Australian Broker Call

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

Abacus Property remains exposed to self storage/office although it is adding value opportunities, Macquarie observes. As a result of recent transactions the broker estimates the business now has a 45% exposure to self storage and 11% exposure to retail.

While there is potential upside the broker also notes increased risk, and with limited valuation support downgrades to Neutral from Outperform. Target is raised to $3.35 from $3.05.

Target price is $3.35 Current Price is $3.15 Difference: $0.2
If ABP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting downside of -1.5% (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

Morgans rates AFG as Add (1) -

Data suggests to Morgans a stronger growth outlook than expected for Australian Finance Group Home Loans (AFGHL), driven by Australian Finance Group Securities (AFGS). The broker increases its forecast for AFGS settlements growth in FY22 to 84% from 41%.

Morgans also increases its net interest margin (NIM) forecast for the second half and for FY22, by 2bps and 5bps. This has resulted from the contraction seen in residential mortgage backed securities (RMBS) spreads over the last three months.

The broker lifts its target price to $3.30 from $2.90 and maintains its Add rating.

Target price is $3.30 Current Price is $2.64 Difference: $0.66
If AFG meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.25, suggesting upside of 24.2% (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

Ord Minnett rates ALL as Accumulate (2) -

Ord Minnett assesses the likelihood of Australasian outright sales performing strongly in the second half will be curbed to some extent by a lack of equipment and related products for slot cabinets.

Hardware items such as silicon chips, monitors and light tubes have been most affected. Meanwhile, the demand for Aristocrat Leisure products has been strong.

The broker envisages significant downside risk to second half estimates, pending fourth quarter sales outcomes and a recovery in supply. Accumulate rating and $45 target maintained.

Target price is $45.00 Current Price is $42.36 Difference: $2.64
If ALL meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $43.11, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates ANZ as Neutral (3) -

The extended Sydney lockdown may result in capital management being delayed as banks choose to hold higher levels of capital as buffers for any potential economic impacts, explains Credit Suisse.

The Commonwealth Bank ((CBA)) would be most impacted, and the broker considers there could be a delay in any capital management they were set to announce. The broker's current forecasts for the major banks can accommodate a slight deterioration in asset quality.

The analyst reminds us the sector has brushed aside lockdowns, with only the second Melbourne lockdown having a negative impact on
relative performance. The broker's Neutral rating and $28.50 target are retained for ANZ Bank.

Target price is $28.50 Current Price is $27.43 Difference: $1.07
If ANZ meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $30.00, suggesting upside of 10.5% (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

Morgans rates APT as Hold (3) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

For BNPL generally, Morgans expects growth will be be strong. For Afterpay, the market estimates it will become profit-positive into FY22, notes the analyst, and a key focus will be monitoring the earnings trajectory to attain this.

After making nominal changes to earnings forecasts, the broker lowers its price target to $114 from $121, on reduced long-term valuation  growth assumptions.Morgans Hold rating is unchanged.

Target price is $114.00 Current Price is $103.21 Difference: $10.79
If APT meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $121.57, suggesting upside of 15.9% (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 ARF as Downgrade to Neutral from Outperform (3) -

Macquarie reviews its investment thesis following the strong share price performance and downgrades to Neutral from Outperform on valuation grounds.

The broker calculates the stock is trading at a 48.8% premium to its December 2020 pro forma net tangible assets per share and this factors in too much additional valuation upside.

The broker notes capacity on the balance sheet continues, assessing around $160m of deployment capacity before reaching the bottom of the target gearing range of 35-40%. Target is raised to $3.73 from $3.25.

Target price is $3.73 Current Price is $3.60 Difference: $0.13
If ARF meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting downside of -2.2% (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

Ord Minnett rates ASB as Hold (3) -

Recent press reports and the US FY22 budget proposal now signal the US Navy will not exercise the option for the incumbent shipbuilder to construct the remaining four vessels in the Navajo program and instead award these to Austal. The vessels are expected to be delivered between November 2024 and November 2025.

