Australian Broker Call

Macquarie rates A2M as Underperform (5) -

The US FDA has put all applications for importing infant formula into the USA on hold and Macquarie, upon first hearing the news, concludes the decision makes a lot of sense.

The underlying reasoning is that any approvals from here on would unlikely hit shelves before shortages are relieved further, hence the  pause on approvals appears logical, says the broker.

For a2 Milk shares, that have rallied from around $4.53 to $5.11 on speculation for FDA approval, however, today's news can be a reason for short-term selling, the broker suggests.

Generally speaking, Macquarie's view is a2 Milk's valuation appears "elevated" given a challenging market backdrop. Underperform. Target $4.

Target price is $4.00 Current Price is $5.11 Difference: minus $1.11 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.05, suggesting upside of 6.0% (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 ABC as Outperform (1) -

With AdBri due to report on its first half before the end of the month, Macquarie believes strong underlying demand remains for the cement and aggregate market and finds the company better positioned to weather energy costs than peers. 

While detached housing construction activity looks to slow, the broker anticipates infrastructure and mining will support demand. Further, Macquarie reiterates AdBri's geographical exposure leaves it well positioned to navigate wet weather impacts in the eastern states.

Earnings per share forecasts decline -4% each year through to FY24. The Outperform rating is retained and the target price decreases to $3.45 from $4.15.

Target price is $3.45 Current Price is $2.60 Difference: $0.85
If ABC meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 26.2% (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

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

Morgan Stanley resumes coverage of AMP after a period of restriction with an Equal-weight rating as the shares are currently not cheap when the price/earnings multiple is considered. It's felt capital returns are priced-in, and investment is required to stay competitive.

While recent sales of most of AMP Capital Investors operations reduce downside risks, they also take away the best growth opportunity, in the analyst's opinion. The $1.10 target price is maintained. Industry View: Attractive.

Target price is $1.10 Current Price is $1.17 Difference: minus $0.07 (current price is over target).
If AMP meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.08, suggesting downside of -8.1% (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

Ord Minnett rates ANN as Buy (1) -

In anticipation of Ansell's FY22 result on Tuesday August 23, Ord Minnett expects a mid-to single-digit earnings recovery, which implies a beat versus the consensus forecast.

A higher US dollar will weigh on FY23 earnings, according to the analyst, though 60% of costs are paid for in the same currency, providing an offset. Headwinds are also expected from cost inflation and slowing economies (especially Europe).

The target price falls to $32 from $33 and the Buy rating is unchanged.

Target price is $32.00 Current Price is $27.05 Difference: $4.95
If ANN meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Macquarie rates BEN as Downgrade to Underperform from Neutral (5) -

Macquarie notes Bendigo & Adelaide Bank continues to lead the banking sector in 2022, outperforming peers 12-35% year-to-date with strong lending growth driving the result. 

The bank has also benefited from its relatively higher exposure to rising rates, but the broker warns as deposit pricing benefits normalise, and with Bendigo & Adelaide Bank not demonstrating margin upside like peers National Bank ((NAB)) and Suncorp Group ((SUN)), valuation is increasingly stretched.

The broker finds cost ambitions unrealistic, and presenting a key risk to its recommendation. The rating is downgraded to Underperform from Neutral and the target price of $10.00 is retained.

Target price is $10.00 Current Price is $10.54 Difference: minus $0.54 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.54, suggesting downside of -0.2% (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) -

In a preview of Bendigo & Adelaide Bank's FY22 result due on Monday August 15, Ord Minnett forecasts a -1.8% half-on-half fall in revenue, with strong loan growth. The underlying net interest margin (NIM) is expected to decline by -5bps half-on-half.

The analyst also expects non-interest income (NII) to fall by -8% half-on-half. With a payout ratio of 66% forecast, a final dividend of 26.5cps is expected.

The broker increases its FY22 net profit forecast by 1% due to lower bad and doubtful debts. The FY23 estimate is increased by 5%, due to the earlier rate rises assumptions, and impacts from upgraded 2H FY22 business growth forecasts.

The target rises to $10.60 from $9.70. Hold.

Target price is $10.60 Current Price is $10.54 Difference: $0.06
If BEN meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.54, suggesting downside of -0.2% (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 BHP as Neutral (3) -

UBS is sanguine about the $25 per share takeover offer for OZ Minerals, viewing the possible acquisition as a "nice to do, no need to do" situation.

