Australian Broker Call

Ord Minnett rates A2M as Lighten (4) -

a2 Milk issued a profit warning in December and Ord Minnett finds risks remain around inventory, the daigou channel and slowing growth rates for mother and baby stores (MBS).

One potential source for positive surprise could come from capital management, the broker adds.

Problems with the daigou channel have turned revenue strength into revenue weakness and the operational margin has come under pressure, highlights the broker.

Lighten rating retained, while the price target falls to $9.40 from $13.20 on lower forecasts. A separate note post the purchase of 75% of Mataura Valley Milk at a cost of NZ$268.5m has pushed the target back up to $9.90.

Target price is $9.90 Current Price is $10.94 Difference: minus $1.04 (current price is over target).
If A2M meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.11, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Ord Minnett rates ABC as Hold (3) -

An update in modeling has lifted the broker's price target for Adbri to $3.15 from $3. Hold.

Target price is $3.15 Current Price is $3.31 Difference: minus $0.16 (current price is over target).
If ABC meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.87, suggesting downside of -12.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates AGL as Accumulate (2) -

Accumulate rating has been maintained following AGL Energy's profit warning in late December, including guidance for a material step-down in earnings for FY22.

Ord Minnett acknowledges the headwinds facing the share price, but also maintains the current unfavourable market dynamics marring the company are simply not sustainable.

Price target only loses -20c to reset at $17. A separate sector update shows the price target has further declined to $16.87.

Target price is $16.87 Current Price is $12.07 Difference: $4.8
If AGL meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $12.95, suggesting upside of 5.9% (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 ALD as Hold (3) -

Late last year's trading update by competitor Viva Energy has triggered increased expectations for Ampol. At least for 2020. Longer term, the broker explains, jet fuel and Lytton refinery cost assumptions have led to reduced CY21 forecasts.

The company is also fighting EG Group in the Supreme Court. Ord Minnett has stuck by its $30 price target and Hold rating.

Target price is $30.00 Current Price is $28.61 Difference: $1.39
If ALD meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $31.84, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates AMI as Buy (1) -

Ord Minnett suggests 2021 is shaping up as a watershed moment for Aurelia Metals' growth potential. While post capital raise, the share price might experience indigestion, the broker reiterates its conviction call for much greater upside.

Target price increased to $0.90 from $0.85. Buy.

Among the positives mentioned are the facts directors are buying shares and the stock is seemingly moving back into the Gold Juniors Index (GDXJ).

Target price is $0.90 Current Price is $0.47 Difference: $0.43
If AMI meets the Ord Minnett target it will return approximately 91% (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

Ord Minnett rates ANN as Accumulate (2) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. Ansell's price target has fallen to $40.70 from $45. Accumulate.

Target price is $40.70 Current Price is $35.03 Difference: $5.67
If ANN meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $40.48, suggesting upside of 18.1% (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

Ord Minnett rates AQZ as Buy (1) -

Ord Minnett reports the announcement of yet another purchase of a fleet of 16 Embraer E190 aircrafts, on top of the 14 announced mid last year exudes confidence.

Underneath these announcements, the broker suspects, must be strong demand from existing clients on top of the agreement with the reborn Virgin.

Ord Minnett increases its price target to $5 from $4.50 while maintaining its Buy rating.

Target price is $5.00 Current Price is $3.75 Difference: $1.25
If AQZ meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 27.5% (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

Morgans rates AX1 as Hold (3) -

Morgans comments the shoe retailer's recent trading update showed the broad positive trend remains in place, with online sales a material driver of growth.

Estimates have been increased by double digit percentage for FY21.The broker also suggests the valuation prevents it from upgrading to Add, thus the Hold rating remains in place.

Price target shifts to $2.34, up from $1.86.

Target price is $2.34 Current Price is $2.46 Difference: minus $0.12 (current price is over target).
If AX1 meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.31, suggesting downside of -6.3% (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

Ord Minnett rates BPT as Buy (1) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Beach Energy, the price target has moved to $2.25 from $2.20, supported by higher forecasts. Buy.

