Australian Broker Call

Citi rates ABP as Buy (1) -

Citi reviews the Self-Storage market, which constituted half of Abacus Property's total assets as at June 30.

The broker concludes the market will remain supported, citing high house prices (the price of a room exceeding the price of storage); growing populations; rising commercial use given a tight industrial market; and growing urban density.

Citi observes the company is trading at a steep -30% discount to net tangible book value and at an estimated -66% discount to implied office portfolio value; making it an attractive long-term investment, albeit possibly vulnerable to short-term movement interest rates and house prices.

The broker notes Australian storage is still cheap by international standards.

Buy rating retained. Target price is $3.20.

Target price is $3.20 Current Price is $2.76 Difference: $0.44
If ABP meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

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

Bendigo & Adelaide Bank's trading update met Citi's expectations.

The broker believes the bank is close to posting peak net interest margins and observes loan volumes are slowing (the balance sheet contracting); asset quality headwinds; and rising costs - all of which should dampen further gains.

Given the above, and the recent share price rally, Citi downgrades to Neutral from Buy. Target price rises to $10 from $9.75.

Target price is $10.00 Current Price is $9.66 Difference: $0.34
If BEN meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.15, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Bendigo & Adelaide Bank's latest update demonstrates strong performance over the first five months of the year. According to Macquarie, improved deposit spreads and rising swap curves have offset the impact of margin pressures and rising expenses for the bank.

Despite the bank likely being past peak deposit margins, the broker considers the risk-reward trade off now more balanced for investors with upside earnings risk better reflected in expectations. 

The rating is downgraded to Neutral from Outperform and the target price increases to $9.50 from $9.25.

Target price is $9.50 Current Price is $9.66 Difference: minus $0.16 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.15, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates BEN as Overweight (1) -

Yesterday's trading update for the first five months of FY23 by Bendigo & Adelaide Bank highlights to Morgan Stanley the bank's significant leverage to higher interest rates as well as favourable deposit pricing.

A margin for the update period of 1.85% and the 'exit margin' of 2.01% exceeded the 2H FY22 margin by 16bps and 28bps, respectively.

Management expects margin tailwinds will continue into the 2H of FY23, with the outlook better than the analyst had expected. The company also noted expenses are "expected to increase modestly on FY22 levels".

The broker maintains its Overweight rating on supportive multiples and increases its target to $10.10 from $9.50. Overweight. Industry view is In-Line.

Target price is $10.10 Current Price is $9.66 Difference: $0.44
If BEN meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.15, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates BEN as Hold (3) -

Bendigo & Adelaide Bank's ad-hoc trading update revealed profit is tracking well ahead of Ord Minnett's forecasts. The performance was driven by greatly improved net interest margin trends.

This update has driven large upgrades to the broker's forecasts, albeit with a partial offset from higher costs. Ord Minnett continues to expect NIM declines from the first half of FY24 onwards.

Hold retained, despite the improved return on equity outlook, but target rises to $10.20 from $8.70.

Target price is $10.20 Current Price is $9.66 Difference: $0.54
If BEN meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.15, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates BHP as Hold (3) -

BHP Group is at its all-time high, Ord Minnett proclaims, while the key earnings driver, iron ore, is around half the US$220/t reached last year. [BHP is actually below its July 2021 high. And below the April 2022 interim high.]

China’s reopening appears to be a reality, the broker notes, but sentiment-wise, it’s also the consensus thinking. Fatigue on the trade for the miners could start to set in soon, given strong recent performance and 2023 recession concerns.

Ord Minnett recommends at market-weight (Hold) position on BHP.

Target price is $42.00 Current Price is $46.08 Difference: minus $4.08 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.06, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

UBS rates BHP as Downgrade to Sell from Neutral (5) -

Despite raising commodity price forecasts and lifting BHP Group's target to $40.00 from $35.50, UBS feels the share price has climbed too far and downgrades its rating to Sell from Neutral.

Apart from an expensive share price, the broker notes a fragile macroeconomic backdrop, weak iron ore fundamentals and China's reopening challenge.

