Australian Broker Call

Citi rates ANN as Neutral (3) -

Ansell's December-half result missed consensus EPS forecasts by -8% as revenues and margins deteriorated (particularly due to lower single use glove sales). Management downgraded EPS guidance -8% at the midpoint.

The company expects continued growth in the Industrial Segment but further weakness in Healthcare, while Citi expects destocking to ease in the June half.

EPS forecasts fall -6% to -8% to reflect margin erosion.

Neutral rating retained. Target price falls to $27.25 from $30.75.

Target price is $27.25 Current Price is $25.64 Difference: $1.61
If ANN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $26.63, suggesting upside of 3.3% (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: 0.1

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

Credit Suisse rates ANN as Neutral (3) -

Ansell's December-half result missed consensus by -9% and Credit Suisse by -2%, thanks to a margin squeeze in Industrials and weak Healthcare sales where destocking and discounting in Exam/SU and Life Science outweighed surgical growth.

Credit Suisse says the extension of the destocking in the company's low-margin Exam/SU business is, concerningly, spreading to the more differentiated Life Science gloves.

Management downgrades FY23 EPS guidance -20% to -13% and the broker cuts its EPS forecasts -4% to US$1.12 accordingly (to the low end of guidance). While Credit Suisse expects 9% EPS growth in FY24, the broker says much depends on the global economy and the risk appears to be to the downside.

Neutral rating retained. Target price falls to $24 from $25.20.

Target price is $24.00 Current Price is $25.64 Difference: minus $1.64 (current price is over target).
If ANN meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.63, suggesting upside of 3.3% (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: 0.1

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

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

Morgan Stanley highlights a big miss for revenue within 1H results for Ansell, with a decline of -17% compared to the previous corresponding period, when the broker was expecting a -12% decline and consensus -6%.

The broker notes the negative impacts of destocking in Exam/SU & Life Sciences, as well as a currency headwind. While Industrial saw strong growth to offset weakness in Healthcare, the stronger US dollar weighed.

Management lowered underlying basic EPS guidance to US$1.10-1.20 from US$1.15-1.35 due to the destocking issues and price reduction in Healthcare.

The Equal-weight rating is retained, while the target falls to $24.01 from $28.77. Industry view In-Line.

Target price is $24.01 Current Price is $25.64 Difference: minus $1.63 (current price is over target).
If ANN 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 $26.63, suggesting upside of 3.3% (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: 0.1

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

Morgans rates ANN as Hold (3) -

Ansell's 1H results were below Morgans expectations due to currency headwinds and softer demand. 

Healthcare was impacted by inventory destocking and a softer uptake by customers, while Industrial sales fared better, rising by 6.4% (in constant currency terms) on an improving economic backdrop.

Management lowered FY22 EPS guidance by -8%, which the analyst notes implies a weaker 2H.

The broker lowers its FY23-25 earnings forecasts by up to -8.4% and the target falls to $23.32 from $24.14. Hold.

Target price is $23.32 Current Price is $25.64 Difference: minus $2.32 (current price is over target).
If ANN meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.63, suggesting upside of 3.3% (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: 0.1

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

Morgans rates ANP as Speculative Buy (1) -

Antisense Therapeutics has received approval from the relevant Turkish authority for its Phase 2b trial of ATL1102 in Duchenne's Muscular Dystrophy (DMD).

In addition, the broker notes recent positive results for a combination study involving ATL1102 has the potential to garner interest from major DMD players.

The analyst likes the improving data and optics for Antisense and anticipates some significant catalysts during an upcoming period of increased news flow. The Speculative Buy rating and 26c target are unchanged.

Target price is $0.26 Current Price is $0.10 Difference: $0.16
If ANP meets the Morgans target it will return approximately 160% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates BCB as Add (1) -

While Morgans expects Coal sector companies (under its coverage) in the February reporting season will declare solid dividends, they may potentially be lower than what the market is anticipating, especially in light of large cash balances.

The analysts believe coal producers may keep cash in reserve for M&A options. Ongoing capital management is expected to be a key focus post the results as dividends will be competing against buybacks and investments for growth.

The broker also takes the opportunity to update its coal price forecasts as well as volume and cost estimates. Forecast prices for Newcastle coal futures (NEWC) fall while hot coking coal (HCC) prices are increased.

Bowen Coking Coal reports its 1H result on March 21. The target falls to 42c from 48c. Add.

Target price is $0.42 Current Price is $0.28 Difference: $0.14
If BCB meets the Morgans target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Citi downgrades Blackmores to Neutral from Buy after the recent sharp run in the company's share price.

The broker remains upbeat about China's reopening prospects but expects this is likely to land late in the June half, and does not expect an optimistic forecast from the company given the global economic uncertainty.

Target price rises to $88.10 from $84.00.

Target price is $88.10 Current Price is $87.17 Difference: $0.93
If BKL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $79.90, suggesting downside of -4.1% (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 BRG as Underperform (5) -

Breville Group's December-half result appears to have disappointed Credit Suisse, the broker observing earnings growth was obtained through cost cutting rather than revenue growth.

Inventory rose in response to supply chain challenges so cash generation was virtually non-existent. Ditto for EPS growth, says the broker.

Credit Suisse says that under such circumstances, a premium cannot be justified, and notes the company is expensive relative to peers.

Underperform rating retained. Target price falls to $17.39 from $18.61.

Target price is $17.39 Current Price is $20.68 Difference: minus $3.29 (current price is over target).
If BRG meets the Credit Suisse target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates BRG as Neutral (3) -

Breville Group posted a -6.6% miss on Macquarie's revenue forecast, driven by retailer destocking in Europe/Middle East/Africa and Nespresso supply in the Distribution segment. However management of margins and costs, despite conditions, allowed Breville to deliver earnings in line with forecast.

Management's outlook is for 5-10% growth on the previous year. The broker has moved its forecast to the mid-point of the guidance range as it expects Breville to manage performance to reflect operating conditions.

While Breville has managed the current macro environment well, the key risk remains that sales in North America moderate more than expected. Neutral retained, target falls to $21.25 from $23.10.

Target price is $21.25 Current Price is $20.68 Difference: $0.57
If BRG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates BRG as Overweight (1) -

After a first look at yesterday's 1H results for Breville Group, Morgan Stanley noted a -5% miss against the consensus forecast for revenue, but a 2% earnings (EBIT) beat on a higher gross margin and lower opex.