Ord Minnett notes this is a positive for Austal in that it provides some throughput in the shipyard facility and keeps the workforce employed as the littoral combat ship program winds down.

Yet more contracts need to be won to match the previous throughput and as Austal has no experience in manufacturing these vessels the margin outcome is likely to face some downside risk.

The broker retains a Hold rating and $2.30 target.

Target price is $2.30 Current Price is $2.19 Difference: $0.11
If ASB meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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

Morgans rates ASX as Reduce (5) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

ASX has the only Reduce rating in the broker's coverage of the sector. After making minor earnings changes, Morgans' price target rises to $66.25 from $65.87.

Target price is $66.25 Current Price is $76.02 Difference: minus $9.77 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.05, suggesting downside of -7.6% (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

Citi rates AWC as Buy (1) -

Alcoa's result showed a lower than expected profit in the June quarter which flows through to lower dividends for JV partner Alumina.

While production and costs were in line, lower alumina prices achieved in the first half and lowered expectations for full-year pricing see the broker cut its dividend forecast by -23%. But a forecast of higher 2022-23 alumina prices suggests double digit yields ahead.

And in lower restructuring charges, and the broker retains Buy and a $1.90 target.

Target price is $1.90 Current Price is $1.61 Difference: $0.29
If AWC meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 17.5% (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: 0.5

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

Credit Suisse rates AWC as Outperform (1) -

Credit Suisse notes Alcoa’s June quarter report and Alumina Ltd’s announcement showed alumina cash costs climbed
swiftly to US$230/t in the June half, due to energy and caustic soda inflation.

Alcoa World Alumina and Chemicals (AWAC), owned 40% by Alumina Ltd, faced weak alumina prices in 2020, but earnings were buffered by low costs, notes the analyst. It's felt this shield is gone, with elevated commodity prices and growing inflation in 2021. 

Third party bauxite sales in the June half slid to 2.6mt from the expected 4mt, and the broker guesses that rising freight rates may
have made some trades unprofitable.

Credit Suisse estimates higher costs and reduced bauxite sales, which erodes Alumina Ltd's share of earnings by circa 25% in 2021 and 2022. Credit Suisse retains its Outperform rating and lowers the target price to $1.85 from $2.

Target price is $1.85 Current Price is $1.61 Difference: $0.24
If AWC meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 17.5% (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: 0.5

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

Macquarie rates AWC as Underperform (5) -

Alumina and bauxite production for the AWAC joint venture was in line with expectations. Higher realised alumina prices in the second quarter provided higher cash distributions and boosts Macquarie's forecasts for the interim dividend.

The dividend yield is 5.5% for 2021 and 2022 on forecasts and in a spot scenario. The broker expects continued margin suppression as cost pressures remain evident in the second half. Underperform maintained. Target is reduced to $1.30 from $1.50.

Target price is $1.30 Current Price is $1.61 Difference: minus $0.31 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.83, suggesting upside of 17.5% (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: 0.5

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

Morgan Stanley rates AWC as Overweight (1) -

Net distributions for the were ahead of Morgan Stanley's estimates for the first half, at US$137m. The broker expects a dividend of US2.6c.

The company mentioned handysize freight costs have remained high and this has led to subdued alumina prices and a contraction in margin.

Until these costs come off Morgan Stanley expects the alumina price will be unable to rally. Alcoa continues to anticipate inflationary pressure on raw materials and energy in the third quarter.

Overweight rating. Industry view: Attractive. Target is $2.15.

Target price is $2.15 Current Price is $1.61 Difference: $0.54
If AWC meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 17.5% (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: 0.5

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

Ord Minnett rates AWC as Hold (3) -

AWAC alumina costs rose US$2/t in the June quarter to US$231/t while the achieved price of US$282/t was down -5% quarter on quarter.

Ord Minnett upgrades earnings forecasts in marking to market the second quarter and amid less aggressive cost assumptions.

For the first half the broker forecasts a dividend of 2.7c. Hold maintained. Target rises to $1.80 from $1.70.

