

Target price is $2.56 Current Price is $2.49 Difference: $0.07
If IMD meets the Macquarie target it will return approximately 3% (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

UBS rates IMD as Buy (1) -

FY21 results beat UBS estimates. The main highlight was instrumentation revenue amid record units on hire. Momentum has continued into the first half of FY22.

Imdex has signed two new joint development agreements and is targeting a further four. UBS believes Imdex can grow into valuation amid the cyclical recovery in its core business. Buy rating retained. Target rises to $2.73 from $2.40.

Target price is $2.73 Current Price is $2.49 Difference: $0.24
If IMD meets the UBS target it will return approximately 10% (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

Citi rates JBH as Neutral (3) -

FY21 results were pre-released. The trading update highlights good demand, Citi observes. Margin expansion at The Good Guys was outstanding yet the broker expects only part of the benefit to be retained in FY22.

The broker considers the discount in the stock to the broader market fairly balances the earnings potential of JB Hi-Fi, given the exposure to home appliances and the risk that lockdowns can extend for longer. Neutral maintained. Target rises to $55 from $54.

Target price is $55.00 Current Price is $49.53 Difference: $5.47
If JBH meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $52.71, suggesting upside of 4.4% (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

Credit Suisse rates JBH as Outperform (1) -

JB Hi-Fi produced another "quality" FY21 result, with Credit Suisse noting the balance sheet is in good shape and trading in July and August has been resilient in the face of Government-mandated store closures.

Sales revenue remained well above trend through the fourth quarter FY21 and the strong categories were computers, communications, games hardware, visual, and small appliances.

Credit Suisse has made minor adjustments to like-for-like forecasts to reflect July/August trading. 

Credit Suisse notes while the company is net cash there does not appear to be a lot of appetite to re-gear the balance sheet. The broker is forecasting net cash of $210m at end-FY22 and is not assuming any active capital management in forecasts.

A final dividend of $107cps was declared, with the payout ratio maintained at 65%.

Target is lowered to $56.48 from $57.60 due to a smaller cash balance on working capital normalisation. Outperform maintained.

Target price is $56.48 Current Price is $49.53 Difference: $6.95
If JBH meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $52.71, suggesting upside of 4.4% (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 JBH as Neutral (3) -

As pre-announced, JBH Australia recorded comparable sales up 13%, JBH New Zealand up 17.4% and The Good Guys up 13.7%. Strong operating leverage drove earnings growth of 33.6% for JBH Australia and 90.2% for The Good Guys. 

Macquarie notes covid restrictions have impacted on a weak start to FY22, and the company has not yet released FY22 guidance. The broker updates earnings per share estimates by 3.3%, 0% and -1.2% through to FY24 on expected muted trading in FY22. 

The Neutral rating is retained and the target price increases to $52.50 from $50.40. 

Target price is $52.50 Current Price is $49.53 Difference: $2.97
If JBH meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $52.71, suggesting upside of 4.4% (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 JBH as Hold (3) -

Morgans leaves estimates largely unchanged after FY21 results and retains its Hold rating, while raising the price target to $54 from $52.23.

The analyst points out like-for-like (LFL) sales growth was negative in the first few weeks of FY22 to date, reflecting extremely strong trading at the start of FY21. Despite this, the LFL performance compared to FY19 was positive, especially in The Good Guys.

The broker expects LFL's to track negative throughout FY22, with the gross margin coming under some pressure and notes that while the company performs relatively well in lock downs, it performs better outside them.

Target price is $54.00 Current Price is $49.53 Difference: $4.47
If JBH meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $52.71, suggesting upside of 4.4% (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

UBS rates JBH as Neutral (3) -

FY21 results were in line with prior guidance. Gross margins expanded 79 basis points to 22.18% stemming from buying improvements, reduced discounting. Yet cash conversion was weak, UBS notes.

The broker believes gross margins can remain elevated in the case of The Good Guys and JB New Zealand but not in the case of JB Hi-Fi Australia because of a negative mix.

The broker notes a cautious view on the outlook for FY22 yet believes the company is well-positioned, particularly The Good Guys in relation to housing. Neutral rating and $50 target maintained.

Target price is $50.00 Current Price is $49.53 Difference: $0.47
If JBH meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $52.71, suggesting upside of 4.4% (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 LLC as Buy (1) -

FY21 profit was at the lower end of guidance and softer than expected. Citi expects changes to development profit recognition will weigh on short-term earnings but could improve the market's assessment of the earnings quality.