With the upcoming August results for the companies, UBS expects BHP Group will re-assess the next steps post the knock back of the offer by OZ Minerals once they have obtained shareholder feedback.

On balance the analyst does not assess management will pay much above the initial offer price and if the deal were to proceed UBS believes net debt would be sustained in the $5-$15bn range with no impact on the FY22 results.

A Neutral rating and $35.50 price target are retained.

Target price is $35.50 Current Price is $38.82 Difference: minus $3.32 (current price is over target).
If BHP 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 $42.35, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

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

With Boral due to report on its full year before the end of the month, Macquarie believes strong underlying demand remains for the cement and aggregate market despite weather impacts.

The broker does remain cautious, with expected further high rainfall between September and November for the eastern states presenting risk, but sees favourable infrastructure developments. Energy costs also remain a risk, and could drive downside if costs worsen.

The rating is downgraded to Neutral from Outperform and the target price decreases to $3.20 from $4.05.

Target price is $3.20 Current Price is $2.98 Difference: $0.22
If BLD meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting downside of -1.1% (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 BPT as Downgrade to Hold from Add (3) -

Ahead of FY22 results due on Monday August 15 for Beach Energy, Morgans lowers its rating to Hold from Add, partly due to valuation.

The broker also fears FY23 production guidance may not be as strong as hoped for, and prices aren't likely to lift materially until FY24, partially due to an expected increase in Origin Energy's ((ORG)) GSA pricing.

The target price falls to $1.91 from $1.95.

Target price is $1.91 Current Price is $1.85 Difference: $0.06
If BPT meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 7.8% (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

Citi rates CBA as Sell (5) -

Upon initial assessment, CommBank's FY22 performance beat expectations (both Citi's and consensus) by up to 4%, assisted by a provision release of no less than $357m, comment Citi analysts.

Underneath, core earnings were in-line with consensus, and slightly below what Citi had penciled in (-1%). The broker does note bank management remained rather vague about the outlook.

Some (internal) discussion is taking place regarding the true meaning of CBA's comments on the outlook for Net Interest Margin (NIM). The bank has shown cost discipline, on Citi's observation.

Sell. Target $90.75.

Target price is $90.75 Current Price is $101.28 Difference: minus $10.53 (current price is over target).
If CBA meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.48, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Macquarie rates CBA as Underperform (5) -

Upon initial glance over today's FY22 release by CommBank, Macquarie analysts conclude there's nothing genuinely concerning in the report, similar as with National Australia Bank's update yesterday, though the -5bp retreat in margin stands out as a disappointment.

It seems, concludes the broker, CBA has underperformed its peers in the June-quarter (on margin).

Also, pre-provision profit looks broadly flat in 2H22, says the broker, implying the traditional premium awarded to CBA shares is seen as too bloated.

Ultimate conclusion: "priced for better". Underperform. Target $78.

Target price is $78.00 Current Price is $101.28 Difference: minus $23.28 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.48, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

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

Website analysis by Citi reveals weaker-than-expected website visits (one driver of online sales) for City Chic Collective and the broker downgrades its rating to Neutral from Buy, after trimming FY23 and FY24 EPS forecasts by -3%.

The eanings downgrades also reflect a challenging FY23 outlook, explains the analyst. The target falls by -17% to $2.47 due to the earnings changes, lower market multiples and a lower price/earnings premium.

Target price is $2.47 Current Price is $2.26 Difference: $0.21
If CCX meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting upside of 33.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates CLW as Neutral (3) -

Citi has dug deeper into FY22 results for Charter Hall Long WALE REIT after forming a first impression yesterday. It's now felt "true" FY23 guidance (adjusting for an interest rate swap benefit - that limits FY23 exposure) was a -4% miss versus the consensus forecast.

FY22 operating EPS of 30.5cpu was in-line with guidance and the consensus expectation.

The FY22 reported distribution of 30.5cpu was also in-line with guidance and consensus, according to the broker. Strong valuation growth resulted in the net tangible assets/book value ratio increasing by 4.8% over the December 2021 figure.

The Neutral rating is retained partly due to rising funding costs and because assets values will likely decline over the next two years. The $4.70 target is unchanged.