Target price is $2.25 Current Price is $1.92 Difference: $0.33
If BPT meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 3.5% (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

Ord Minnett rates CCP as Downgrade to Hold from Accumulate (3) -

Ord Minnett has increased forecasts with the broker arguing Credit Corp remains in a very favourable position with respect to the Australian purchased debt ledger, or PDL, market. The company is seen enjoying clear positive near-term earnings momentum.

The acquisition of a large portion of the purchased debt ledger assets and arrangement book of Collection House ((CLH)) further fuels the broker's optimism.

However, a strong share price performance has led to a downgrade in rating; to Hold from Accumulate. The price target has jumped to $30 from $20.

Target price is $30.00 Current Price is $30.26 Difference: minus $0.26 (current price is over target).
If CCP meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.53, suggesting downside of -11.3% (ex-dividends)

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

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

Citi has downgraded to Neutral from Hold inspired by the share price appreciation in 2020. Today's update does lift the price target to $4.30 from $3.75.

While the analysts believe Costa Group remains well-positioned amidst rising prices and better growing conditions, elevated supply for blueberries continues to provide offset.

The broker points out Costa Group has responded by changing the mix in berries it produces. Earnings estimates have risen (see also higher price target). The analysts are now cautious about further prospects for sustained earnings upgrades.

Target price is $4.30 Current Price is $4.29 Difference: $0.01
If CGC meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.74, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates CGF as Hold (3) -

Challenger will buy the bank MyLife MyFinance for $35m from CatholicSuper and Ord Minnett is positive about this strategic move, arguing it will lower funding costs for the group, over time.

Hold rating retained, while the price target lifts to $6.50 from $4.

Target price is $6.50 Current Price is $6.67 Difference: minus $0.17 (current price is over target).
If CGF meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.34, suggesting downside of -21.4% (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

Morgan Stanley rates CHC as Overweight (1) -

Morgan Stanley has upgraded its price target for Charter Hall, to $16.88 from $13.10, on anticipation of stronger funds inflows as investors are increasingly appreciating the unique characteristics on offer.

Given low interest rates, Morgan Stanley believes the flow of capital into property, both listed and unlisted, is here to stay, with Charter Hall benefiting from it.

The analysts do concede there are risks attached to the model in the form of asset values with fundamental challenges remaining for Office and Retail, in particular if/when interest rates were to lift higher. Morgan Stanley is not worried at this stage.

Rating remains Overweight alongside an In-Line industry view.

Target price is $16.88 Current Price is $13.94 Difference: $2.94
If CHC meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $14.84, suggesting upside of 7.2% (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 CHC as Accumulate (2) -

Ord Minnett welcomed the December acquisition of the David Jones Elizabeth Street store by a Charter Hall Group partnership. Price paid is $510m on a capitalisation rate of 5%, points out the broker.

The new owners of the property will be Charter Hall Long WALE REIT ((CLW)), the unlisted Charter Hall DVP Partnership (25%) and Charter Hall Group (25%).

In the broker's view, Charter Hall continues to demonstrate great ability to source high-quality assets at reasonable prices, largely funded by external sources. Accumulate rating retained, alongside a $16 price target.

Target price is $16.00 Current Price is $13.94 Difference: $2.06
If CHC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.84, suggesting upside of 7.2% (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 CIP as Buy (1) -

An update to the modeling has led to a minor increase in the price target; to $4.10 from $4. Buy.

Target price is $4.10 Current Price is $3.03 Difference: $1.07
If CIP meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 13.7% (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

Ord Minnett rates COE as Buy (1) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Cooper Energy, the price target has moved to $0.58 from $0.57, supported by higher forecasts. Buy.

Target price is $0.58 Current Price is $0.40 Difference: $0.18
If COE meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 7.2% (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

Ord Minnett rates COH as Lighten (4) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. Cochlear's price target has fallen to $175 from $193. Lighten.

Target price is $175.00 Current Price is $185.24 Difference: minus $10.24 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $203.19, suggesting upside of 11.1% (ex-dividends)

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 CSL as Accumulate (2) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. CSL's price target has fallen to $306 from $330. Accumulate.

