Australian Broker Call

Morgan Stanley rates 29M as Overweight (1) -

While retaining an Overweight rating, Morgan Stanley lowers its target price for 29Metals to $2.90 from $3.10 following September quarter results. Gold and zinc production were -21% and -10% misses, while copper production beat the analyst's estimate by 5%.

All-in sustaining costs (AISC) were 62% higher and management now expects combined C1 costs and AISC to be circa -$50m-70m higher than forecast. This reflects an expectation for lower by-product revenue and higher operating costs in the second half.

Capex guidance was unchanged. The industry view is In-Line.

Target price is $2.90 Current Price is $2.70 Difference: $0.2
If 29M meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates ALG as Buy (1) -

In the wake of the AGM update, Citi suspects there could be upside to its forecasts for Main Event earnings in FY22. Nevertheless, given the potential for sales growth to normalise over FY22, forecasts are left intact.

The broker was surprised at the decrease in the cash balance and revolving credit, which is down -$8m from the FY21 result. The broker suspects this probably reflects the increased roll-out in the timing of working capital payments. Buy rating and $1.80 target maintained.

Target price is $1.80 Current Price is $1.66 Difference: $0.14
If ALG meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates AQZ as Add (1) -

Following an AGM trading update by Alliance Aviation Services, Morgans increases its FY22 underlying profit (PBT) estimate by 4.5% and retains the FY23/24 forecasts. The target price edges up to $5.15 from $5.10 and the Add rating is unchanged.

The analyst believes the update was better than feared and expects a rebound in domestic travel activity in 2022 will favour the company. Recent share underperformance is attributed to the potential for delays to the E190 fleet deployment.

Morgans feels these concerns should be rectified by commentary at 1H results.

Target price is $5.15 Current Price is $3.97 Difference: $1.18
If AQZ meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates ASB as Upgrade to Outperform from Neutral (1) -

Austal has received approval to take on the lease of Marine Group Boat Works in the port of San Diego. Credit Suisse observes this is a major development for Austal, particularly given the environmental and regulatory pressures with respect to new or expanded dry docks in the area.

A dry dock in San Diego could support the awarding of contracts for Austal as a prime contractor. The broker raises FY22 and FY23 forecasts by 2% and 6%, respectively. Rating is upgraded to Outperform from Neutral and the target increased to $2.50 from $2.25.

Target price is $2.50 Current Price is $1.78 Difference: $0.72
If ASB meets the Credit Suisse target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 40.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates AUB as Outperform (1) -

AUB Group has reaffirmed guidance for net profit in FY22 of $70-73m. A number of acquisitions have been completed including a new broking software business.

Credit Suisse expects the strong start to FY22 will underpin the FY22 target for net profit growth through acquisitions of $1.5-2m.

The BizCover brand has launched a new direct insurance platform for small-medium enterprises in South Africa which leverages its technology.

Credit Suisse believes this should provide a good testing ground for what appears to be a long-term strategy to expand geographically. Outperform rating maintained. Target is $25.70.

Target price is $25.70 Current Price is $23.81 Difference: $1.89
If AUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $25.67, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates AUB as Outperform (1) -

AUB Group reiterated guidance at its AGM September-quarter trading update, noting FY21 momentum continues to flow into early FY22.

Premium rates rose slightly higher than expected and the company was very busy on the M&A front, finalising the purchase of GibbsCorp and Vaughan & Monaghan, the portfolio merger of Hiller Marine and SURA Marine, plus a string of other deals and launches.

Management is expanding its geographic ambitions beyond Australian shores, and plans wholesale brokerage investments, moving up the value chain.

Macquarie says management's new five-year EPS targets sharply exceed the broker's.

Outperform and $25.52 target retained.

Target price is $25.52 Current Price is $23.81 Difference: $1.71
If AUB meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $25.67, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates COL as Outperform (1) -

Coles Group's AGM trading update met Macquarie's estimates, the company guiding to strong Christmas trading, both supermarket and liquor sales rising during lockdowns.