Target price is $4.70 Current Price is $4.39 Difference: $0.31
If CLW meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Macquarie rates CLW as Neutral (3) -

Charter Hall Long WALE REIT has delivered operating earnings per share in line with Macquarie's expectations for FY22, while guidance for FY23 of 28 cents per share was a beat on the broker's anticipated 27.3 cents per share.

The REIT has increased hedging to 77% from 53% having agreed to swaps of over $650m at 1.5%, increasing income certainty but at a capital cost of -$21.6m as noted by Macquarie.

The broker notes the earnings benefit derived from this trade-off largely accounts for the miss in its FY23 forecast.

Macquarie lifts operating earnings per share forecasts 3.0%, 10.1% and 4.9% through to FY25. The Neutral rating is retained and the target price increases to $4.75 from $4.74.

Target price is $4.75 Current Price is $4.39 Difference: $0.36
If CLW meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

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

Charter Hall Long WALE REIT reported FY22 EPS of 30.5cpu, in-line with Morgan Stanley's estimate. FY23 EPS guidance was for 28cpu, a decline of -8.2%, though in-line with the consensus expectation.

The broker likes the healthy rent growth expectations for FY23. The 49% of leases linked to CPI will attract a 6.3% uplift, while the balance will be fixed at 3.1%.

The analyst estimates the REIT has raised FY23/24 funds from operations (FFO) by 4-5%, by paying -$22m upfront for a two year interest rate swap at 1.5% (half the market rate), thereby reducing its interest rate for FY23/24.

Target price is $4.65 Current Price is $4.39 Difference: $0.26
If CLW meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates CLW as Accumulate (2) -

Ord Minnett assesses an in-line FY22 result for Charter Hall Long WALE REIT and views greater earnings stability via an interest rate swap as positive. The company paid -$21.6m for the swap, which increased hedging to 77% from 73% by the end of FY23.

Based on FY22 results, the analyst estimates like-for-like net operating income (NOI) growth should be comfortably attained in FY23. The biggest headwind is expected to be rising debt costs.

The target price slips to $4.93 from $4.94 and the Accumulate rating is unchanged.

Target price is $4.93 Current Price is $4.39 Difference: $0.54
If CLW meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Morgans rates COF as Add (1) -

While Centuria Office REIT delivered on FY22 guidance, Morgans estimates FY23 guidance was below what the market was expecting. Both funds from operations (FFO) and DPS are impacted by higher assumed interest costs and conservative leasing assumptions.

The broker lowers its target price to $2.23 from $2.50. The Add rating is retained as weakening investor demand from interest rate uncertainty is thought to be already incorporated into the share price.

Target price is $2.23 Current Price is $1.68 Difference: $0.55
If COF meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates CPU as Neutral (3) -

Following FY22 results for Computershare, Citi notes more reliance upon interest rate rises than previously expected and revenues for most divisions were a miss on forecasts. Earnings (EBIT) of US$344.1m were also a -US$32m miss due to deteriorating 4Q's for some markets.

Despite these misses, core diluted EPS was a 1% beat versus the broker's forecast and slightly more compared to the consensus estimate. This beat was driven by better than expected margin income and a lower than expected effective tax rate, explains the broker.

FY23 guidance was better than forecast by Citi, while the 2H dividend of 30cps was 6cps ahead of forecast. The Neutral rating and $26.90 target are retained.

Target price is $26.90 Current Price is $25.44 Difference: $1.46
If CPU meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $28.56, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Morgan Stanley rates CPU as Overweight (1) -

Morgan Stanley assesses a low quality FY22 management EPS (MEPS) 2.5% beat versus the consensus estimate, with profit (PBT) -1% weaker and earnings (EBIT) ex margin income -9% weaker than expected.

While FY23 guidance was strong, the analyst points out it assumes a fast ramp-up of margin income and 3-3.4% cash rates.

The 2H dividend was a 25% beat versus the broker and consensus estimates. The Overweight rating and $29.50 target are maintained. Industry view: Attractive.

Target price is $29.50 Current Price is $25.44 Difference: $4.06
If CPU meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $28.56, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates CPU as Accumulate (2) -

Computershare's FY22 surprised on the upside but FY23 guidance proved a disappointment.

Ord Minnett says it is unclear if guidance for softer balances and low assumed yields are a sign of anticipated client and bank actions in an environment of higher interest rates or if management is simply being conservative?