Target price is $1.80 Current Price is $1.61 Difference: $0.19
If AWC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 17.5% (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: 0.5

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

Ord Minnett rates BBT as Initiation of coverage with Buy (1) -

BlueBet Holdings is an Australian online wagering service provider that is experiencing rapid growth and Ord Minnett believes it is well-positioned to benefit from Australian sports betting continuing to shift to online.

The US also presents an opportunity to establish its presence in a number of states. Ord Minnett initiates with a Buy rating and $2.08 target.

Target price is $2.08 Current Price is $1.85 Difference: $0.23
If BBT meets the Ord Minnett target it will return approximately 12% (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

Credit Suisse rates CBA as Neutral (3) -

The extended Sydney lockdown may result in capital management being delayed as banks choose to hold higher levels of capital as buffers for any potential economic impacts, explains Credit Suisse.

The Commonwealth Bank would be most impacted, and the broker considers there could be a delay in any capital management they were set to announce. The broker's current forecasts can accommodate a slight deterioration in asset quality.

The analyst reminds us the sector has brushed aside lockdowns, with only the second Melbourne lockdown having a negative impact on
relative performance. The broker's Neutral rating and $95 target are retained.

Target price is $95.00 Current Price is $98.19 Difference: minus $3.19 (current price is over target).
If CBA meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.33, suggesting downside of -8.7% (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 CGF as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker lifts future earnings estimates by 2%-5% for Challenger, on a reassessment of forecasts, after reviewing detail provided at the company investor day. Morgans' price target rises to $6.45 from $6.26 and its rating of Add is maintained.

Target price is $6.45 Current Price is $5.69 Difference: $0.76
If CGF meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.94, suggesting upside of 5.6% (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

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

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker lowers its rating for Computershare to Hold from Add after a share price rally of over 20% since March.

EPS forecasts are downgraded for FY22 and FY23 by -2% and -4%, on more conservative earnings (EBITDA) margin assumptions. The broker’s price target rises to $17.42 from $17.10 on a valuation roll-forward.

Target price is $17.42 Current Price is $16.14 Difference: $1.28
If CPU meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.57, suggesting upside of 4.4% (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: 0.1

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

Macquarie rates CSL as Neutral (3) -

Macquarie expects recent trends will impact on finished product volumes in the second half of FY22 and FY23. Foot traffic for around 100 of the company's US-based plasma collection centres has stayed subdued in recent weeks.

Macquarie assumes a recovery over the balance of 2021 but a continuation of current trends would present downside risk. Neutral rating and $312 target maintained.

Target price is $312.00 Current Price is $277.72 Difference: $34.28
If CSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $301.44, suggesting upside of 6.3% (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: 0.3

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

Ord Minnett rates CSL as Hold (3) -

Ord Minnett rejigs its modelling for the Behring division in order to capture the lift in donor payments and the high fixed cost in the fractionation business.

Overall, the broker is confident collections will recover by the end of 2021 and higher input costs will be offset by higher prices. Hold rating retained. Target rises to $280.00 from $266.20.

Target price is $280.00 Current Price is $277.72 Difference: $2.28
If CSL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $301.44, suggesting upside of 6.3% (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: 0.3

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

Citi rates EVN as Upgrade to Neutral from Sell (3) -

Evolution Mining's June quarter production missed previously tightened guidance due to underperformance at Mungari and lower grades at Red Lake, with hopes of increased Lake Cowal production stymied by an unplanned mill outage.

On the back of fresh three-year production guidance, Citi has lowered FY21-22 earnings forecasts but increased FY23-24. Target falls to $4.70 from $4.80 but the broker upgrades to Neutral from Sell.

Target price is $4.70 Current Price is $4.69 Difference: $0.01
If EVN meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting downside of -0.5% (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

Credit Suisse rates EVN as Downgrade to Neutral from Outperform (3) -

Credit Suisse lowers its rating for Evolution Mining to Neutral from Outperform and its target price to $4.45 from $5.05, after the three-year group production/cost/capital outlook fell short of expectations.

