Australian Broker Call

Citi rates ALU as Buy (1) -

Citi believes the takeover offer from Autodesk is recognising the value of bringing design, parts and manufacturing together on the Altium 365 platform.

The bid price of $38.50 is considered opportunistic, given the broker's view that Altium is nearing the end of the pandemic-induced downgrade cycle. Demand is expected to accelerate over the course of 2021.

Citi also suspects the electronic design capabilities at Altium could be attractive for other electronic design peers, although recognises Autodesk has a unique position in the industry. Buy rating and $33.50 target.

Target price is $33.50 Current Price is $37.08 Difference: minus $3.58 (current price is over target).
If ALU meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.90, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Macquarie rates AMI as Outperform (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. One of the broker's top picks for exploration potential is Aurelia Metals with the drill-out of the Federation prospect at Hera a catalyst. The Outperform rating and $0.60 target are maintained.

Target price is $0.60 Current Price is $0.42 Difference: $0.18
If AMI meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates ANZ as Outperform (1) -

Macquarie notes consensus expectation is for banks to be able to tackle their cost bases over the next three years. While there's considered scope for banks to manage their operating expenses, a poor track record after promising large cuts raises doubt.

The broker sees a potential upside of 5-7% across the majors if expense targets materialise though expects the majority of these benefits to be competed away.

Overall, Macquarie's preferred major is ANZ Bank, despite having the least cost-out opportunity relative to peers. The Outperform rating and $30.50 target are maintained.

Target price is $30.50 Current Price is $28.76 Difference: $1.74
If ANZ meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $30.17, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates APT as Overweight (1) -

Afterpay will move beyond BNPL with its new Afterpay Money. The launch is planned for the September quarter in Australia and will initially focus on transaction and savings accounts but the company has not ruled out other products such as mortgage referrals.

Morgan Stanley estimates this could almost double the company's Australian revenue by FY25 and also increase customer engagement.

The broker lifts revenue estimates by 8% for FY21, 17% for FY22 and 24% for FY23, given more confidence in the opportunity to deliver stronger customer engagement.

Overweight rating retained. Target is reduced to $145 from $149. Industry view: In-Line.

Target price is $145.00 Current Price is $97.20 Difference: $47.8
If APT meets the Morgan Stanley target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $120.90, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates AZJ as Outperform (1) -

At an investor day, Aurizon Holdings re-iterated FY21 earnings guidance and noted FY22 productivity leverage with the recent Anglo American contract win. The medium-term opportunity in Bulk was highlighted while the energy transition was the long-term focus.

Even under a rapid transition, management noted the business should be able to maintain the $0.5-0.6bn of free cash to investors. Macquarie notes the ESG challenge as the energy transition continues though agrees cashflows are resistant.

Moreover there is scope to redeploy Coal assets to Bulk, especially if they can step change the business, explains the broker. The Outperform rating and $4.41 target are maintained.

Target price is $4.41 Current Price is $3.79 Difference: $0.62
If AZJ meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates AZJ as Add (1) -

Horizon Holdings held an investor day and revealed long-term coal export forecasts alongside free cashflow estimates that were below Morgans previous forecasts. The target price is reduced to $4.09 from $4.40.

Management is bullish that strong growth in Bulk can offset some of Coal’s decline. Morgans maintains an Add rating on the basis of an attractive cash yield and valuation support though acknowledges the stock may suffer from ESG headwinds until Bulk takes over.

Target price is $4.09 Current Price is $3.79 Difference: $0.3
If AZJ meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates BGL as Outperform (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. One of the broker's top picks for exploration potential is Bellevue Gold with continued resource/reserve growth a catalyst. The Outperform rating and $1.20 target are retained.

Target price is $1.20 Current Price is $0.80 Difference: $0.4
If BGL meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates BHP as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 16% upside to BHP Group's FY21 earnings forecast, with spot prices currently well above Macquarie's forecasts.

The Outperform rating and $57 target are retained.

Target price is $57.00 Current Price is $48.38 Difference: $8.62
If BHP meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $48.59, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Ord Minnett rates BHP as Buy (1) -

Ord Minnett has lifted its average price forecasts for metallurgical coal, by between 4-8%, and for thermal coal, by between 4-15%, over the next four years.

