Australian Broker Call

Citi rates ALL as Buy (1) -

With Aristocrat Leisure set to release its full year result later this month, Citi expects strong performance from the company's land based business will see it report 30% earnings growth to $1,653m. 

Of concern to the broker is a recent decline in digital bookings, which Citi estimates have declined -3% in the second half. It also finds consensus assumptions of two and a half new hit titles by FY24 to be optimistic given a lack of visibility over the digital development pipeline.

The Buy rating is retained and the target price increases to $42.70 from $40.20.

Target price is $42.70 Current Price is $37.34 Difference: $5.36
If ALL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $42.36, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ALL as Overweight (1) -

Morgan Stanley forecasts FY22 revenue of $5,499m, a rise of 16% year-on-year, and a 27% increase in earnings (EBITA) to $1,626m, when Aristocrat Leisure reports FY22 results on November 16.

The Overweight rating and target price of $45.00 are retained. Industry view: In-Line.

Target price is $45.00 Current Price is $37.34 Difference: $7.66
If ALL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $42.36, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in September.

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 ALL as Buy (1) -

While US gaming results continue to show strength, the broker takes a more negative view around Aristocrat Leisure's strategy for Pixel, noting successful titles require a strong balance sheet to increase monetisation.

The broker reduces Pixel booking estimates and alters December-half currency forecasts, resulting in a -1% fall in FY22 earnings forecasts and a -5% decline in FY23 earnings estimates.

The Buy rating retained. Target price falls to $41 from $46.

Target price is $41.00 Current Price is $37.34 Difference: $3.66
If ALL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $42.36, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in September.

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 AMC as Neutral (3) -

Amcor's 1Q earnings (EBIT) were in line with Morgans forecast though management lowered the EPS guidance range to US77c-81c from US80c-84c.

A solid mix shift (healthcare packaging) and tight cost control lifted constant currency earnings (EBIT) by 11% in the 1Q, explains the analyst.

The broker lowers its EPS estimates over the forecast years by -2.4% to -7.6% on higher guidance for interest expenses and changes to the speed of buybacks. The target falls to $17.25 from $17.85. Hold.

Management anticipates further price increases contributing to a price over cost benefit for the remainder of FY23.

Target price is $17.25 Current Price is $17.38 Difference: minus $0.13 (current price is over target).
If AMC meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.30, suggesting upside of 6.2% (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: 0.1

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

Macquarie rates AMC as Neutral (3) -

Followings its first quarter, Amcor has lowered its full year earnings per share guidance -4% given the stronger US dollar. Macquarie's estimated 79 cents per share is at the mid-point of the new guidance range. 

While underlying earnings per share lifted 2% in the first quarter, and 10% on a constant currency basis, lower volumes were a key theme for the broker.

Given commentary from Amcor that volumes declined through the quarter, Macquarie warns further weakening may be ahead.

The Neutral rating is retained and the target decreases to $18.34 from $19.00.

Target price is $18.34 Current Price is $17.38 Difference: $0.96
If AMC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 6.2% (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: 0.1

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

Ord Minnett rates AMC as Accumulate (2) -

Amcor's September-quarter result broadly met Ord Minnett's forecast as respectable prices offset uninspiring volumes as global economic challenges started to weigh.

Management reiterated guidance, despite rising interest costs, but lowered EPS guidance believing it had underestimated the impact of the stronger USD. Ord Minnett downgrades FY23 and FY24 EPS accordingly.

Inventory cycles are expected to normalise in the June half.

Accumulate rating retained, the broker appreciating the company's stable and diversified earnings stream. Target price rises to $19.30 from $18.95.

Target price is $19.30 Current Price is $17.38 Difference: $1.92
If AMC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 6.2% (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: 0.1

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

UBS rates AMC as Neutral (3) -

Amcor's first quarter result was in line with UBS's expectations, with earnings per share up 10%. Net sales lifted 3% despite volumes declining -0.6%, underpinned by price and mix. 

The company did lower its reported earnings per share guidance, citing foreign exchange pressures. UBS predicts earnings per share of 78 cents, noting this implies -3% growth.

The broker remains attracted to a proven track record of inflationary cost management. The Neutral rating is retained and the target price decreases to $18.65 from $19.40.

Target price is $18.65 Current Price is $17.38 Difference: $1.27
If AMC meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 6.2% (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: 0.1

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

Citi rates BHP as No Rating (-1) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

Citi is under research restrictions for BHP Group, so no rating or price target.