Also on the negative side: mortgage servicing in the US is still generating losses on an EBIT basis and, says the broker, there are no signs of recovery in this business, with trends still very weak.

Accumulate. Price target $26 (unchanged).

Target price is $26.00 Current Price is $25.44 Difference: $0.56
If CPU meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $28.56, suggesting upside of 18.4% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Credit Suisse rates CRN as Outperform (1) -

Coronado Global Resources's June half-year revenue outpaced consensus and Credit Suisse forecasts by a decent clip thanks to lower taxes and an FX windfall.

The dividend fell a tad shy but given the company's strong net cash position in the face of a working capital drag, Credit Suisse says the company's ability to generate free cash flow is fully validated.

The broker turns a cautious eye to volumes and the weather following a soft June quarter but says many other factors are likely to work in Coronado's favour, including a recovery in met coal prices, lagged pricing benefits, potential for a switch to thermal, hedged contracts covering 90% of US production costs and a solid balance sheet.

EPS forecast rise 4% to 6% over FY22 to FY24 to account for the tax windfall. Outperform rating and $2.60 target price retained.

Target price is $2.60 Current Price is $1.60 Difference: $1
If CRN meets the Credit Suisse target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 49.0% (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: 1.0

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

Macquarie rates CRN as Outperform (1) -

While Coronado Global Resources' first half results were soft compared to Macquarie's forecasts, the broker notes a materially stronger performance.

Closing out the half with a net cash position of US$171m, the US7.5 cents per share dividend missed Macquarie's expectations, but the broker notes its full year yield forecast of 30% remains attractive and well above the sector average 8%.

Macquarie also highlighted volumes will need to increase 40% in the second half for Coronado Global Resources to achieve the lower end of guidance, and while anticipating a stronger second half, the broker notes guidance remains at risk.

The Outperform rating and target price of $2.50 are retained.

Target price is $2.50 Current Price is $1.60 Difference: $0.9
If CRN meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 49.0% (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: 1.0

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

Macquarie rates CSR as Neutral (3) -

Macquarie anticipates evolution ahead for the construction sector, expecting customers moving into construction phase will be seeking out options to reduce construction costs to mitigate housing affordability, but expects this shift will have little impact on CSR.

The broker sees rising energy costs as a risk, especially in bricks, but anticipates the company will utilise price increases to offset.

Having derated materially since May, the broker finds the stock attractive against a five year average, but notes risk remains in high energy costs and rising rates. The Neutral rating is retained and the target price decreases to $4.90 from $6.05.

Target price is $4.90 Current Price is $4.59 Difference: $0.31
If CSR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.73, suggesting upside of 27.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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 Downgrade to Neutral from Outperform (3) -

With GWA Group due to report on its full year before the end of the month, Macquarie is flagging risks to the company's pipeline as affordability pressures mount, particularly highlighting exposure to residential as home buyers look to cut costs on fixtures and fittings.

The broker notes a more significant downturn in the housing market remains a key risk to GWA Group, while a weaker Australian dollar could place pressure on margins. Earnings per share forecasts updated 0%, -6% and -14% through to FY24.

The rating is downgraded to Neutral from Outperform and the target price decreases to $2.15 from $3.30.

Target price is $2.15 Current Price is $2.17 Difference: minus $0.02 (current price is over target).
If GWA meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.42, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates IGO as Outperform (1) -

Credit Suisse appears to find plenty to like from IGO's investment day, particularly the blending strategy for Nova and Forrestania nickel concentrate - which could boost the mine life at Forrestania and deliver cleaner concentrate at Nova.

Both have offtake contracts that expire at the end of December; large enough to potentially provide bargaining power with BHP Group ((BHP)), says Credit Suisse.

The broker was impressed by the potential of the Greenbushes mine but spies risk to capital expenditure. Kwinana has achieved 90% battery grade hydroxide in recent weeks.

 EPS forecasts rise 1% in FY23 and 3% in FY24. Outperform rating retained. Target price rises to $13 from $11.60.

Target price is $13.00 Current Price is $11.93 Difference: $1.07
If IGO meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.84, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates JHX as Outperform (1) -

With James Hardie Industries due to report on its first quarter in the coming week, Macquarie notes it has brought forward its anticipated decline in new construction activity following the sudden softening of the new residential outlook in the US through June and July.

