Australian Broker Call

Credit Suisse rates ABB as Outperform (1) -

A sell off in the wake of Aussie Broadband's third quarter results was overdone according to Credit Suisse, who notes broadband trends remain supportive of growth.

Alongside results, the company tightened full year earnings guidance to the lower end of range, now guiding to $27-28m, down from $27-30m or -3.5% at the midpoint. 

Broadband connections guidance was also honed in to 580-585,000 from 580-590,000, implying 30-35,000 connections in the final quarter compared to 37,000 in the third quarter.

The Outperform rating and target price of $5.00 are retained.

Target price is $5.00 Current Price is $4.00 Difference: $1
If ABB meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates ABB as Buy (1) -

Aussie Broadband's Q3 update missed expectations and Ord Minnett observes the subsequent share price shellacking proved three times as large as its own reduction to forecasts.

The Buy rating is retained and the broker sees the current share price as an opportunity for investors.

Apart from the Over The Wire acquisition, Ord Minnett is positive because Aussie Broadband accounts for 6.2% of the national broadband market and is taking 40%+ of incremental share on the broker's calculations.

Price target falls to $5.10 from $5.65 on reduced forecasts.

Target price is $5.10 Current Price is $4.00 Difference: $1.1
If ABB meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ABC as Outperform (1) -

AdBri has revealed a roadmap to its net zero emissions by 2050 target, with Macquarie noting nearer-term the company plans to increase the use of alternative fuels in kilns to reduce scope 1 and 2 emissions -7% by FY24.

Targeting net zero scope 1, 2 and 3 emissions by 2050, the company aims to reduce scope 1 emissions in cement by -20% and in lime by -10% by 2030 while emissions reductions between 2030 and 2050 largely rely on breakthrough carbon capture and storage technologies.

The Outperform rating and target price of $4.15 are retained.

Target price is $4.15 Current Price is $2.90 Difference: $1.25
If ABC meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.58, suggesting upside of 26.9% (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

Morgans rates AGL as Add (1) -

News of Grok Ventures seeking an 11% stake in AGL Energy steadied the stock price, according to Morgans, on the day guidance for FY22 underlying profit was lowered by -18%. The Loy Yang Unit 2 outage was considered the main cause of the downgrade.

Grok Ventures intends to vote against the company's demerger plans.

While allowing for the downgraded guidance in its forecasts, Morgans also incorporates higher assumed prices from Victoria (medium term futures prices are rising). These prices are expected to increase gross margins of both the retail and legacy generation businesses.

The target price rises to $9.29 from $8.83 and the Add rating is retained.

Target price is $9.29 Current Price is $8.62 Difference: $0.67
If AGL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.82, suggesting upside of 5.1% (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

Ord Minnett rates AGL as Accumulate (2) -

AGL Energy's update on the electrical fault at Loy Yang A has revealed an impact of -$50m post-tax, not recoverable on insurance but Ord Minnett makes no changes arguing this magnitude of impact was already incorporated in its forecasts.

It appears market consensus is reluctant to price in the upside from wholesale power prices, and thus the broker sees opportunity for investors.

Suitor Mike Cannon-Brookes is now AGL's largest shareholder, Ord Minnett highlights. Accumulate rating retained. Target $9.30.

Target price is $9.30 Current Price is $8.62 Difference: $0.68
If AGL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.82, suggesting upside of 5.1% (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

UBS rates AGL as No Rating (-1) -

AGL Energy has cut its FY22 profit guidance range by -15-21% to account for the outage at Loy Yang A. UBS notes the extent of the downgrade implies other incremental headwinds are blowing as well. The generator is expected to be back on line by August, but the broker sees timing risk.

Meanwhile, Cannon-Brookes has now secured an 11.27% stake in AGL, and the broker had already flagged considerable shareholder vote risk in June with regard the planned demerger. If the vote fails there is no "Plan B", UBS warns, suggesting material downside risk.

On that basis the broker has put its rating/target under review.

Current Price is $8.62. Target price not assessed.