Target price is $40.00 Current Price is $46.08 Difference: minus $6.08 (current price is over target).
If BHP meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.06, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining will delay the release of its Gonneville project scoping study to allow for more further metallurgical testing, with early work suggesting grinding down to 25 micrometres, from a previous 38, could allow for improved recovery of palladium and platinum. 

Macquarie notes timing of the study release is now uncertain, but will be confirmed following a resources estimate update in March. The broker finds the delay disappointing, and a missed opportunity to de-risk the project, but there is no change to its estimates at this point. 

The Outperform rating and target price of $7.50 are retained.

Target price is $7.50 Current Price is $5.93 Difference: $1.57
If CHN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CNB as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on junior copper explorer Carnaby Resources. The broker describes Carnaby as having "all the right ingredients for success". 

The company is expected to announce a maiden resource for its Greater Duchess asset - comprised of the Mount Hope, Nil Desperandum and Lady Fanny deposits - in the second quarter of 2023. Macquarie already sees exploration upside potential from the project, which it anticipates could become a belt-scale copper province. 

The broker anticipates an equity raising in the new year to support a major drill-out and scoping study. Macquarie initiates with an Outperform rating and a target price of $1.30.

Target price is $1.30 Current Price is $0.78 Difference: $0.525
If CNB meets the Macquarie target it will return approximately 68% (excluding dividends, fees and charges).

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates CSL as Overweight (1) -

While a CEO transition at CSL has been planned for some time, Morgan Stanley feels investors may question the timing, given the fairly recent closure of the V4 acquisition.

The current COO Paul McKenzie is to succeed Paul Perrault as CEO on March 6.

The Overweight rating and $337 target are maintained. Industry view: In-Line.

Target price is $337.00 Current Price is $297.04 Difference: $39.96
If CSL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $328.70, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.9

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

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

UBS downgrades its rating for Evolution Mining to Neutral from Buy on valuation grounds.

The broker favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The target price rises to $2.80 from $2.70.

Target price is $2.80 Current Price is $2.82 Difference: minus $0.02 (current price is over target).
If EVN 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 $2.77, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates FMG as Downgrade to Lighten from Hold (4) -

Iron ore miners have rallied strongly in recent weeks despite the iron ore price being around half of what it was last year, Ord Minnett notes.

China’s reopening appears to be a reality, the broker suggests, but sentiment-wise, it’s also the consensus thinking. Fatigue on the trade for the miners could start to set in soon, given strong recent performance and 2023 recession concerns.

Ord Minnett thus downgrades Fortescue Metals to Lighten from Hold.

Target price is $16.00 Current Price is $20.23 Difference: minus $4.23 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.9

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

UBS rates FMG as Sell (5) -

Despite raising commodity price forecasts and lifting Fortescue Metals' target to $18.70 from $14.80, UBS retains its Sell rating.

The broker notes a fragile macroeconomic backdrop, weak iron ore fundamentals and China's reopening challenge.

Target price is $18.70 Current Price is $20.23 Difference: minus $1.53 (current price is over target).
If FMG meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.15, suggesting downside of -21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.9

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

Macquarie rates GEM as Neutral (3) -

G8 Education's year-to-date earnings have improved from the second quarter, demonstrating recovery in occupancy and cost control. Performance is now ahead of Macquarie's expectations and the broker has accordingly lifted its earnings per share assumptions 8% for 2022 and 20.2% for 2023.

Macquarie's outlook is now closer to consensus forecasts, but the broker maintains its conservatism is supported by G8 Education's history of lagging peers in terms of operating performance. 

The Neutral rating is retained and the target price increases to $1.04 from $1.00.

Target price is $1.04 Current Price is $1.02 Difference: $0.015
If GEM meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

UBS rates GOR as Buy (1) -

UBS favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The broker maintains its Buy rating for Gold Road Resources and raises its target to $2.05 from $1.95.