FY23 earnings guidance was in line with the expectation by consensus.

The broker highlights no signs of aggressive discounting, with inventory peaking and improvements in supply chain pressures.

Overweight rating. Target price of $26. Industry view: In-Line.

Target price is $26.00 Current Price is $20.68 Difference: $5.32
If BRG meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Breville Group's 1H results revealed a 5% beat on earnings (EBIT) though a -5% miss on sales versus Morgans forecast due primarily to weakness in Europe. Higher gross margins (largely from price rises) were behind the earnings outperformance, explains the analyst.

As the consumer environment is deteriorating in many of Breville's key markets, the broker sees a looming moderation in demand for premium appliances and price rises will become increasingly hard to push through.

In the absence of upcoming positive catalysts, Morgans decides to downgrade the company's rating to Hold from Add. The target falls to $22 from $25 on a more subdued growth outlook.

Target price is $22.00 Current Price is $20.68 Difference: $1.32
If BRG meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates BRG as Buy (1) -

Breville Group's December-half result missed Ord Minnett's forecast, but the broker appreciates the 8% earnings increase in the face of weaker consumer sentiment and the strong improvement in gross margins.

Inventory levels remained uncomfortably high but the broker expects this to fall in the second half as supply chains normalise

EPS and dividend forecasts are shaved.

Buy rating retained, the broker appreciating the company's strong growth profile. Target price falls to $23.50 from $25.

Target price is $23.50 Current Price is $20.68 Difference: $2.82
If BRG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates BRG as Buy (1) -

Breville Group's December-half result missed consensus and UBS forecasts due to a -20% sales slump in Europe, Middle East and Africa sales due to retailer destocking; and a -19% fall ini distribution segment sales due to a now-resolved Nespresso component sourcing issue in Ukraine.

On the upside, Americas' sales were strong, gross margins rose 100 basis points thanks to price rises, and operational costs were contained.

UBS retains a positive view, noting signs of resilient household consumption in Europe; cost control and margin strength. The broker forecasts a 15% EPS compound annual growth rate out to FY27, thanks largely to a growing coffee category.

Buy rating retained. Target price falls to $24.40 from $24.60.

Target price is $24.40 Current Price is $20.68 Difference: $3.72
If BRG meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $22.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley highlights a correlation in the last decade between CommBank's share price and housing values. Australian housing loans account for around 60% of the bank's total loan balance.

The analysts observe that while housing values have fallen by around 1-10% since the April-2022 peak, CommBank's share price has only fallen by circa -6%.

The Underweight rating and $88 target are retained. Industry view: In-Line.

Target price is $88.00 Current Price is $109.25 Difference: minus $21.25 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.50, suggesting downside of -9.2% (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

Citi rates CGF as Sell (5) -

Challenger's December-half result outpaced Citi's forecasts thanks to a strong performance from Life, which enjoyed the upside from interest rate increases (annuities rose strongly), while maintaining asset values.

Sales and book growth grew (and Citi expects this to continue in the June half thanks to higher interest rates) but the broker remains cautious of the company's commercial-property asset values and corporate credit exposures, and expects pressure on product margins as rate rises are passed on.

EPS forecasts rise 2% in FY23; 5% in FY24; and 6% in FY25.

Sell rating retained given cyclical concern about asset values. Target price rises to $7.30 from $7.

Target price is $7.30 Current Price is $7.58 Difference: minus $0.28 (current price is over target).
If CGF 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 $7.34, suggesting downside of -2.0% (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

Credit Suisse rates CGF as Neutral (3) -

Challenger's December-half result missed consensus forecasts by -4% but broadly met Credit Suisse's expectations.

Management reiterated guidance.

The bank's improved capital position was the big surprise and strong growth in the annuity book growth outpaced forecasts. 

Credit Suisse observes the bank enjoyed a strong leg-up from rate rises (boosting margins) and expects this momentum to continue into the June half, propelling return on equity back up to 10%.

Neutral rating retained, the broker believing much of the above to be already priced in. Target price rises to $7.70 from $7.30.

Target price is $7.70 Current Price is $7.58 Difference: $0.12
If CGF meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.34, suggesting downside of -2.0% (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 CGF as Neutral (3) -

Challenger 's first half result was in line with consensus, Macquarie notes, and FY23 guidance is unchanged.

Record half-year Life sales (+11%) were driven by record annuity sales growth (+41%), with particularly strong retail annuity sales (+89%). First half funds under management was flat on a balance of positive investment markets and net outflows and distributions.

Macquarie continues to like Challenger's long-term growth thematic, however present valuations appear stretched. Target rises to $7.20 from $6.60, Neutral retained.

Target price is $7.20 Current Price is $7.58 Difference: minus $0.38 (current price is over target).
If CGF 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 $7.34, suggesting downside of -2.0% (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 CGF as Equal-weight (3) -

In a solid 1H for Challenger, normalised profit (PBT) was in line with the forecasts of Morgan Stanley and consensus. 

Life sales were a beat versus consensus, while net book growth of 5.5% was broadly in line.

Investment losses (which revealed some credit quality concerns) and the lack of a guidance upgrade may disappoint some investors, suggests the analyst.

Overall, Morgan Stanley expects higher rates will support earnings and restore return on equity (ROE).

The target rises to $7.25 from $6.85. Equal-weight. Industry view: In-Line.

Target price is $7.25 Current Price is $7.58 Difference: minus $0.33 (current price is over target).
If CGF meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.34, suggesting downside of -2.0% (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 CGF as Hold (3) -

Challenger's 1H profit (NPBT) and interim dividend of 32cps were largely in line with consensus, while FY23 profit guidance was reaffirmed. This outcome was largely as Morgans expected.

A better Life performance offset a softer Funds Management result, with the analyst noting the overall benefit of rising interest rates. The benefit was evident in a strong improvement for Life retail sales and the cash operating earnings (COE) margin.

The broker raises its FY23-25 EPS forecasts by 3-5% and the target climbs to $8.24 from $7.93. The company's shares are considered to be trading at fair value. Hold.

Target price is $8.24 Current Price is $7.58 Difference: $0.66
If CGF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.34, suggesting downside of -2.0% (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

UBS rates CGF as Neutral (3) -

Challenger's December-half result outpaced UBS' forecasts, thanks to strong annuity sales, retail volumes, rising margins and double-digit book growth.