Current consensus price target is $8.82, suggesting upside of 5.1% (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

Ord Minnett rates AMI as Buy (1) -

Aurelia Metals' March quarter was notably weaker than Ord Minnett expected on grades and cash flow, and a 6% cut to production guidance.

But the broker shrugs off any short term operational concerns as the miner looks set for a strong June Q finish along with growth at Fed and Great Cobar.

The balance sheet remains in great shape with $81m cash, minimal debt of $25m and an undrawn debt facility of $20m. Ord Minnett retains its Buy rating and 95c target.

Target price is $0.95 Current Price is $0.43 Difference: $0.52
If AMI meets the Ord Minnett target it will return approximately 121% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates ASB as Buy (1) -

After reviewing the US Navy’s 2023 justification book, Citi believes new US contract awards seem likely for Austal. Should the US Navy order additional Medical Ships, upside to the broker's medium-to long-term forecasts is expected.

Nonetheless, the analyst believes the company needs to win a major shipbuilding program to fully offset the wind-down of the
Littoral Combat Ship (LCS) program. The Buy rating and $2.35 target are retained.

Target price is $2.35 Current Price is $2.04 Difference: $0.31
If ASB meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates CHN as Outperform (1) -

The latest drilling results from Chalice Mining have highlighted the potential of the Julimar project. Macquarie highlights the project's Gonneville resource has been extended, with drilling intercepting high-grade extensions 260m from the current resource pit shell.

While access remains limited, drilling continues at the Hartog resource and this remains a key pathway for a resource upgrade for Gonneville which the broker anticipates will be forthcoming.

The Outperform rating and target price of $10.00 are retained.

Target price is $10.00 Current Price is $7.10 Difference: $2.9
If CHN meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates CWN as Neutral (3) -

A proposed casino slot machine tax increase from the Victorian Givernment has prompted Credit Suisse to downgrade Crown Resorts' Crown Melbourne forecast earnings and net profit -8% in FY24, noting an impact on valuation of -$0.80 cent per share or -$540m. 

The Neutral rating is retained and the target price decreases to $12.80 from $13.10.

Target price is $12.80 Current Price is $12.85 Difference: minus $0.05 (current price is over target).
If CWN meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.17, suggesting upside of 2.5% (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 CWN as Neutral (3) -

A likely higher gaming machine tax rate from July 1, 2023 could drive a -$43m impact on earnings to Crown Resorts in FY24 according to Macquarie. The tax change proposed by the Victorian Government would bring Crown Resorts in line with local market operator rates.

Macquarie highlights an estimated -$43m impact equates to an -8% decrease to Crown Melbourne's earnings. The broker understands there was a previous agreement following the Crown Melbourne Royal Commission that no tax rate changes would be implemented.

The Neutral rating and target price of $13.10 are retained.

Target price is $13.10 Current Price is $12.85 Difference: $0.25
If CWN meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $13.17, suggesting upside of 2.5% (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 DRR as Outperform (1) -

Higher than anticipated realised pricing has seen Deterra Royalties deliver royalty receipts of $59.1m in the third quarter, a 7% beat on Macquarie's forecast and equating to 78% quarter-on-quarter growth.

The broker now anticipates half-on-half royalties growth of 88% in the second half, with strong iron ore pricing continuing to provide further upside risk to forecasts.

The Outperform rating and target price of $5.50 are retained.

Target price is $5.50 Current Price is $4.87 Difference: $0.63
If DRR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Despite Damstra Holdings announcing an initial three year agreement for US$1.2m with Canadian-based Barrick Gold, Morgan Stanley remains Equal-weight given the recent Newmont contract loss and delays in securing a material UK construction customer. 

Nonetheless, the Barrick deal provides hope for further enterprise wins and the analyst expects the share price to trade up on the announcement.

The target price of $0.22 is unchanged. Industry View: In-Line.