Target price is $306.00 Current Price is $280.25 Difference: $25.75
If CSL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $313.39, suggesting upside of 13.6% (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

Ord Minnett rates CVN as Hold (3) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Carnarvon Petroleum, the price target has moved to $0.25 from $0.23. Hold.

Target price is $0.25 Current Price is $0.31 Difference: minus $0.06 (current price is over target).
If CVN meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Ord Minnett rates EVT as Buy (1) -

According to Ord Minnett, the conglomerate is facing the unusual context of experiencing challenging conditions for its core Cinema and Hotel divisions, while the value of the property portfolio remains solid.

The intended sale of the German cinema operations has fallen through due to covid-19. The broker suggests strength in the property portfolio will keep the lenders comfortable with the situation and thus avert a dilutive equity raising.

While the immediate outlook is tough, Ord Minnett argues better times will arrive. Buy rating retained with an increased price target of $10.86, up from $9.30.

Target price is $10.86 Current Price is $9.64 Difference: $1.22
If EVT meets the Ord Minnett target it will return approximately 13% (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

Ord Minnett rates GPT as Accumulate (2) -

Following an update to the broker's modeling, GPT Group’s Accumulate rating has remained unchanged with a $4.90 price target (up from $4.70).

Target price is $4.90 Current Price is $4.46 Difference: $0.44
If GPT meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.57, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates HLS as Accumulate (2) -

While testing for covid might remain with us for longer, Ord Minnett sees potential upside for laboratory operators Sonic Healthcare and Healius.

The broker also believes the world might be experiencing peak levels of testing right now. Contrary to the negative move in Sonic's valuation and price target, Healius has enjoyed an increase to $4.45 from $4.35. Accumulate.

Ord Minnett does anticipate a return to more normal conditions, and thus only projects a modest positive impact on FY22 and beyond.

Target price is $4.45 Current Price is $3.90 Difference: $0.55
If HLS meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 6.2% (ex-dividends)

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

Ord Minnett rates IFL as Buy (1) -

IOOF Holdings no longer has an external platform arrangement with BT, but has entered into a new agreement with Hub24 ((HUB)) and Ord Minnett, previously partially owned by the former, notes the new agreement should offset some of the negative impact.

The industry remains under pressure, points out the broker, while IOOF also needs to secure a successful integration of technology as it seeks to reduce costs.

Ord Minnett suggests until management can deliver, the shares are likely to continue trading at a discount. Buy rating retained. Price target $4.15.

Target price is $4.15 Current Price is $3.59 Difference: $0.56
If IFL meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 27.4% (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 IPL as Neutral (3) -

It appears we missed Citi's downgrade for Incitec Pivot in late 2020. It is hereby corrected. While the outlook for global chemicals has improved, Citi sees plenty of offsets, including higher US gas prices, weaker ammonia prices and that strong Aussie dollar.

Further clouding the company's outlook somewhat, Citi also believes US volume growth will be weighted towards H2 in FY21 and following years.

Neutral rating remains in place. Target price does lift to $2.43 from $2.31.

Target price is $2.43 Current Price is $2.44 Difference: minus $0.01 (current price is over target).
If IPL meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 5.4% (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

Ord Minnett rates IVC as Hold (3) -

An investigation by the Competition and Markets Authority (CMA) in the UK into the local funeral services industry has not led to wide-ranging negative consequences, but it is the CMA's intent to keep a close eye on the sector, and resume its investigation once conditions are more stable.

Ord Minnett observes the general concern this investigation might lead to the introduction of price controls has thus far proved too fearful. Also, market structures in the UK and Australia are not the same, points out the broker.

The rating for InvoCare remains Hold with a $11.50 price target.

Target price is $11.50 Current Price is $11.65 Difference: minus $0.15 (current price is over target).
If IVC meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.08, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates LNK as Hold (3) -

The withdrawal of SS&C Technology Holdings means there is now only one suitor left for Link Administration and Ord Minnett points out this increases the risk of no deal materialising.

The broker retains its Hold rating while lowering the price target to $5 from $5.60.

