Australian Broker Call
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April 19, 2022
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
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Today's Upgrades and Downgrades
| DEL - | Delorean Corp | Upgrade to Speculative Buy from Hold | Morgans |
Overnight Price: $13.52
Citi rates AKE as Buy (1) -
Given a ten-day shutdown at Allkem's Olaroz project during the March quarter, production came in softer than Citi had estimated at 2,972 tonnes compared to an expected 3,500 tonnes, but the broker highlighted costs were lower than expected.
Revenue was up US$128m quarter-on-quarter, with realised pricing of US$27,236 per tonne. Looking ahead, the broker expects realised pricing to reach US$35,000 per tonne in the June quarter, while Naraha first production is expected.
The Buy rating and target price of $16.00 are retained.
Target price is $16.00 Current Price is $13.52 Difference: $2.48
If AKE meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 0.00 cents and EPS of 48.70 cents. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 0.00 cents and EPS of 82.00 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates AKE as Outperform (1) -
Mixed results from Allkem's March quarter results according to Credit Suisse. Sales at the Mt Cattlin project were a 40% beat on consensus forecasts and labour shortages saw unit costs revised down to US$380-410 per tonne, while Olaroz missed by -10% with unit costs down -12% quarter-on-quarter.
The broker continues to expect spodumene and carbonate to demand a US$35,000 per tonne price in the June quarter as tightness continues in the lithium market. Further, Credit Suisse considers scope for a maiden dividend to be delivered in the next year.
The Outperform rating is retained and the target price increases to $16.40 from $15.30.
Target price is $16.40 Current Price is $13.52 Difference: $2.88
If AKE meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 0.00 cents and EPS of 74.44 cents. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 125.29 cents and EPS of 250.59 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates AKE as Equal-weight (3) -
Following Allkem's March quarter activities report, Morgan Stanley notes Mt Cattlin's year-to-date production run rate suggests FY22
production will exceed guidance, implying June quarter production will likely be weaker.
The analyst points out Mt Cattlin had a lower grade than expected for the quarter. Meanwhile, production at Olaroz was a miss versus forecast, driven by a 10 day maintenance shutdown during February.
The Equal-weight rating and $11.30 target price are maintained. Industry View: Attractive.
Target price is $11.30 Current Price is $13.52 Difference: minus $2.22 (current price is over target).
If AKE meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 0.00 cents and EPS of 78.52 cents. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 0.00 cents and EPS of 178.69 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates AKE as Add (1) -
Following Allkem 's 3Q activities report, Morgans continues to see long-term valuation upside from persistent tightness in the lithium market.
While there were lower product grades and softer 3Q sales at Mt Cattlin, lower cost of sales acted as a partial offset, explains the analyst. The target price rises to $16.98 from $16.65 and the Add rating is unchanged.
Target price is $16.98 Current Price is $13.52 Difference: $3.46
If AKE meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of 68.00 cents. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of 151.00 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates AKE as Buy (1) -
Ord Minnett highlighted Allkem achieved a 48% beat on forecast spodumene sales in the March quarter, spurred on by a catch-up shipment from the Mt Cattlin project, driving a 51% beat on forecast costs.
Off the back of the third quarter results, full year cost guidance was reduced to US$380-410 per tonne, but the broker notes this will lift in subsequent quarters as the project heads towards end of life. Strong pricing guidance and margins expected in the June quarter.
The Buy rating and target price of $18.50 are retained.
Target price is $18.50 Current Price is $13.52 Difference: $4.98
If AKE meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of 63.63 cents. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 0.00 cents and EPS of 155.68 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates AKE as Buy (1) -
The release of Q3 production update revealed slightly better-than-expected numbers and thus UBS has maintained its Buy rating for Allkem while lifting its price target to $15.15 (was $15.10).
The analysts laud the fact that costs have remained contained while growth remains on track as per the recent investor strategy day.
Target price is $15.15 Current Price is $13.52 Difference: $1.63
If AKE meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
UBS forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.68 cents. |
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 0.00 cents and EPS of 146.20 cents. |
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.74
Morgans rates AMS as Add (1) -
Morgans places a -25% valuation discount on Atomos due a rotation of CEO's in the last 18 months. The latest churn relates to the termination of CEO Estelle McGechie, following continued delays on her relocation to Australia.