Target price is $0.22 Current Price is $0.16 Difference: $0.06
If DTC meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates HLO as Hold (3) -

Helloworld Travel's March Q update showed non-business transaction volume increasing 117% year on year and revenues 89%, amidst reopenings. Ord Minnett expects more of the same in the short term given pent-up demand for leisure travel.

The great unknown, nevertheless, from a longer term perspective, is how earnings will fare post-covid following the sale of the Corporate Division.

The broker is adopting a relatively cautious stance given the uncertainty surrounding agent numbers and supplier margins within the retail business.

Target rises to $2.45 from $2.29, Hold retained.

Target price is $2.45 Current Price is $2.73 Difference: minus $0.28 (current price is over target).
If HLO meets the Ord Minnett 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 June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates IGO as Buy (1) -

Citi increases its target price for IGO to $16.20 from $16.10 and stays Buy-rated following 3Q results for the company. It's noted nickel inventories remain tight while lithium pricing is expected to stay elevated.

As construction is underway for the chemical grade processing plant 3 (CGP3) at the Greenbushes mine in WA, the analyst includes the plant output in forecasts, which accounts for the lift in target price. 

Target price is $16.20 Current Price is $12.43 Difference: $3.77
If IGO meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $13.89, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates IGO as Outperform (1) -

IGO has continued its cost control trend at its Nova project, with costs below guidance in the March quarter, but a miss on realised pricing largely overshadowed this with lithium -15% below Credit Suisse's expectations.

The broker notes a December quarter shipment unexpectedly delayed to the March quarter was booked at lower December quarter pricing of US$600 per tonne, compared to the majority of June half sales locked in at an average of $1,770 per tonne.

In a closer look at costs, Credit Suisse highlighted a -3% decrease to site costs excluding royalties despite inflationary pressures and a 27% increase to total mined material.

The Outperform rating is retained and the target price decreases to $15.60 from $16.20.

Target price is $15.60 Current Price is $12.43 Difference: $3.17
If IGO meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $13.89, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

UBS rates IGO as Sell (5) -

IGO's March Q nickel production met UBS' expectations but lithium production at Greenbushes was -9% short and earnings -28% below on lower sales. Commissioning of Train 1 at Kwinana continues with battery grade lithium hydoxide not yet produced.

The broker has lowered its FY22-23 production forecast and increased capex in line with IGO's updated estimate, but risk remains around what a downstream ramp-up may look like.

Target falls to $12.40 from $12.65, Sell retained.

Target price is $12.40 Current Price is $12.43 Difference: minus $0.03 (current price is over target).
If IGO meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.89, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates JHG as Neutral (3) -

Ahead of Janus Henderson's first quarter results release Credit Suisse retains higher expected outflows than consensus, anticipating -$10.8bn compared to a consensus -$7.1bn, and expects weak operational momentum could weigh on share price.

The broker notes data suggests large retail outflows in the quarter, compounded by a -US$2.2bn mandate loss impact on institutional outflows. Longer-term, Credit Suisse does see potential for the sale of INTECH to improve flows.

The Neutral rating is retained with a target price of $50.00.

Target price is $50.00 Current Price is $43.66 Difference: $6.34
If JHG meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $48.75, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates KLL as Neutral (3) -

Kalium Lakes has remained focused on its Beyondie project in the third quarter with the restart on track for June to capitalise on strong sulphate of potash pricing, but Macquarie notes cash reports from the quarter drive a 60% increase to losses in FY22. 

The company has acknowledged further funds will be required by the first quarter of FY23, and Macquarie expects this will be sourced through a $25m equity raising.

The Neutral rating is retained and the target price increases to $0.11 from $0.09.

Target price is $0.11 Current Price is $0.10 Difference: $0.01
If KLL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates LTR as Outperform (1) -

Liontown Resources has formalised its LG Energy Solution for Kathleen Valley spodumene concentrate offtake agreement. Macquarie notes the agreement will see Liontown Resources provide 100,000 tonnes of spodumene in its first production year, likely 2025.