At a group level, the analyst explains the production outlook came in broadly lower than the market expected, and details on individual operations' outlooks will be supplied at the full year results.

Credit Suisse suggests that there are better value opportunities in the sector over a short to medium-term view.

Target price is $4.45 Current Price is $4.69 Difference: minus $0.24 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting downside of -0.5% (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 EVN as Downgrade to Underperform from Neutral (5) -

Quarterly production results were weaker than Macquarie expected in terms of both volume and costs, and missed revised guidance albeit met original guidance.

The three-year outlook is materially more negative, the broker asserts, with costs and capital expenditure higher than expected. This has a large impact on cash flow expectations.

The rating is downgraded to Underperform from Neutral and the target is lowered to $4.00 from $4.90.

Target price is $4.00 Current Price is $4.69 Difference: minus $0.69 (current price is over target).
If EVN 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 $4.28, suggesting downside of -0.5% (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 EVN as Underweight (5) -

Fourth quarter production was weak and missed FY21 guidance. Despite growth plans for Red Lake, FY22 and FY23 gold production guidance is down -5%.

Morgan Stanley notes capital expenditure guidance has also increased and the quarterly update has largely removed upside risk.

The broker acknowledges its forecast for an FY24 target of 465,000 ounces was ambitious, noting Evolution Mining is now targeting 350,000 ounces by FY26. Morgan Stanley now expects 430,000 ounces from FY26.

The broker considers the stock overvalued and retains an Underweight rating. Target is reduced to $4.00 from $4.30. Industry view: Attractive.

Target price is $4.00 Current Price is $4.69 Difference: minus $0.69 (current price is over target).
If EVN meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting downside of -0.5% (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

Morgans rates EVN as Hold (3) -

A FY21 production miss was disappointing to Morgans though it was partially offset by cost control and rising copper credits. Positively, management commented on the low level of staff turnover (outside of WA), as the industry begins to see labour cost escalation.

The three-year outlook outlines a pathway to 950koz pa of production by FY24, with further upside potential as Red Lake continues to ramp up beyond the guidance period, explains the broker. Guidance is for a final dividend of between 4-6 cents.

The analyst highlights a higher capex spend and slower production ramp up than expected, partially offset by higher ultimate annual gold production. Morgans lowers its target price to $4.49 from $4.68 and retains its Hold rating.

Target price is $4.49 Current Price is $4.69 Difference: minus $0.2 (current price is over target).
If EVN meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting downside of -0.5% (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 EVN as Hold (3) -

Quarterly production was softer than Ord Minnett expected because of a seismic event at Red Lake and mill outage at Cowal.

Three-year guidance is disappointing for the broker, with the production outlook -7-17% lower than expected, largely from an expected slower ramp up at Red Lake.

Ord Minnett retains a Hold rating and reduces the target to $4.40 from $4.60.

Target price is $4.40 Current Price is $4.69 Difference: minus $0.29 (current price is over target).
If EVN 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 $4.28, suggesting downside of -0.5% (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 FCL as Outperform (1) -

Macquarie assesses the valuation discount has widened for Fineos compared with Guidewire and Duck Creek. Yet the current offerings supported by ongoing R&D allows the company to continue to win new clients and upgrade existing clients to the cloud.

Hence, Macquarie assesses the medium-term opportunity is attractive and the main risk lies with the timing of contract gains in the short term. Outperform and a $4.63 target maintained.

Target price is $4.63 Current Price is $3.98 Difference: $0.65
If FCL meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Morgans rates GDG as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker makes no changes to either the earnings forecast or the $1.16 price target for Generation Development Group, after an update following the recent quarterly. Morgans maintains its Hold rating.

Target price is $1.16 Current Price is $1.02 Difference: $0.14
If GDG meets the Morgans 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

Macquarie rates HDN as Resume Coverage with Outperform (1) -

Macquarie resumes coverage with an Outperform rating and $1.60 target. The company has raised $70m to partially fund the acquisition of Town Centre Victoria Point.

