Australian Broker Call

Macquarie rates ABC as Outperform (1) -

An update from Adbri revealed generally strong demand across a broad range with sales across all products above both expectation and October 2020 levels, other than weather impacting on Queensland concrete demand and a run-off in lime as expected.

Macquarie continues to see a positive thesis, acknowledging strong demand and suggesting supply chain costs in covid-disrupted WA and Birkenhead production disruptions due to maintenance should prove transitory.

Detached housing is currently the main driver, but multi-residential is picking up and infrastrructure markets are likely to tighten meaningfully, the broker notes. Outperform retained, target rises to $4.05 from $3.80.

Target price is $4.05 Current Price is $3.07 Difference: $0.98
If ABC meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates ACL as Neutral (3) -

Citi estimates the -$70m Medlab acquisition (a small pathology provider) is around 8% EPS accretive in FY24 and increases its target price to $5.20 from $5. The Neutral rating is unchanged. 

Based on the number of collection centres, management expects a doubling of market share to 20% in NSW and an entry into the Queensland market with a 6.5% share.

Target price is $5.20 Current Price is $4.37 Difference: $0.83
If ACL meets the Citi target it will return approximately 19% (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 ALL as Accumulate (2) -

Aristocrat Leisure's FY21 unaudited result was 2% ahead of Ord Minett's operating earnings (EBITDA) forecast and 4% above the adjusted net profit forecast. The broker awaits the composition of earnings and the initial FY22 trading performance.

The analyst estimates daily active users for FY21 have stabilised at around 6,800. The Accumulate rating and $51 target price are maintained.

Target price is $51.00 Current Price is $47.72 Difference: $3.28
If ALL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $49.79, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Despite benefiting from current coal activity, Aurizon Holdings is repositioning group mix and supplementing coal income by increasing non-coal related assets in anticipation of coal decline, likely to occur from FY31 according to UBS. 

The broker noted the acquisition of One Rail Bulk supports increased non-coal income, but expects the company will need to commit further capital investment of -$550-650m to achieve supplemented income targets. 

The broker looks to the potential East Coast Rail sale or demerger for more certainty on the company's outlook. Coverage is reinstated with a Neutral rating and a target price of $3.50. 

Target price is $3.50 Current Price is $3.44 Difference: $0.06
If AZJ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 13.6% (ex-dividends)

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

Morgans rates CIP as Hold (3) -

In a move to capitalise on rental reversions from current under-renting, explains Morgans, Centuria Industrial REIT has acquired four industrial assets for -$129m. The transactions will be funded by new and existing debt facilities. FY22 guidance is unchanged.

The target price is raised only slightly to $3.87 from $3.85, given the analyst's forecasts had already assumed -$50m of acquisitions. The broker notes industrial/logistics sectors remain resilient given the growing shift to ecommerce.

The REIT offers exposure across transport/logistices, cold stotage and manufacturing. the Hold rating is maintained.

Target price is $3.87 Current Price is $3.67 Difference: $0.2
If CIP meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

While noting that Cochlear's competitor Advanced Bionics has recently reported a good recovery in market share, Morgan Stanley feels this is unlikely to impact its forecasts for Cochlear. 

The broker prefers to rely upon good recent unit growth figures from Cochlear and the October 19 reiteration of FY22 profit guidance.
The Equal-weight rating and $196 target price are retained. Industry view: In-Line.

Target price is $196.00 Current Price is $223.55 Difference: minus $27.55 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $224.75, suggesting upside of 0.3% (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

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

Morgan Stanley estimates EPS accretion of around 3% for Cleanaway Waste Management should it participate in (rumours only) and win the auction for Waste Management New Zealand. These calculations assume 50% debt funding. 

The company hasn't commented upon the rumour at this stage. Morgan Stanley retains the Equal-Weight rating and $2.78 target price. Industry view: Cautious. 

Target price is $2.78 Current Price is $3.01 Difference: minus $0.23 (current price is over target).
If CWY meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.80, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Morgan Stanley initiates coverage on Ebos Group with a $40 target and Overweight rating. The marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products is thought to hold a dominant market position within Community Pharmacy.