Target price is $2.05 Current Price is $1.70 Difference: $0.35
If GOR meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgan Stanley rates HVN as Initiation of coverage with Underweight (5) -

Morgan Stanley initiates coverage on Harvey Norman with an Underweight rating and $3.50 target. It's felt 2023 will be a challenging year for consumers with discretionary spend expected to weaken. Industry view: In Line.

The broker adopts a cautious stance on electrical/appliance retailers. While operating in a similar category to JB Hi-Fi (initiated with an Equal-weight rating), Harvey Norman's franchise model, which accounts for 59% of earnings (EBIT) is seen as more volatile.

Franchisee margins are historically more volatile through economic cycles, which creates greater downside earnings risk, explain the analysts.

Target price is $3.50 Current Price is $4.27 Difference: minus $0.77 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.49, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgan Stanley rates JBH as Initiation of coverage with Equal-weight (3) -

Morgan Stanley initiates coverage on JB Hi-Fi with an Equal-weight rating and a $42 target. It's felt 2023 will be a challenging year for consumers with discretionary spend expected to weaken. Industry view: In Line.

The broker adopts a cautious stance on electrical/appliance retailers. While operating in a similar category to Harvey Norman (initiated with an Underweight rating), JB Hi-Fi is preferred for its direct store business model over Harvey Norman's franchise model.

Franchisee margins are historically more volatile through economic cycles, which creates greater downside earnings risk, explain the analysts.

Morgan Stanley further justifies its Equal-weight rating on the impact of negative sales reversion and margin pressure as promotions and on-floor discounting resume. Ongoing cost-of-doing-business (CODB) inflation is also noted, driven by rising wages and rents.

Target price is $42.00 Current Price is $44.65 Difference: minus $2.65 (current price is over target).
If JBH meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $46.92, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Despite raising commodity price forecasts and lifting Mineral Resources' target to $93 from $83.30, UBS feels the share price has climbed too far and downgrades its rating to Neutral from Buy.

Apart from an expensive share price, the broker notes a fragile macroeconomic backdrop, weak iron ore fundamentals and China's reopening challenge.

Target price is $83.30 Current Price is $84.98 Difference: minus $1.68 (current price is over target).
If MIN meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.94, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates NCM as Neutral (3) -

UBS favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The broker maintains its Neutral rating for Newcrest Mining and raises its target to $21.65 from $20.65.

Target price is $21.65 Current Price is $20.62 Difference: $1.03
If NCM meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $22.09, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

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

UBS downgrades its rating for Northern Star Resources to Neutral from Buy on valuation grounds after a faster-than-expected share price rally.

The broker favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The target price rises to $11.10 from $11.00.

Target price is $11.10 Current Price is $10.83 Difference: $0.27
If NST meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.82, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates RIO as Neutral (3) -

A recent tour of Rio Tinto's Bundoora Technical Development Centre site has reiterated a strong focus on lithium. The company has accelerated lithium investment in recent years, backed by its constructive view on demand and supply bottlenecks.

Macquarie expects the resin solution and treatment of spent brine will be a focus during development of Rincon. According to the broker, updates on an operating license and improving relationships with the local community both present near-term catalysts. 

The Neutral rating and target price of $115.00 are retained. 

Target price is $115.00 Current Price is $114.10 Difference: $0.9
If RIO meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $108.57, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates RIO as Overweight (1) -

Following months of obstacles and delays, Morgan Stanley notes Rio Tinto has received support from Turquoise Hill shareholders in favour of the acquisition of the 49% of shares currently not owned. It's felt the bid process demonstrated Rio's M&A discipline.

The broker points out the final bid ($43 Canadian dollars) implies a long-term copper price range of US$3.4-3.5/lb (2022real terms) as compared to Morgan Stanley's forecast of US$3.42/lb.

The Overweight rating and $125 target are maintained. Industry View: Attractive.

Target price is $125.00 Current Price is $114.10 Difference: $10.9
If RIO meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $108.57, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates RIO as Downgrade to Lighten from Hold (4) -

Iron ore miners have rallied strongly in recent weeks despite the iron ore price being around half of what it was last year, Ord Minnett notes.