Direct impact on forecasts for BHP Group is rather benign.

Ord Minnett remains attracted to the strong balance sheet, on top of an attractive price to net present value, a prospective high dividend yield and further potential for upgrades from marking-to-market updates.

BHP and South32 remain the broker's sector top picks as the above applies to both. Buy. Target price has gained $1 to $57.

Target price is $57.00 Current Price is $48.38 Difference: $8.62
If BHP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $48.59, suggesting downside of -0.4% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates CBA as Neutral (3) -

Macquarie notes consensus expectation is for banks to be able to tackle their cost bases over the next three years. While there's considered scope for banks to manage their operating expenses, a poor track record after promising large cuts raises doubt.

The broker sees potential upside of 5-7% across the majors if expense targets materialise though expects the majority of these benefits to be competed away.

Overall, Macquarie's least-preferred major is Commonwealth Bank of Australia, despite having the greatest cost-out opportunity relative to peers. The Reduce rating and $86 target are unchanged.

Target price is $86.00 Current Price is $101.48 Difference: minus $15.48 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.38, suggesting downside of -13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Macquarie rates CHC as Outperform (1) -

Media reports suggest Charter Hall Group is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Outperform rating and $16.12 target are maintained.

Under Macquarie's assumptions, on average the groups could have 2% of earnings upside from asset management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Charter Hall Group has the most leverage of REIT peers to the increase in assets under management (AUM), explains the analyst. Assuming an incremental earnings (EBITDA) margin of 70%, the broker estimates valuation upside of around 4%-6%.

Target price is $16.12 Current Price is $15.16 Difference: $0.96
If CHC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $15.81, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates CIA as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. 

For FY22 and beyond, the earnings upside risk for pure-play stocks like Champion Iron is close to or above 100% in a spot price scenario, explains the analyst. The Outperform rating and $8 target are unchanged.

Target price is $8.00 Current Price is $6.53 Difference: $1.47
If CIA meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Macquarie rates CMM as Neutral (3) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The broker assesses the ramp-up (first production imminent) of Capricorn Metals’s Karlawinda project is unlikely to attract a valuation premium. The Neutral rating and $2 target are retained.

Target price is $2.00 Current Price is $2.00 Difference: $0
If CMM meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates DCN as Upgrade to Outperform from Neutral (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The analyst upgrades the rating for Dacian Gold to Outperform from Neutral on recent share price weakness, and retains the $0.32 target price.

Target price is $0.32 Current Price is $0.28 Difference: $0.04
If DCN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates DMP as Neutral (3) -

Citi analyses the Japanese market for Domino's Pizza and envisages upside to the roll-out target of 1500 stores. Second half sales forecasts appear conservative, although the broker maintains unchanged estimates, noting website traffic has declined by -4% as comparables become tougher to cycle.

While Domino's Pizza Japan has introduced half-price carry out and removed delivery costs, prices are still more expensive than competitors, so Citi suggests the business may require continued investment in price to grow its target market.

The broker also believes South Korea is a new market opportunity for the business in Asia. Neutral rating and $104.20 target maintained.

Target price is $104.20 Current Price is $116.60 Difference: minus $12.4 (current price is over target).
If DMP meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $97.97, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates DRR as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 14% upside to Deterra Royalties' FY21 earnings forecast, with spot prices currently well above Macquarie's forecasts.

Outperform maintained. Target is $4.80.

Target price is $4.80 Current Price is $4.34 Difference: $0.46
If DRR meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates DXS as Neutral (3) -

Media reports suggest Dexus is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Neutral rating and $10.85 target are maintained.

Under Macquarie's assumptions, on average the groups could have 2% of earnings upside from asset management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Target price is $10.85 Current Price is $10.74 Difference: $0.11
If DXS meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.42, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates ELD as Buy (1) -

The latest forecast for winter from ABARES suggests an increase of 2% in planted area, which Citi considers is a positive signal for demand for crop inputs.

While winter production versus the prior bumper crop is expected to decline by -15%, production is still above the 10-year average and a favourable outlook as winter progresses could provide upside to current expectations. Buy rating and $13.40 target retained.