The analyst believes this market position can be maintained due to the company's access to both Chemist Warehouse and TerryWhite, and forecast average revenue growth out to FY26 of 4.3%. The industry overall has an around 3% compound annual growth rate (CAGR).

Moreover, the company should benefit from the shift to online pharmacy sales, with the broker expecting eScripts could take greater than 90% share by FY26. Risks include the potential entry to Australian pharmacy of Amazon.

Target price is $40.00 Current Price is $34.65 Difference: $5.35
If EBO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $34.25, suggesting downside of -3.5% (ex-dividends)

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 ELD as Buy (1) -

Citi assesses FY21 underlying earnings (EBITDA) for Elders were 8% above the broker's estimate and consensus forecasts, largely due to ongoing outperformance for crop protection and fertiliser. The Buy rating and $13.75 target price are maintained.

Management is positive on the FY22 outlook for Rural Products, as the summer crop is expected to drive demand for crop protection, fertiliser and seeds. Agency Services is also expected to benefit from high medium-term prices for beef and lamb.

Target price is $13.75 Current Price is $12.01 Difference: $1.74
If ELD meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.49, suggesting upside of 14.6% (ex-dividends)

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 ELD as Outperform (1) -

Elders' FY21 profit beat the broker and consensus, featuring an improved financial performance across all geographic and product areas, Macquarie notes, with the exception of 2% earnings contributor Food & Processing, due to cattle feed prices.

The company expects another 12-18 months of solid seasonal conditions but the broker sees significant growth drivers beyond the weather, in bolt-on acquisitions and expansion into new geographies.

The broker believes a 16.5x FY22 forecast PE is undemanding on forecast 10% compound annual growth over FY20-23. Outperform retained, target rises to $14.67 from $14.12.

Target price is $14.67 Current Price is $12.01 Difference: $2.66
If ELD meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $13.49, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates ELD as Buy (1) -

A strong result in FY21 drove 38% underlying earnings growth for Elders, a 10% beat on UBS's forecast. The broker notes performance benefited from the Rural Products division, which alone reported a 27% gross profit increase. 

Maintained momentum was a positive start to FY22, with continued elevated livestock pricing and a favourable crop outlook an early part of the story for the year. UBS expects cattle pricing to decline in the second half and forecasts 9% full-year earnings-before-tax growth. 

The Buy rating is retained and the target price increases to $13.43 from $12.79. 

Target price is $13.43 Current Price is $12.01 Difference: $1.42
If ELD meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.49, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates IPL as Neutral (3) -

Citi observes Incitec Pivot's FY21 performance, underlying, was some 11% better than what consensus was expecting, while its own forecast sat 3% above reported net profit.

The positive surprise came with a constructive outlook for volumes and pricing in FY22, plus two planned turnarounds, and a higher than anticipated final dividend of 8.3c (14% franked).

Citi has simply adjusted forecasts in line with guidance, without incorporating the two turnarounds. This has pushed up the price target to $3.35 (from $3.20). Neutral.

Target price is $3.35 Current Price is $3.24 Difference: $0.11
If IPL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Neutral (3) -

Credit Suisse has attributed Incitec Pivot's notable full-year underlying earnings beat to oversight of the impact of fertiliser pricing from consensus forecasts, with the company reporting $566m compared to a forecast $502m. 

According to the broker, expect fertiliser pricing to stay above trend in the first half of FY22, while upside in the explosives segment is likely given full utilisation of Moranbah. 

The Neutral rating is retained and the target price increases to $3.14 from $3.01. 

Target price is $3.14 Current Price is $3.24 Difference: minus $0.1 (current price is over target).
If IPL 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 $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Outperform (1) -

Incitec Pivot posted an FY21 underlying profit 20% above Macquarie's estimate and also beat on earnings. It was a pleasing result, the broker suggests, with beats in both explosives and fertiliser. Nor were there any surprises regarding the FY22 outlook.

With fertiliser prices supported by high European gas costs and Chinese export curtailments, the broker's FY22 earnings forecast is now 15% above pre-result consensus (which could change on result upgrades from other brokers).

Target rises to $3.56 from $3.50, Outperform retained.

Target price is $3.56 Current Price is $3.24 Difference: $0.32
If IPL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Overweight (1) -

Morgan Stanley increases its target price for Incitec Pivot to $4.30 from $3.55 and sees further upside to fertiliser prices implying further earnings upgrades and strong cash generation. The Overweight rating is maintained.

