Australian Broker Call

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

Ansell’s CEO Magnus Nicolin has delayed retirement and will be staying until December 2021. This is due to the pandemic making it difficult to assess CEO candidates.

FY20 guidance remains unchanged with the company noting increased demand for products used by essential workers. Citi highlights the company is expanding its manufacturing and distribution capacity even as it tries to shift its focus away from pandemic-hit industries. 

Ansell is also not increasing its prices except to compensate for increased costs, a strategy appreciated by the broker.

Citi downgrades to Neutral from Buy noting the stock reflects fair value currently. The target increases to $35 from $34.50.

Target price is $35.00 Current Price is $35.67 Difference: minus $0.67 (current price is over target).
If ANN meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.85, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Morgan Stanley rates ANZ as Overweight (1) -

Morgan Stanley retains an Overweight rating, given ANZ Bank's improving franchise performance in Australia and the potential for more credible cost reductions.

The broker is also more confident about the relative credit risk because of the bank's business mix and exposures.

Target is raised to $20.10 from $17.10. Industry view is In-Line.

Target price is $20.10 Current Price is $19.16 Difference: $0.94
If ANZ meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $20.59, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates APT as Buy (1) -

On Ord Minnett's revised estimates, Afterpay should reach around 9.8m active customers by the end of June. The broker expects the company will take advantage of the step up in the proportion of sales from e-commerce.

Strategic interest in the BNPL sector has also been recently highlighted by the Heights Capital investment in Zip Co ((Z1P)) following Tencent's 5% stake in Afterpay.

Ord Minnett retains a Buy rating and raises the target to $64.70 from $34.00.

Target price is $64.70 Current Price is $57.73 Difference: $6.97
If APT meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $37.30, suggesting downside of -35.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates AQR as Add (1) -

APN Convenience Retail REIT has completed an institutional placement of $50m with another $5m sought from an SPP, which will be used to pay down debt and fund acquisitions, including two new Coles Express stores which are about to settle.

FY20 guidance is maintained and FY21 is expected to be "no less" than FY20. A short term catalyst is offered by the potential sale of Puma Energy to Chevron, the broker suggests, and with asset re-ratings.

Stores have seen little impact from the virus. Target falls to $3.75 from $3.87 on dilution, Add retained.

Target price is $3.75 Current Price is $3.35 Difference: $0.4
If AQR meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BLX as Buy (1) -

Beacon Lighting Group delivered a strong trading update with second-half like-for-like sales up 17% (year to date), driven by an increase in the DIY category demand.

Citi is cautious and forecasts FY21 first-half sales growth of 1.5% while acknowledging upside risk given the company’s customers will continue to have limited spending options.

Also, the broker highlights a lot of the company’s customers fall in the middle to upper-income category and are less likely to lose their jobs. Short term positives include better rental deals and lower expenses.

Citi retains its Buy rating with target price increased to $1.40 from $1.24.

Target price is $1.40 Current Price is $1.22 Difference: $0.18
If BLX meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates BLX as Add (1) -

Beacon Lighting lived brighter during the lockdowns, seeing sales surge 17% in the second half as locked in households ramped up renovations. FY20 profit guidance is 23% above the broker's prior forecast and debt is expected to be negligible at end-June. 

Given strength in sales, the broker now expects a ramp up of store rollouts which were previously assumed to be modest. While the April-June sales surge is not expected to be repeated, the broker still believes in-home spending will remain favourable through to end-2020. Add retained, target rises to $1.35 from 93c.

Target price is $1.35 Current Price is $1.22 Difference: $0.13
If BLX meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BXB as Buy (1) -

Citi notes despite significant disruptions in global supply chains from the pandemic, things are looking good for Brambles as per Citi’s US Cost Monitor with lumber prices stabilising and transport costs continuing to fall in May.

Operating income is expected to increase in the second half. The broker finds the company attractive due to its strong balance sheet, defensive portfolio, a move away from capital expenditure intensive growth and flexibility to reduce costs.

The broker retains its Buy rating with a target price of $13.80.