Current Price is $39.24. Target price not assessed.

Current consensus price target is $42.12, suggesting upside of 10.7% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Citi rates CIA as Buy (1) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

For Champion Iron, the target price declines to $6.70 from $7.50. Buy.

Target price is $6.70 Current Price is $4.97 Difference: $1.73
If CIA meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

UBS rates CRN as Neutral (3) -

Coronado Global Resources' September quarter production and sales of 6.4m tonnes and 4.1m tonnes respectively missed UBS's expectations of 7.2m tonnes and 4.9m tonnes as Curragh battled weather impacts. 

Curragh's quarterly production of 3.0m tonnes was flat year-on-year, and costs remain a challenge given adverse weather. The company downgraded full year production guidance and lifted expected costs. 

The Neutral rating and target price of $1.70 are retained.

Target price is $1.70 Current Price is $2.10 Difference: minus $0.4 (current price is over target).
If CRN meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.48, suggesting upside of 18.4% (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 DMP as Downgrade to Neutral from Buy (3) -

Ahead of the AGM, Citi had already warned Domino's Pizza's European operations are likely to be weighed down by cost pressures. Next thing, the company confirmed the operational challenges in front of shareholders.

The broker has, in response, lowered its forecasts while anticipating consensus forecasts might have to reset in double digit percentage.

Citi continues to be of the view Domino's Pizza Enterprises remains one of the best long duration growth companies in its coverage and the company's scale should see it outperform smaller competitors in what remains a challenging operational environment.

While acknowledging it looks rather like a late move, Citi has nevertheless downgraded to Neutral from Buy. Target price drops by -21% to $66.60.

Target price is $66.60 Current Price is $60.01 Difference: $6.59
If DMP meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Credit Suisse rates DMP as Neutral (3) -

While Credit Suisse remains positive on the potential for material growth and profits over the longer term, 1Q results revealed a same store sales decline of -1.0% year-on-year. It's felt cost pressures on corporate stores and currency moves weighed the most.

Domino's Pizza Enterprises' guidance is for 1H profit to be "materially below’" the previous corresponding period. FY23 guidance suggests to the analyst profit of around $158m compared to the consensus estimate for $180m.

The broker lowers FY23-25 profit forecasts by -16.7%, -0.7% and -6.8%, respectively, and reduces its target to $67.01 from $76.96. Neutral.

Target price is $67.01 Current Price is $60.01 Difference: $7
If DMP meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates DMP as Neutral (3) -

Domino's Pizza Enterprises has faced a challenging first quarter for its European operations, with earnings under pressure from high energy pricing. Trading in Australia was more positive, despite some softening in delivery volumes. 

Macquarie remains cautious on Domino's Pizza Enterprises, despite fast food typically being resilient to economic slowdowns, and lowers its earnings per share forecasts -0.4%, -3.0% and -1.9% through to FY25.

The Neutral rating is retained and the target price decreases to $61.90 from $63.30.

Target price is $61.90 Current Price is $60.01 Difference: $1.89
If DMP meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgan Stanley rates DMP as Overweight (1) -

While 1Q results for Domino's Pizza Enterprises were disappointing and management downgraded earnings guidance, Morgan Stanley points out same store sales (SSS) growth turned positive in October. 

The company guided to earning materially lower in 1H compared to the previous corresponding period due to negative 1Q SSS growth, inflation and currency movements.

As management confirmed guidance for FY23 SSS growth and organic store growth, the analyst suggests the nadir of the downgrade cycle is near. The company also noted at least 8% organic store growth should be achieved in FY23.

The target falls to $85 from $95. Overweight. Industry view is In-Line.

Target price is $85.00 Current Price is $60.01 Difference: $24.99
If DMP meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates DMP as Add (1) -

Morgans believes 1Q results for Domino's Pizza Enterprises showing a return to positive same store sales growth in October could mark an inflection point for sales growth.

Inflation and unfavourable currency moves created tough conditions in the 1Q, yet same store sales growth of 1% year-to-date was in line with prior guidance, points out the analyst.

While management noted 1H earnings will be "materially" lower than for the 1H of FY22, profits will grow in FY23 on a constant currency basis.

Morgans lowers its FY23 profit forecast by -7% in line with guidance though retains its Add rating and $88.00 target.

