Australian Broker Call

Macquarie rates ABP as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie appreciates Abacus Property's exposure to metropolitan self-storage assets and expects the March 2022 capital raising should soften balance sheet concerns in the near term.

Outperform rating retained. Target price falls to $3.46 from $3.59.

Target price is $3.46 Current Price is $2.77 Difference: $0.69
If ABP meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 24.2% (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

Morgan Stanley rates AIA as Overweight (1) -

As New Zealand prepares to fully re-open, Morgan Stanley adjusts its forecasts for Auckland International Airport. The Overweight rating is retained due to the asset quality and scarcity, along with prospects for recovery.

The broker forecasts an international passenger recovery to 60% of 2019 levels by the end of 2022, and anticipates a dividend resumption in the 2H of FY23.

The target price falls to NZ$8.08 from NZ$8.28. Industry view: Cautious.

Current Price is $6.67. Target price not assessed.

Current consensus price target is $7.50, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Macquarie rates ANN as Upgrade to Outperform from Neutral (1) -

Macquarie notes Ansell's near term earnings continue to be impacted by the unwinding of covid demand from FY20/21.

But the broker sees this factor as discounted in forecasts and consensus earnings for the company.

Macquarie downgrades earnings by -8% and -9% for FY22 & FY23, respectively, reflecting revised assumptions for operations and FX forecasts.

Ansell is trading at 12.7x 12-month forward consensus forecast earnings, a -29% discount to the ASX200 industrials, with a strong balance sheet, leverage to a lower AUD and defensive healthcare earnings, notes the broker.

The price target raises to $27.85 from $27.65 and the rating is upgraded to Outperform from Neutral.

Target price is $27.85 Current Price is $24.01 Difference: $3.84
If ANN meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $29.64, suggesting upside of 19.6% (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: 0.5

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

Credit Suisse rates APM as Outperform (1) -

Credit Suisse has initiated a monthly report analysing industry data for the Disability Employment Services (DES) program, which is APM Human Services International's largest contract, accounting for roughly 20% of revenue.

The broker notes caseloads eased in the June half to take the year-on-year tally to -6%, thanks in part to the buoyant labour market post lockdowns.

On the upside, outcomes (wherein participants were placed in sustainable employment) rose 10% in the June half.

Meanwhile, the company has refinanced its debt, saving roughly 240 basis points, which the broker estimates will cut net interest costs by -$15m.

All up, the broker expects the company to outperform prospectus forecasts by 6%. Outperform rating retained. Target price inches up to $4.25 from $4.20.

Target price is $4.25 Current Price is $3.28 Difference: $0.97
If APM meets the Credit Suisse target it will return approximately 30% (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

Citi rates APX as Neutral (3) -

Citi notes website traffic to Appen's two largest customers' rating website reveals soft demand, Google and Facebook both revealing a deceleration in June.

Neutral rating and $6.60 target price retained.

Target price is $6.60 Current Price is $6.00 Difference: $0.6
If APX meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ARF as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Arena REIT is one of these stocks and Macquarie notes underlying tenant performance across the asset base shows cash-flow resilience and the REIT boasts long weighted average lease expiries, strong CPI linked reviews and a good hedging profile.

Outperform rating retained. Target price rises to $4.92 from $4.61.

Target price is $4.92 Current Price is $4.59 Difference: $0.33
If ARF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting downside of -1.7% (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

Morgan Stanley rates BRG as Overweight (1) -

Morgan Stanley reviews its investment thesis for Breville Group in light of a -40% share price decline this year, and retains its Overweight rating and $25 target price. Industry view: In-Line. 

The broker sees limited earnings risk in FY23/24 due to the global expansion plans, and suggest margins can be maintained by adjusting costs.

The analysts believe the current premium multiple to global peers is justified for several reasons including it being early days for the global expansion, and a long-track record of execution by management. High-income customers are also expected to be more resilient.  

Target price is $25.00 Current Price is $19.27 Difference: $5.73
If BRG meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $26.12, suggesting upside of 31.1% (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 CHC as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie expects Charter Hall's funds under management could surprise to the upside when it reports, expecting additions of $2bn in acquisitions, 1.5% in revaluations and $0.5bn in development completions.

Outperform rating retained. Target price falls to $15.33 form $16.33.

Target price is $15.33 Current Price is $11.59 Difference: $3.74
If CHC meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $16.65, suggesting upside of 43.0% (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 CIP as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie notes Centuria Industrial REIT has been on the acquisition path and believes market rent growth should ameliorate the impact of rising bond yields.

Outperform rating retained. Target price falls to $3.79 from $3.94.

Target price is $3.94 Current Price is $2.95 Difference: $0.99
If CIP meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 24.6% (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

Macquarie rates CLW as Neutral (3) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie appreciates Charter Hall Long WALE REIT's rental structure, noting 46% of leases are linked to CPI escalators and considers the group attractive on valuation. But it warns the REIT's exposure to higher debt costs are significant.

Neutral rating retained. Target price falls to $4.74 from $5.11.

Target price is $4.74 Current Price is $4.43 Difference: $0.31
If CLW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 11.1% (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

Macquarie rates CQR as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie appreciates the defensive nature of Charter Hall Retail REIT's convenience retail cash flows in a rising interest-rate environment and that it is trading at a -18% discount to net tangible assets with a 6.3% dividend yield.

Outperform rating retained. Target price falls to $4.21 from $4.44.

Target price is $4.21 Current Price is $3.89 Difference: $0.32
If CQR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Macquarie rates DXI as Neutral (3) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie eyes Dexus Industria REIT hedging profile with concern.

Neutral rating retained. Target price falls to $3.03 from $3.26.

Target price is $3.03 Current Price is $2.74 Difference: $0.29
If DXI meets the Macquarie target it will return approximately 11% (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

Macquarie rates DXS as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie is not keen on Dexus' exposure to the office market and notes an upcoming maintenance capital expenditure bill and tenant incentives. The REIT's portfolio is 70% hedged and Macquarie suspects the market may be being overly pessimistic.

Outperform rating retained. Target price falls to $10.41 from $11.54.

Target price is $10.41 Current Price is $9.36 Difference: $1.05
If DXS meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.71, suggesting upside of 14.8% (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

UBS rates FMG as Neutral (3) -

Given the tight WA labour market and inflationary backdrop, UBS continues to see risks to both timeline and capex for Fortescue Metals' Iron Bridge magnetite project.

Overall company returns in the first half of 2022 should be supported by a firm iron ore price, tightening low-grade discounts and strong operational performance, suggests the broker. The Neutral rating and $16.00 target price are retained.

Target price is $16.00 Current Price is $16.33 Difference: minus $0.33 (current price is over target).
If FMG 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 $16.73, suggesting downside of -1.0% (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: -0.3

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

Macquarie rates GMG as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Goodman Group is one of Macquarie's top picks, the broker admiring its relatively strong earnings certainty but suspects this stance may be too conservative in the light of normalising bond yields.

The REIT has development production of $7bn with a fee take of 15% notes the broker, solid assets under management; and completions should help co-investments, yielding a slight rise in net operating income growth, although slower economic growth could take its toll.

As a result key risks are movements in asset values and development returns but the broker expects capital recycling and low industrial vacancy will yield a more resilient pipeline for the company and that the company can post an EPS compound average growth rate of 11% over three years.

Outperform rating retained. Target price falls to $23.31 from $25.31.

Target price is $23.31 Current Price is $18.95 Difference: $4.36
If GMG meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $23.36, suggesting upside of 22.3% (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 GOZ as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie appreciates Growthpoint Properties Australia's defensive income, exposure to industrial, resilient tenant base and long weighted average lease expiries, but spies risk from rising interest rates, noting the portfolio was 60% hedged at June 2022.

Outperform rating retained. Target price falls to $4.16 from $4.57.

Target price is $4.16 Current Price is $3.61 Difference: $0.55
If GOZ meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.11, suggesting upside of 13.2% (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

Macquarie rates GPT as Neutral (3) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie is cautious toward GPT Group, noting office lease expiries and interest-rate headwinds. 

Neutral rating retained. Target price falls to $4.69 from $4.89.

Target price is $4.69 Current Price is $4.46 Difference: $0.23
If GPT meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Lighten (4) -

Ord Minnett revisits REITs after recent market falls and nominates GPT Group as its least favourite sector pick, given it has the lowest interest rate hedging in the sector, at a time of rising inflation.

GPT Group has also raised its gearing to its highest level since 2008 and Ord Minnett spies an asset correction in the wings.

The broker also believes vacancy risk exists in the company's office portfolio, with more than 30% of the portfolio due to expire before the end of 2024.

Lighten rating retained. Target price is $4.60.

Target price is $4.60 Current Price is $4.46 Difference: $0.14
If GPT meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates HCW as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie  notes HealthCo Healthcare & Wellness REIT's capital management is being reviewed given the dividend is unlikely to be covered until FY25 but the valuation remains attractive as do expected development completions.

Outperform rating retained. Target price falls to $2.07 from $2.11.

Target price is $2.07 Current Price is $1.57 Difference: $0.5
If HCW meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.02, suggesting upside of 25.3% (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 HDN as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie appreciates HomeCo Daily Needs REIT's operational metrics which point to solid tenant performance defensive income. 

Outperform rating retained. Target price rises to $1.65 from $1.58.

Target price is $1.65 Current Price is $1.35 Difference: $0.3
If HDN meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 10.5% (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

UBS rates JHX as Buy (1) -

UBS believes James Hardie Industries is relatively well placed to endure a downturn in the US and prefers to compare the current downturn to 2000/01, rather than the more severe 2008 version.

The company's overweight exposure to the repair & remodel (R&R) segment compared to new construction will assist as R&R downturns are shorter and not as severe, explains the analyst.

The broker lowers its target to $53.00 from $57.70 on lower revenue growth for FY23, while the FY24 EPS estimate declines by -20% on more conservative volume assumptions. Buy.

Target price is $53.00 Current Price is $33.68 Difference: $19.32
If JHX meets the UBS target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $49.71, suggesting upside of 44.6% (ex-dividends)

The company's fiscal year ends in March.

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: 0.8

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

Morgan Stanley rates JIN as Overweight (1) -

While Jumbo Interactive released total transaction value (TTV) and ticket sales in line with Morgan Stanley's forecasts, revenue was a miss due to a higher skew to lower take-rate games.

As a result, the broker sets the company's retailing take rate -150bp lower and cuts earnings by around -20% for FY23-24. The target price falls to $16.00 from $25.50. Overweight. Industry view: In-line.

As revenue exceeded expectations, the analyst stresses demand is not flagging or competition increasing, and volume assumptions for lotteries retailing remain unchanged.

Target price is $16.00 Current Price is $12.31 Difference: $3.69
If JIN meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $17.53, suggesting upside of 34.6% (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

Morgans rates JIN as Add (1) -

Following preliminary FY22 results released by Jumbo Interactive, and a negative share price move in reaction, Morgans encourages investors to buy shares. The results were a -2% miss versus the analyst's estimate.

The broker considers the company as a play on the structural dynamic of an increasing proportion of online lottery ticket purchases. It's felt the SaaS and Managed Services divisions will also help deliver growth in FY23.

Management reiterated the dividend payout ratio, which implies to the broker a full year dividend of 43cps. The Add rating is maintained and the target eases to $17.50 from $18.30.

Target price is $17.50 Current Price is $12.31 Difference: $5.19
If JIN meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $17.53, suggesting upside of 34.6% (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 LLC as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but says stabilising bond yields may make such a stance appear too conservative.

Lendlease Group is one of Macquarie's preferred picks but expects rising construction costs to hit earnings and says its ability to start $4bn of work in the second half will be critical. The broker suspects the company may cut the payout ratio to fund the group's target of $12bn of deployed capital by 2026.

Outperform rating retained. Target price falls to $11.80 from $12.30.

Target price is $11.80 Current Price is $9.51 Difference: $2.29
If LLC meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $12.31, suggesting upside of 29.6% (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 MGR as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie expects Mirvac Group will increase earnings thanks to rising residential; and as rent relief rolls of; and says a key driver will be management's commentary on residential sales given growing challenges, and the upshot for the apartment development pipeline (which is well known in the market). Macquarie is positive on residential apartments given low vacancies.

Outperform rating retained, the broker noting the company is trading on a larger relative discount to peers. Target price falls to $2.34 from $2.62.

Target price is $2.34 Current Price is $2.05 Difference: $0.29
If MGR meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 23.8% (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

Ord Minnett rates MGR as Buy (1) -

Ord Minnett revisits REITs after recent market falls and selects Mirvac Group as its top sector-pick.

The broker believes the implied price for the company is far too negative and considers the stock to be oversold, and appreciates the company's strong track record, commercial development pipeline and relatively young, quality $15bn investment portfolio.

Buy rating and $2.50 target price retained.

Target price is $2.50 Current Price is $2.05 Difference: $0.45
If MGR meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 23.8% (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 NSR as Neutral (3) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie notes that management updates have been surprising to the upside, and while it is a fan of self-storage, believes tailwinds may be normalising and less impressed with the group's low hedging and fair market valuation.

Neutral rating retained. Target price falls to $2.29 from $2.39.

Target price is $2.29 Current Price is $2.25 Difference: $0.04
If NSR meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.33, suggesting upside of 4.3% (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

Macquarie rates NWL as Outperform (1) -

Netwealth Group's net inflows of $2.7bn for 4Q22 and total funds under administration of $55.7bn for FY22 were slightly below guidance notes Macquarie.

The broker sees the slight miss on net inflows were due to market volatility and regulatory requirements for advisers.

Macquarie reduces earnings by -2% & -10.7% for FY22 and FY23, respectively, with slightly lower inflows from market movements offset by higher cash balances.

An Outperform rating is maintained and the price target is reduced to $16.00 from $17.40

Target price is $16.00 Current Price is $12.54 Difference: $3.46
If NWL meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $14.81, suggesting upside of 15.4% (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

Credit Suisse rates PDL as Neutral (3) -

Pendal Group's March-quarter update shows outflows fell short of Credit Suisse's forecasts, funds under management falling -11% quarter on quarter, mostly in higher margin products, estimates the broker. Performance fees were only a touch softer than forecast.

On the upside, Thomson Siegel & Walmsley (TSW) outflows slowed sharply and it reported a $1.3bn mandate win for the June quarter.

Earnings forecasts ease -1% to -2%, which were already -10% to -15% below old consensus. Neutral rating retained. Target price slips to $3.90 from $4.

Target price is $3.90 Current Price is $3.76 Difference: $0.14
If PDL meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates PDL as No Rating (-1) -

Pendal Group's June quarter funds under management update revealed net outflows of -$4.2bn, notes Macquarie.

The broker sees the US pooled fund outflows of -US$1.9bn as disappointing.

The company earned $5.4m in performance fees while assets under management fell -11% from market movements that were partially offset by FX movements up 3.3%, highlights Macquarie.

Macquarie downgrades earnings forecasts by -4.3% and -14.6% for FY22 & FY23, respectively.

Due to research restrictions the broker cannot provide a price target or recommendation.

Current Price is $3.76. Target price not assessed.

Current consensus price target is $4.80, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as Equal-weight (3) -

Following Pendal Group's worse-than-expected outflows for the June quarter, Morgan Stanley thinks it will be difficult to return to inflows, given current market volatility. Soft momentum in retail and pressures in UK/EU equities are also expected to weigh.

For the quarter, there were outflows of -$4bn ex cash and closing funds under management were $111bn versus the $122bn expected by the broker. 

The Equal-weight rating and $5.90 target price are maintained. Industry view is Attractive.

Target price is $5.90 Current Price is $3.76 Difference: $2.14
If PDL meets the Morgan Stanley target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates PDL as Buy (1) -

Pendal Group's FY22 June-quarter funds under management fell due to the market retreat as expected, but weaker flows disappointed Ord Minnett, the company reporting net outflows across the division.

The broker raises outflow assumptions for FY23. Medium to long-term investment was strong.

Buy recommendation retained on valuation grounds. Target price falls to $4.20 from $6.00.

Target price is $4.20 Current Price is $3.76 Difference: $0.44
If PDL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates PDL as Buy (1) -

June funds under management (FUM) for Pendal Group were a -3% miss versus the forecast by UBS. Net outflows during the quarter of -$4.2bn were higher than expected, and are seen as ongoing.

The broker retains its Buy rating and sees value if the $100m buy-back is executed and/or the Perpetual ((PPT)) offer is reconsidered by the board.

After incorporating the lower FUM and revising the outlook, the analyst lowers the target price to $4.25 from $5.25.

Target price is $4.25 Current Price is $3.76 Difference: $0.49
If PDL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates QAL as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie notes Qualitas is well positioned to grow earnings and funds under management and execution upside is strong.

Outperform rating retained. Target price rises to $2.53 from $2.46.

Target price is $2.53 Current Price is $1.63 Difference: $0.9
If QAL meets the Macquarie target it will return approximately 55% (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

Citi rates RIO as Buy (1) -

Rio Tinto's June-quarter report failed to impress Citi, the aluminium division beset by rising energy and raw materials costs, and reduced production after a July strike at Kitimat and instability at Boyne relating to unplanned absences.

Copper plodded along and the broker expects iron ore production will at least meet the lower end of guidance.

Citi's 2022 commodity price decks falls -11% for iron ore, -16% fro aluminium and -14% for copper. Aluminium and copper forecasts fall -11% and -19% for 2023.

Buy rating retained. Target price falls to $120 from $135.

Target price is $120.00 Current Price is $93.27 Difference: $26.73
If RIO meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $112.36, suggesting upside of 17.9% (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: 0.6

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

Credit Suisse rates RIO as Outperform (1) -

Rio Tinto downgrades 2022 guidance -6% and -3% for alumina and aluminium after a soft June quarter.

Iron ore shipments marginally outpaced the Credit Suisse and consensus forecasts but the broker retains its forecast at the bottom end of guidance given the high bar required and given ongoing operational changes.

The aluminium division battled rising energy costs and raw materials prices, which Credit Suisse estimates will add $1.1bn to 2022 costs.

Meanwhile, the copper division logged a US$140m provision and increased closure liabilities. 

Outperform rating retained, thanks to the "pristine" balance sheet. Target price eases to $116 from $118.

Target price is $116.00 Current Price is $93.27 Difference: $22.73
If RIO meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $112.36, suggesting upside of 17.9% (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: 0.6

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

Macquarie rates RIO as Outperform (1) -

Macquarie sees Rio Tinto's Jube quarter result as soft with weaker than expected iron ore prices (volumes were in line), rising cost pressures and lower than anticipated volumes for alumina and aluminum.

The broker downgrades earnings forecasts by -7% and -2% for FY22 &FY23, respectively based on the softer than expected results.

Macquarie notes that movements in iron ore prices are a key risk to earnings forecasts and Rio Tinto's valuation.

The  Outperform rating is maintained and the price target is reduced by -3% to $120.

Target price is $120.00 Current Price is $93.27 Difference: $26.73
If RIO meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $112.36, suggesting upside of 17.9% (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: 0.6

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

Morgan Stanley rates RIO as Overweight (1) -

After assessing Rio Tinto's 2Q operational performance, Morgan Stanley sees a -5% impact on earnings (EBITDA), which has the potential to impact the dividend, unless the payout ratio is lifted. Management maintained guidance for most business units.

Production for iron ore was in-line with the broker's estimate, while softer for aluminium and copper. The Overweight rating and $119.50 target are retained. Industry View: Attractive.

Target price is $119.50 Current Price is $93.27 Difference: $26.23
If RIO meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $112.36, suggesting upside of 17.9% (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: 0.6

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

Ord Minnett rates RIO as Hold (3) -

Rio Tinto's FY22 June-quarter production report revealed Pilbara iron ore shipments met Ord Minnett's forecasts but pricing disappointed. Shipment guidance remains on track, and cost guidance was roughly steady.

Lower guidance was issued for the aluminium division thanks primarily to higher costs.

Hold rating retained. Target price eases to $99 from $100.

Target price is $99.00 Current Price is $93.27 Difference: $5.73
If RIO meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $112.36, suggesting upside of 17.9% (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: 0.6

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

UBS rates RWC as Buy (1) -

UBS believes Reliance Worldwide is relatively well placed to endure a downturn in the US and prefers to compare the current downturn to 2000/01 rather than the more severe 2008 version.

The broker explains the company is the most exposed (under its coverage) to the repair & remodel (R&R) segment and non-discretionary repair. R&R downturns are shorter and not as severe, explains the analyst.

In addition, FY23/FY24 margins should get solid support as the prices for copper/resins pull-back strongly, anticipates the broker. The Buy rating is maintained, while the target falls to $5.40 from $5.70.

Target price is $5.40 Current Price is $4.24 Difference: $1.16
If RWC meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 22.6% (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: 0.7

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

Macquarie rates SCP as Neutral (3) -

Shopping Centres Australasia Property has acquired five assets for $180m. These are convenience-based shopping centres with the earnings benefit to be delivered over several years depending on the cost of debt.

The acquisitions will be funded via debt using existing undrawn bank facilities.  Macquarie remains attracted to the defensive cash flow and exposure to the CPI via the supermarket turn-over clauses.

Yet the valuation support remains limited relative to peers so the broker sticks with a Neutral rating. Target is reduced to $2.94 from $2.96.

Macquarie appreciates Shopping Centres Australasia Property's defensive cash-flow profile and notes gearing is at the low end of target, but considers the valuation to be challenging relative to peers.

Neutral rating retained. Target price falls to $2.81 from $2.94.

Target price is $2.81 Current Price is $2.83 Difference: minus $0.02 (current price is over target).
If SCP meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.89, suggesting upside of 0.9% (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

Citi rates SGM as Upgrade to Buy from Neutral (1) -

Citi cuts FY22 earnings forecasts for Sims -1% and FY23 forecasts -6% to account for lower Turkish scrap price assumptions.

The broker notes scrap prices have fallen -38% since March and Turkish scrap now looks oversold.

Add to that the recent -35% share-price retreat and Citi spies value, not to mention the strong net cash position and balance sheet.

Rating upgraded to Buy from Neutral. Target price slips to $17 from $20.40 to reflect the broader market de-rating.

Target price is $17.00 Current Price is $13.80 Difference: $3.2
If SGM meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 39.6% (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

Macquarie rates SGP as Neutral (3) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Macquarie expects Stockland will report a tax loss, the extent of which is unclear. The broker likes the REIT's capital allocation transition but expects uncertainty around residential conditions will continue to drag, as will rising interest rates.

Neutral rating retained. Target price falls to 3.74 from $3.90.

Target price is $3.74 Current Price is $3.80 Difference: minus $0.06 (current price is over target).
If SGP 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 $4.59, suggesting upside of 21.6% (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

Ord Minnett rates TLS as Buy (1) -

Telstra has finalised the Digicel acquisition ahead of schedule and Ord Minnett revises earnings and capital expenditure forecasts less than 1%.

Buy rating retained. Target price is steady at $4.65.

Target price is $4.65 Current Price is $3.94 Difference: $0.71
If TLS meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.46, suggesting upside of 13.0% (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

Morgan Stanley rates TWE as Overweight (1) -

Morgan Stanley reiterates its Overweight call on Treasury Wine Estates, noting the resilience of wine consumption through economic cycles and inflation offsets. The latter includes the cost-out program and lower grape costs, explains the analyst.

The broker highlights the company has a portfolio of well recognised brands at attractive price points to counter any trading-down by the consumer. The $13.80 price target is unchanged. Industry view is In-Line.

Target price is $13.80 Current Price is $11.58 Difference: $2.22
If TWE meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.41, suggesting upside of 16.7% (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 VCX as Outperform (1) -

Macquarie revisits Australian REITs and has the following observations:

Slowing economic growth could bode well for REITs in 2023; industrial supply remains tight; retail is historically preferred during a downturn (Macquarie expects a recession in 2023); bond yields are starting to normalise; the EPS yield spread has returned to the long-term average; the sector has been sold off recently;  and the green transition could result in significant property expenses as the Ukraine conflict sustains energy prices (although REITS are well-placed to manage costs).

The broker prefers REITs with greater earnings certainty but stabilising bond yields may make such a stance appear too conservative.

Vicinity Centres is one of the broker's preferred picks, Macquarie admiring the company's defensive characteristics (a higher hedged position, strong balance sheet and retail sales strength) and expecting the REIT to outpace upgraded guidance and raises earnings 10% in FY23.

Outperform rating and $2.01 target price retained.

Target price is $2.01 Current Price is $1.88 Difference: $0.13
If VCX meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting downside of -1.9% (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

Macquarie rates WGX as Outperform (1) -

Macquarie's site visit to Westgold Resources' Murchison gold operations provided the broker with more confidence on the outlook for Big Bell.

The broker upgrades the forecast for Big Bell's output to 1.2Mtpa from 1.1Mtpa and sees potential increases to lift extraction in the future.

Earnings forecasts for Westgold Resources are reduced by -6% and -5% for FY22 & FY23, respectively due to the increase in Macquarie's forecast D&A rates on the back of lower mining inventory.

The price target is maintained at $2.00. Outperform.

Target price is $2.00 Current Price is $1.14 Difference: $0.86
If WGX meets the Macquarie target it will return approximately 75% (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 WTC as Buy (1) -

WiseTech Global has upgraded FY22 guidance, thanks to revenue growth, operating leverage and better cost management.

Ord Minnett thanks the covid re-opening, which it expects has driven higher non-recurring revenue on higher margins.

Transport volumes showed signs of weakness.

The broker now expects WiseTech will hit the top end of guidance. FY22 and FY23 EPS forecasts rise sharply but slow thereafter.

Buy rating retained. Target price falls to $50.50 from $52.

Target price is $52.00 Current Price is $44.13 Difference: $7.87
If WTC meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $48.34, suggesting upside of 2.2% (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