Target price is $13.80 Current Price is $11.53 Difference: $2.27
If BXB meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $12.63, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Credit Suisse rates CAR as Neutral (3) -

Carsales.com has reinstated guidance for operating earnings (EBITDA) of $202-206m and the mid point of the range is 4% ahead of Credit Suisse forecasts.

Management has signalled that lead volumes have grown strongly since April. Meanwhile, Credit Suisse notes that refinancing of debt maturing in July 2021 and the increase to the facility have removed concerns about the balance sheet.

Neutral maintained. Target is raised to $16.60 from $14.40.

Target price is $16.60 Current Price is $18.00 Difference: minus $1.4 (current price is over target).
If CAR meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.07, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

The company stated that lead volumes have grown strongly since late April, a surprise to Macquarie. The broker suspects part of this increase is cyclical, and one-off factors such as pent-up demand following the easing of social distancing restrictions as well as government stimulus have contributed.

On the basis the strength is cyclical this impact should normalise over time and have little bearing on long-term trends, in the broker's view.

Car ownership may be rising to some extent as a result of the pandemic, for which the implications are positive.

Following a 41% increase in the share price since late April Macquarie assesses value is better reflected at current levels and downgrades to Neutral from Outperform. Target rises to $18.00 from $15.30.

Target price is $18.00 Current Price is $18.00 Difference: $0
If CAR meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $16.07, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates CAR as Overweight (1) -

Morgan Stanley expects the FY20 earnings base for Carsales to be slightly more than expected with guidance ahead of consensus. Dealer lead volumes have also recovered strongly and the broker expects this to continue into FY21. 

Even though aware of the risks surrounding the recovery, Morgan Stanley remains positive and maintains its Overweight rating with a target price of $15.50. Industry view: Attractive.

Target price is $15.50 Current Price is $18.00 Difference: minus $2.5 (current price is over target).
If CAR meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.07, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

UBS rates CAR as Neutral (3) -

The company's update has confirmed industry tailwinds, although the quantum of the upgrade to reinstated guidance was slightly ahead of UBS estimates.

The broker suspects the lift in demand is likely to be driven by the JobKeeper payment stimulus, early access to superannuation and favourable instant asset write-off tax rules.

There could also be an increase in car use because of social distancing. Still, some of these factors may fall away and the broker points out the economic outlook remains uncertain.

Hence, minimal growth in FY21 is forecast. Neutral rating and $16 target maintained.

Target price is $16.00 Current Price is $18.00 Difference: minus $2 (current price is over target).
If CAR meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.07, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley notes pressure on retail side profitability and growth prospects while expecting no cost relief in the near-term.

There may be a larger than expected dividend cut or possibly deferral, comments the broker and predicts the bank will offer less upside in case of a rebound.

Morgan Stanley retains its Underweight rating with target price increased to $61.50 from $56.

Target price is $61.50 Current Price is $69.59 Difference: minus $8.09 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $64.01, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

CSL announced the resignation of its CFO, David Lamont effective October 30, 2020. Morgan Stanley notes the company's R&D capability and future growth prospects point to an increase in the risk profile and points out the next CFO could be someone with experience in biotechnology.

The company also entered into a joint venture with Thermo Scientific about the leasing of the Lengnau facility and has acquired Vitaeris.

The broker retains its Equal-Weight rating with a target price of $288. Industry view: In-line.

Target price is $288.00 Current Price is $287.16 Difference: $0.84
If CSL meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $311.67, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY20:

Forecast for FY21:

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

Morgans rates EBO as Add (1) -

The Federal Government has executed the 7th Community Pharmacy Agreement which will be in place for the next five years, which provides a period of certainty for Ebos Group and fellow pharmacy companies, the broker notes.

Ebos provided many services and products that were in high demand during the crisis, and is well funded, the analysts note.

The broker makes no changes to forecasts and believes the company is well placed to grow in the medium term. Target falls to $24.58 from $24.65 to reflect a higher share count. Add retained.