The Funds division was less impressive, net flows remaining negative, and costs and fee margins missed forecasts. 

Overall, the broker expects Life earnings to gain pace over the next 18 months, making a bigger contribution.

EPS forecasts rise 3% in FY23; and 5% in FY24.

Neutral rating retained. Target price rises 2% to $7.50.

Target price is $7.50 Current Price is $7.58 Difference: minus $0.08 (current price is over target).
If CGF meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.34, suggesting downside of -2.0% (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

UBS rates CKF as Neutral (3) -

Collins Foods has purchased eight KFC restaurants in The Netherlands, for A$12.3 cash upfront with a potential $7.1m earn-out if earnings (EBITDA) hurdles are met within two years.

UBS expects the deal to be 0.5% accretive in the current market but expects this to rise to 2.1% when conditions normalise.

The broker appreciates the company's fundamentals, track record and strategy but is waiting for inflation to ease, or for prices to rise, before biting the bullet.

EPS forecasts rise 1% in FY23 and 2% in FY24.

Neutral rating retained. Target price rises to $8.70 from $8.50.

Target price is $8.70 Current Price is $8.32 Difference: $0.38
If CKF meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.80, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates CNB as Outperform (1) -

The southern extension of Carnaby Resources' Mount Hope Mining Lease has been officially approved by the Queensland Resources Minister. The miner has begun planned 40km of drilling, Macquarie notes, including both exploration drilling and infill drilling.

The main upcoming catalyst is the maiden resource for Greater Duchess which is expected this quarter and the broker estimates it
could contain more than 300kt of copper in resource inventory.

Outperform and $1.70 target retained.

Target price is $1.70 Current Price is $1.15 Difference: $0.55
If CNB meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates CPU as Buy (1) -

Computershare's December-half result missed consensus' EPS forecasts by -3% as earnings (EBIT) ex MI fell sharply, but profit-before tax was largely in line.

EPS growth was strong (up 95% year on year) and Citi estimates a strong June half will be needed to meet full-year EPS growth of 90%, and Citi expects inflation will provide an -8.3c drag.

Meanwhile, the company announced a stage-4 cost-out for its US mortgage servicing business, which management expects will yield US$40m to US$50m in gross savings over four years.

Buy rating and $31.10 target price retained.

Target price is $31.10 Current Price is $24.59 Difference: $6.51
If CPU meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $30.83, suggesting upside of 30.6% (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 Equal-weight (3) -

Despite misses for 1H profit and the interim dividend against forecasts by Morgan Stanley and consensus, the broker highlights a better margin income.

The broker expects a softer tone for shares in reaction to the result, but notes prior underperformance against the ASX200 suggests some disappointment may have been factored-in previously.

Management maintained FY23 guidance.

Equal weight. Target $26.50.

Target price is $26.50 Current Price is $24.59 Difference: $1.91
If CPU meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $30.83, suggesting upside of 30.6% (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

Morgans rates CRN as Add (1) -

While Morgans expects Coal sector companies (under its coverage) in the February reporting season will declare solid dividends, they may potentially be lower than what the market is anticipating, especially in light of large cash balances.

The analysts believe coal producers may keep cash in reserve for M&A options. Ongoing capital management is expected to be a key focus post the results as dividends will be competing against buybacks and investments for growth.

The broker also takes the opportunity to update its coal price forecasts as well as volume and cost estimates. Forecast prices for Newcastle coal futures (NEWC) fall while hot coking coal (HCC) prices are increased.

Coronado Global Resources reports FY22 results on February 22. The target rises to $2.45 from $2.40. Add.

Target price is $2.45 Current Price is $2.11 Difference: $0.34
If CRN meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.29, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Citi rates CSL as Buy (1) -

Citi raises its target for CSL to $350 from $335 following 1H results on a faster-than-expected recovery in plasma collections and higher sales. The Buy rating is maintained.

Profit (NPATA) for the 1H came in 3% ahead of consensus on a lower tax rate, while operating earnings (EBIT) and revenue were in line, the latter driven by the Vifor acquisition.

The Behring gross margin was 49.1%, below the consensus expectation of 51.5%.

The pace of recovery in plasma collections and Behring's gross margins remain a threat to the broker's FY24 and FY25 forecasts.

Management retained guidance for revenue growth and profits.

Target price is $350.00 Current Price is $307.75 Difference: $42.25
If CSL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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

Credit Suisse rates CSL as Outperform (1) -

CSL's December-half result outpaced consensus by 3%, thanks to a solid margin performance from Seqirus and a sales beat from Vifor, which overshadowed a weaker margin performance from Behring. Management reiterated guidance (Credit Suisse sit 2% above guidance).

Operating cash flow was sharply lower given higher-than-expected growth in plasma collections and the broker doubts Behring margins will recover any time soon.

Outperform rating retained. Target price rises to $330 from $320.

Target price is $330.00 Current Price is $307.75 Difference: $22.25
If CSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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

Macquarie rates CSL as Outperform (1) -

CSL’s first half result was ahead of Macquarie, primarily on lower than expected operating expense. FY23 profit guidance was reaffirmed.

Behring gross margins were below expectations but the broker's forecasts imply sequential improvement in the second half, with a more meaningful uplift in FY24.

Macquarie continues to see the growth outlook as favourable for CSL, supported by a base business recovery, earnings from Vifor, the recent approval of Hemgenix and potential contributions from garadacimab.

Outperform retained, target rises to $344 from $343.

Target price is $344.00 Current Price is $307.75 Difference: $36.25
If CSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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 CSL as Overweight (1) -

CSL's 1H revenue was a slight beat though Morgan Stanley points out gross profit margins disappointed due to high donor fees
and a long inventory cycle, despite plasma collections being 10% above pre-pandemic levels.

The margin was largely impacted by a stronger US dollar, explains the analyst.

Revenue for CSL Behring was a beat on better-than-expected sales of Albumin, Recombinants & Other, though the broker notes cost pressures weighed on the margin. 

The newly-acquired Vifor was a strong beat versus Morgan Stanley's forecast.

Management reaffirmed FY23 guidance.

The broker lowers its target to $339 from $354. Overweight.