In isolation, the broker calculates the transaction is around 1% accretive to annualised free funds from operations per share. Following the transaction pro forma gearing is estimated at 35.4%, within the internal target range.

Target price is $1.60 Current Price is $1.49 Difference: $0.11
If HDN meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 0.6% (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 IAG as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker expects a weather affected second half for Insurance Australia Group though makes only minor adjustments to forecast earnings on a mark-to-market of investment assumptions.

Morgans price target rises to $5.46 from $5.22 and its Add rating is unchanged.

Target price is $5.46 Current Price is $4.93 Difference: $0.53
If IAG meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.43, suggesting upside of 12.4% (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

Morgans rates KSL as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker reduces FY21 EPS forecasts for Kina Securities by -4% (FY22 largely unchanged), on slightly more conservative loan growth and bad debt assumptions.

Morgans retains its Add rating and lowers its price target to $1.63 from $1.64, with earning changes offset by a valuation roll-forward. 

Target price is $1.63 Current Price is $1.03 Difference: $0.6
If KSL meets the Morgans target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Morgans rates LNK as Upgrade to Add from Hold (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker upgrades its rating for Link Administration Holdings to Add from Hold. The business, ex PEXA Group ((PXA)), is considered trading on low multiples, as the balance sheet has meaningfully de-geared post receiving the PEXA Group IPO proceeds.

The analyst suggests earnings are well positioned to benefit from a global recovery, and expects management to reaffirm earnings have bottomed in FY21. Only minor changes are made to earnings forecasts. The broker’s price target falls to $5.53 from $5.57.

Target price is $5.53 Current Price is $4.83 Difference: $0.7
If LNK meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting upside of 17.3% (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 MAI as Hold (3) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker makes no changes to EPS forecasts or its Hold rating for Mainsream Group Holdings, and its price target is set at $2.80, in-line with the APEX takeover price. 

Target price is $2.80 Current Price is $2.73 Difference: $0.07
If MAI meets the Morgans target it will return approximately 3% (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 MHJ as Outperform (1) -

Trading momentum was strong in the fourth quarter amid margin expansion. Macquarie lauds the growth strategy and execution by management, noting scope for increasing the dividend and other capital management initiatives.

Same-store sales were up 7.5% over the quarter and up 11 6.3% on an all-store basis. Target is steady at $1. Outperform rating retained.

Target price is $1.00 Current Price is $0.91 Difference: $0.09
If MHJ meets the Macquarie target it will return approximately 10% (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

Morgans rates MME as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker makes no changes changes to its earnings forecast, Add rating or $2.13 price target, after updating  numbers for MoneyMe's recent business update.

Target price is $2.13 Current Price is $2.03 Difference: $0.1
If MME meets the Morgans target it will return approximately 5% (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

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

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

Within the sector, the broker considers the health insurers are the best upside earnings risk candidates. However, Medibank Private has already declared it will return $105m of covid benefits to customers via premium relief by September 2021.

The broker lowers its rating to Hold from Add after a share price rally of over 20% since March. The broker’s $3.34 target price is unchanged, after lifting FY21 and FY22 EPS forecasts by 1%-2% on slightly more favourable claims assumptions. 

Target price is $3.34 Current Price is $3.27 Difference: $0.07
If MPL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting downside of -2.4% (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

Credit Suisse rates NAB as Outperform (1) -

The extended Sydney lockdown may result in capital management being delayed as banks choose to hold higher levels of capital as buffers for any potential economic impacts, explains Credit Suisse.

The Commonwealth Bank ((CBA)) would be most impacted, and the broker considers there could be a delay in any capital management they were set to announce. The broker's current forecasts for the major banks can accommodate a slight deterioration in asset quality.

The analyst reminds us the sector has brushed aside lockdowns, with only the second Melbourne lockdown having a negative impact on
relative performance. The broker's Outperform rating and $27.50 target are retained for National Australia Bank.