Target price is $88.00 Current Price is $60.01 Difference: $27.99
If DMP meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates DMP as Buy (1) -

Domino's Pizza Enterprises' trading update proved mixed, opines Ord Minnett, and management has downgraded net profit guidance.

A soft store rollout stymied a take-off in sales (the broker says an inflection point was reached in October). An FX headwind also took the wind out of the company's sails.

The broker now cuts earnings forecasts -4% in FY23; -2% in FY24 and -3% in FY25.

But the long-term view remains intact, with store expansion and improved capital efficiency expected to deliver continued growth. Buy rating retained. Target price falls to $80 from $84.

Target price is $80.00 Current Price is $60.01 Difference: $19.99
If DMP meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates DMP as Buy (1) -

Domino's Pizza Enterprises provided a trading update on its first seventeen weeks, reporting a network sales decline of -1.8% and same store sales decline of -1.0%. UBS expects materially lower first half earnings given less trading days and foreign exchange headwinds.

The broker points out that despite an overall decline in the first quarter, sales improved in October albeit by a smaller margin than expected. Assuming a -15% net profit decline in the first half, UBS highlights 9-18% growth would be necessary in the second half to meet guidance.

The Buy rating is retained and the target price decreases to $80.00 from $85.00.

Target price is $80.00 Current Price is $60.01 Difference: $19.99
If DMP meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $75.50, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates DRR as Buy (1) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

Deterra Royalties' price target falls to $4.70 from $4.80. Buy.

Target price is $4.70 Current Price is $4.18 Difference: $0.52
If DRR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates FMG as Neutral (3) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

Fortescue Metals' price target has declined to $16.70 from $17. Neutral.

Target price is $16.70 Current Price is $15.73 Difference: $0.97
If FMG meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $15.31, suggesting upside of 0.2% (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: -0.6

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

Citi rates GMG as Buy (1) -

Goodman Group remains Citi's sector Top Pick post the Q1 trading update which, in the broker's view, contained more positives than negatives.

The one key element that stood out for the analysts is the observation that asset values are rising despite higher cap rates. Another positive, in Citi's view, is Goodman's best-in-class balance sheet.

Citi analysts continue to see potential for a positive surprise (guidance upgrade) and thus retain their Buy rating. Price target unchanged at $23.50.

Target price is $23.50 Current Price is $17.11 Difference: $6.39
If GMG meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Credit Suisse rates GMG as Outperform (1) -

Credit Suisse makes no changes to its earnings forecasts in the wake of 1Q results though its target for Goodman Group falls to $21.70 from $23.49 on new discount rate and multiple assumptions. It's felt investors generally are searching for an appropriate multiple.

Key takeaways for the analyst from management commentary were a return of rational behaviour for the Industrial real estate sector, and the group is positioned to cope with market challenges/uncertainty. 

The broker notes softer cap rates are being more than offset by rental growth, while development work-in-progress remains elevated.

The Outperform rating is unchanged.

Target price is $21.70 Current Price is $17.11 Difference: $4.59
If GMG meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates GMG as Outperform (1) -

Goodman Group has reaffirmed full year guidance of 11% year-on-year operating earnings per share growth, while Macquarie forecasts 15% growth and sees scope for an upgrade from the company after the first half.

While development numbers were soft in the first quarter, the company commenced a number of projects that should carry strong momentum into the second quarter. The broker also flags strategic acquisition(s) should support earnings per share.

The Outperform rating is retained and the target price decreases to $20.60 from $23.93.

Target price is $20.60 Current Price is $17.11 Difference: $3.49
If GMG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgan Stanley rates GMG as Overweight (1) -

Morgan Stanley describes 1Q results for Goodman Group as sound. While cap rates are rising, any asset value impact is being offset by rent rises.

Management reiterated FY23 EPS growth guidance of 11%.

The analyst notes a positive for completed projects with an impressive 8.8% Yield on Cost, though completions are now 5.8%, down from 6.0% in the last few years.

The Overweight rating and $24.10 target are retained. Industry View: In-Line. 

Target price is $24.10 Current Price is $17.11 Difference: $6.99
If GMG meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $21.88, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

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

Morgan Stanley maintains its Equal-weight rating and $11.25 price target following InvoCare's investor day. Industry view is In-Line.

Management reiterated targets from last year's investor day of low-to-mid teens EPS growth and a return on capital employed (ROCE) of more than 12%. Also, M&A options will be more actively explored going forward.