This follows a FY21 earnings (EBIT) beat of 13% and 11% versus the broker's expectation and consensus forecasts.  If current spot prices and inputs were incorporated into the analyst's model, a further 30% of upgrades to the broker's FY22 earnings forecast would be implied.

Industry view is In-Line.

Target price is $4.30 Current Price is $3.24 Difference: $1.06
If IPL meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates IPL as Add (1) -

Following Incitec Pivot's FY21 results that materially beat expectations, Morgans also makes material earnings upgrades to FY22 forecasts to reflect significantly higher fertiliser prices. Management noted strong momentum entering into FY22.

FY21 underlying profit was up 91% to $358.6m, well ahead of the consensus estimate of $296.6m. A final dividend of 8.3cps was declared. The broker lifts its target price to $3.75 from $3.05 

Target price is $3.75 Current Price is $3.24 Difference: $0.51
If IPL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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 IPL as Buy (1) -

UBS has drawn attention to Incitec Pivot's notable earnings rebound, with earnings before tax in the second half a 16% beat on the broker's forecast and driving a 20% increase to operating cash flow. 

Looking forward the broker expects the company to benefit from a global recovery in agriculture conditions and fertiliser pricing, as well as tightening supplies of ammonia, phosphate and nitrogen. 

UBS notes the stronger outlook for Incitec Pivot positions the company to consider growth and capital management options at the end of FY22. The Buy rating is retained and the target price increases to $3.60 from $3.15.

Target price is $3.60 Current Price is $3.24 Difference: $0.36
If IPL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates LNK as Add (1) -

Link Administration has received a bid for its Banking and Credit Management (BCM) businesss from Pepper European Servicing. At the same time, the board has provided Carlyle with access to due diligence, regarding the $5.38/share bid for the company.

For Carlyle, the broker feels a bid -20% below a recent offer by the same suitor is a hard sell for the board to recommend. The target price remains at the Carlyle bid price of $5.38 and the Add rating is maintained.

Target price is $5.38 Current Price is $4.77 Difference: $0.61
If LNK meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 14.3% (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 LOV as Upgrade to Outperform from Neutral (1) -

Macqurie notes Lovisa has a new CEO with experience in growing brands and stores in China and India, which will now be the focus. Together those markets exceed that of the US by 15%.

While a long term target of 1200 stores globally is already priced in, the broker suggests, upside risk is for another 1400-plus stores in China and India alone.

Greater confidence in store rollout in current markets drive earnings forecast upgrades, and a re-rating is warranted on store upside potential, leading the broker to upgrade to Outperform from Neutral. Target rises to $25 from $17.

Target price is $25.00 Current Price is $21.62 Difference: $3.38
If LOV meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $21.89, suggesting upside of 0.4% (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

Morgans rates NCM as Add (1) -

Morgans notes interest in the gold sector has returned on global inflation fears, with the Australian dollar gold price benefiting from a rise in the US price and a flat local currency. However, concerns over rising costs of production has left some investors cautious.

Newcrest Mining is the broker's favourite among the big-caps with market-leading annual production and long-term plans to reduce costs towards US$500/oz. The Add rating and $30.43 target price are maintained.

Target price is $30.43 Current Price is $25.44 Difference: $4.99
If NCM meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $29.57, suggesting upside of 17.4% (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

Ord Minnett rates ORI as Hold (3) -

Following Orica's recent FY21 result, Ord Minnett increases its FY22 and FY23 underlying net profit forecasts by 4% and 8%, to reflect lower than expected global support and financing costs.

The target price rises to $15.25 from $13, which incorporates both earnings forecast changes and a rerating in the ASX200 Industrials Index, explains the analyst. The Hold rating is maintained.

Target price is $15.25 Current Price is $15.24 Difference: $0.01
If ORI meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $15.97, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates RED as Add (1) -

Morgans notes interest in the gold sector has returned on global inflation fears, with the Australian dollar gold price benefiting from a rise in the US price and a flat local currency. However, concerns over rising costs of production has left some investors cautious.