Covid disruptions are set to ease, which should support the company's construction plans (capital expenditure was less than expected), says the broker.

Bunnings and Officeworks ((WES)) are soon to become Flybuys partners. Outperform rating and $19.80 target price retained.

Target price is $19.80 Current Price is $17.63 Difference: $2.17
If COL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $18.38, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates CPU as Sell (5) -

The AGM has reaffirmed growth in earnings per share of 2%, in line with expectations. The company has reiterated FY22 margin income guidance of $145m and confirmed no major benefit from recent moves in interest rates.

Yet Citi suspects some may be disappointed amid expectations of upgrades, particularly as corporate actions were identified as an area of weakness.

The broker envisages few catalysts other than the volatility of interest-rate expectations. Citi also notes, if US mortgage servicing was benefiting from the moratorium on foreclosures coming to an end, it was not significant enough to be identified at the AGM.

Sell rating maintained. Target rises to $15.80 from $15.30.

Target price is $15.80 Current Price is $19.20 Difference: minus $3.4 (current price is over target).
If CPU meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.95, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.1

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

Macquarie rates CPU as Outperform (1) -

Computershare's AGM mixed trading update broadly met Macquarie's expectations and guidance.

Management reiterated full-year guidance and the broker suspects FY22 margin income could outpace guidance on current run rates.

The US Mortgage Servicing business continues to drag but the broker says the long-term growth picture is solid.

EPS forecasts rise 0.9% for FY22 and 0.7% for FY23, to reflect an expected rise in register maintenance revenue.

Outperform rating and $22 target price retained.

Target price is $22.00 Current Price is $19.20 Difference: $2.8
If CPU meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.95, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.1

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

Morgans rates DBI as Add (1) -

To reflect Dalrymple Bay infrastructure's recent bond issue, as well as Morgans' updated interest and inflation rate assumptions, the broker's target falls to $2.36 from $2.49.

For investors comfortable with coal exposure the appeal is thought to be an attractive yield and earnings growth.

The analyst considers the final report by the Queensland Competition Authority (QCA) improves the infrastructure company's negotiating position with its customers. The Add rating is unchanged.

Target price is $2.36 Current Price is $2.12 Difference: $0.24
If DBI meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates FPH as Neutral (3) -

Credit Suisse notes influenza and respiratory diseases have been largely absent during the pandemic although in recent months there are signs this is changing.

There has been a resurgence in flu-type respiratory diseases in both the US and UK as a result of opening up which supports nasal high flow product demand.

Along with continued covid-related demand, this signals a heightened call on this product heading into the northern hemisphere winter.

Fisher & Paykel Healthcare will report its first half results on November 25 and the broker forecasts net profit of NZ$216m. No guidance is expected given the continued uncertainty. Neutral maintained. Target rises to $33.00 from $32.50.

Target price is $33.00 Current Price is $30.88 Difference: $2.12
If FPH meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.00, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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 MNF as Buy (1) -

MNF Group has guided to FY22 operating earnings (EBITDA) of $35-38m which includes initial investments to launch and grow operations in Singapore. Malaysia is the next market in the company's plan, expected before the end of 2022.

The name change to Symbio with ASX ticker SYM has been approved. Ord Minnett believes the business has a superior growth story, given a large addressable market and strong competitive advantage. Buy rating retained. Target is raised to $7.90 from $7.33.

Target price is $7.90 Current Price is $7.20 Difference: $0.7
If MNF meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates NCM as Outperform (1) -

Newcrest Mining will acquire Pretium Resources, owner of the Brucejack mine for US$2.73bn, which will add an incremental 370,000 ozpa of gold over the medium term. The acquisition will be funded 50:50 in scrip and cash.

Credit Suisse notes the mine presents technical challenges which have meant reserves have been downgraded in recent years. Yet Newcrest Mining is confident it can deliver value to justify the premium paid. Outperform rating and $31 target maintained.