The broker notes while this presents more immediate risks, it does not significantly deepen predicted impacts. Macquarie also maintains the repair and remodel segment will be more resilient, but its forecasts are at the lower end of company range. 

The Outperform rating is retained and the target price increases to $59.80 from $56.35.

Target price is $59.80 Current Price is $36.10 Difference: $23.7
If JHX meets the Macquarie target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $50.28, suggesting upside of 43.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Citi rates MGR as Buy (1) -

Mirvac Group is scheduled to release FY22 financials tomorrow (11 August) but Citi analysts could not wait and hereby re-iterate their Buy rating for the shares, believing the outlook looks attractive relative to peers.

FY22 is regarded a trough year for apartments in Australia, hence there should be a recovery building for the years ahead.

The analysts concede the company will be facing headwinds, but there's equally a valuation discount of -5% versus the long-term average funds from operations (FFO) multiple to take into account, suggests the broker.

Mirvac is preferred over Stockland ((SGP)). Citi sees an attractive growth outlook, with potential upside from the large residential and commercial development pipeline.

Target price is $3.13 Current Price is $2.09 Difference: $1.04
If MGR meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $2.54, suggesting upside of 21.7% (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

Macquarie rates MP1 as Outperform (1) -

Macquarie notes Megaport's FY22 results have demonstrated year-on-year improvement across all metrics, including total customers, average ports per customer, average services per port and average revenue per port.

Further, the broker notes indicators suggest demand is increasing with Megaport data suggesting demand for three or more cloud providers will increase to 84% of organisations in the coming two years from a current 52%.

The broker lowers its near-term earnings outlook accounting for the FY22 result and anticipated higher travel expenses in the coming year. The Outperform rating is retained and the target price decreases to $11.00 from $16.00.

Target price is $11.00 Current Price is $9.00 Difference: $2
If MP1 meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates MP1 as Hold (3) -

While Megaport's results for FY22 were largely pre-released, Morgans highlights management's confidence in becoming free cash flow positive with the available funding.

The analyst also likes that customer Life Time Value (LTV) is around 6x Customer Acquisition Costs (CAC) and justifies ongoing investment.

Only minor changes are made to forecasts, and the broker maintains its Hold rating (and remains a long-term bull) while the target rises to $9.00 from $8.72.

Target price is $9.00 Current Price is $9.00 Difference: $0
If MP1 meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates MP1 as Hold (3) -

Megaport's reported FY22 loss of -$56.6m was a lot larger than Ord Minnett's forecast of -$44.2m. The broker observes the market was visibly pleased with management providing a lot more details and insights.

With time required before tangible benefits flow through from investments made, Ord Minnett argues there's no hurry to get on board just yet.

Hold rating retained. Target has gained 5c to $8. The broker does point out, Megaport is an early-stage growth company and is difficult to value on spot metrics.

On current forecasts, FY23 should see a miniscule profit.

Target price is $8.00 Current Price is $9.00 Difference: minus $1 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.16, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates MP1 as Buy (1) -

The FY22 Megaport results revealed some positive updates according to UBS.

The analyst notes improvements in a number of company metrics including rising gross margins for the group, earnings positive results from Japan and Canada, increasing revenue contribution with customer churn moving to -7% with some moderation.

Broker earnings forecasts are lowered by -32% and -177% for higher interest and depreciation and amortisation costs.

The price target is lowered to $15.50 from $16.00 and a Buy rating is retained.

Target price is $15.50 Current Price is $9.00 Difference: $6.5
If MP1 meets the UBS target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $11.16, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Credit Suisse rates NAB as Neutral (3) -

National Australia Bank's June-quarter earnings nosed out consensus and met Credit Suisse's forecasts.

EPS forecasts rise 1% in response to a better than expected bad-debt performance, which more than offset a weaker performance in markets and treasury.

Credit Suisse believes the market has priced in the bank's improved execution, raising the bar, and the bank may need to deliver above consensus results, but the broker considers this to be well within the realm of possiblity.

Neutral rating and $32.40 target price retained.

Target price is $32.40 Current Price is $29.81 Difference: $2.59
If NAB meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $31.58, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Outperform (1) -

Macquarie reports National Australia Bank's third quarter results came short of rising market expectations, with lower trading income, higher expenses and the absence of positive margin upside driving earnings forecasts downgrades, but notes the bank continues to perform well and grow share in key markets.