Target price is $339.00 Current Price is $307.75 Difference: $31.25
If CSL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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

Morgans rates CSL as Add (1) -

Morgans assesses a mixed 1H result for CSL, with strong, and in-line revenue growth while underlying constant currency profit was a slight miss.

CSL operates through the CSL Behring (plasma products) and Seqirus segments.

There were record plasma collections which drove plasma products higher and Behring sales increased by 11%, explains the analyst. The gross margin in this division disappointed, mainly on elevated plasma costs, though management expects medium-term improvement.

Seqirus also posted high-single-digit growth, despite falling imminisation rates, and also received a solid contribution from the newly-acquired Vifor, notes the broker.

Management reaffirmed FY23 guidance.

After Morgans increases its FY23-25 earnings forecasts by up to 3% and rolls forward its multiples, the target for CSL rises to $337.92 from $312.21. Add.

Target price is $337.92 Current Price is $307.75 Difference: $30.17
If CSL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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 CSL as Hold (3) -

CSL's December-half result outpaced consensus thanks to a strong performance from Seqirus, and management reiterated FY23 guidance for an acceleration in reveue growth.

Behring's margins disappointed.

Ord Minnett raises its net profit after tax forecasts by an average of 3% over the forecast period, expecting an increase in Seqirus' gross margins to 63% from 61%.

Hold rating and $315 target price retained, the broker expecting gains are likely to be offset by a weaker $US vs $A.

Target price is $315.00 Current Price is $307.75 Difference: $7.25
If CSL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $335.99, suggesting upside of 10.2% (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

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

Dexus' December-half result outpaced Credit Suisse's forecasts, trading profits offseting a sharp fall in funds from operations (FFO) (due to higher debt costs and asset sales).

FFOps forecasts are steady in FY23; fall -1.3% in FY24; and fall -1.6% in FY25.

Net tangible asset backing eased in line with a decline in portfolio values, Office occupancy was fairly steady, and Industrial occupancy eased, although the broker expects rental tailwinds should win the day given it estimates the portfolio is 9.6% under-rented.

The broker believes Dexus' balance sheet is strong enough to fund development commitments while maintaining its target gearing.

Credit Suisse is under research restriction.

Current Price is $8.50. Target price not assessed.

Current consensus price target is $9.26, suggesting upside of 7.8% (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 DXS as Outperform (1) -

Dexus' first half funds from operations were 3% ahead of Macquarie, and FY23 guidance has been positively tightened to the top end of the range.

The REIT's vision has continued to evolve from asset owner to manager, the broker notes, with the group now outlining its ambitions in ‘real assets’ as opposed to ‘real estate’. Dexus aims to double its active earnings to 20% over the medium-term, with infrastructure-like assets expected to be a key pillar.

Office metrics were no worse than Macquarie expected, with some signs of incentives moderating in prime assets. The broker expects the upcoming updates on the funds management platform to be a catalyst.

With the REIT trading at a -29% discount to net tangible asset valuation, Macquarie retains Outperform. Target rises to $9.66 from $9.03.

Target price is $9.66 Current Price is $8.50 Difference: $1.16
If DXS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.26, suggesting upside of 7.8% (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 DXS as Underweight (5) -

First half underlying funds from operations (FFO) of $340.4m were bang on Morgan Stanley's forecast and close to the consensus estimate for $337m.

Lumpy trading profits were behind a beat in overall FFO and management increased FY23 dividend guidance to 51-51.5cpu from 50.1-51.5cpu.

The analyst highlights Office valuations declined -1.8%, as the cap rate increased by 14bps. 

Morgan Stanley retains its Underweight rating and $7.90 target. Industry View: In-Line.

Target price is $7.90 Current Price is $8.50 Difference: minus $0.6 (current price is over target).
If DXS meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.26, suggesting upside of 7.8% (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 DXS as Accumulate (2) -

Dexus's December-half result pleased Ord Minnett.

The broker observes the company trades at a 32% discount to net tangible assets (NTA), and while NTA slid -2.2% in the half and further falls are expected, -32% appears a bit harsh. 

Ord Minnett adds that the NTA does not include the intangible value of Dexus's funds management business and notes FUM grew sharply in the half, accounting for 13% of funds from operations. The broker expects this business to continue to grow.

On the downside, office leasing incentives deteriorated in line with the office space oversupply but the broker views this as cyclical and expects rising interest rates should take care of that problem. Ord Minnett also observes Dexus' portfolio is skewed to more attractive areas. While a recession could arise, the broker argues rising immigration should support demand.

Most notably, the balance sheet improved in the December half, reducing fears of an equity raising.

Accumulate rating retained. Target price rises to $10.80 from $10.

Target price is $10.80 Current Price is $8.50 Difference: $2.3
If DXS meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $9.26, suggesting upside of 7.8% (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

UBS rates DXS as Neutral (3) -

Dexus' December-half result beat UBS forecasts, funds from operations outpacing by 8%. Australian funds from operations outpaced by 16% thanks to falling leasing/maintenance capital expenditure, and $1bn in developments were deferred.

Leasing volumes improved but UBS points out this suggests more capital will be required for development, and observes gearing headwinds remain and more divestments are needed to execute on strategy.

UBS expects growth will be lacklustre in line with industry trends, and expects assets sales and capital partnering to feature near-term in a bid to cut leverage.

Neutral rating retained. Target price rises to $8.69 from $8.50.

Target price is $8.69 Current Price is $8.50 Difference: $0.19
If DXS meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.26, suggesting upside of 7.8% (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

UBS rates EML as Neutral (3) -

Up Spain has terminated its service agreement with EML, which was due to go live this March quarter, and make a longer term contribution to earnings, especially given its parent company's large global footprint, says the broker. (Parent Up's European footprint alone is 22x larger than Up's Spanish operations.)

UBS considers the decision challenging for EML.

Excluding the Up Spain contribution from estimates, EPS forecasts fall -6% in FY23; -11% in FY24; and -7% in FY25 and FY26.

Neutral rating retained. Target price falls to 68c from 73c.

Target price is $0.68 Current Price is $0.65 Difference: $0.035
If EML meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

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

Macquarie rates GL1 as Outperform (1) -

Global Lithium Resources has released a robust scoping study for Manna, Macquarie declares, with the project expected to produce in excess of 220ktpa of spodumene over ten years.