China’s reopening appears to be a reality, the broker suggests, but sentiment-wise, it’s also the consensus thinking. Fatigue on the trade for the miners could start to set in soon, given strong recent performance and 2023 recession concerns.

Ord Minnett thus downgrades Rio Tinto to Lighten from Hold.

Target price is $93.00 Current Price is $114.10 Difference: minus $21.1 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $108.57, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates RIO as Downgrade to Sell from Neutral (5) -

Despite raising commodity price forecasts and lifting Rio Tinto's target to $95.00 from $90.00, UBS feels the share price has climbed too far and downgrades its rating to Sell from Neutral.

Apart from an expensive share price, the broker notes a fragile macroeconomic backdrop, weak iron ore fundamentals and China's reopening challenge.

The analyst sees operational improvements, but notes iron ore is the key driver of the share price.

Target price is $95.00 Current Price is $114.10 Difference: minus $19.1 (current price is over target).
If RIO meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $108.57, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates RRL as Neutral (3) -

UBS favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The broker maintains its Neutral rating for Regis Resources and raises its target to $2.10 from $2.00.

Target price is $2.10 Current Price is $1.98 Difference: $0.125
If RRL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates S32 as Upgrade to Buy from Hold (1) -

While the share prices of the big diversified miners have rallied strongly in recent weeks, South32 has been a laggard. A (brief) review of the mining sector sees Ord Minnett upgrade to Buy from Hold.

South32 remains the broker's preferred base metal play.

Target price is $4.10 Current Price is $4.06 Difference: $0.04
If S32 meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.9

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

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

Following a rally in share price, thanks to a strong bounce in the copper price and new management at Sandfire Resources, UBS lowers its rating to Neutral from Buy on valuation.

The target is increased to $5.70 from $5.00.

Target price is $5.70 Current Price is $5.34 Difference: $0.36
If SFR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. 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

Ord Minnett rates SGM as Downgrade to Lighten from Hold (4) -

A (brief) review of the mining sector sees Ord Minnett downgrade Sims to Lighten from Hold.

Target price is $12.80 Current Price is $13.76 Difference: minus $0.96 (current price is over target).
If SGM meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.67, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

UBS rates SSR as Buy (1) -

UBS favours gold in 2023 with the price expected to benefit from an interest rate pivot by the US Federal Reserve and a declining US dollar.

The broker maintains its Buy rating for SSR Mining and raises its target to $25.80 from $25.20.

Target price is $25.80 Current Price is $22.42 Difference: $3.38
If SSR meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Market Sentiment: 1.0

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

UBS rates WHC as Buy (1) -

UBS lowers its target price for Whitehaven Coal to $9.20 from $9.50 on a more cautious growth/expansion outlook and after incorporating capex/cost pressures. Buy.

Last week the analyst visited the Maules Creek open cut and Narrabri underground operations and noted organic growth is tough as the company awaits Federal Environment minister approval for expansion.

The challenge has increased following the Queensland Land Court rejection of the privately-owned Waratah coal project last month on human rights impacts from climate change.

Buy retained.

Target price is $9.20 Current Price is $9.59 Difference: minus $0.39 (current price is over target).
If WHC meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.02, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

UBS rates ZIP as Sell (5) -

To accelerate global expansion, Zip Co (in April 2021) issued $400m of senior unsecured convertible notes with a maturity of seven years.

In a move that at first glance appears favourable to ordinary shareholders, according to UBS, the company yesterday announced a liability management exercise.

While the announcement implies convertible note holders do not believe they can recover their principal in full, the announcement also affords the company time to demonstrate it can achieve free cashflow profitability in FY24, explains the broker.

Existing noteholders may convert their notes into Zip ordinary shares at a conversion price of $12.0576/share and receive a cash amount of $17,860 per $100,000 of existing notes.

Sell and 45c target retained.

Target price is $0.45 Current Price is $0.64 Difference: minus $0.19 (current price is over target).
If ZIP meets the UBS target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.67, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.6

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