This will increase to 150,000 tonnes per year in the following four years, and supply could be extended an additional five years by mutual agreement. The broker notes alongside the company's offtake agreement with Tesla, this accounts for 60% of first stage expected production.

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

Target price is $2.50 Current Price is $1.44 Difference: $1.06
If LTR meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates M7T as Add (1) -

Morgans assesses a solid 3Q cashflow report from Mach7 Technologies which showed good growth in new sales orders and positive net operating cash inflow. 

The broker's FY22 revenue forecasts are likely to be achieved and the $1.55 target price (131% upside) is retained.

The analyst believes two new reseller agreements in the 3Q will make a more material revenue contribution. Add.

Target price is $1.55 Current Price is $0.63 Difference: $0.92
If M7T meets the Morgans target it will return approximately 146% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates MGR as Hold (3) -

Mirvac Group has provided an update on its $12.9bn commercial and mixed-use development pipeline, and a review of its internal construction capabilities.

Ord Minnett highlights Mirvac’s proven development capability as a key competitive advantage and the build-out of  its pipeline should grow earnings, net tangible asset value and external assets under management over the next five to six years.

There remains uncertainty around development timing and construction cost pressures, but Mirvac’s construction costs appear well hedged for the FY22-23 period. Hold and $2.90 target retained.

Target price is $2.90 Current Price is $2.38 Difference: $0.52
If MGR meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

UBS rates MQG as Reinitiation of coverage with Neutral (3) -

Ahead of Macquarie Group's FY earnings result on Friday, UBS has "initiated" coverage (last update May 21) with a Neutral rating and $205 target.

The group's tailwinds in alternative assets, integrated capabilities in renewables advisory, and a history of stable earnings and prudent capital management are all positives, UBS believes, but the market is fully pricing in these opportunities and upside.

PE multiples are at or above industry peers.

Target price is $205.00 Current Price is $203.18 Difference: $1.82
If MQG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $218.83, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

While Morgan Stanley is not surprised that National Australia Bank has entered an enforceable undertaking with AUSTRAC, the broker's forecasts do not include a fine.

The analyst expects additional costs over the next two years as the bank completes a Remedial Action Plan by December 2024 in order to improve its systems, controls and record keeping. These upgrades are to improve the bank's anti-money laundering capabilities etc.

The Equal-weight rating and $31.50 target price are unchanged. Industry view: Attractive.

Target price is $31.50 Current Price is $32.32 Difference: minus $0.82 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.84, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates NAB as Accumulate (2) -

AUSTRAC has accepted an enforceable undertaking from National Australia Bank to upgrade its compliance with anti-money laundering and counter-terrorism financing laws and Ord Minnett, in response, states it remains difficult to assess the precise impact and consequences of this agreement.

On the positive side, the broker points out there are no civil penalties. Plus NAB is of the intent to provide further info on May 5, with the release of its interim result.

Accumulate rating retained, alongside a $33.50 price target.

Target price is $33.50 Current Price is $32.32 Difference: $1.18
If NAB meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $32.84, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates ORG as Buy (1) -

Origin Energy's APLNG revenue was slightly ahead of UBS' forecast for the March Q as higher realised LNG pricing offset production disruption due to the weather. Origin has already sold 14 LNG cargoes in FY22 when 10 per year is normal.

Strong free cash flow from APLNG will allow Origin to fund growth and further capital management from the first half FY23 following the current buy-back, UBS suggests, but finding enough caol supply for Eraring could be a fly in the ointment.

Buy and $7.00 target retained.

Target price is $7.00 Current Price is $6.90 Difference: $0.1
If ORG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.59, suggesting downside of -4.4% (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

Ord Minnett rates PAC as Buy (1) -

Ord Minnett found Pacific Current Group's Q3 update showed a "resilient" performance given the many headwinds during the period, with lots of volatility for both bonds and equity markets.

The broker remains of the view this stock is too cheap with prospects of 15% EPS CAGR over the next two years.

Ord Minnett hereby reiterates its Buy rating. Target $11.30. No changes made to forecasts.