Nonetheless, the analyst feels no changes are required to forecasts as no significant changes operationally or from a product roadmap perspective are expected. The Add rating is retained, while the target falls to $1.40 from $1.87.
The currently weak share price is a buying opportunity, believes the broker.
Target price is $1.40 Current Price is $0.74 Difference: $0.66
If AMS meets the Morgans target it will return approximately 89% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.00 cents. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of 5.00 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $7.99
Citi rates BOQ as Buy (1) -
Citi notes Bank of Queensland suffered a -6% share price decline following the release of first half results, which included a 9% beat on cash earnings. The broker expects this reflects market concern around revenue growth compared to peers.
With Bank of Queensland less leveraged to a higher RBA cash rate than peers, Citi notes its revenue growth will slow as lending growth slows on the back of rate rises. The broker expects benefits of the ME Bank acquisition will assist in delivering single-digit earnings growth near-term.
The Buy rating and target price of $10.25 are retained.
Target price is $10.25 Current Price is $7.99 Difference: $2.26
If BOQ meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.0% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY22:
Citi forecasts a full year FY22 dividend of 49.00 cents and EPS of 77.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.7, implying annual growth of 13.1%. Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.5. |
Forecast for FY23:
Citi forecasts a full year FY23 dividend of 56.00 cents and EPS of 79.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.0, implying annual growth of 1.7%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Credit Suisse rates BOQ as Outperform (1) -
Despite Bank of Queensland delivering $268m in cash earnings in the first half, a beat on Credit Suisse's forecast, the broker has downgraded its earnings per share outlook -3-5% given worse than expected margins.
The broker notes margin decline was expected to peak in the half, but that weaker leverage to rate rises may see upside limited in coming periods. Positively, the bank retained above system housing loan growth and is on track to meet its targeted -2% cost reduction.
The Outperform rating is retained and the target price decreases to $10.00 from $11.40.
Target price is $10.00 Current Price is $7.99 Difference: $2.01
If BOQ meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.0% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 45.00 cents and EPS of 77.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.7, implying annual growth of 13.1%. Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.5. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 52.00 cents and EPS of 77.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.0, implying annual growth of 1.7%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates BOQ as Overweight (1) -
While Bank of Queensland's 1H pre-provision profit was in-line with Morgan Stanley's forecast, it included around $20m of one-offs, which boosted pre-provision profit by circa 6%. Meanwhile, net interest income was a -2.5% miss versus expectation.
The target price falls to $9.80 from $10.20. While disappointed by the results, the broker maintains its Outperform rating on an improving franchise performance, expected easing of margin headwinds and the outlook for costs. Industry view: Attractive.
Target price is $9.80 Current Price is $7.99 Difference: $1.81
If BOQ meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.0% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 45.00 cents and EPS of 73.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.7, implying annual growth of 13.1%. Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.5. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 51.00 cents and EPS of 73.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.0, implying annual growth of 1.7%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates BOQ as Add (1) -
Credit loss provision releases and one-off revenue gains (non-interest income) for Bank of Queensland's 1H cash earnings drove an 8% beat versus Morgans expectation. A fully franked interim dividend of 22cps was declared.
Meanwhile, the underlying net interest margin (NIM) contraction of -7bps from the 2H FY21 was broadly in-line with the analyst's forecast, and also in-line with industry trends.
The broker forecasts improvements for the cash return on tangible equity (ROTE) metric for FY24. Further out, the ROTE is expected to improve again due to improving efficiency on costs and potential funding synergies related to the ME Bank acquisition.
The Add rating and $11 target price are unchanged.
Target price is $11.00 Current Price is $7.99 Difference: $3.01
If BOQ meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.0% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 49.00 cents and EPS of 81.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.7, implying annual growth of 13.1%. Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.5. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 54.00 cents and EPS of 89.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.0, implying annual growth of 1.7%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates BOQ as Hold (3) -
Bank of Queensland delivered first half profits of $268.0m, ahead of Ord Minnett's forecast $239.7m, while an announced 22 cents per share interim dividend just missed the broker's anticipated 23 cents per share.
In a closer look at the first half result, the broker notes a lower net interest margin drove a softer than expected underlying result, with one-off items boosting reported results. The broker expects net interest margin headwinds to ease in the second half.