Target price is $24.58 Current Price is $21.00 Difference: $3.58
If EBO meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $24.04, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgans rates FCT as Upgrade to Add from Hold (1) -

Firstwave Cloud Technology has completed a $15m capital raising, and on rising sales and tight cost control should reach cash flow breakeven by end-2022, Morgans estimates. With funding now settled, management can return focus to the business.

For Firstwave, the key to growing sales revenue is to continue adding distributors who pay to use the company's comprehensive cyber security offering, the broker suggests. Upgrade to Speculative Buy from Hold, target rises to 16.5c from 10.6c.

Target price is $0.17 Current Price is $0.09 Difference: $0.075
If FCT meets the Morgans target it will return approximately 83% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Ord Minnett rates FMG as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades to Hold from Accumulate following a material outperformance of the share price.

The broker still envisages Fortescue Metals will offer strong yields but, given Brazilian iron ore exports are expected to recover in the second half of 2020, lower iron ore prices could weigh. Target is reduced to $14.60 from $15.10.

Target price is $14.60 Current Price is $14.62 Difference: minus $0.02 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.62, suggesting downside of -10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Ord Minnett rates GXY as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades to Hold from Accumulate because of recent appreciation in the share price. Target is steady at 90c.

Target price is $0.90 Current Price is $0.86 Difference: $0.04
If GXY meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.94, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Morgans rates IFN as Hold (3) -

Infigen Energy had received an offer of $0.80 from UAC Energy which the broker considered a fair price, albeit the board had not yet recommended the offer. Now international wind energy company Iberdrola has offered 86c.

The broker retains Hold, noting FIRB approval is required and UAC might go again, and lifts its target to the new offer price of 86c from the prior 80c.

Target price is $0.86 Current Price is $0.88 Difference: minus $0.02 (current price is over target).
If IFN meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.75, suggesting downside of -19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates IFN as Hold (3) -

Infigen Energy has entered a bid implementation agreement with Iberdrola, the world's largest wind power company, at $0.86 per share cash.

Ord Minnett believes the bid values the company at close to replacement cost and raises the target to the current offer price of $0.86 from $0.74. Hold maintained.

The broker still envisages the possibility of further competing bids, including UAC Energy which also has an offer on the table.

Target price is $0.86 Current Price is $0.88 Difference: minus $0.02 (current price is over target).
If IFN meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.75, suggesting downside of -19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates IMD as Buy (1) -

UBS estimates that lockdowns in exploration regions globally for the fourth quarter of FY20 will result in a -47% decline in revenue.

A sharp global recovery in the subsequent quarter is also unlikely as cases of coronavirus in South America continue to rise and the ramping up of drilling in North America is slow.

Imdex remains highly leveraged to a faster-than-expected recovery from the second half of FY21 with a stabilising cost base, as little incremental cost is required to support materially higher revenue.

The broker considers the FY22 earnings multiples attractive and retains a Buy rating. Target is reduced to $1.30 from $1.70.

Target price is $1.30 Current Price is $1.05 Difference: $0.25
If IMD meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates JMS as Outperform (1) -

First quarter production was stronger than Macquarie expected while sales were affected by shipments being rolled over into the second quarter.

Mining has now ramped back up following the pandemic-led curtailment and operations have since outperformed monthly targets. Macquarie finds the dividend yield attractive and retains an Outperform rating. Target is $0.35.

Target price is $0.35 Current Price is $0.26 Difference: $0.09
If JMS meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in February.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates MIN as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades to Hold from Accumulate because of recent appreciation in the share price. Target is raised to $17.80 from $17.20.

Target price is $17.80 Current Price is $20.16 Difference: minus $2.36 (current price is over target).
If MIN meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.27, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates MP1 as Downgrade to Hold from Add (3) -

Demand for remote working and other cloud/collaboration solutions provided by cloud service providers has, unsurprisingly Morgans notes, been incredibly strong over the last six months. Megaport has now been included in the ASX200. The broker makes no changes to near term forecasts but lifts its target to $14.14 from $12.87 after rolling forward forecasts by 12 months.