Target price is $27.50 Current Price is $25.96 Difference: $1.54
If NAB meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates NHF as Hold (3) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

Within the sector, the broker considers the health insurers are the best upside earnings risk candidates. 

The analyst’s target price for nib Holdings increases to $6.66 from $6.45 after lifting the FY21 EPS forecast by 6% (with FY22 largely unchanged), reflecting favourable investment market experience in the second half. Morgans' Hold rating is retained.

Target price is $6.66 Current Price is $6.57 Difference: $0.09
If NHF meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.37, suggesting downside of -3.1% (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

Morgans rates NTD as Hold (3) -

Morgans lifts its EPS forecasts for National Tyre & Wheel by around 20% for FY21-FY23, following guidance and additional synergies outlined by management from FY23. The broker's target price rises to $1.21 from $0.92 and its Hold rating is unchanged.

The strength of trading reflects continued broader category strength and a strong Easter period for the group, explains the analyst. Year-end lockdowns are not expected to have dented full year earnings though the escalation in NSW could have short-term impacts.

Management announced a new corporate structure and growth program with the aim of capturing revenue synergies via cross selling across business units. Should fourth quarter trading momentum be similar to the third, Morgans sees further upside to the forecast.

Target price is $1.21 Current Price is $1.16 Difference: $0.05
If NTD meets the Morgans target it will return approximately 4% (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

Morgans rates PPT as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker upgrades EPS forecasts by 1%-2% for Perpetual over the forecast period on higher equity market assumptions. Morgans sets its price target at $41.63, up from $39.18, reflecting earnings changes and a valuation roll-forward. The broker's Add rating is unchanged.

Target price is $41.63 Current Price is $39.10 Difference: $2.53
If PPT meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $38.12, suggesting downside of -0.3% (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

Morgan Stanley rates PSQ as Overweight (1) -

Morgan Stanley notes Pacific Smiles achieved guidance for FY21 although was adversely affected by the May and late June lockdowns in Melbourne and Sydney.

This implies a soft start to FY22. Underlying operating earnings (EBITDA) of $33.1m were up 41% and at the lower end of guidance. The full year report is due on August 18.

Overweight retained. Target is $3.20. Industry view: In-line.

Target price is $3.20 Current Price is $2.53 Difference: $0.67
If PSQ meets the Morgan Stanley 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: 1.0

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

Citi rates QAN as Buy (1) -

Historically, July is an above-average month for flying activity, the broker notes. NSW makes up 35-40% of domestic activity and adding in Victoria leads to 60-70%. All thus hinges on lockdown durations.

The broker estimates a fall to 60% capacity would result in only minor pain for Qantas, which could be maintained if only NSW is locked down. Any lower, on new lockdowns elsewhere, would start to hurt.

Buy retained, target falls to $5.61 from $5.89.

Target price is $5.61 Current Price is $4.72 Difference: $0.89
If QAN meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.79, suggesting upside of 24.3% (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

Citi rates QBE as Buy (1) -

The market appears nervous about QBE's track record and upcoming CEO transition, but the broker points to underlying conditions remaining favourable.

The broker foresees a catastrophe cost overrun, a favourable discount rate adjustment and additional covid provisions to impact on the upcoming result, amidst claims data. Overall, the broker is optimistic a good result is due and a subsequent share price gain.

Buy retained, target rises to $12.35 from $12.00.

Target price is $12.35 Current Price is $10.72 Difference: $1.63
If QBE meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $11.93, suggesting upside of 12.5% (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: 0.8

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

Morgans rates QBE as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker expects QBE Insurance Group to deliver further attritional claims ratio improvement on the back of strong premium rate increases.

Morgans lowers forecast FY21 EPS by -1% though lifts FY22 by 5% to reflect stronger margin assumptions due to the favourable pricing environment. The broker’s price target rises to $12.17 from $11.83. The Add rating is maintained.

Target price is $12.17 Current Price is $10.72 Difference: $1.45
If QBE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.93, suggesting upside of 12.5% (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: 0.8

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

Citi rates RIO as Buy (1) -

Rio Tinto's June quarter production fell short of guidance, and management has flagged full-year production for all of iron ore, copper and bauxite at the lower end of guidance ranges.