Capex and opex costs are less than 10% higher than the broker had expected, which is a positive outcome given current inflation. The resource at Manna remains open at depth and along strike and Macquarie sees upside to the ten-year mine life.

Outperform retained, target falls to $3.90 from $4.20 on a softer earnings outlook.

Target price is $3.90 Current Price is $1.92 Difference: $1.98
If GL1 meets the Macquarie target it will return approximately 103% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates JHX as Buy (1) -

Following a weaker-than-expected 3Q result, Citi feels James Hardie Industries is close to an inflexion point and this result may mark the last downgrade for the cycle.

The broker not only sees an attractive valuation, but also emerging positive signs for mortgage applications and a stabilisation of the 30-year fixed-rate mortgages (FRMs).

Profit was an around -16% miss for the 3Q and FY23 profit guidance was around -6% short of the broker's forecast.

The broker lowers its target to $34.60 from $37.00. Buy.

Target price is $34.60 Current Price is $30.40 Difference: $4.2
If JHX meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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 JHX as Neutral (3) -

James Hardie Industries's November-quarter earnings (EBIT) missed consensus by -16% as volumes (due to destocking) and margins disappointed.

Management cut guidance for the second consecutive quarter, this time by -10%.

Gross margins remain the focus, and Credit Suisse observes the transition to higher value product has yet to make its presence felt in gross margins, management blaming inflation, which increased the cost of goods sold.

But the broker says the 4% price taken in July should have compensated for this and now surmises a margin recovery could land in FY24, but management points to a tougher competitive environment.

Neutral rating retained. Target price edges up to $29.20 from $29.10.

Target price is $29.20 Current Price is $30.40 Difference: minus $1.2 (current price is over target).
If JHX meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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

Macquarie rates JHX as Outperform (1) -

James Hardie Industries' result fell short of Macquarie's expectations. The company still printed a 19.2% group margin despite facing  inflationary cost growth in the period, and while pricing outcomes were below expectations, pricing power remained firm, especially in repair & remodel.

But the broker is not thrilled management has signalled a greater offensive in the new construction market than expected to defend its market position. This means the group expects to deliver net price growth overall, but diluted by outsized growth in lower-value products in the near term.

Yet Macquarie still believes the longer-term structural story is largely unchanged and valuation remains attractive. Outperform retained, target falls to $41.40 from $43.50.

Target price is $41.40 Current Price is $30.40 Difference: $11
If JHX meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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 JHX as Overweight (1) -

Third quarter revenue for James Hardie Industries was an -11% miss versus Morgan Stanley's forecast. The margin performance was also considered disappointing.

Management lowered FY23 adjusted net income guidance by -9% for a number of reasons including lower 2H North American volumes and softer volumes in the APAC region and destocking (particularly in A&NZ). Ongoing inflationary pressures will also weigh.

The target falls to $39 from $41. The Overweight rating remains on valuation, and given Morgan Stanley considers James Hardie to be the highest-quality name in its coverage of the Building Materials sector. Industry View: In-Line.

Target price is $39.00 Current Price is $30.40 Difference: $8.6
If JHX meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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 JHX as Accumulate (2) -

James Hardie Industries's December-half result appears to have disappointed Ord Minnett, and the broker lowers its FY23 net-profit-after-tax forecast to the lower end of guidance, expecting a continued deterioration in demand in both Australia and North America.

The broker has also downgraded its stance on pricing outcomes past 2024 as the housing market continues to slow, and lower-margin products such as wood and vinyl gain favour. Management also guided to the need for tactical discounting to support market share.

EPS forecasts fall across FY23 and FY24.

Accumulate rating retained on valuation, the broker admiring the company's longer term prospects and management's track record in building shareholder value.

Target price falls to $38 from $42.80.

Target price is $38.00 Current Price is $30.40 Difference: $7.6
If JHX meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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

UBS rates JHX as Buy (1) -

James Hardie Industries December-quarter result missed UBS and consensus forecasts and net-profit-after tax guidance was lopped by -10%.

EPS forecasts fall sharply in FY23 and FY24.

But UBS appreciates the fact that the company's margins remain above 25% despite James Hardie Industries' focus on growing market share, and doubts management will prioritise market share over margins. 

While the broker expects near-term earnings weakness, it retains the faith for the long term.

Buy rating retained. Target price falls to $44.50 from $47.50.

Target price is $44.50 Current Price is $30.40 Difference: $14.1
If JHX meets the UBS target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $37.78, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in February.

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

Macquarie rates KMD as Neutral (3) -

A first half trading update from KMD Brands to the end of January showed recovery from covid disruptions and resumption of international travel have driven record sales, Macquarie notes.

Earnings have also recovered versus the covid impact of a year ago, but costs are higher, particularly in warehousing, which meant a -5% miss on Macquarie's forecast.

The broker remains cautious, given KMD is yet to cycle tough comparables and gross margin growth in the fourth quarter, the company is holding elevated stock levels, and macro headwinds are poised to accelerate over 2023.

Neutral retained, target rises to 92c from 90c.

Target price is $0.92 Current Price is $1.02 Difference: minus $0.1 (current price is over target).
If KMD meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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

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

Following a 1H trading update, Morgan Stanley notes strong gross margins and observes trading momentum for KMD Brands continues to improve. 

Improved supply is aiding Oboz, while Kathmandu is benefiting from consumer spending on travel and tourism, explains the broker. RipCurl sales are also up 18% year-on-year from strong direct-to-consumer and wholesale sales.

The analyst is cautious on the challenging macroeconomic backdrop and retains an Equal-weight rating and $1.05 target. Industry View: In-line.

Half year results will be released on March 22.

Target price is $1.05 Current Price is $1.02 Difference: $0.03
If KMD meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

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 LYC as Neutral (3) -

Lynas Rare Earths can breathe again as its Malaysian licence has been renewed with no changes. Despite restrictions on cracking and leaching, other downstream processes at the plant are not impacted by these conditions, Macquarie notes.

This means progress on the Kalgoorlie plant is a key focus area for Lynas in the near term, the broker suggests. The recent Dec quarter result was strong with higher production and average realised prices offsetting lower-than-expected sales.

Macquarie remains constructive on the outlook for rare earth prices. Neutral and $9.90 target retained.