Target price is $31.00 Current Price is $25.12 Difference: $5.88
If NCM meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $29.57, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Macquarie rates PPH as Neutral (3) -

Pushpay Holdings' interim result fell short of Macquarie's forecasts across all three product categories as customer growth and total processing volumes lost momentum. Churn rates fell.

The broker suspects the volume slowdown may mean donations are still normalising, while Resi's metrics suggest customer growth is slowing faster than expected, causing the broker to downgrade FY22 customer and revenue forecasts -19% and -36% respectively.

EPS forecasts fall -14%, -23% and -27% across FY22, FY23 and FY24.

Neutral rating retained, the broker admiring the share price (noting potential growth of 24%) but reluctant to bail in until the customer growth picture becomes clearer. Target price falls -9% to NZ$1.70. 

Current Price is $1.55. Target price not assessed.

Current consensus price target is $1.90, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Morgans rates RED as Add (1) -

Morgans leaves its $0.33 target price and Add rating unchanged following Red 5's update on construction at the King of the Hills gold project (on-track). The overall project is 65% complete as at September 30.

The broker also adjusts its financial model for the sale of the Siana Gold project in the Philippines and 1Q production results at the Darlot gold mine, which were in-line with expectations.

Target price is $0.33 Current Price is $0.27 Difference: $0.06
If RED meets the Morgans target it will return approximately 22% (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 SGM as Buy (1) -

The trading update has signalled strong earnings momentum has persisted into FY22 amid strong margins in ferrous and non-ferrous products. The main offset is freight price volatility and inflation pressures on general business costs, Citi notes.

The broker expects stimulus expenditure will increase the demand for steel-intensive infrastructure and drive additional retail consumption. Decarbonisation is also positive for copper/aluminium/steel recycling. Buy rating retained. Target rises to $18.50 from $18.00.

Target price is $18.50 Current Price is $14.39 Difference: $4.11
If SGM meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates SGM as Outperform (1) -

The company has indicated at its AGM that momentum has continued into FY22. First half earnings (EBIT) guidance is $310-350m which is ahead of consensus expectations.

Credit Suisse increases its estimates by 9% given high margins and noting a rebound in scrap prices.

The broker points out the value of secure scrap supply is evident in multiple US transactions which provides positive implications for Sims. Outperform maintained. Target is raised to $21.50 from $19.30.

Target price is $21.50 Current Price is $14.39 Difference: $7.11
If SGM meets the Credit Suisse target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates SGM as Neutral (3) -

Sims' September-quarter update pleased Macquarie, the company posting strong margins (albeit still down on the FY19 average) and expecting full-year growth and beyond to be supported by continued stimulus spending on steel-intensive structure.

Sims reports strength in all segments and geographies, and management says risks to first-half guidance include freight prices and the timing of shipments but expects these could abate thereafter, particularly given supply-demand dynamics in the US steel sector.

Macquarie upgrades earnings estimates 13.2% for FY22 but shaves -1.4% and -1.3% off FY23 and FY24 forecasts.

Target price rises to $15.60 from $15.05. Neutral rating retained, the broker citing near-term risk in the ferrous complex and energy markets, and "shifting trade regimes".

Target price is $15.60 Current Price is $14.39 Difference: $1.21
If SGM meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Following a 1H trading update, Morgan Stanley assesses a strong start to the year for Sims with supportive markets driving good volumes and margins. Guidance for group earnings (EBIT) exceeded the broker's estimate by 7% and consensus forecasts by 5%.

The analyst points out trading margins were strong across all regions and considers the company well positioned to benefit from favourable trends.

However, after revaluating the SA Recycling valuation and rolling forward the financial model, the broker's target price falls to $16.50 from $19.50. The Equal-weight rating is retained. The industry view is In-Line.