The broker acknowledges there is a covid risk in the second half, but macro support from iron ore prices and a lower A$ leads the broker to lift its target to $135 from $130.

The broker suggests a possible 95% payout ratio for an interim dividend of $7.30/share. Buy retained.

Target price is $135.00 Current Price is $130.60 Difference: $4.4
If RIO meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

Credit Suisse rates RIO as Outperform (1) -

Credit Suisse assesses a weak June quarter as iron ore was impacted by factors including weather, covid-logistics impacts, equipment availability, labour challenges and culture heritage reviews. All this is considered overshadowed by the stronger iron ore price.

The broker notes the dividend alone should be enough to justify its Outperform call though cautions that any prolonged operational risks could prove more serious if/when markets subside again. The broker's $133 target price remains unchanged.

Target price is $133.00 Current Price is $130.60 Difference: $2.4
If RIO meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

Macquarie rates RIO as Outperform (1) -

Macquarie notes iron ore, copper and bauxite volumes were at the lower end of guidance in the June quarter. Iron ore prices continue to drive upgrade momentum, with spot prices generating 38% and 120% higher earnings for 2021 and 2022.

The broker makes modest changes to earnings forecasts after incorporating the result and shaves a $1 off the target, to $162 from $163. Outperform maintained.

Target price is $162.00 Current Price is $130.60 Difference: $31.4
If RIO meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

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

The June quarter was soft with Morgan Stanley calculating a -5% impact to EBITDA on the first half. Both iron ore and copper are guided at the lower end of ranges after a weak run rate over the first half.

Costs at Pilbara are up 6% while Oyu Tolgoi continues to face disruptions from the pandemic and Winu is delayed.

Equal-weight rating retained. Industry view is In-Line. The target price is $129.

Target price is $129.00 Current Price is $130.60 Difference: minus $1.6 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

Morgans rates RIO as Hold (3) -

Morgans assesses Rio Tinto reported a soft second quarter operational result across key divisions, with lower iron ore, copper and bauxite production. The broker maintains its Hold rating and lowers its target price to $120 from $121.

Material tightness in the WA labour market and an exceptional inflationary environment were the major contributors to the weaker Pilbara performance, notes the analyst. 

While a disappointing result, the market remains more focused in the short term on the ongoing robust spot iron ore price, explains Morgans.

Target price is $120.00 Current Price is $130.60 Difference: minus $10.6 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

Ord Minnett rates RIO as Buy (1) -

Iron ore shipments were down -3% in the June quarter and -10% below Ord Minnett's estimates. The decline stemmed from weather, replacement mine tie-in, cultural heritage constraints and labour shortages.

Unit costs guidance has been raised to US$18-18.50/t while achieved prices in the half-year were lower than Ord Minnett forecast because of a higher proportion of lower-quality product.

The broker remains positive on Rio Tinto as it is among the cheapest valuations in its coverage and offers a high dividend yield of 14% for 2021. Buy rating retained. Target is reduced to $165 from $170.

Target price is $165.00 Current Price is $130.60 Difference: $34.4
If RIO meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

UBS rates RIO as Sell (5) -

UBS notes a challenging second quarter for Rio Tinto, with the company guiding to production of iron ore, copper and bauxite all at the low end of forecast ranges.

The business is still benefiting from higher iron ore prices, although UBS expects prices will fall to US$100/t over the next 12 months and to US$75/t in 2024 as Chinese demand softens and Brazilian and Australian supply recovers.

Specifically, mined copper production was -12% below expectations because of a slope failure at Kennecott and pandemic disruptions at Escondida and Oyu Tolgoi. Sell rating and $104 target maintained.