The broker expects synergies from the ME Bank acquisition to drive positive jaws, but notes Bank of Queensland offers little leverage to rising rates and high exposure to deterioration of term deposit spreads.
The Hold rating is retained and the target price decreases to $8.30 from $8.90.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $8.30 Current Price is $7.99 Difference: $0.31
If BOQ meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $9.73, suggesting upside of 22.0% (ex-dividends)
The company's fiscal year ends in August.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 45.00 cents and EPS of 73.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 75.7, implying annual growth of 13.1%. Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 10.5. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 50.00 cents and EPS of 69.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 77.0, implying annual growth of 1.7%. Current consensus DPS estimate is 51.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.4. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CIM CIMIC GROUP LIMITED
Industrial Sector Contractors & Engineers
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Overnight Price: $22.00
Credit Suisse rates CIM as Neutral (3) -
Credit Suisse notes Cimic Group appears to be on track to meet its full year profit forecast of $428m, delivering profit of $108m in the first quarter, while first quarter revenue of $2.3bn appears a little behind expectations.
The broker also noted Hochtief's takeover bid looks likely to succeed, with the company now in ownership of 94.68% of outstanding shares. Credit Suisse expects the takeover will be successful at $22.00 per share, and has valued the stock accordingly.
The Neutral rating and target price of $22.00 are retained.
Target price is $22.00 Current Price is $22.00 Difference: $0
If CIM meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $20.63, suggesting downside of -6.4% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 78.00 cents and EPS of 138.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 140.6, implying annual growth of 8.8%. Current consensus DPS estimate is 92.4, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 82.00 cents and EPS of 145.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 153.0, implying annual growth of 8.8%. Current consensus DPS estimate is 86.1, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 14.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.18
Morgans rates DEL as Upgrade to Speculative Buy from Hold (1) -
Morgans upgrades its rating for Delorean Corp to Speculative Buy from Hold on a stronger outlook for growth and a stronger balance sheet, following a successful a $4.5m share placement.
The broker's target rises by 5% to $0.215 as domestic energy prices have been rising on higher fuel costs. It's thought wholesale electricity pricing should assist the economics for grid exports relating to the company's project pipeline.
Target price is $0.22 Current Price is $0.18 Difference: $0.035
If DEL meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.40 cents. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 0.00 cents and EPS of 1.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
JHG JANUS HENDERSON GROUP PLC
Wealth Management & Investments
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Overnight Price: $45.17
Morgan Stanley rates JHG as Equal-weight (3) -
Morgan Stanley lowers its price target to $48 from $54.40 for Janus Henderson on -12% lower earnings FY22 forecasts after marking-to-market expected 1Q earnings.
The broker also expects outflows to persist over FY22 partly due to challenges within the INTECH division (soon to be sold) and industry-wide pressure on retail from higher market volatility. The Equal-weight rating is unchanged. Industry view: Attractive.
Target price is $48.00 Current Price is $45.17 Difference: $2.83
If JHG meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $50.10, suggesting upside of 11.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 EPS of 495.47 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 513.3, implying annual growth of N/A. Current consensus DPS estimate is 217.2, implying a prospective dividend yield of 4.8%. Current consensus EPS estimate suggests the PER is 8.7. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 EPS of 509.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 503.3, implying annual growth of -1.9%. Current consensus DPS estimate is 265.9, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 8.9. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LYC LYNAS RARE EARTHS LIMITED
Rare Earth Minerals
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Overnight Price: $9.39
Ord Minnett rates LYC as Lighten (4) -
Lynas Rare Earths returned to pre-covid production levels in the third quarter, including a record 1,700 tonnes of neodymium-praseodymium output, while Ord Minnett notes realised pricing also reached an all time high of $64 per kilo.
Less positive was an increase in the company's cost base to $94m, but Ord Minnett notes the increase appears immaterial on a unit basis compared to margins of 70%.
With a critical minerals thematic appearing to gain momentum, the broker notes demand for rare earth minerals should be sustained, but remains cautious on near-term price risk with prices declining -26% from a late-February peak.
The Lighten rating is retained and the target price increases to $4.70 from $4.50.
Target price is $4.70 Current Price is $9.39 Difference: minus $4.69 (current price is over target).