Target price is $5.00 Current Price is $4.65 Difference: $0.35
If LNK meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 14.3% (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

Morgan Stanley rates NXL as Initiation of coverage with Overweight (1) -

Morgan Stanley has initiated Nuix with an Overweight rating alongside a maiden price target of $11. The broker considers the newly listed owner of a proprietary forensic and investigative platform an attractive, long duration, structural growth story.

Among the risks cited is the fact that much larger competitors in the space have access to much larger R&D budgets. There is also the risk of multiple compression as many peers are seen trading near all-time high valuations.

Target price is $11.00 Current Price is $8.64 Difference: $2.36
If NXL meets the Morgan Stanley target it will return approximately 27% (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

Ord Minnett rates ORG as Buy (1) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Origin Energy, the price target has moved to $6.16 from $6.10, supported by higher forecasts.

Target price is $6.16 Current Price is $5.12 Difference: $1.04
If ORG meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting upside of 20.3% (ex-dividends)

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 OSH as Upgrade to Buy from Hold (1) -

Ord Minnett has used a general sector update on energy, including forecasts for Brent and electricity prices, to upgrade its rating for Oil Search to Buy from Hold.

The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Oil Search, the price target has moved to $4.58 from $4, supported by higher forecasts.

Target price is $4.58 Current Price is $4.27 Difference: $0.31
If OSH meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 PTM as Upgrade to Neutral from Sell (3) -

The worst is now behind Platinum Asset Management predicts Citi; reason to upgrade to Neutral from Sell. Earnings estimates have moved higher; the new price target of $3.90 compares with $3 previously.

The analysts do caution it may still be a while, if not a long while, before Platinum might experience material net inflows.

Meanwhile, risk remains as the resignation of a longstanding portfolio manager could lead to net outflows at and staff departures from Platinum's second largest fund, the Asia Fund, highlight the analysts.

They add some 70% of all funds under management at Platinum concerns retail investors who tend to be more loyal.

Target price is $3.90 Current Price is $4.06 Difference: minus $0.16 (current price is over target).
If PTM meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.57, suggesting downside of -14.2% (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

Ord Minnett rates QBE as Accumulate (2) -

Following QBE Insurance Group's profit warning in late December, Ord Minnett had elected to retain its Accumulate rating. The damage to the price target is -$1 to $11.

The analysts point at strong premium rate momentum and their suspicion the current CEO is removing residual reserving concerns prior to the arrival of his successor as factors underpinning the above decision.

Earnings estimates have equally been negatively impacted by lower yields and a stronger AUD. The insurer is now targeting a lower allocation to risk assets, notes the broker.

Target price is $11.00 Current Price is $8.56 Difference: $2.44
If QBE meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $10.81, suggesting upside of 27.5% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Ord Minnett rates RHC as Accumulate (2) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. The broker's price target for Ramsay Health Care has fallen to $69.50 from $72. Accumulate.

Target price is $69.50 Current Price is $60.78 Difference: $8.72
If RHC meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $68.38, suggesting upside of 13.6% (ex-dividends)

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

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

Looking forward to the release of Q2 earnings on January 28 (the following day for Australian investors), Morgan Stanley reiterates its view that sales of ventilators have peaked for now, while ResMed shares are still trading at elevated multiples.

The broker also remains confident the company will emerge well from the current pandemic, supported by the strategy to move into connected care and cloud-based solutions.

Valuation keeps the rating unchanged at Equal-weight. Industry view: In-Line. Price target US$220, unchanged. This translates into $29.20, a little down from $29.30 in December.

No changes were made to estimates.

Target price is $29.20 Current Price is $27.42 Difference: $1.78
If RMD meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.79, suggesting downside of -1.9% (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: 0.4

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

Ord Minnett rates RMD as Hold (3) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. ResMed's price target has fallen to $21.30 from $23.30. Hold.

Target price is $21.30 Current Price is $27.42 Difference: minus $6.12 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.79, suggesting downside of -1.9% (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

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

Ord Minnett has upgraded Reliance Worldwide to Accumulate from Hold with the stock having underperformed the broader market by some -11% since the release of a market update on October 29 last year.