The broker maintains its 4 basis point margin improvement forecast for the second half, anticipating benefits of higher rates will likely be skewed to the fourth quarter. 

While noting the softer result makes National Australia Bank's recent price re-rate harder to justify, the broker retains its Outperform rating and target price of $29.50.

Target price is $29.50 Current Price is $29.81 Difference: minus $0.31 (current price is over target).
If NAB meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.58, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in September.

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

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

Following 3Q results for National Australia Bank, Morgan Stanley feels underlying trends are progressing in-line with expectations, though headline revenue was a disappointment.

Cash profit rose 3% to $1.80bn and was in-line with the analyst's forecast, though pre-provision profit was an around -3.5% miss, mainly due to weaker markets and treasury income.

The broker expects the impact of higher rates on mortgages to emerge in the 4Q, with year-on-year growth slowing to around 3% in FY23. In the meantime, the bank experienced 3Q underling loan growth of 2% (quarter-on quarter) and deposit growth of circa 4%.

After minor cash EPS downgrades, Morgan Stanley retains its Equal-weight rating and $27.20 target price. Industry view: Attractive.

Target price is $27.20 Current Price is $29.81 Difference: minus $2.61 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.58, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in September.

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 NAB as Accumulate (2) -

Post National Australia Bank's Q3 update, Ord Minnett has lifted its price target to $32.70 from $30.50. Accumulate rating has been retained.

The broker spotted enough indications Q4 will be stronger, and thus confidence has grown NAB will meet its own guidance for H2.

Ord Minnett sees "very elevated" revenue growth for the two upcoming halves. Lower Net Interest Margin (NIM) assumptions have slightly reduced forecasts.

Target price is $32.70 Current Price is $29.81 Difference: $2.89
If NAB meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $31.58, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates NAB as Neutral (3) -

UBS assesses 3Q22 earnings update from National Australia Bank as "solid" with the results coming in-line with both the broker's and consensus estimates.

The analyst noted Net Interest Margin (NIM) was at the disappointing end of expectations compared to peer results, but asset quality remained intact and around 70% of the home loan payments from customers are ahead of schedule.

Earnings forecasts are unchanged.

The Neutral rating and the $33 target price are retained with the valuation in-line with its historical average and the banking sector.

Target price is $33.00 Current Price is $29.81 Difference: $3.19
If NAB meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $31.58, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates NWS as Outperform (1) -

News Corp's June-quarter results outpaced consensus and Credit Suisse's estimates, the broker considering it a strong performance in the face of -US$20m of one-off legal costs relating to the Insignia settlement, and the same in currency drag.

Management did not provide explicit guidance but the broker expects the company will outpace peers in the light of recent guidance from competitors.

While the stock has retreated in anticipation of a slowing in the advertising market, the broker notes the company's exposure is limited, amounting to only 16% of total revenue.

Target price edges up to $38.10 from $38. Outperform rating retained.

Target price is $38.10 Current Price is $25.70 Difference: $12.4
If NWS meets the Credit Suisse target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $32.57, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Morgan Stanley rates NWS as Overweight (1) -

Morgan Stanley's initial impression of yesterday's FY22 result for News Corp was a small earnings beat and solid operating growth. Shares continue to trade at a -40-50% discount to the analyst's sum-of-the-parts valuation.

Revenue rose 11% on the previous corresponding period, while earnings (EBITDA) climbed by 31%.

The broker feels the consensus earnings forecast of US$1,752m for FY23 is conservative, and retains its Overweight rating and US$32 target price. Industry view is Attractive.

Current Price is $25.70. Target price not assessed.

Current consensus price target is $32.57, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Citi rates REA as Neutral (3) -

Citi finds the stronger-than-expected yield outlook, driven by Premiere+ uptake, is the stand-out positive from REA Group's FY22 report. It increases confidence in double-digit % growth over the medium term, the broker adds.

REA Group is a solid business, carried by a dominant market leadership position which should be capable of monetising its audience for adjacent services, such as mortgage broking, acknowledges the broker.

Alas, at this particular point in time, Citi remains of the view the risk is skewed to the downside because of the outlook for the housing sector and also the headwind from stronger comparables that need to be beaten in FY23.

Target price lifts to $137.45 from $133.05. Neutral.