If LYC meets the Ord Minnett target it will return approximately minus 50% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 0.00 cents and EPS of 57.90 cents. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 0.00 cents and EPS of 51.40 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NWL NETWEALTH GROUP LIMITED
Wealth Management & Investments
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Overnight Price: $13.20
Credit Suisse rates NWL as Outperform (1) -
Despite Netwealth Group's third quarter inflows of $2.6bn missing Credit Suisse's expected $3.0bn, the broker notes flows remain strong for the company at around 20% per annum.
With the company reiterating full year flow guidance of more than $13.5bn, implying fourth quarter inflows of at least $3.2bn, Credit Suisse notes flow weakness looks to be short lived and could be the result of labour shortages related to covid during the quarter.
The Outperform rating is retained and the target price decreases to $16.75 from $17.00.
Target price is $16.75 Current Price is $13.20 Difference: $3.55
If NWL meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $16.08, suggesting upside of 22.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 19.00 cents and EPS of 22.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 23.6, implying annual growth of 4.7%. Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 55.8. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 21.00 cents and EPS of 26.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of 29.2%. Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 1.9%. Current consensus EPS estimate suggests the PER is 43.1. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $11.89
UBS rates QBE as Buy (1) -
QBE Insurance Group remains UBS's favourite insurer on the ASX. It is the broker's view QBE continues to enjoy a number of macro, micro and industry tailwinds.
Bottom line: UBS sees return on equity (ROE) returning to 14% and suggests this is as yet not priced-in by the market. Following a deep dive into US crop insurance, UBS has increased its forecasts.
Increased forecasts have pushed up the price target; to $15 from $14.40. Buy.
Target price is $15.00 Current Price is $11.89 Difference: $3.11
If QBE meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $14.46, suggesting upside of 18.0% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
UBS forecasts a full year FY22 EPS of 89.35 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 84.1, implying annual growth of N/A. Current consensus DPS estimate is 55.3, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY23:
UBS forecasts a full year FY23 EPS of 120.48 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 114.3, implying annual growth of 35.9%. Current consensus DPS estimate is 77.8, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 10.7. |
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.53
Macquarie rates SBM as Outperform (1) -
Macquarie resumes coverage on St. Barbara following the company's acquisition of Bardoc Gold. The acquisition looks to boost output at the company's Leonora project by 260,000 ounces annually between FY25-29.
Alongside production growth at the Simberi Sulphides and Atlantic projects, the broker highlights production should reach around 590,000 ounces per annum between FY25-30, more than double Macquarie's estimated production in FY22.
The broker resumes coverage with an Outperform rating and a target price of $1.53.
Target price is $1.53 Current Price is $1.53 Difference: $0
If SBM meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.51, suggesting upside of 0.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.4, implying annual growth of N/A. Current consensus DPS estimate is 0.5, implying a prospective dividend yield of 0.3%. Current consensus EPS estimate suggests the PER is 44.1. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 3.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.2, implying annual growth of 82.4%. Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 24.2. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TCL TRANSURBAN GROUP LIMITED
Infrastructure & Utilities
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Overnight Price: $13.67
Morgans rates TCL as Add (1) -
Despite recent share price strength, Morgans retains its Add rating for Transurban Group after factoring in rising DPS forecasts and an increasing valuation. The target price increases to $14.42 from $14.29.
The broker increases its DPS forecast across FY22-24 by 5-11% and now estimates 66.5cps in FY24 from 36.5cps in FY21. The extent and speed of the traffic recovery from covid impacts is also driving Morgans valuation higher.
Target price is $14.42 Current Price is $13.67 Difference: $0.75
If TCL meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $14.44, suggesting upside of 5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 36.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.3, implying annual growth of N/A. Current consensus DPS estimate is 40.2, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 147.8. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 59.75 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.3, implying annual growth of 172.0%. Current consensus DPS estimate is 59.3, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 54.3. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Ord Minnett rates TCL as Buy (1) -
Transurban Group's March quarter update demonstrated improving mobility trends as restrictions ease, with Ord Minnett noting data points to further acceleration into the June quarter given increases in average workday traffic and airport-exposed asset traffic at its peak since March 2020.