Target price is $104.00 Current Price is $130.60 Difference: minus $26.6 (current price is over target).
If RIO meets the UBS target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.43, suggesting upside of 5.9% (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: 0.4

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

UBS rates SKI as No Rating (-1) -

UBS notes that the indicative proposal from KKR/Ontario Teachers to acquire Spark Infrastructure for $2.80 implies a 4% internal rate of return and equates to 13.3x FY22 EBITDA estimates.

The proposal will require approval from the FIRB and if approved would mean 88% of Victorian and South Australian electricity distribution assets would be foreign-owned.

Separate to the buy-out proposal, the company has also announced plans to develop a 2.5GW renewable energy hub at Dinawan in NSW.

UBS remains cautiously supportive of the company's plans to diversify into renewable and energy storage assets, although notes it currently operates only one - the Bomen solar farm.

The broker is advising KKR/Ontario Teachers and is restricted on rating and target.

Current Price is $2.63. Target price not assessed.

Current consensus price target is $2.56, suggesting downside of -2.9% (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 STX as Outperform (1) -

Macquarie envisages considerable upside for the shares as the resource at Greater Erregulla is better understood and downstream strategies for geothermal and fertilisers are progressed.

The broker maintains an Outperform rating and Strike Energy remains a top pick in the small-medium energy stocks. Target is $0.60.

Target price is $0.60 Current Price is $0.32 Difference: $0.28
If STX meets the Macquarie target it will return approximately 87% (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

Morgans rates SUN as Hold (3) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The broker expects a weather affected second half for Suncorp Group though makes only minor adjustments to forecast earnings on a mark-to-market of investment assumptions.

Morgans price target rises to $11.66 from $11.53 and its Add rating is unchanged.

Target price is $11.66 Current Price is $11.50 Difference: $0.16
If SUN meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.94, suggesting upside of 5.0% (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

Morgans rates TYR as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

The analyst explains consensus has Tyro Payments producing its first positive full year earnings (EBITDA) result in FY21.

The broker lifts its earnings forecasts by $7m and $9m in FY22 and FY23, reflecting increased operating leverage expectations. The price target is set at $4.41, up from $4.29, and Morgans’ Add rating is maintained.

Target price is $4.41 Current Price is $3.44 Difference: $0.97
If TYR meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 18.1% (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

Credit Suisse rates WBC as Outperform (1) -

The extended Sydney lockdown may result in capital management being delayed as banks choose to hold higher levels of capital as buffers for any potential economic impacts, explains Credit Suisse.

The Commonwealth Bank ((CBA)) would be most impacted, and the broker considers there could be a delay in any capital management they were set to announce. The broker's current forecasts for the major banks can accommodate a slight deterioration in asset quality.

The analyst reminds us the sector has brushed aside lockdowns, with only the second Melbourne lockdown having a negative impact on
relative performance. The broker's Outperform rating and $28 target are retained for Westpac Bank.

Target price is $28.00 Current Price is $24.91 Difference: $3.09
If WBC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $28.28, suggesting upside of 14.6% (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 WPL as Outperform (1) -

With low-end FY21 production guidance intact, Credit Suisse increases its target price to $27.95 from $27.57 and maintains its Outperform rating, in the wake of higher price forecasts and the cheap FAR Senegal acquisition. 

After underperformance last year, the broker believes the company presents a relative value proposition, with around 30% upside should Scarborough proceed, and more limited upside should it fall over.

Target price is $27.95 Current Price is $22.76 Difference: $5.19
If WPL meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 22.6% (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: 0.7

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

Morgans rates Z1P as Add (1) -

Morgans updates its Insurance/Diversified Financials sector earnings forecasts on a mark-to-market basis, and after a broad review of earnings assumptions.

For BNPL generally, Morgans expects growth will be be strong. For Zip Co, the broker increases its FY21 and FY22 EPS forecasts by 2% and 8%, on increased sales growth forecasts, post a review of assumptions.

The broker’s price target is reduced marginally to $9.75 from $10.39, reflecting lower long-term margin expectations as BNPL sector competition continues to increase. Morgans retains its Add rating.

Target price is $9.75 Current Price is $7.10 Difference: $2.65
If Z1P meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 21.8% (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