Target price is $9.90 Current Price is $8.36 Difference: $1.54
If LYC meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates LYC as Buy (1) -

Lynas Rare Earths has renewed its Malaysian operating licence with the condition it will cease cracking and leaching from July 1 which will require the closure of the C&L component of the Malaysian plant, in line with UBS's forecast.

The broker says the focus now shifts to construction of the processing plant at Kalgoorlie, but the broker expects the company's strong balance sheet, incumbent position and potentially strong lithium pricing, should aid it in the even of delays or a slower-than-forecast ramp-up. 

Buy rating retained and $10.30 target price retained.

Target price is $10.30 Current Price is $8.36 Difference: $1.94
If LYC meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.42, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates MFG as Upgrade to Buy from Sell (1) -

UBS spies value emerging in Magellan Financial Group and upgrades its rating to Buy from Sell and the target price to $10 from $8.60.

The broker expects outflows are like to stabilise from here on and that Magellan Financial's funds under management should settle at $40bn.

UBS admires the balance sheets and earnings multiple, and believes investors are getting paid just to wait for a recovery. While the broker suspects further weakness in near-term earnings might be on the cards, it observes the company is trading at a steep discount to net asset value and believes the risk is to the upside.

Target price is $10.00 Current Price is $8.82 Difference: $1.18
If MFG meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.58, suggesting upside of 1.4% (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 NAN as Upgrade to Add from Hold (1) -

The analyst at Morgans continues to oscillate between an Add and a Hold call for Nanosonics. This strategy of change, five times in the last five months, has successfully anticipated share price movements over that period.

This time, the rating rises to Add from Hold after a recent share price fall. The target remains at $5.19, with unchanged forecasts.

Target price is $5.19 Current Price is $4.60 Difference: $0.59
If NAN meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates NHC as Add (1) -

While Morgans expects Coal sector companies (under its coverage) in the February reporting season will declare solid dividends, they may potentially be lower than what the market is anticipating, especially in light of large cash balances.

The analysts believe coal producers may keep cash in reserve for M&A options. Ongoing capital management is expected to be a key focus post the results as dividends will be competing against buybacks and investments for growth.

The broker also takes the opportunity to update its coal price forecasts as well as volume and cost estimates. Forecast prices for Newcastle coal futures (NEWC) fall while hot coking coal (HCC) prices are increased.

New Hope will report 2Q production on February 17. The broker's target rises to $7.15 from $6.05. Add.

Target price is $7.15 Current Price is $5.41 Difference: $1.74
If NHC meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $7.04, suggesting upside of 22.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates NWS as No Rating (-1) -

In the wake of last week's 1H results for News Corp, Morgan Stanley looks at earnings sensitivity to slower economies in Australia, the UK and the US.

The broker notes the company is less exposed to the current downturn in ad spend than prior ones due to a different business mix, however the impact is still material.

For every extra  5% (positive or negative) change in ad revenue at Dow Jones and News Media (all else being equal) the analyst notes potential for a 7-10% swing in EPS.

Morgan Stanley is under research restriction and offers no rating nor target. Industry view: Attractive.

Current Price is $26.98. Target price not assessed.

Current consensus price target is $33.18, suggesting upside of 22.1% (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: 0.5

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

Macquarie rates PMT as Outperform (1) -

Assay results from Patriot Battery Metals' CV13 drilling are encouraging, Macquarie believes, and suggest that a material resource will be defined for the deposit later this year.

The broker's development scenario for Corvette is based only on mineralisation defined at the CV5 area and does not include any mineralisation from CV13. Recent drilling results from CV5 have further extended the known strike, which Macquarie believes will underpin upgrades to the maiden resource over time.

Outperform and $1.75 target retained.

Target price is $1.75 Current Price is $1.50 Difference: $0.25
If PMT meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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) -

Reckon's FY22 revenue and earnings (EBITDA) were in line with Morgan Stanley's forecasts, while normalised profit and EPS were 6% beats.

The analyst makes only minor changes to forecasts. After allowing for the 57cps special dividend (60% franked), the broker's target drops to 65c from $1.25.

The broker's Equal-weight rating is maintained. Industry view: In-Line.

Target price is $0.65 Current Price is $0.56 Difference: $0.09
If RKN meets the Morgan Stanley target it will return approximately 16% (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 SGF as Outperform (1) -

SG Fleet's first half cash profit beat Macquarie by 12.7%, with beats in revenue and earnings supported by Net Income from Vehicle Risk – End of Lease (EOL) up 24.5% year on year, and Operating Lease disposals up 28.3%, as the company cleared some $21.7m of inventory held at June 2022.

As a consequence of supply issues, used vehicle values stabilised near peaks seen mid-2022. SG Fleet expects values to hold up for some time, with average sales price still 146% above pre-covid levels.

The risk that EOL income and cost growth negatively impact earnings before supply constraints ease and LeasePlan synergies are realised, the broker warns. Target falls to $2.52 from $2.90, Outperform retained.

Target price is $2.52 Current Price is $2.27 Difference: $0.25
If SGF meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates SGF as Overweight (1) -

Morgan Stanley assesses a solid 1H result for SG Fleet with robust underlying demand. Despite tapering end-of-lease (EOL) sales prices, the company displayed an ability to sustain earnings.

Profit (NPATA) of $47.7m was 27% ahead of the broker's forecast. 

The broker feels earnings will be durable and supported by cost synergies from FY25. It's also felt FY23 results have been materially de-risked after the 1H result.

The broker's Overweight rating and $2.90 target are maintained. Industry View: In-line. 

Target price is $2.90 Current Price is $2.27 Difference: $0.63
If SGF meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates SGM as Downgrade to Sell from Neutral (5) -

After a strong 1H beat by Sims, Citi raises its target to $14.30 from $12.75 though moves to a Sell rating from Neutral on valuation.

This change in the analyst's rating follows a 20% share price rally since January on higher US steel and scrap prices.

The broker also mentions economic headwinds and near-term uncertainty due to higher interest rates in key economies.

Target price is $14.30 Current Price is $15.72 Difference: minus $1.42 (current price is over target).
If SGM meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.50, suggesting downside of -8.1% (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

Credit Suisse rates SGM as Neutral (3) -

Sims' December-half result outpaced recent guidance, consensus' and Credit Suisse' forecasts, the broker noting an expected FY24 recovery appears to have been pulled forward into FY23.