The broker believes a stronger Aussie dollar and the rising copper price, both key input costs for the company, can be held responsible for this.

Offsetting the above, the company is expected to release a very strong interim result in February. Target price moves to $4.50 from $4.20. Ord Minnett highlights that, on a constant currency basis, EPS estimates have increased by 8% on average.

Target price is $4.50 Current Price is $3.98 Difference: $0.52
If RWC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 11.8% (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

Ord Minnett rates SHL as Hold (3) -

Ord Minnett has incorporated new FX forecasts for the healthcare sector in Australia. All in all, valuations and price targets expressed in AUD have been negatively impacted.

No changes have been made to individual stock ratings. The price target for Sonic Healthcare has fallen to $34.30 from $36.30. Hold.

Target price is $34.30 Current Price is $33.92 Difference: $0.38
If SHL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $37.18, suggesting upside of 10.9% (ex-dividends)

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 SSM as Buy (1) -

Ord Minnett continues to believe Service Stream is in a solid position to win additional contracts from the NBN to compensate for the (apparently) somewhat disappointing $70m headline contract announced late last year.

Earnings estimates have been reduced and the broker observes FY21 will likely be skewed towards H2. DCF valuation drops to $2.21 from $2.63 but Buy rating retained as Ord Minnett sees more upside.

Target price is $2.21 Current Price is $1.75 Difference: $0.46
If SSM meets the Ord Minnett target it will return approximately 26% (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

Ord Minnett rates STO as Buy (1) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Buy-rated Santos, the price target has moved to $7.53 from $6.80, supported by higher forecasts.

Target price is $7.53 Current Price is $6.98 Difference: $0.55
If STO meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting downside of -4.6% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.7

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

Ord Minnett rates SXY as Buy (1) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Buy-rated Senex Energy, the price target has moved to $0.44 from $0.43, supported by higher forecasts.

Target price is $0.44 Current Price is $0.33 Difference: $0.11
If SXY meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $0.43, suggesting upside of 23.8% (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

Morgans rates SYD as Add (1) -

Ahead of the upcoming February reporting season, when Sydney Airport is due to release its FY20 financials, analysts at Morgans have updated their modeling and assumptions.

The analysts remain confident a sustained recovery lays ahead on the back of vaccine roll-outs internationally. Add rating retained.

Price target lifts to $6.95 from $6.56 on increased forecasts. Morgans doesn't anticipate the return of distributions to shareholders before 2023 (final dividend FY22), which is an improvement from prior projections.

Target price is $6.95 Current Price is $6.32 Difference: $0.63
If SYD meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.13, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates UWL as Buy (1) -

Unity Group has negotiated the purchase of Velocity assets from Telstra ((TLS)) for $85m upfront (total cost $180m) and Ord Minnett views the deal favourably.

While earnings estimates are going up, the broker points out the inclusion of Telstra certainly adds to the quality of those forecasts.

Target price lifts to $1.95 from $1.82. Buy.

Target price is $1.95 Current Price is $1.70 Difference: $0.25
If UWL meets the Ord Minnett target it will return approximately 15% (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

Ord Minnett rates VEA as Accumulate (2) -

Viva Energy Group released a trading update in late December which included guidance that was better than Ord Minnett's expectations.

The broker does highlight guidance for commercial earnings disappointed. Price target has lifted to $2.25 from $2.20 on ongoing positive expectations from the analyst.

Accumulate rating retained.

Target price is $2.25 Current Price is $1.80 Difference: $0.45
If VEA meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $2.18, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates WPL as Hold (3) -

Ord Minnett has issued a general sector update on energy, including new forecasts for Brent. The updated forecasts now work off Brent priced at US$53/bbl in 2021 (up 17%), and US$50/bbl in 2022 and 2023 (up 11%).

Most preferred sector exposures are Santos, then Beach Energy, then Oil Search. For Hold-rated Woodside Petroleum, the price target has moved to $26.11 from $23.80, supported by higher forecasts.

Target price is $26.11 Current Price is $24.81 Difference: $1.3
If WPL meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $24.15, suggesting downside of -5.2% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

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