Target price is $11.25 Current Price is $10.53 Difference: $0.72
If IVC meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.65, suggesting upside of 12.2% (ex-dividends)

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

Ord Minnett rates JHX as Buy (1) -

Ord Minnett reviews James Hardie Industries ahead of September-quarter result.

Target price falls to $49 from $52.40 to reflect revised housing start forecasts, but the broker remains ahead of consensus.

The broker notes its US homebuilding research counterparts are forecasting a -2% decline in 2022 and a -9% fall in 2023.

Buy rating retained.

Target price is $49.00 Current Price is $34.11 Difference: $14.89
If JHX meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $47.50, suggesting upside of 43.7% (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

Citi rates MIN as Buy (1) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

The price target for Mineral Resources has remained unchanged at $86. Buy.

Target price is $86.00 Current Price is $72.47 Difference: $13.53
If MIN meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $84.24, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates NTD as Hold (3) -

A recent 1Q trading update by National Tyre & Wheel disappointed Morgans on gross margins. The update revealed a reduced outlook for FY23 gross margin and profit (NPATA) due to ongoing difficult trading conditions, explains Morgans.

Gross margin guidance was reduced to the low end of the targeted 27-29% range.

The broker reduces FY23-25 EPS forecasts by -82.1%, -29.4% and -16.4%, respectively, to align with reduced management guidance and after adopting an alternative valuation method the target falls to $0.68 from $0.96. Hold.

Target price is $0.68 Current Price is $0.64 Difference: $0.04
If NTD meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

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

Citi rates RIO as Buy (1) -

Citi has become more cautious on the short-term outlook for iron ore prices. Hopes for a better trading environment are now pinned on Q2 next year (post Chinese new year).

Price forecasts have been cut to US$70/t versus US$95/t previously for the next tree months and to US$95/t from US$110/t previously as the average for calendar 2023.

The changes have repercussions for EPS forecasts across the board for those companies under coverage. No changes to ratings have been made.

Rio Tinto's price target has remained unchanged at $115. Buy.

Target price is $115.00 Current Price is $92.63 Difference: $22.37
If RIO meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $105.29, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Morgan Stanley rates RIO as Overweight (1) -

Rio Tinto maintains that its last bid of CA$43/share (Canadian dollars) for Turquoise Hill shares is best and final. This declaration came within an announced agreement with certain Turquoise Hill shareholders.

Rio has increased the dissent condition to 17.5% from 12.5% to allow the company to proceed or pull out of the deal if the dissenting parties exceed 17.5%.

The Overweight rating and target price of $121 are retained. Industry view: Attractive.

Target price is $121.00 Current Price is $92.63 Difference: $28.37
If RIO meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $105.29, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Macquarie rates SDF as Outperform (1) -

As the only listed Australian broker with a premium funding business, Macquarie expects Steadfast Group to be a beneficiary of a weaker economic backdrop, as businesses look to premium funding for cash flow relief and alternate financing arrangements. 

The broker expects higher interest rates to encourage the use of premium funding, and highlights credit risk is minimal for funders with default risk carried by trade credit insurers.

The Outperform rating and target price of $6.00 are retained.

Target price is $6.00 Current Price is $5.10 Difference: $0.9
If SDF meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.98, suggesting upside of 17.9% (ex-dividends)

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

Credit Suisse rates SUN as Outperform (1) -

As recent bank reporting revealed strong net interest margin (NIM) upgrades, Credit Suisse lifts its NIM estimates for Suncorp Group's banking arm. A rise in the consensus estimate is expected to follow.

After the broker also lowers asset growth forecasts on signs of slowing system loan growth, the target price remains at $13.90.

The analyst likes the attractive dividend yield on offer and maintains its Outperform rating.

Target price is $13.90 Current Price is $11.73 Difference: $2.17
If SUN meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.14, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates WOW as Neutral (3) -

Woolworths Group released a Q1 trading update this morning and UBS, in a quick response, notes sales proved below its own forecast but seems to have beaten market consensus.

The food operations in Australia are performing below expectations and management has guided for subdued EBIT from the NZ operations for the year ahead.

The broker observes despite rising inflation, momentum is not picking up for the food business in Australia.

Target $35.50. Neutral.

Target price is $35.50 Current Price is $33.21 Difference: $2.29
If WOW meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $35.69, suggesting upside of 11.3% (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