The broker found the results messy, although acknowledges there were some sign of progress on streamlining the business. Operating conditions appear more challenging than previously thought.

Buy rating retained. Target is reduced to $14.27 from $15.97.

Target price is $14.27 Current Price is $11.64 Difference: $2.63
If LLC meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates LLC as Outperform (1) -

Lendlease Group's core FY21 net profit was up 83% on the previous period to $377m, below Credit Suisse $397m forecast and at the lower end of the group's recently introduced guidance range of $375-410m.

The FY22 outlook is below pre-result consensus expectations, with Development return on invested capital (ROIC) in particular expected to be well below target.

Credit Suisse notes the FY22 result is expected to be weighed down by a weak Development division result with ROIC in the 2-5% range versus the 10-13% target.

The broker continues to see value for investors with a medium-to-long-term investment view and has revised FY22 and FY23 operating earnings per share by -41.2% and -35.1% respectively.

Outperform rating and target price of $12.94 are both unchanged.

Target price is $12.94 Current Price is $11.64 Difference: $1.3
If LLC meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates LLC as Neutral (3) -

Macquarie highlights that Lendlease Group's operating earnings per share guidance is around -49% below consensus forecasts, driven by delays in project commencements expected in FY22 to FY23 and beyond. 

Further, while projects in development will increase in FY23 commencement delays and changes in contract structure will place profit recognition closer to completion, and the broker notes that FY23 will also be a recovery year. 

Macquarie has updated operating earnings per share by -43%, -35% and -14% for FY22, FY23 and FY24 respectively, largely on project delays.

The Neutral rating is retained and the target price increases to $11.88 from $11.55.

Target price is $11.88 Current Price is $11.64 Difference: $0.24
If LLC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

In the wake of FY21 results, Morgan Stanley believes the three-year story looks good (again), but FY22-23 will be transition years. The Equal-weight rating and $13 price target are unchanged. Industry view: In-line.

The company delivered a profit result in-line with its July 1 forecast. Management's anticipated returns for FY22 imply to the broker profit of circa $200-550m, and if it hits the top end of its segment targets in FY24, profit could be up to around $1.1bn.

No guidance was provided, apart from anticipated returns of 2-5% for the Development return on invested capital (ROIC), 2-3% for the Construction margin and a  5-8% Investment ROIC.

Target price is $13.00 Current Price is $11.64 Difference: $1.36
If LLC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates LLC as Hold (3) -

FY21 operating profit was below Ord Minnett's estimates. FY22 guidance is considered soft, particularly in terms of development capital. The broker believes the new CEO is pulling out all the negative issues as the pandemic impacts FY22.

As a result, downgrades to FY22 and FY23 consensus estimates are expected. Earnings are then anticipated to rebound sharply in FY24 when Lendlease expects to achieve targeted returns.

Hold rating and target of $13.00 retained.

Target price is $13.00 Current Price is $11.64 Difference: $1.36
If LLC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates LLC as Buy (1) -

FY21 net profit was below expectations while operating earnings were in line. Incoming CEO Tony Lombardo has re-based market expectations for FY22-24 substantially lower.

UBS believes the challenge for the market is to separate the underlying project delays from the plans to change the structure of future development projects.

The broker suggests the company is finally listening to market criticism about the earnings quality. Lendlease has confirmed it does not anticipate meeting a return target of 8-11% until FY24. Buy rating maintained. Target is reduced to $12.66 from $13.00.

Target price is $12.66 Current Price is $11.64 Difference: $1.02
If LLC meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates MFG as Neutral (3) -

FY21 results, at first glance, were broadly in line in terms of funds management revenue of $663.6m. Adjusted net profit pre-associates was helped by lower costs and other revenue.

Equity accounted investments contributed a loss of -$41.7m, primarily because of the 40% interest in Barrenjoey. Funds under management increased during the second half and market performance also provided a positive contribution.

Macquarie retains a Neutral rating and $47.50 target.

Target price is $47.50 Current Price is $51.42 Difference: minus $3.92 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.73, suggesting upside of 9.3% (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

UBS rates MTS as Resume Coverage with Buy (1) -

UBS resumes coverage on Metcash with a Buy rating and $4.60 target. The company's food division has benefited from the localisation of supermarket shopping and some of the benefit is expected to stick.