Target price is $11.30 Current Price is $7.52 Difference: $3.78
If PAC meets the Ord Minnett target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PNI as Outperform (1) -

Macquarie notes Pinnacle Investment Management has been impacted by market conditions, with funds under management decreasing -2.4% between late December and late March, and the broker estimating a further -$2.2bn impact through April.

Elsewhere, the company has increased its equity investment in Resolution Capital by 5.0%, increasing its total stake to 49.5%, which Macquarie anticipates could contribute an additional $1m to net profit based on FY21 profitability.

The Outperform rating is retained and the target price decreases to $11.90 from $16.89.

Target price is $11.90 Current Price is $9.06 Difference: $2.84
If PNI meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 36.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates PNI as Accumulate (2) -

It could have been a lot worse, is Ord Minnett's response following the release of Q3 data by Pinnacle Investment Management. EPS forecasts have been reduced by -10%-18%.

Updated forecasts now assume lower funds under management, lower funds flow and lower performance fees.

Accumulate rating retained. Target falls to $10.50 from $15.

Target price is $10.50 Current Price is $9.06 Difference: $1.44
If PNI meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 36.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

UBS rates PNI as Buy (1) -

Pinnacle Investment Management affiliate funds under management as at March were slightly below UBS' forecast, and net inflows over the quarter were softer than expected, reflecting a slowdown in retail flows in the first half.

But In the context of an industry-wide slowdown in retail flows, volatile markets and performance headwinds in some affiliates, UBS suggests this is still a reasonable result.

While retail flows will continue to weigh in the near term, the broker sees longer term value emerging. Target falls to $12.65 from $14.00, Buy retained.

Target price is $12.65 Current Price is $9.06 Difference: $3.59
If PNI meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $12.08, suggesting upside of 36.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates QAN as Outperform (1) -

Qantas Airways has reported a sharper and faster capacity snapback than anticipated by Macquarie in its latest market trading update, with the broker noting the company is set to return to earnings profitability in the second half.

The airline is also moving ahead with its long-haul direct Project Sunrise fleet expansion. The project will include 12 Airbus A350-1000, estimated at US$395m each, with payments to be made over FY25-27 and a peak US$1.2bn to be paid in FY26.

The broker increases earnings forecasts 11% and 6% in FY23 and FY24. The Outperform rating is retained and the target price increases to $6.60 from $5.80.

Target price is $6.60 Current Price is $5.76 Difference: $0.84
If QAN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates QAN as Overweight (1) -

Following a 3Q trading update by Qantas Airways, Morgan Stanley has more confidence in the recovery profile and believes the market is understating cost-out upside. The target increases to $7.10 from $7.00 and the Overweight rating is maintained. Industry View: In-Line.

Management guidance toward profitability in FY22 is considered a key milestone by the analyst. The business travel recovery is better than expected, while over Easter domestic travel was 110% of pre-covid capacity.

Target price is $7.10 Current Price is $5.76 Difference: $1.34
If QAN meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Ord Minnett comments Qantas Airway's Q3 report showed ongoing acceleration in the domestic recovery, on top of long-held plans for direct flights to London and New York ready to commence in late 2025.

Leisure is leading the travel recovery, the broker observes, while corporate travel is equally recovering earlier-than-expected.

Earnings estimates have been lifted, which pushes up the price target by 7% to $6.40. Rating is downgraded to Accumulate from Buy, on valuation.

Target price is $6.40 Current Price is $5.76 Difference: $0.64
If QAN meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Lower marketing returns were largely responsible for Redbubble's 3Q sales miss versus Morgan Stanley's forecast. It's thought the key to returning to positive sales growth and profitability is a normalisation of the currently volatile paid acquisition channels.

Earnings for the quarter of -$10m were broadly in-line with the analyst's estimate. While management notes some inflation-induced cost increases; price increases have so far offset this pressure.

The broker lowers its FY22-24 earnings forecasts on lower sales growth assumptions. The target price is slashed to $1.30 from $2.65 as more clarity on the cost base/margin profile is awaited. Industry view: In-Line.