Target price is $16.50 Current Price is $14.39 Difference: $2.11
If SGM meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates SGM as Buy (1) -

UBS observes Sims is currently benefiting from strong ferrous and non-ferrous pricing. Sales volumes and margins are also robust in North America. The company has issued maiden first half earnings (EBITS) guidance of $310-350m.

The broker believes the company's proactive approach as a high-grade processor will be increasingly important as restrictions on lower-quality scrap imports and scrap exports are raised.

Buy rating and $17.80 target maintained.

Target price is $17.80 Current Price is $14.39 Difference: $3.41
If SGM meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $18.32, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates SHV as Buy (1) -

Citi considers the current weakness in almond prices temporary, as supply chain problems are coinciding with softer seasonal demand.

Average almond prices have fallen -15% over the past month, affected by disrupted sea freight that has caused lost sales and shortages with storage.

Lower prices could persist during the remainder of 2021 while export demand should revive in the first quarter of 2022 and provide a positive catalyst. Winter rainfall is still required to materially improve the water supply in California.

Buy rating and $9.85 target maintained.

Target price is $9.85 Current Price is $6.56 Difference: $3.29
If SHV meets the Citi target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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

UBS rates SRV as Downgrade to Neutral from Buy (3) -

Servcorp has reaffirmed FY22 guidance, noting operating conditions are improving. Occupancy rates in September were slightly below June which UBS believes reflects recent mobility restrictions in Australia.

The broker considers the stock a recovery trade as it is highly leveraged to improving market dynamics. The post-pandemic environment is also likely to be structured more favourably as competitors face significant challenges.

As the stock has rallied around 34% since the FY21 results, the broker downgrades to Neutral from Buy. Target is raised 11% to $4.60.

Target price is $4.60 Current Price is $4.50 Difference: $0.1
If SRV meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

A surge in trading following the re-opening of retail stores in NSW and Victoria is expected to result in increased earnings and Ord Minnett upgrades to Accumulate from Hold.

Shaver Shop provided a trading update which indicated sales in the year to date eased -0.9%, which the broker considers is quite modest given the widespread closures. Online sales increased 58.6% over the same period and currently represent 50.2% of total sales.

Target is raised to $1.25 from $1.20.

Target price is $1.25 Current Price is $1.06 Difference: $0.19
If SSG meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates SUN as Buy (1) -

Suncorp Group has indicated momentum in the home loan portfolio is showing signs of improvement although growth remains below system. Citi remains sceptical the bank can achieve its target of 50% in FY23 cost-to-income ratio.

The broker considers Suncorp a medium-term story although the current share price is at a reasonable entry point. The broker retains a Buy rating and $12.80 target.

Target price is $12.80 Current Price is $11.11 Difference: $1.69
If SUN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates SUN as Hold (3) -

Morgans marginally lifts its EPS forecasts and raises its target for Suncorp Group to $12.16 from $11.91 following the group's quarterly banking update. While the bad debt performance is considered exceptional, the company is achieving "below system" home loan growth.

With only limited upside to the target price, Morgans retains its Hold rating.

Target price is $12.16 Current Price is $11.11 Difference: $1.05
If SUN meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates SUN as Hold (3) -

Lending rose 0.6% in the September quarter with home lending up 1%. Business lending contracted -0.5% amid a reduction in the commercial loan book that was partially offset by growth in agriculture.

Ord Minnett notes the CET1 ratio of 9.63% slightly eased from the June ratio of 10.06% which reflects the payment of the bank dividend.

The broker retains a Hold rating and lowers the target to $13.30 from $14.21.

Target price is $13.30 Current Price is $11.11 Difference: $2.19
If SUN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates SYD as Overweight (1) -

In the wake of Sydney Airport's board recommending the $8.75 Sydney Aviation Alliance proposal, Morgan Stanley's attention turns to approvals and timing.

The analyst notes, with the looming Federal election, there is a caretaker period of around 30 days before the election date. During this time the Foreign Investment Review Board does not make decisions.