Hardware remains the key growth driver and is leveraging an attractive housing backdrop. As hardware is a larger part of the business, UBS believes a re-rating opportunity exists because of a better position in a more attractive industry compared with food.

Target price is $4.60 Current Price is $4.18 Difference: $0.42
If MTS meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in April.

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 NAN as Hold (3) -

Ahead of the FY21 results on August 24, Ord Minnett reduces revenue forecasts by -5.6% which translates to -38% and -16% reductions to earnings per share estimates for FY21 and FY22. Hold rating and $5.40 target maintained.

Target price is $5.40 Current Price is $5.61 Difference: minus $0.21 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.82, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates NWH as Outperform (1) -

NRW Holdings has signed a Letter of Intent with Coronado Global Resources ((CRN)) to extend the mining services contract at the Curragh project and Macquarie notes the contract extension is worth $1.0-1.4bn and extends the relationship to at least 2026. 

Among the terms of the contract extension is an agreement to spend $46m on capital equipment.

Macquarie notes NRW Holdings is currently benefiting from tailwinds given high leverage to iron ore capital spend and infrastructure spend. The broker awaits the company's FY21 result and FY22 outlook in coming days. 

The Outperform rating and $2.15 target price are retained.

Target price is $2.15 Current Price is $1.69 Difference: $0.46
If NWH meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates NWH as Buy (1) -

NRW Holdings will enjoy the extension of the Curragh mining contract for a further five years. UBS considers this an extra filip in 2022 mining revenue growth. No earnings changes are made as the extension was in line with expectations.

The broker continues to believe the company is well-placed to manage the decline in iron ore capital expenditure.

While recent border closures across states and the restrictions challenge the recovery profile in the first half of FY22, UBS considers the valuation attractive and retains a Buy rating. Target is $2.37.

Target price is $2.37 Current Price is $1.69 Difference: $0.68
If NWH meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

After the Supreme Court of Western Australia's approval of the Orocobre and Galaxy Resources ((GXY)) merger, the merged 'new company' will begin trading on the ASX on a deferred settlement basis from today.

Morgan Stanley sees the merger benefiting both parties through scale, balance sheet and the ability to better sequence growth projects, downstream processing construction, and combined marketing. Unchanged Equal-weight rating and $6.60 target. Industry view: Attractive. 

Target price is $6.60 Current Price is $9.46 Difference: minus $2.86 (current price is over target).
If ORE meets the Morgan Stanley target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.61, suggesting downside of -17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates PPS as Buy (1) -

FY21 results were below expectations. Nevertheless, the flow update for July, combined with guidance for margin expansion, suggests to Ord Minnett momentum is actually improving.

Given the leadership issue is now settled and there is a clear strategic direction, plus given a strong financial position, the broker reiterates a Buy rating. Target is raised to $1.45 from $1.40.

Target price is $1.45 Current Price is $1.22 Difference: $0.23
If PPS meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates SDF as Outperform (1) -

Steadfast Group's FY21 net profit of $160m was in line with Credit Suisse and consensus forecasts.

The group issued FY22 guidance of underlying earnings of $320-330m, underlying net profit of $159-166m, and underlying diluted earnings per share growth of 10-15%.

Management was confident that FY22 organic revenue growth should be in line with FY21 but flagged potential cost headwinds as wage rises catch up following a pause during covid.

Outperform rating is unchanged and the target price increases to $5.30 from $4.60.

Target price is $5.30 Current Price is $4.69 Difference: $0.61
If SDF meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates SDF as Outperform (1) -

Steadfast Group continues to execute well on strategy, according to Macquarie, and achieved underlying earnings growth of 17.6% on the previous year in FY21. The company is now guiding to underlying earnings per share growth between 10-15% in FY22.

The company has also announced the acquisition of Coverforce for $411.5m, which Steadfast Group is estimating to be immediately 4% earnings per share accretive. Macquarie notes the acquisition price, representing 12.5 times expected FY22 underlying earnings, is at the top end compared to historical acquisitions. 

The Outperform rating is retained and the target price increases to $4.90 from $4.70. 