The broker maintains its add rating and $0.33 target price for Red 5 and sees most value coming from the King of the Hills project where development is well advanced. It's thought there's a clear path to near-term gold production.

Target price is $0.33 Current Price is $0.28 Difference: $0.05
If RED meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates SCP as Hold (3) -

Ord Minnett revises its specialty and anchor net property income (NPI) forecasts for Shopping centres Australasia Property Group, and takes a more positive outlook on near-term growth.

The broker maintains its Hold rating and lifts its target price to $2.90 from $2.70, after also allowing for the recently acquired Delacombe Town Centre and issuance of $250m in fixed coupon debt.

Target price is $2.90 Current Price is $2.80 Difference: $0.1
If SCP meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates SGP as Overweight (1) -

Following Stockland's strategy day, Morgan Stanley points out investor concern has focused upon potential dilution arising from a portfolio reweight away from Retail/Retirement.

While some dilution is inevitable, the analyst estimates it will be contained to around -1-2%, much less than -5-6% contemplated by some investors. Morgan Stanley retains an Overweight rating, $5 target and In-Line industry view.

Target price is $5.00 Current Price is $4.38 Difference: $0.62
If SGP meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 11.2% (ex-dividends)

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

Morgans rates SLH as Add (1) -

Following Silk Logistics' AGM, Morgans lifts its target price to $3.19 from $2.71 given management commentary over strong year-to-date growth in revenue. The broker estimates a 20% beat of prospectus underlying earnings.

The company is confident of making an e-commerce acquisition in early 2022, which the analyst considers a key catalyst. Higher volumes and unit revenues in Port Logistics and unexpectedly strong growth in Distribution revenues are behind Morgans raised forecasts.

Target price is $3.19 Current Price is $2.24 Difference: $0.95
If SLH meets the Morgans target it will return approximately 42% (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

Ord Minnett rates SZL as Buy (1) -

In an initial glance at Sezzle's September quarter results, Ord Minnett assesses a 12% beat on fixed costs. Most of the other key metrics have already been disclosed.

The analyst expected a greater rise in fixed costs resulting from the 102% climb in underlying merchant sales (UMS) versus the previous corresponding period (pcp).

The broker notes Sezzle is the second faster grower versus the pcp in Nth America in the BNPL stock universe. Ord Minnett retains a Buy rating and $9.90 target price.

Target price is $9.90 Current Price is $4.50 Difference: $5.4
If SZL meets the Ord Minnett target it will return approximately 120% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates WPL as Neutral (3) -

Citi assesses Woodside Petroleum has extracted a premium price (versus the broker's valuation) from selling a 49% stake in Pluto Train 2 to Global Infrastructure Partners for US$835m. However, it's thought to be a swap for more construction, scheduling, emissions and regulatory risk.

The analyst believes the transaction completes the last major hurdle to taking the final investment decision (FID) on Scarborough. It's thought this could occur in the next 30 days. The FID would de-risk the project to 100% from 90% in the broker's model.

The target price increases to $22.82 from $22.59 and the Neutral rating is unchanged.

Target price is $22.59 Current Price is $22.50 Difference: $0.09
If WPL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $26.24, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Morgan Stanley rates WPL as No Rating (-1) -

Woodside Petroleum will sell a -49% stake in the Pluto Train 2 joint venture (Scarborough project). The buyer, Global Infrastructure Partners, will pay 49% of development costs and US$835m in capex carry (reimbursable in the event of higher construction costs).

Morgan Stanley notes the transaction is contingent on the final construction costs for the project. 

The broker is restricted on providing a rating and a target price estimate.

Current Price is $22.50. Target price not assessed.

Current consensus price target is $26.24, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Ord Minnett rates WPL as No Rating (-1) -

Fulfilling a key prerequisite for the sanctioning of the Scarborough/Pluto Train 2, Woodside Petroleum announced the sale of a -49% stake in Pluto Train 2 to Global Infrastructure Partners. The latter will pay US$835m, as well as its share of the project's capital expenditure.

The analyst makes minor increases to forecasts for earnings (given a lower estimated interest expense) and net present value.

Ord Minnett is research restricted on Woodside Petroleum and is unable to provide a recommendation or target price.

Current Price is $22.50. Target price not assessed.

Current consensus price target is $26.24, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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