Target price is $137.45 Current Price is $132.32 Difference: $5.13
If REA meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Credit Suisse rates REA as Outperform (1) -

REA Group's FY22 result missed consensus and Credit Suisse's forecasts due to the revaluation of trail commissions.

Management guides to double-digit yield growth in FY23, in line with the broker, who spies potential to accelerate momentum heading into FY24.

EPS forecasts fall -2% to -3% to reflect the earnings miss and lower earnings from financial services.

Outperform rating retained. Target price rises to $143.80 from $142, as earnings downgrades are offset by the roll-forward of the discounted cash flow.

Target price is $143.80 Current Price is $132.32 Difference: $11.48
If REA meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates REA as Underperform (5) -

Macquarie has described REA Group's FY22 result as solid, highlighting particularly the 160 basis point growth in Australian margins to 67.1%.

The broker also noted REA Group is guiding to double digit growth in residential buy yields in FY23, exceeding Macquarie's expected 9% growth, largely underpinned by a 6% increase to contracted prices.

While the broker notes the result is demonstrative of the quality of the business, the Underperform rating and target price of $91.00 are retained.

Target price is $91.00 Current Price is $132.32 Difference: minus $41.32 (current price is over target).
If REA meets the Macquarie target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

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

Morgan Stanley's initial impression of yesterday's FY22 result for REA Group was a small miss though management's aspirations for FY23 suggest a de-risking of the FY23 earnings forecast.

For FY23, the company targets positive operating jaws and has confidence in a double-digit yield lift. In addition, operating costs are expected to rise by mid-to-high single digits.

FY22 revenue was in-line with the analyst's forecast though earnings (EBITDA) and the EPS metric were a -2% and -1% miss, respectively. The Equal-weight rating and $130 target are retained. Industry view: Attractive.

Target price is $130.00 Current Price is $132.32 Difference: minus $2.32 (current price is over target).
If REA 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 $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgans rates REA as Add (1) -

Following FY22 results for REA Group, Morgans lowers its FY23-25 earnings (EBITDA) forecasts by -5-7%, which also allows for ongoing strategic investments in the near-term, such as widening FY23 losses for REA India. Overall cost guidance also impacted the earnings forecast.

The broker only lowers the target to $143 from $144 and retains its Add rating. The FY22 result was an around 1% beat on revenue but a -2% miss on earnings when both are compared to consensus forecasts.

The analyst highlights the ongoing strength of the Australia residential business, as evidenced by revenue growth of 24% on the previous corresponding period.

Target price is $143.00 Current Price is $132.32 Difference: $10.68
If REA meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates REA as Downgrade to Accumulate from Buy (2) -

Post REA Group's FY22 release, Ord Minnett has pulled back its rating to Accumulate from Buy. Target price remains unchanged at $140.

REA's underlying net profit missed the broker's forecast, but it's predominantly the uncertain outlook that keeps Ord Minnett on the cautious side.

In addition, the broker did spot some cost pressures emerging.

Target price is $140.00 Current Price is $132.32 Difference: $7.68
If REA meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

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

REA Group 2H22 results beat UBS earnings forecasts by 4% with revenues of $579m, which came in line with expectations.

UBS is forecasting 10% yield growth for FY23 to FY27 which is at the lower end of REA Group's guidance as highlighted at the Investor Day, with declines in listings in major cities Sydney and Melbourne and slower rentals acting as a drag on yield.

The UBS macro outlook is -10-15% house price declines through the cycle and peaking in the 2H23, accordingly the analyst lowers the FY23 forecast volume growth to -6% from -4% in line with previous downturns in the housing cycle.

The broker's earnings forecasts are lowered by -5% and the stock is considered as reasonably valued.

The recommendation is downgraded to Neutral from Buy and the price target is raised to $142.60 from $130.

Target price is $142.60 Current Price is $132.32 Difference: $10.28
If REA meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $132.55, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

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

With Reece due to report on its full year before the end of the month, Macquarie notes volumes should continue to be supported by an elongated pipeline but sees risk of affordability constraints impacting in the detached housing segment in Australia. 

In the US, the broker notes earnings have benefited from the current US dollar strength, but anticipates the segment to be operationally weaker in FY24. Earnings per share forecasts updated 0%, -8% and -12% through to FY24.

The rating is upgraded to Neutral from Underperform and the target price decreases to $15.80 from $18.50.