Target price is $13.40 Current Price is $11.25 Difference: $2.15
If ELD meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.15, suggesting upside of 18.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates FMG as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 10% upside to Fortescue Metals Group's FY21 earnings forecast, with spot prices currently well above the Macquarie's forecasts.

The Outperform rating and $23 target are retained.

Target price is $23.00 Current Price is $22.42 Difference: $0.58
If FMG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.31, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

Macquarie rates GNC as Outperform (1) -

In the largest forecast on record, ABARES estimates east coast production for winter 2021/22 of 22.1mmt. This reflects a good soil moisture profile and above-average rainfall in the 12 months prior to planting.

Maquarie lifts forecasts for FY22 profit and earnings (EBITDA), which now leaves estimates approximating consensus prior to the ABARES update. Overall, the ABARES forecast reinforces the analyst's view that earnings momentum should continue into FY22.

The Outperform rating and target price of $6.66 are maintained.

Target price is $6.66 Current Price is $5.16 Difference: $1.5
If GNC meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates GNC as Add (1) -

ABARES is forecasting an above-average east coast grain crop though it is down from last year’s record crop. Morgans notes the first forecast for the season is usually conservative, given the harvest is in November/December. 

If the forecast proves accurate, under the crop production contract GrainCorp would need to pay the insurer -$48m (includes the -$6m cost of the contract).

The analyst’s FY21 forecast remains unchanged and is in-line with guidance. The Add rating and $6.28 target are maintained.

Target price is $6.28 Current Price is $5.16 Difference: $1.12
If GNC meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates GNC as Buy (1) -

ABARES has estimated a 22.1mt east coast winter crop for FY22 which compares to the bumper crop of 29.9mt for FY21.

On the basis of upgrades that have been delivered by ABARES over FY21, UBS suggests there is scope to lift FY22 forecasts further if favourable operating conditions continue.

For GrainCorp the modest increase to earnings estimates from this forecast provides a large offset to increased grain derivative payments. UBS retains a Buy rating based on increased crop assumptions for FY22 and the potential for capital management. Target is $6.70.

Target price is $6.70 Current Price is $5.16 Difference: $1.54
If GNC meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates GOR as Outperform (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. One of the broker's top picks is Gold Road Resources, with relatively de-risked near-term production growth that should deliver strong cash generation.

The Outperform rating and $1.50 target are retained.

Target price is $1.50 Current Price is $1.45 Difference: $0.05
If GOR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates GPT as Neutral (3) -

Media reports suggest GPT Group is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Neutral rating and $4.69 target are maintained.

Under Macquarie's assumptions, the groups could have 2% of earnings upside from asset management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Target price is $4.69 Current Price is $4.82 Difference: minus $0.13 (current price is over target).
If GPT meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.69, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates LLC as Neutral (3) -

Media reports suggest Lendlease is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Neutral rating and $12.99 target are maintained.

Under Macquarie's assumptions, the groups could have 2% of earnings upside from asset management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Target price is $12.99 Current Price is $12.64 Difference: $0.35
If LLC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.84, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates MGR as Outperform (1) -

Media reports suggest Mirvac Group is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Outperform rating and $2.91 target are maintained.

Under Macquarie's assumptions, the groups could have 2% of earnings upside from management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Target price is $2.91 Current Price is $2.97 Difference: minus $0.06 (current price is over target).
If MGR meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.77, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates MGX as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 39% upside to Mount Gibson Iron's FY21 earnings forecast, with spot prices currently well above Macquarie's forecasts.

The Outperform rating and $1.00 target are retained.

Target price is $1.00 Current Price is $0.84 Difference: $0.16
If MGX meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 24% upside to Mineral Resources' FY21 earnings forecast, with spot prices currently well above Macquarie's forecasts.

Outperform maintained. Target is $61.

Target price is $61.00 Current Price is $48.64 Difference: $12.36
If MIN meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $47.24, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates MQG as Accumulate (2) -

US-listed Macquarie Infrastructure Corp has announced the divestment of Atlantic Aviation to KKR for US$4.475bn in cash, along with assumed debt and reorganisation obligations.

Ord Minnett, in response to the announcement, clarifies this transaction once again reflects an ongoing robust environment for infrastructure assets, and Macquarie stands to reap benefits, including through fees on top of a US$227m disposition payment related specifically to the above deal.