Target price is $1.30 Current Price is $1.11 Difference: $0.19
If RBL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 45.5% (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

Morgans rates RBL as Add (1) -

Morgans lowers its FY22-FY24 earnings (EBITDA) forecasts for Redbubble by more than -30% to incorporate a 3Q trading update and the headwind of increased competition. The price target falls to $2.05 from $2.79.

The 3Q update confirmed to the analyst that margin headwinds seen in the 1H are still ongoing. 

With $94m in cash on the balance sheet, management stated it is reviewing organic/inorganic opportunities to enhance value. Morgans maintains its Add rating. Guidance for FY22 was reiterated.

Target price is $2.05 Current Price is $1.11 Difference: $0.94
If RBL meets the Morgans target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 45.5% (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

Morgans rates RCW as Downgrade to Hold from Speculative Buy (3) -

Morgans downgrades its rating for RightCrowd to Hold from Speculative Buy after the 3Q was weaker than expected and management lowered FY22 guidance and withdrew its FY23 profit target. The broker's target price tumbles to $0.12 from $0.26.

The broker's house view is underweight the technology sector with a preference for profitable companies in the current macro environment. Nonetheless, there's still considered to be potential for substantial medium-term value creation for RightCrowd.

Target price is $0.12 Current Price is $0.07 Difference: $0.05
If RCW meets the Morgans target it will return approximately 71% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Citi rates RHC as Neutral (3) -

Following the indicative proposal of $88/share for Ramsay Health Care by a consortium led by KKR Citi suggests that a higher bid from another party is unlikely. 

This view by the broker was formed after a review of how other potential acquirers may unlock value post a takeover. The $88 target price and Neutral rating are unchanged.

Target price is $88.00 Current Price is $80.10 Difference: $7.9
If RHC meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $78.60, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Citi rates RWC as Sell (5) -

Following 3Q results for Reliance Worldwide, Citi lowers its earnings forecasts by -2-5% to reflect lower margin guidance and softer EZFLO margins. Results were considered resilient though risks are elevated from inflation and a low percentage of contractual pass throughs.

The analyst is concerned that margin guidance changed in three months and is uncertain in a cost recovery despite known 4Q price increases. The EZFLO 3Q earnings (EBITDA) margin was 8.7% versus 16% on acquisition.

The broker lowers its target to $3.84 from $4.00 and maintains its Sell rating.

Target price is $3.84 Current Price is $4.03 Difference: minus $0.19 (current price is over target).
If RWC meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.19, suggesting upside of 29.4% (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: 0.6

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

Morgans rates RWC as Add (1) -

Reliance Worldwide' s 3Q trading update was weaker than Morgans had forecast as higher costs weighed on underlying earnings (EBITDA) despite the company pushing through price rises.

Sales growth was broadly in-line with the analyst's estimate and management noted demand strength in most markets, with ongoing price rises used to offset cost inflation.

The broker lowers its FY22-24 underlying earnings forecasts by -7% and lowers its price target to $4.83 from $5.30. The Add rating is unchanged.

Target price is $4.83 Current Price is $4.03 Difference: $0.8
If RWC meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 29.4% (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: 0.6

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

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

Super Retail's Q3 update showed ongoing strong sales momentum, points out Ord Minnett. The broker argues the stock deserves a higher multiple given the absence of lockdown tailwinds during the period.

Alas, gross margins are normalising too and this offsets the strong sales performance, in the broker's opinion. Hence, forecasts remain broadly unchanged with minimal adjustments made.

Target price falls to $13.50 from $13.80 but the rating moves to Buy from Accumulate.

Target price is $13.50 Current Price is $10.45 Difference: $3.05
If SUL meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $13.46, suggesting upside of 31.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

UBS rates SUL as Buy (1) -

Super Retail Group's year to date trading update showed a mixed bag among its retail brands, the net result being a 6% increase in UBS' FY22 forecast earnings. The company's decision to purchase excess inventory due to supply constraints has paid off.