Target price is $4.90 Current Price is $4.69 Difference: $0.21
If SDF meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates SDF as Accumulate (2) -

FY21 results were in line with guidance and forecasts. Guidance for FY22 includes a capital raising, an acquisition and plans for addressing trapped capital stakes in existing brokers. 

Synergies in the acquisition of Coverforce of $4m are expected over two years post completion. Accumulate rating and $4.76 target maintained.

Target price is $4.76 Current Price is $4.69 Difference: $0.07
If SDF meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

UBS rates SDF as Buy (1) -

FY21 results were broadly in line with expectations. FY22 guidance is ahead of forecasts at an EBITA of $320-330m.

The premium rate cycle continues to remain supportive and UBS observes volume trends are resilient despite the pandemic. Buy rating retained. Target rises to $5.10 from $4.70.

Target price is $5.10 Current Price is $4.69 Difference: $0.41
If SDF meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates SGM as Outperform (1) -

At first glance, FY21 underlying earnings were largely in line with Macquarie's expectations. No formal guidance was provided and while the pandemic presents a risk, buoyant metal markets continue to underpin trading conditions.

North American metals missed the broker's forecasts while SA recycling EBIT beat estimates, with the latter's strong performance supported by competitive positioning and high zorba prices.

The size of the second half dividend was slightly lower than the broker anticipated, limited by franking credits. Outperform and $19.80 target retained

Target price is $19.80 Current Price is $17.65 Difference: $2.15
If SGM meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $19.00, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates SGM as Buy (1) -

After an initial glance at FY21 results, Ord Minnett thinks FY22 consensus earnings (EBIT) forecast of $331m looks too low, and expects this to move higher. FY21 earnings of $387m was above the top end of the company's $360-380m guidance.

The final dividend of 30cps was below the 54cps forecast by the analyst (assumed a 50% EPS payout), although it was broadly in-line with consensus. Management stated "FY22 has started very well, continuing the trend of consecutive strong quarters in 2HFY21".

The broker retains its Buy rating and $20 target, with drivers remaining positive, due to stimulus spending and global decarbonisation efforts (supportive of scrap).

Target price is $20.00 Current Price is $17.65 Difference: $2.35
If SGM meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $19.00, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates STO as Buy (1) -

According to an initial assessment, today's first half revenue and earnings (EBITDA) for Santos were within -2% of Ord Minnett's forecasts. Free cash flow was considered very strong (representing a 13% annualised yield) and net debt was below forecast.

As the interim result was broadly in-line with the broker's 13%-above-consensus forecast, some upgrades from the market post the result may occur. The broker maintains its Buy rating and $8.15 target price.

Management made no changes to full year production and sales volumes guidance. On a divisional basis, GLNG was below the analyst's expectations though this was mostly offset by higher contribution from Darwin LNG and PNG LNG.

Target price is $8.15 Current Price is $6.21 Difference: $1.94
If STO meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $8.02, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

UBS rates STO as Buy (1) -

In an initial assessment of Santos' first half profit, UBS notes a positive result with an around 14% underlying profit beat versus the broker and consensus, due to lower corporate costs. There was no change to 2021 guidance.

The first half dividend of 20% of free cash flow signals to the broker a capacity to deliver growth and maintain steady distributions. The dividend was US$0.055 versus a forecast for US$0.025 and consensus of US$0.04.

UBS leaves its Buy rating and $8.25 price target unchanged.

Target price is $8.25 Current Price is $6.21 Difference: $2.04
If STO meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $8.02, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates SWM as Outperform (1) -

Seven West Media reported FY21 results in line with guidance, with revenue of $1,270m and underlying net profit of $125.5m.

The company has guided for FY22 normalised costs in the $1,080-1,100m range, with a further $94m in one-off costs expected.

While the FY22 costs guidance implies a step up in costs of $163m (at the mid-point), Credit Suisse is of the view that will be more than offset by revenue growth in TV, Digital, and revenue growth at WAN, supported by payments from Facebook/Google.

The broker has lowered earnings estimates marginally with higher earnings per share (EPS) driven by lower finance costs.

Outperform rating and target price of $0.80 were both retained.

Target price is $0.80 Current Price is $0.48 Difference: $0.32
If SWM meets the Credit Suisse target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 66.9% (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

Macquarie rates SWM as Outperform (1) -

According to Macquarie, Seven West Media's near-term outlook is positive, with the company indicating a 60% year-on-year increase in bookings in the September quarter.