The broker retains the Accumulate rating, alongside a price target of $170.

Target price is $170.00 Current Price is $153.42 Difference: $16.58
If MQG meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $161.20, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in March.

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 NAB as Neutral (3) -

Macquarie notes consensus expectation is for banks to be able to tackle their cost bases over the next three years. While there's considered scope for banks to manage their operating expenses, a poor track record after promising large cuts raises doubt.

The broker sees potential upside of 5-7% across the majors if expense targets materialise though expects the majority of these benefits to be competed away.

Overall, Macquarie's second-most-preferred major is National Australia Bank, though relative to peers, the broker has less confidence in the bank achieving productivity benefits.The Neutral rating and $28 target are retained.

Target price is $28.00 Current Price is $26.77 Difference: $1.23
If NAB meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.33, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

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

AUSTRAC has identified concerns with National Australia Bank’s compliance with the joint anti-money laundering (AML) and counter-terrorism financing (CTF) Program. 

Morgans expects the uncertainty associated with this issue to weigh on the share price and allows for -$5bn of damage to NAB’s market capitalisation.

The target price falls to $27.50 from $29 and the rating is reduced to Hold from Add. There’s also the risk management will be distracted by the issue, cautions the analyst.

Target price is $27.50 Current Price is $26.77 Difference: $0.73
If NAB meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $27.33, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates NSR as Underperform (5) -

National Storage REIT provided a business update and upgraded FY21 underlying EPS guidance to 8.5-8.6cps from 8.1-8.5cps. The trust also launched a $325.5m equity raise to “replenish investment capacity”.

Macquarie adjusts underlying EPS forecasts for FY21-23 by 3%, -3% and -2%, respectively. This reflects the equity raise, partially offset by deployment of capital and improving underlying assumptions.

The Underperform rating is maintained as valuation remains a challenge, according to the analyst. The target price rises to $1.95 from $1.81, driven by increasing income and cap rate compression assumptions, given underlying rental growth and transaction activity.

Target price is $1.95 Current Price is $2.09 Difference: minus $0.14 (current price is over target).
If NSR meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.01, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Ord Minnett rates NSR as Upgrade to Accumulate from Hold (2) -

In the wake of another capital raising of $325m at $2.00 per share, Ord Minnett comments National Storage's operating metrics have improved materially in FY21, as stabilised occupancy levels have lifted 9% and revenue per available square metre (RevPAM) is now 17% higher.

In addition, the broker points out the asset class looks undervalued in Australia, with global storage comparable companies trading on 4% implied capitalisation rates.

Following through on management's updated guidance, Ord Minnett has lifted its target price to $2.20 from $2.05. Rating is upgraded to Accumulate from Hold.

Target price is $2.20 Current Price is $2.09 Difference: $0.11
If NSR meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Macquarie rates OGC as Underperform (5) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The broker assesses OceanaGold has one of the strongest production growth outlooks at about 12% though is not without risk. The Underperform rating and $2 target are retained.

Target price is $2.00 Current Price is $2.68 Difference: minus $0.68 (current price is over target).
If OGC meets the Macquarie target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.25, suggesting downside of -16.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Macquarie rates PRU as Outperform (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. One of the broker's top picks is Perseus Mining, with relatively de-risked near-term production growth that should deliver strong cash generation. Outperform retained with a target of $1.50.

Target price is $1.50 Current Price is $1.37 Difference: $0.13
If PRU meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

As the stock has fallen since the announcement regarding the offer for Spire Healthcare and underperformed the ASX 200 by -14% over the last quarter, Citi upgrades to Buy from Neutral.

The business is severely affected by the pandemic but incremental news is expected to be positive as health systems return to normal in FY22-23.

The incorporation of the acquisition into forecasts increases the broker's target to $76 from $67. In terms of the focus on the investment grade rating, Citi calculates Ramsay Health Care will need to raise around $850m in capital and this is included in forecasts.

Target price is $76.00 Current Price is $63.72 Difference: $12.28
If RHC meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $71.62

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates RHC as Neutral (3) -

While Ramsay Health Care can fund the acquisition of Spire Healthcare via debt it will stretch leverage, Credit Suisse ascertains. This view is formulated subsequent to the announcement Fitch Ratings has placed the company on negative watch post the announcement.