The broker notes weather events, including flooding in New South Wales and Queensland, have tempered stronger recovery earlier in the year. Accordingly, Ord Minnett has adjusted its earnings forecast for FY22 to account for the slow start to the year.
The Buy rating is retained and the target price is reduced to $15.00 from $15.40.
This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.
Target price is $15.00 Current Price is $13.67 Difference: $1.33
If TCL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $14.44, suggesting upside of 5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Ord Minnett forecasts a full year FY22 dividend of 42.00 cents and EPS of minus 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.3, implying annual growth of N/A. Current consensus DPS estimate is 40.2, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 147.8. |
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 60.00 cents and EPS of 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.3, implying annual growth of 172.0%. Current consensus DPS estimate is 59.3, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 54.3. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
| Company | Last Price | Broker | New Target | Prev Target | Change | |
| AKE | Allkem | $13.50 | Credit Suisse | 16.40 | 15.30 | 7.19% |
| Morgans | 16.98 | 16.65 | 1.98% | |||
| UBS | 15.15 | 15.10 | 0.33% | |||
| AMS | Atomos | $0.77 | Morgans | 1.40 | 1.87 | -25.13% |
| BOQ | Bank of Queensland | $7.97 | Credit Suisse | 10.00 | 11.40 | -12.28% |
| Morgan Stanley | 9.80 | 10.20 | -3.92% | |||
| Ord Minnett | 8.30 | 8.90 | -6.74% | |||
| DEL | Delorean Corp | $0.17 | Morgans | 0.22 | 0.21 | 4.88% |
| JHG | Janus Henderson | $44.89 | Morgan Stanley | 48.00 | 54.40 | -11.76% |
| LYC | Lynas Rare Earths | $9.35 | Ord Minnett | 4.70 | 4.50 | 4.44% |
| NWL | Netwealth Group | $13.16 | Credit Suisse | 16.75 | 17.00 | -1.47% |
| QBE | QBE Insurance | $12.26 | UBS | 15.00 | 14.40 | 4.17% |
| SBM | St. Barbara | $1.50 | Macquarie | 1.53 | N/A | - |
| TCL | Transurban Group | $13.75 | Morgans | 14.42 | 14.29 | 0.91% |
| Ord Minnett | 15.00 | 15.40 | -2.60% |
Summaries
| AKE | Allkem | Buy - Citi | Overnight Price $13.52 |
| Outperform - Credit Suisse | Overnight Price $13.52 | ||
| Equal-weight - Morgan Stanley | Overnight Price $13.52 | ||
| Add - Morgans | Overnight Price $13.52 | ||
| Buy - Ord Minnett | Overnight Price $13.52 | ||
| Buy - UBS | Overnight Price $13.52 | ||
| AMS | Atomos | Add - Morgans | Overnight Price $0.74 |
| BOQ | Bank of Queensland | Buy - Citi | Overnight Price $7.99 |
| Outperform - Credit Suisse | Overnight Price $7.99 | ||
| Overweight - Morgan Stanley | Overnight Price $7.99 | ||
| Add - Morgans | Overnight Price $7.99 | ||
| Hold - Ord Minnett | Overnight Price $7.99 | ||
| CIM | Cimic Group | Neutral - Credit Suisse | Overnight Price $22.00 |
| DEL | Delorean Corp | Upgrade to Speculative Buy from Hold - Morgans | Overnight Price $0.18 |
| JHG | Janus Henderson | Equal-weight - Morgan Stanley | Overnight Price $45.17 |
| LYC | Lynas Rare Earths | Lighten - Ord Minnett | Overnight Price $9.39 |
| NWL | Netwealth Group | Outperform - Credit Suisse | Overnight Price $13.20 |
| QBE | QBE Insurance | Buy - UBS | Overnight Price $11.89 |
| SBM | St. Barbara | Outperform - Macquarie | Overnight Price $1.53 |
| TCL | Transurban Group | Add - Morgans | Overnight Price $13.67 |
| Buy - Ord Minnett | Overnight Price $13.67 |
RATING SUMMARY
| Rating | No. Of Recommendations |
| 1. Buy | 16 |
| 3. Hold | 4 |
| 4. Reduce | 1 |
Tuesday 19 April 2022
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the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
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This document is provided for informational purposes only. It does not
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should contact their personal adviser before making any investment decision.
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