Management adopted a cautious tone, noting competition is high and guided to flat volumes and operating expenditure, and a slight improvement in gross margins.

The broker brings forward elevated earnings to FY23 and tempers growth thereafter, observing earnings are likely to have returned to the long-term average by the June half.

Neutral rating retained. Target price rises to $14.60 from $14.30.

Target price is $14.60 Current Price is $15.72 Difference: minus $1.12 (current price is over target).
If SGM meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.50, suggesting downside of -8.1% (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

Macquarie rates SGM as Underperform (5) -

Sims' first half result came in above guidance, driven by stronger performances in A&NZ and the SAR North American JV, Macquarie reports. Sims noted better shipping market conditions and a relatively short-lived impact from the Turkey/Syria earthquake.

But while the group beat its own guidance, it was only partly a result of better trading conditions, the broker notes, along with accounting adjustments, and Sims Lifecycle Services and UK trading outcomes were disappointing.

Macquarie remains concerned about risks to margins as macroeconomic headwinds drag on volumes. Key upside risks mainly on improving demand conditions, which relies on the strength of China.

With the stock trading at a 30% premium to its five-year average PE, Underperform retained. Target rises to $13.50 from $12.75.

Target price is $13.50 Current Price is $15.72 Difference: minus $2.22 (current price is over target).
If SGM meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.50, suggesting downside of -8.1% (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

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

While Morgan Stanley raises its target for Sims to $15.50 from $13.00 following 1H results, sustained share price performance will likely require further evidence of improving trends, particularly on costs.

Earnings (EBIT) for the 1H were beats of 22% and 32%, compared to forecasts made by the broker and consensus, respectively. Profit also exceeded the consensus estimate by 17% and Morgan Stanley by 5%.

Management cautioned against extrapolation of improving trends last November and December when both prices and demand increased and noted a challenging short-term outlook.

The Equal-weight rating is unchanged with Morgan Stanley suggesting a fine balance exists between challenging short-term conditions and attractive long-term thematics. Industry view: In-Line.

Target price is $15.50 Current Price is $15.72 Difference: minus $0.22 (current price is over target).
If SGM meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.50, suggesting downside of -8.1% (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

UBS rates SGM as Neutral (3) -

Sims December-half result outpaced guidance, consensus and UBS forecasts.

While the broker observes scrap rises have improved in the beginning of the June half, UBS remains cautious, citing persistent labour shortages and inflation; a likely disruption to volumes arising from the earthquake in Turkey; the near-completion of restocking; and the first-half skew of shipment timing and LMS earnings.

The broker observes long-term volume growth is on track but is heavily reliant on M&A and structural tailwinds (read green transition).

UBS expects China's recovery will be service driven rather than infrastructure driven and is not pinning its hope on an uptick in demand from the region.

Neutral rating retained. Target price rises to $16.30 from $16.

Target price is $16.30 Current Price is $15.72 Difference: $0.58
If SGM meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $14.50, suggesting downside of -8.1% (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

Credit Suisse rates SIQ as Neutral (3) -

Credit Suisse downgrades Smartgroup Corp's earnings forecasts heading to the FY22 result, to reflect the company's November market update and guidance, which advised car supply constraints continued to hamper novated lease settlements in the December quarter.

The broker remains of the opinion that the company is in a strong position to generate solid earnings growth once new car supply recovers, but adds that metrics suggest this is likely to occur in FY24. The broker now expects flat to negative earnings in 2023.

Neutral rating retained. Target price falls to $6 from $6.65.

Target price is $6.00 Current Price is $5.72 Difference: $0.28
If SIQ meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in December.

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 SMR as Add (1) -

While Morgans expects Coal sector companies (under its coverage) in the February reporting season will declare solid dividends, they may potentially be lower than what the market is anticipating, especially in light of large cash balances.

The analysts believe coal producers may keep cash in reserve for M&A options. Ongoing capital management is expected to be a key focus post the results as dividends will be competing against buybacks and investments for growth.

The broker also takes the opportunity to update its coal price forecasts as well as volume and cost estimates. Forecast prices for Newcastle coal futures (NEWC) fall while hot coking coal (HCC) prices are increased.

Stanmore Resources reports FY22 results on February 27. The target rises to $4.75 from $4.45. Add.

Target price is $4.75 Current Price is $3.57 Difference: $1.18
If SMR meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 SWM as Outperform (1) -

Seven West Media's December-half results met consensus forecasts and outpaced Credit Suisse's forecasts on several key metrics.

Management advised the June half is off to a soft start and estimates the total TV market may fall to mid-to-high single digits. But the company expects it will grow market share.

The company lowers FY23 cost guidance.

EPS forecasts fall -4% to -5% across FY23 to FY24.

Outperform rating retained on valuation. Target price falls to 80c from 90c.

Target price is $0.80 Current Price is $0.43 Difference: $0.37
If SWM meets the Credit Suisse target it will return approximately 86% (excluding dividends, fees and charges).

Current consensus price target is $0.64, suggesting upside of 48.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates SWM as Neutral (3) -

Seven West Media's first half result was slightly below Macquarie expectations, but cost control was a highlight.

Management indicated the total TV market is expected to decline mid to high single digits in second half while streaming is expected to grow double digits, which is consistent with the broker's assumptions. The company typically doesn't provide any outlook.

Management also reaffirmed its target to achieve greater than 40% market share, partly underpinned by recent content slate wins such as the cricket and NBCUniversal.

Macquarie remains cautious on additional content adding market share gains given Seven’s rival stole the Olympics, which has been a consistent money spinner. Target rises to 52c from 45c to reflect lower debt, Neutral retained.

Target price is $0.52 Current Price is $0.43 Difference: $0.09
If SWM meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $0.64, suggesting upside of 48.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates SWM as Underweight (5) -

After an initial assessment of yesterday's in-line 1H results for Seven West Media, Morgan Stanley noted a softer outlook for the TV ad market raises 2H risks. It's felt consensus estimates are currently too high.

No explicit earnings guidance was supplied by management, though January and February ads are displaying a weaker trend than in the 1H. A new cost-out program of -$15-20m is expected to assist.

Morgan Stanley retains its Underweight rating and $45c target price. Industry view: Attractive.

Target price is $0.45 Current Price is $0.43 Difference: $0.02
If SWM meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.64, suggesting upside of 48.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates SWM as Buy (1) -

Seven West Media's December result met consensus' forecasts but outpaced UBS's forecasts.