Morgan Stanley retains its Overweight rating and $8.50 target price. Industry View: Cautious.

Target price is $8.50 Current Price is $8.42 Difference: $0.08
If SYD meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.70, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates UMG as Neutral (3) -

Credit Suisse is concerned about the impact of rising gas costs on profitability in the second half and the first half of FY22, reducing estimates as a result. FY21 results will be reported on November 17.

Otherwise, the broker believes the business maintains a competitive advantage because of its craft distribution network and Scotch whisky position in the UK.

With the exception of Australia, volumes have been recovering, the broker adds. Yet consumption in smaller broader pubs appears to have been lagging the industry as a whole. Neutral rating retained. Target edges up to $4.59 from $4.58.

Target price is $4.59 Current Price is $4.30 Difference: $0.29
If UMG meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Ord Minnett expects Uniti Group will be a beneficiary of the current environment for greenfield property development. While private dwelling approvals have returned to some level of normality recently, new approvals are still elevated compared with longer-term averages.

The broker expects strong growth in the future construction work as developers plan for larger populations in greenfield areas. The broker expects wholesale revenue will be 50% of group revenues in FY22 and upgrades to Accumulate from Hold.

The broker also envisages the buyback program will be an efficient allocation of capital in the context of options for growth in adjacent markets as well as M&A. Target is $4.21.

Target price is $4.21 Current Price is $3.85 Difference: $0.36
If UWL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates VCX as Neutral (3) -

After the first quarter update, when the company elected to withhold FY22 guidance, Credit Suisse believes the earnings recovery is a story for FY23, assuming no further rent relief.

Rent relief granted in the first quarter was not disclosed while retail sales were down -25.7% relative to September quarter 2019. Overall foot traffic in the quarter was 55% of pre-pandemic levels.

The broker asserts there is some upside potential if the company can lower the cost of debt, which is among the highest in its A-REIT coverage. Neutral maintained. Target is raised to $1.79 from $1.71.

Target price is $1.79 Current Price is $1.74 Difference: $0.05
If VCX meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Ord Minnett rates VCX as Hold (3) -

The quarterly update appeared in line with commentary from peers as most operating metrics have started to recover as restrictions eased. Ord Minnett expects conditions should continue to normalise over the remainder of 2021.

The company has provided no guidance because of the uncertainty related to the pandemic.

Ord Minnett expects earnings and distributions will stabilise in FY23 and believes the rebound in transactions among retail assets is an opportunity for the company to pursue its asset improvement strategy. Hold rating maintained. Target rises to $1.90 from $1.80.

Target price is $1.90 Current Price is $1.74 Difference: $0.16
If VCX meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

UBS rates VCX as Neutral (3) -

UBS considers the operating metrics in the September quarter were sound, given the business was substantially affected by lockdowns.

The broker is not surprised Vicinity Centres elected to withhold guidance as rent relief is currently in effect in NSW and Victoria until January 2022.

UBS revises earnings up 3% to reflect the acquisition of Harbour Town and the divestment of Runaway Bay.

The broker retains a Neutral rating and raises the target to $1.72 from $1.65.

Target price is $1.72 Current Price is $1.74 Difference: minus $0.02 (current price is over target).
If VCX meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.70, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Ord Minnett rates XRO as Lighten (4) -

Upon initial analysis of Xero's interim report released today, Ord Minnett finds the overall performance broadly in-line, though international subscriber growth was slower-than-expected, possibly linked to the decision by company management to spend less on marketing during lockdowns.

On the positive side, average revenue per user (ARPU) for the international business has by now lifted significantly, aided by the recent Planday acquisition, but ARPU in A&NZ only showed limited improvement.

Ord Minnett notes company management has stuck with its earlier guidance for FY22. Target $103. Rating Lighten.

Target price is $103.00 Current Price is $147.28 Difference: minus $44.28 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $124.45, suggesting downside of -10.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.2

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