Seven West has also flagged higher costs, guiding to a 15-17% increase on the previous year to total $1.175-1.195bn, largely relating to the one-off costs of sporting rights for the Olympics and the Ashes.

The high operating expenditure is a key driver of Macquarie's FY22 earnings per share downgrade. The broker updates forecasts by -4%, 21% and 19% for FY22, FY23 and FY24 respectively. 

The Outperform rating is retained and the target price increases to $0.77 from $0.68.

Target price is $0.77 Current Price is $0.48 Difference: $0.29
If SWM meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 66.9% (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 SWM as Buy (1) -

Ord Minnett believes the structural headwinds from the migration of advertising expenditure to other digital platforms is already accounted for in the share price.

FY21 net profit was well ahead of the prior year and, significantly, the broker notes net debt has been reduced by -40%. Ord Minnett judges the risk/reward equation is skewed to the upside and retains a Buy rating. Target is $0.65.

Target price is $0.65 Current Price is $0.48 Difference: $0.17
If SWM meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 66.9% (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 SWM as Buy (1) -

FY21 results contain no major surprises for UBS with operating earnings in line with guidance. The broker considers the outlook for FY22 uncertain as the flow through to media advertising expenditure from the lockdowns is hard to predict.

Nevertheless, the business has started the first half better than previously expected and this drives a 20% increase to the broker's FY22 EBITDA forecasts, while also highlighting the risk if macro conditions deteriorate.

Buy rating maintained. Target rises to $0.65 from $0.60.

Target price is $0.65 Current Price is $0.48 Difference: $0.17
If SWM meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 66.9% (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

Morgans rates SYD as Hold (3) -

Morgans senses upside on offer as bidding develops, after Sydney Airport has rejected a revised indicative takeover proposal from the Sydney Aviation Alliance bid consortium. The broker also has an eye to the downside risk if the bid were to stall.

The revised indicative bid is all-cash $8.45 versus the $8.25 original bid. The analyst notes Australian Super has joined the bid consortium, which brings another big player into the group, and thinks this increases the probability of the deal proceeding beyond this rejection.

Morgans retains its Hold rating and raises its target price to $8.45 from $8.25.

Target price is $8.45 Current Price is $7.70 Difference: $0.75
If SYD meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.24, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates SZL as Buy (1) -

In initial assessments of today's June quarter and first half results, Ord Minnett estimates earnings (EBITDA) were below expectations. Earnings for the first half were -$8.6m lower than forecast, owing to higher fixed costs as well as higher bad debts.

Gross bad debts for the half were 2.9% versus 2.6% forecast by the broker, resulting in net transaction losses of -1.9%. The transaction margin of 1.3% was considered to compare well with the December 2020 half though the June quarter was lower than expected.

As a result of higher costs, the broker expects the consensus revenue forecast for 2021 to be unchanged though earnings estimates to be lowered. Ord Minnett retains its Buy rating and $10.60 target price.

Target price is $10.60 Current Price is $8.22 Difference: $2.38
If SZL meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

UBS rates WOW as Resume Coverage with Neutral (3) -

UBS resumes coverage of Woolworths with a Neutral rating and $39 target. The broker notes the core Australian food business has delivered market share gains because of the company's continued leadership in-store and strategically.

The online channel is also growing and the supermarket is considered best placed in this regard, with the pandemic proving a tailwind.

UBS also notes Big W has been turned around and traffic has been converted to revenue growth via price reductions and subsequently margin expansion via improved product.

Target price is $39.00 Current Price is $41.02 Difference: minus $2.02 (current price is over target).
If WOW meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.85, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

UBS rates WPL as Buy (1) -

Woodside Petroleum today confirmed reports that it is in discussion with BHP Group ((BHP)) to potentially merge with the latter's Petroleum business by distributing Woodside petroleum shares to BHP shareholders.

In an initial take, the broker suggests a merger could see the company benefit from the BHP Petroleum division's strong free cash flow, providing a stronger balance sheet with the potential to self-fund growth. It would also provide geography and product diversification.

The analyst feels a merger proposal will carry some risk of obtaining shareholder support, given the Board is driving the proposal, without a permanent CEO appointed. UBS leaves its Buy rating and $26.10 price target unchanged.

Target price is $26.10 Current Price is $21.18 Difference: $4.92
If WPL meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 31.9% (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