Management advised June-half earnings visibility was poor and says Total TV market may be falling (UBS estimates -10%), although it expected to increase market share within that decline.

The company is preparing to cut costs to shore up margins in the event of a retreat.

EPS forecasts rise 18% for FY23; and 4% for FY24.

Buy rating and 80c target price are retained.

Target price is $0.80 Current Price is $0.43 Difference: $0.37
If SWM meets the UBS target it will return approximately 86% (excluding dividends, fees and charges).

Current consensus price target is $0.64, suggesting upside of 48.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Credit Suisse rates TPW as Neutral (3) -

Temple & Webster's December-half result (following a disappointing January trading update) appears to have met consensus.

Credit Suisse observes concerning trends: The number of active customers fell sharply, headcount and marketing expenditure was cut, and growth capex is being scaled down, despite a healthy net cash balance.

Profit metrics proved a plus, gross margins and contribution margins improving.

Neutral rating retained. Target price slumps to $3.72 from $5.03.

Target price is $3.72 Current Price is $3.62 Difference: $0.1
If TPW meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Temple & Webster's first half revenue was 2% ahead of Macquarie and earnings 11% ahead. Trading for first five weeks of the second half was nevertheless down -7% year on year. Earnings margin guidance of 3-5% is retained, with lower marketing costs expected to continue in the second half.

While Macquarie expects near-term headwinds for furniture retailers given rising interest rates and slowing housing turnover, the broker believes this captured in the current share price following the significant price move after the result.

Upgrade to Neutral from Underperform, target falls to $4.00 from $4.05. Macquarie sees the retailer's strong balance sheet position offering potential for inorganic growth opportunities.

Target price is $4.00 Current Price is $3.62 Difference: $0.38
If TPW meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates TPW as Overweight (1) -

While 1H results were in line with consensus forecasts, the trading update for the 2H to-date fell short of Morgan Stanley's expectations.

Management reiterated FY23 earnings (EBITDA) margin guidance of 3-5%.

A slower ramp-up of the online-only retail portal called The Build may restrict the longer-term opportunity, according to the broker.

Overweight rating. Target price of $6.50. Industry view: In-Line.

Target price is $6.50 Current Price is $3.62 Difference: $2.88
If TPW meets the Morgan Stanley target it will return approximately 80% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates TPW as Neutral (3) -

UBS downgrades FY23 and FY24 EPS forecasts for Temple & Webster by -35% and -34%, respectively, following 1H results.

The broker's target is reduced to $4.40 from $5.40 on the lower forecasts and a reduction in relative valuation on increased near-term uncertainty.

While the analyst feels 1H metrics were generally positive, the market focused on a trading update showing revenue for the first five weeks of the 2H falling by -7% year-on-year. Management also struck a cautious note on the outlook.

Along with these negatives, UBS notes a decline in active customers through 1H23 and a slower ramp-up of the online-only retail portal called The Build.

The Neutral rating is retained.

Target price is $4.40 Current Price is $3.62 Difference: $0.78
If TPW meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates VSL as Buy (1) -

Vulcan Steel's December-half result met UBS forecasts despite weakness in steel volumes, thanks to a strong performance from Ullrich Aluminium.

Cash flow proved a miss, due to higher inventory and the broker forecasts gross profit per tonne will fall -25% by FY25 (which is still well above FY21 figures).

All up, the broker believes the strength in the aluminium business reduces medium-term earnings risk.

EPS forecasts fall -1% in FY23; and -2% in FY24 to reflect lower volumes.

Buy rating retained. Target price falls to $9.20 from $9.80.

Target price is $9.20 Current Price is $7.89 Difference: $1.31
If VSL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

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 WDS as Neutral (3) -

Following materially higher D&A guidance by Woodside Energy, compared to expectations by consensus and Citi, the broker feels that, while a non-cash adjustment, the market may now assume lower dividends.

While the payout ratio is calculated from earnings, the broker reminds investors the ratio is discretionary and the board typically pays well above their 50% policy.

Citi increases its target to $37.97 from $37.55 on sundry model changes. Neutral.

Target price is $37.97 Current Price is $36.23 Difference: $1.74
If WDS meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $38.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Macquarie rates WDS as Neutral (3) -

Macquarie believes 2022 likley represented peak earnings and dividends for Woodside Energy. Ahead of the result, the broker has cut 2022 forecast earnings by -9% to reflect higher production costs and underlying Petroleum Resource Rent Tax expense.

2023-2024 forecasts are cut by -29%/-25% on higher D&A and production costs.

Woodside's enlarged business is well run and has been performing very well, Macquarie acknowledges, but the broker expects investors should be able to buy shares at cheaper levels through 2023.

Neutral retained, target falls to $36 from $37.

Target price is $36.00 Current Price is $36.23 Difference: minus $0.23 (current price is over target).
If WDS 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 $38.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Morgans rates WDS as Hold (3) -

Ahead of its FY22 result on February 27, management at Woodside Energy have provided some guidance on one-off items related to the merger with BHP Group's ((BHP)) Petroleum division. The impact of changes in depreciation policy were also addressed.

2023 production guidance was left unchanged.

The broker lowers its target to $33.60 from $34.20. Hold.

Target price is $33.60 Current Price is $36.23 Difference: minus $2.63 (current price is over target).
If WDS meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Morgans rates WHC as Add (1) -

While Morgans expects Coal sector companies (under its coverage) in the February reporting season will declare solid dividends, they may potentially be lower than what the market is anticipating, especially in light of large cash balances.

The analysts believe coal producers may keep cash in reserve for M&A options. Ongoing capital management is expected to be a key focus post the results as dividends will be competing against buybacks and investments for growth.

The broker also takes the opportunity to update its coal price forecasts as well as volume and cost estimates. Forecast prices for Newcastle coal futures (NEWC) fall while hot coking coal (HCC)  prices are increased.

Whitehaven Coal reports tomorrow. Morgans suggests the company is incentivised to re-start its current buyback ($1.6bn), given potential 30% accretion for FY23 EPS.

The target drops to 10.80 from $11.60. Add.

Target price is $10.80 Current Price is $7.91 Difference: $2.89
If WHC meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $11.64, suggesting upside of 42.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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