Target price is $15.80 Current Price is $15.63 Difference: $0.17
If REH meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $18.00, suggesting upside of 16.9% (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

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

First half results for Reckon were in-line with Morgan Stanley's forecast. Following the Accountant Group divestment, that business is excluded from forecasts. Otherwise, only minor changes are made to estimates.

Management intends to pay a 54-58cps partially franked special dividend. A fully franked 3cps interim dividend was declared.

The broker's Equal-weight rating is maintained, while the target increases to $1.25 from $1.05. Industry view: In-Line.

Target price is $1.25 Current Price is $1.25 Difference: $0
If RKN meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 RWC as Outperform (1) -

With Reliance Worldwide due to report on its full year before the end of the month, Macquarie has revised its view on the company, lowering earnings per share forecasts on a strong US dollar. 

The broker notes sharper than anticipated recessions in the US and the Europe, Middle East and Africa regions remain a key risk to its outlook for Reliance Worldwide. Earnings per share forecasts are updated -1%, -12% and -10% through to FY24.

The Outperform rating is retained and the target price increases to $5.40 from $4.95.

Target price is $5.40 Current Price is $4.53 Difference: $0.87
If RWC meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.22, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Macquarie rates SQ2 as Neutral (3) -

Following the release of Block's second quarter results, Macquarie has reiterated its favourable view of the legacy business which it found to deliver good metrics excluding Afterpay. 

Gross profit in the quarter was up 29% year-on-year, including contributions from Afterpay, but the broker noted Afterpay gross profit declined -2%. The company has reiterated a vision for Afterpay to unify its merchant base with Cash App users to drive transactions.

Earnings per share forecasts increase 37-66% through to FY24 to account for reduced cost increases. The Neutral rating is retained and the target price increases to $130.00 from $97.00.

Target price is $130.00 Current Price is $124.07 Difference: $5.93
If SQ2 meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $130.00, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

UBS rates SUL as Buy (1) -

Previewing the results for the Australian retail and consumer sector, UBS remains negative on the consumer discretionary sector and more positive on supermarkets.

The rising cost of living is expected to weigh on the consumer in the fourth quarter of 2022 onwards and UBS highlights a preference for discretionary retail in the young and affluent sectors and those gaining market share.

The broker's earnings forecasts for Super Retail are raised by 1.5% for FY22 and 1.9% for FY23 adjusting for lower depreciation and amortisation charges.

A Buy rating and the price target is raised to $11.00 from $9.50.

Target price is $11.00 Current Price is $10.36 Difference: $0.64
If SUL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.83, suggesting upside of 13.3% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates TLS as Neutral (3) -

With Telstra set to report its FY22 results this week, Macquarie is anticipating the company to deliver an 8 cents per share second half dividend, and forecasts a 16 cents per share dividend in FY23, expecting a positive announcement regarding dividends would be good for the stock price.

The broker also notes a 5.1% CPI price increase for new mobile customers will apply across the existing customer base from September and be a key earnings driver in the coming year. Earnings per share forecasts updated 1.3%, 6% and 6% through to FY24.

The Neutral rating and target price of $4.10 are retained.

Target price is $4.10 Current Price is $4.03 Difference: $0.07
If TLS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 9.8% (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

UBS rates UNI as Buy (1) -

Previewing the results for the Australian retail and consumer sector, UBS remains negative on the consumer discretionary sector and more positive on supermarkets.

The rising cost of living is expected to weigh on the consumer in the fourth quarter of 2022 onwards and UBS highlights a preference for discretionary retail in the young and affluent sectors and those gaining market share.

A Buy rating is retained for Universal Store and the price target is raised to $5.40 from $4.50 due to a higher valuation resulting from the rerating of competitors.

Target price is $5.40 Current Price is $4.92 Difference: $0.48
If UNI meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting downside of -0.3% (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

Macquarie rates WGN as Outperform (1) -

Ahead of the company's FY22 release, scheduled for August 25, Macquarie has had another look into assumptions and projections for Wagners Holding Co.

Outperform rating retained, but the price target has been pulled back to $1.30 from $1.85. While demand should remain supportive, says the broker, and fading weather impacts should have a positive impact as well, costs remain a challenge and price a key lever.

Macquarie believes key risks lay with (shipping) cost impacts and possible delays in infrastructure projects as residential markets are softening.

Target price is $1.30 Current Price is $1.13 Difference: $0.17
If WGN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 37.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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