Credit Suisse estimates the company will require $1-1.5bn in capital to remain under those levels of debt that would keep it firmly within an investment grade credit rating as well as provide sufficient flexibility for future investments.

It may also take months before a capital management review is completed and more than 12 months before the UK authority completes its competition review of the acquisition.

Neutral rating with a $70 target price maintained.

Target price is $70.00 Current Price is $63.72 Difference: $6.28
If RHC meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $71.62

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates RIO as Outperform (1) -

Macquarie expects solid shareholder cash returns for the global iron ore miners during the August reporting season, supported by strong free cash flows. Improving steel and iron ore sentiment is considered due to potential production cuts across the Chinese supply chain.

The broker estimates most iron-ore miners continue to trade on free cash flow yields above 20%, at spot prices. There's considered 14% upside to Rio Tinto's FY21 earnings forecast, with spot prices currently well above Macquarie's forecasts.

The Outperform rating and $140 target are retained.

Target price is $140.00 Current Price is $124.16 Difference: $15.84
If RIO meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $127.14, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Macquarie rates RRL as Neutral (3) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The analyst remains cautious on Regis Resources due to the uncertainty of the outlook for McPhillamys. The Neutral rating and $2.80 target are unchanged.

Target price is $2.80 Current Price is $2.63 Difference: $0.17
If RRL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 46.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates S32 as Buy (1) -

Ord Minnett has lifted its average price forecasts for metallurgical coal, by between 4-8%, and for thermal coal, by between 4-15%, over the next four years.

Direct impact on forecasts for South32 is rather benign.

Ord Minnett remains attracted to the strong balance sheet, on top of an attractive price to net present value, a prospective high dividend yield and further potential for upgrades from marking-to-market updates.

BHP and South32 remain the broker's sector top picks as the above applies to both. Buy. Target price unchanged at $3.60.

Target price is $3.60 Current Price is $2.98 Difference: $0.62
If S32 meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 10.4% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Macquarie rates SBM as Underperform (5) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The analyst retains an Underperform recommendation for St Barbara on the view that the upcoming FY22 guidance and Gwalia outlook could be softer than market expectations.

The Underperform rating and $1.70 target are maintained.

Target price is $1.70 Current Price is $1.85 Difference: minus $0.15 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.34, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates SGP as Neutral (3) -

Media reports suggest Stockland is one of a number of groups considering bids for the management of the AMP Capital Wholesale Office Fund ((AMP)). The Neutral rating and $4.67 target are maintained.

Under Macquarie's assumptions, the groups could have 2% of earnings upside from asset management, and 3% of valuation upside. It's estimated the fund could generate $45m in fees (assuming 100% of asset management is conducted in house).

Target price is $4.67 Current Price is $4.80 Difference: minus $0.13 (current price is over target).
If SGP meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.63, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates SHL as Neutral (3) -

Macquarie notes covid-19 testing volumes have increased in Australia in recent weeks though eased in the US and Germany. There's considered a degree of uncertainty in relation to these volumes, with potential mix effects to contemplate.

Combined testing volumes for the second half are running ahead of the first, so the broker adjusts forecasts to capture higher covid-19 earnings in FY21/22. However, the mix between covid and base business testing is expected to provide lower overall earnings in FY22.

The Neutral rating and $37.75 target are unchanged.

Target price is $37.55 Current Price is $35.52 Difference: $2.03
If SHL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.36, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Superloop has acquired ISP Exetel for $110m, to be funded with an equity raising of $100m and $10m in scrip. The company has reaffirmed guidance for FY21 EBITDA of $18-18.5m.

Morgan Stanley's main concern about the transaction is that the re-sale NBN market is highly competitive and low margin, and it is difficult to control costs. The top line of Exetel is also slowing.

Equal-weight retained. Target is $1. Industry view: In-line.

Target price is $1.00 Current Price is $1.04 Difference: minus $0.04 (current price is over target).
If SLC 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 $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates SLC as Add (1) -

To fund the acquisition of private retail service provider (RSP) Exetel, Superloop has undertaken a $100m raise and issued $10m worth of stock to the vendor. In addition, management reaffirmed FY21 guidance. Add rating and target rises to $1.33 from $1.27.