Super Retail has been making significant changes in efficiencies and customer experience from which the impact is less obvious given covid impacts have overwhelmed all others, UBS notes. These changes will support trading in coming years.

Despite the near term forecast increase, target falls to $13.00 from $14.00 on a sum of the parts valuation. Buy retained.

Target price is $13.00 Current Price is $10.45 Difference: $2.55
If SUL meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.46, suggesting upside of 31.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates SZL as Buy (1) -

Sezzle Inc's March Q update was weaker than Ord Minnett expected. Average usage per customer was below expectation, leading to a -13% miss on the broker's revenue forecast.

The BNPL sector has been exposed to weaker e-commerce figures recently, the broker notes, lowering Sezzle’s year on year growth to 20%. Looking forward, the business is continuing to trim costs, scaling back of efforts in Europe and ceasing payment processing in India.

The broker nonetheless sees merit in the merger with Zip Co ((Z1P)) and retains Buy. Target, however, falls to $1.40 from $4.00.

Target price is $1.40 Current Price is $0.86 Difference: $0.54
If SZL meets the Ord Minnett target it will return approximately 63% (excluding dividends, fees and charges).

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 TCL as Outperform (1) -

Positives from Transurban Group's investor day included traffic improvement in April to above FY19 levels. Macquarie highlighted without weather impacts of previous months and few covid restrictions, positive traffic growth was reported across all domestic regions.

Looking ahead, the company expects the widening of the M7, as well as the Logan widening and Brisbane's Gateway improvement, to progress. Macquarie highlights $2.3bn from refinancing should fund a large portion of the $3.5-3.9 in committed projects over the coming three years.

The Outperform rating is retained and the target price increases to $15.01 from $14.91.

Target price is $15.01 Current Price is $14.41 Difference: $0.6
If TCL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Following Transurban Group's investor day, Morgan Stanley retains its Equal-weight rating in the belief risk and rewards are balanced. It's noted the company's roads are now approaching pre-covid levels and key project uncertainties are settled.

The analyst anticipates further upside from the group's airport link roads in the coming quarters, while management pointed to tailwinds from public transit diversion, e-commerce and resilient commercial traffic.

The broker raises its target price to $14.28 from $13.55. Industry View: Cautious.

Target price is $14.28 Current Price is $14.41 Difference: minus $0.13 (current price is over target).
If TCL 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 $14.57, suggesting upside of 0.3% (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

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

Transurban Group's investor day has left Ord Minnett with a positive impression overall. Nevertheless, the rating has been downgraded to Accumulate from Buy, on valuation.

The price target remains $15.

The broker notes, on the basis of indications provided by management, that underlying network traffic trends are now positive.

Target price is $15.00 Current Price is $14.41 Difference: $0.59
If TCL meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 0.3% (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

Ord Minnett rates WOW as Accumulate (2) -

Ord Minnett found Woolworths Group's quarterly update a mixed affair with the Australian operations performing better-than-expected but New Zealand countering with a weak performance.

In an initial response to today's release, the broker acknowledges the NZ disappointment is likely a one-off, though market sentiment is likely to weigh, still. Big W's performance was equally better-than-expected, albeit only marginally so.

Accumulate. Price target $39.50.

Target price is $39.50 Current Price is $38.30 Difference: $1.2
If WOW meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $37.08, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

UBS rates Z1P as Sell (5) -

Zip Co reported March Q transaction volume growth that was solid in absolute terms, but tracking well behind UBS' previous second half expectations. This follows an adjustment to Zip's risk settings designed to reduce credit losses, as well as steps taken to right-size
the cost base.

Customer number growth, particulalry in the US, is strong but the broker is concerned over falling transaction frequency. Credit metrics are improving but remain elevated and with a reduction to the broker's transaction outlook, target falls to 90c from $1.00.

Sell retained.

Target price is $0.90 Current Price is $1.21 Difference: minus $0.31 (current price is over target).
If Z1P meets the UBS target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.32

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