The stock has rallied 122% year on year and shot up after the initial March sell-off. As the share price is now within 10% of target Morgans pulls back to Hold from Add.

Target price is $14.14 Current Price is $13.45 Difference: $0.69
If MP1 meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.03, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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) -

Ahead of the FY20 result on June 22, Ord Minnett anticipates food earnings (EBIT) will rise by around 10.7% in the second half because of the pandemic, which is driving operating leverage.

Food inflation is a medium-term positive with liquor earnings also forecast to rise. Hardware has improved but a fall in earnings is expected because of trade.

Ord Minnett maintains an Accumulate rating and raises the target to $3.15 from $3.00.

Target price is $3.15 Current Price is $2.88 Difference: $0.27
If MTS meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates NAB as Downgrade to Equal-weight from Overweight (3) -

While National Australia Bank’s margin improvement is strong as is its credit quality, Morgan Stanley expects loss rates to be higher than peers due to exposure to businesses.

The broker points out the AUSTRAC issue has created uncertainty. All in all, the broker thinks the bank is more expensive than ANZ Bank and Westpac.

Morgan Stanley downgrades to Equal Weight from Overweight and increases its target to $18.50 from $16.70.

Target price is $18.50 Current Price is $18.96 Difference: minus $0.46 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.82, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates NGI as Outperform (1) -

Funds under management as of May 2020 were US$12.05bn. The company continues to highlight an increase in redemption risk and outflows are expected to increase over the period to the end of June.

Macquarie forecasts -US$3.1bn of net outflows across the second half and FY21.

The broker retains an Outperform rating, supported by valuation, and the redemption risk is already Incorporated into forecasts. Target is reduced to $1.58 from $1.65, reflecting FX changes.

Target price is $1.58 Current Price is $1.29 Difference: $0.29
If NGI meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

UBS rates RHC as Neutral (3) -

Public hospital elective surgery data for the four major states indicates, in aggregate, the number of people waiting surgery increased 9% in the March quarter.

UBS suspects that delays because of the pandemic are likely to result in additional pressures on the waiting lists in the June quarter.

Still, Ramsay Health Care is likely to benefit from local "spot" contracts and more formalised outsourcing of state work.

While not equivalent to private insurance funded admissions, this is still likely to add to operating profit, the broker adds. Neutral rating and $71.20 target maintained.

Target price is $71.20 Current Price is $66.98 Difference: $4.22
If RHC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $67.52, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates RRL as Downgrade to Sell from Hold (5) -

Ord Minnett downgrades to Sell from Hold because of recent appreciation in the share price. Target is reduced to $4.10 from $4.20.

Target price is $4.10 Current Price is $5.19 Difference: minus $1.09 (current price is over target).
If RRL 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 $5.30, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates SZL as Buy (1) -

Ord Minnett assesses the Buy Now Pay Later (BNPL) sector is benefiting from strong growth in online retail. Sezzle's growth is underscored by record merchant sales in the month of April, which are annualised at over $1bn.

Since then active customers have jumped to over 1.3m. Strategic interest has been at the top of Ord Minnett's view, as a number of the company's key competitors attract high-quality strategic investment.

Buy rating maintained. Target rises to $4.00 from $3.10.

Target price is $4.00 Current Price is $3.30 Difference: $0.7
If SZL meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Citi rates TWE as Neutral (3) -

The share price of Treasury Wine Estates has settled in the past month and reflects a more stable operating environment, comments Citi. The broker notes a reduction in the US’s oversupply but a weak recovery in China. 

Even with the backdrop becoming less volatile, the broker is cautious about recovery in FY21 and its FY21 operating income forecast, which is below consensus, reflects this stance.

The broker has reduced earnings forecasts for FY20-21 while leaving it mostly unchanged for FY22.

Citi retains its Neutral rating with a target price of $10.60.

Target price is $10.60 Current Price is $11.06 Difference: minus $0.46 (current price is over target).
If TWE meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.15, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates WBC as Upgrade to Equal-weight from Underweight (3) -

While Westpac has weak retail banking momentum and no plan for medium-term cost reductions, