Australian Broker Call

Macquarie rates AKE as Outperform (1) -

While leaving forecasts for Allkem unchanged, Macquarie sees volume upside (and pricing upside) with production at both Olaroz Stage 2 and Naraha in the 1H of FY23, and Sal de Vida due a year later.

The company is tripling production by 2026, and the broker notes the potential for several studies to increase volumes further.

The Outperform rating and $21.00 target price are unchanged.

Target price is $21.00 Current Price is $13.48 Difference: $7.52
If AKE meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $15.76, suggesting upside of 12.1% (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 APE as Neutral (3) -

Production and shipping delays for new vehicles are showing some early signs of easing, according to UBS, following the best August sales recorded since 2017.

The broker feels sizeable new car order books should support revenue and margins into 2023 for dealers. However, the poor outlook for Australian property prices is expected to subdue new car demand.

UBS retains its Neutral rating and $13.00 target for Eagers Automotive.

Target price is $13.00 Current Price is $12.84 Difference: $0.16
If APE meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in December.

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 ARB as Buy (1) -

Ord Minnett notes some improvement in new vehicle sales for the first two months of FY23, following the latest 17.3% increase in August, based on figures released by the Federal Chamber of Automotive Industries.

ARB Corp's key vehicle sales in the 4WD segment increased 23% in August, following a 2.9% increase in July, and importantly, the broker points out vehicle sales of the new Toyota LandCruiser improved significantly.

The Buy rating and $39 target price are maintained. 

Target price is $39.00 Current Price is $29.47 Difference: $9.53
If ARB meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $37.31, suggesting upside of 25.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates ASG as Buy (1) -

Production and shipping delays for new vehicles are showing some early signs of easing, according to UBS, following the best August sales recorded since 2017.

The broker feels sizeable new car order books should support revenue and margins into 2023 for dealers. However, the poor outlook for Australian property prices is expected to subdue new car demand.

UBS retains its Buy rating and $3.10 target for Autosports Group.

Target price is $3.10 Current Price is $2.08 Difference: $1.02
If ASG meets the UBS target it will return approximately 49% (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

Ord Minnett rates BOQ as Hold (3) -

Ord Minnett fails to see a catalyst for a re-rating of Bank of Queensland shares and materially reduces its earnings estimates. Greater competition in the mortgage market and emerging wage/inflation pressures are incorporated into forecasts.

However, these changes by the analyst only result in a slight "miss" versus management's guidance.

The broker's $7.80 target price is unchanged with lower net profit and return on tangible equity (ROTE) offset by a change in the risk-free rate to align with peers. Net interest margins (NIM) are expected to trail behind peers as interest rates rise. Hold.

Target price is $7.80 Current Price is $6.99 Difference: $0.81
If BOQ meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 28.2% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

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

Macquarie reviews 2Q results for the kitchen appliance exposed segment of peer Williams Sonoma to attain a read-through for Breville Group.

Management of Williams Sonoma acknlowledged an uncertain economic backdrop for its customers with unknown outcomes for spending trends, as well as pointing to ongoing supply chain pressures.

As a result, the broker cuts its FY23-25 EPS forecasts by -2-3% on lower revenue forecasts to reflect the macroeconomic uncertainty, and lowers its target to $23.10 from $23.35. The rating is also lowered to Neutral from Outperform for the same reasons.

Target price is $23.10 Current Price is $21.88 Difference: $1.22
If BRG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.23, suggesting upside of 16.5% (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

UBS rates BXB as Buy (1) -

UBS retains its belief that CHEP Americas can continue to improve return on invested capital (ROIC) despite growing capital intensity. 

This belief stems from the broker's latest survey of pallet users that revealed pooled pallet prices increased by 6% in the 12 months to July, largely due to lack of pallet availabilty. A further 3.5% rise in pooled prices is predicted for the next 12 months.

The analyst feels current cash flow is being depressed by the temporary challenges of high lumber costs on capex and high loss provisions, which once resolved, suggests strong FY24 cash flow.

The price target of $14.10 and the Buy rating are maintained.

Target price is $14.10 Current Price is $12.26 Difference: $1.84
If BXB meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 10.0% (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: 0.4

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

Ord Minnett rates COL as Lighten (4) -

Following retail sales data for July, Ord Minnett believes Coles Group should outperform Woolworths Group (off a low base) this year though sees stronger industry growth from Aldi and the independents.

Woolworths is behind industry growth on a year-on-year basis, as share trends quickly normalise, explains the broker.

The Lighten rating and $16.80 target are retained for Coles Group.

Target price is $16.80 Current Price is $17.63 Difference: minus $0.83 (current price is over target).
If COL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.74, suggesting upside of 6.5% (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

Ord Minnett rates EQT as Buy (1) -

Ord Minnett expects the acquisition of  Australian Executor Trustees for -$135m will transform EQT Holdings by adding scale and growth potential.

The transaction will be funded by a $125m equity raising, and a further $40m of debt will be applied to integration and used for working capital.

After allowing for synergy benefits, the broker lifts its EPS forecasts by 13-17% in FY24-25 and raises its target to $37 from $35. Buy.

Target price is $37.00 Current Price is $25.62 Difference: $11.38
If EQT meets the Ord Minnett target it will return approximately 44% (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 GPT as Outperform (1) -

Macquarie likes the boost to funds under management (FUM) for GPT Group from now managing the AMP Capital Retail Trust (ACRT), after a transfer of management from AMP Ltd ((AMP)) and Dexus ((DXS)). This includes property management of Pacific Fair in QLD.

As a result of the transfer, the broker raises earnings forecasts and lifts the target for GPT Group to $4.70 from $4.68. Outperform.

Target price is $4.70 Current Price is $4.19 Difference: $0.51
If GPT meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting upside of 12.8% (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

Ord Minnett rates MTS as Accumulate (2) -

Following retail sales data for July, Ord Minnett believes Coles Group should outperform Woolworths Group (off a low base) this year though sees stronger industry growth from Aldi and the independents.

Woolworths is behind industry growth on a year-on-year basis, as share trends quickly normalise, explains the broker.

The Lighten ratings are retained for Woolworths Group and Coles Group, while Ord Minnett keeps an Accumulate rating for Metcash. The target of $4.80 is unchanged.

Target price is $4.80 Current Price is $4.18 Difference: $0.62
If MTS meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in April.

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 TYR as Buy (1) -

In an update to the market, Tyro Payments reported transaction value (TV) of $3.5bn, up 69% on the same period last year. This update is in line with the $40-42bn guidance range provided at  FY22 results, notes Ord Minnett.

Ongoing merchant acquisition and retention was evident to the analyst from figures for downloads and engagement with Tyro’s mobile app.

The Buy rating and $1.40 target are retained.

Target price is $1.40 Current Price is $0.96 Difference: $0.44
If TYR meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $1.50, suggesting upside of 53.1% (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

Ord Minnett rates WOW as Lighten (4) -

Following retail sales data for July, Ord Minnett believes Coles Group should outperform Woolworths Group (off a low base) this year though sees stronger industry growth from Aldi and the independents.

Woolworths is behind industry growth on a year-on-year basis, as share trends quickly normalise, explains the broker.

The Lighten rating and $34.00 target are retained for Woolworths Group.

Target price is $34.00 Current Price is $36.94 Difference: minus $2.94 (current price is over target).
If WOW meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.24, suggesting downside of -1.7% (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