The broker highlights the acquisition adds significant scale, generating $150m of revenue and $16m of earnings (EBITDA) on a pro forma, post synergies basis. The latter are considered meaningful with around $2.5m to be realised in FY22 and circa $5m in FY23.

This deal makes strategic sense, adding more traffic and therefore more margin, to the company’s large but underutilised network, explains the analyst.

Target price is $1.33 Current Price is $1.04 Difference: $0.29
If SLC meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates SLC as Accumulate (2) -

Superloop's acquisition of leading Australian internet service provider Exetel for $110m, comprising of $100m in cash and $10m in scrip, has surprised Ord Minnett.

That surprise is related to what the broker calls a "patchy track record" when it comes to acquisitions, in reference to BigAir.

Ord Minnett does acknowledge the purchase makes strategic sense. It is the broker's view Superloop represents a rapid turnaround story backed by infrastructure ownership.

Accumulate rating retained, alongside a price target of $1.35. Revenue forecasts have increased 96% to $294m in FY22 and 86%
to $323m in FY23 after incorporating Exetel in forward modeling.

Target price is $1.35 Current Price is $1.04 Difference: $0.31
If SLC meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SLR as Outperform (1) -

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. One of the broker's top picks is Silver Lake Resources, with relatively de-risked near-term production growth that should deliver strong cash generation.

Outperform rating and $2.20 target maintained.

Target price is $2.20 Current Price is $1.77 Difference: $0.43
If SLR meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates STX as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on Strike Energy with an Outperform rating and $0.60 target price. It's considered the Permian gas fairway (Kingia/High Cliff) in the northern Perth basin has been the most exciting gas resource play in Australia in the past five to six years.

The large-scale, low-cost conventional gas resource is becoming de-risked, with 80TJ/d production online in FY23 and  expandable to 300TJ/d, explains the broker.

The analyst notes innovative downstream integration plans with geothermal, green hydrogen/ammonia and urea. Key risks include lower WA gas prices and disappointing drilling and flow testing outcomes.

Target price is $0.60 Current Price is $0.35 Difference: $0.25
If STX meets the Macquarie target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

In a review of mid/small cap gold stocks, the Macquarie commodities team expects the impetus for gold's recent rally from inflationary expectations is transitory. While there's an expected interest rate lift, gold should be pushed lower as the Fed moves towards tapering.

Despite this, the broker believes investors are again willing to pay a valuation premium for leveraged gold exposures such as gold equities, noting that gold stocks have materially outstripped the recent positive movement in gold.

Macquarie makes no changes to EPS estimates for gold stocks under coverage. The analyst lowers the rating for West African Resources from an Outperform to a Neutral on recent share price strength. The target price is $1.10.

Target price is $1.10 Current Price is $1.02 Difference: $0.08
If WAF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates WBC as Neutral (3) -

Macquarie notes consensus expectation is for banks to be able to tackle their cost bases over the next three years. While there's considered scope for banks to manage their operating expenses, a poor track record after promising large cuts raises doubt.

The broker sees potential upside of 5-7% across the majors if expense targets materialise though expects the majority of these benefits to be competed away.

Overall, Macquarie's second-least-preferred major is Westpac Bank, and relative to peers, the broker has less confidence in the bank achieving productivity benefits.The Neutral rating and $27.25 target are retained.

Target price is $27.25 Current Price is $26.73 Difference: $0.52
If WBC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates WOW as Downgrade to Underperform from Neutral (5) -

Credit Suisse assesses the de-merger of the retail liquor & hotels business, Endeavour Group, is an important catalyst for Woolworths. The broker removes the business from its forecast for Woolworths from FY22 onwards, valuing this as a discontinued operation.

The rating is therefore downgraded to Underperform from Neutral, largely on valuation, while the target is lowered to $37.98 from $38.05.

Credit Suisse points out Endeavour Group has a varied profit history and reinvestment rates for the retail side have been considerably lower than in Woolworths supermarkets, while the hotels have received higher levels of investment despite achieving low returns.

Target price is $37.98 Current Price is $43.45 Difference: minus $5.47 (current price is over target).
If WOW meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $42.53, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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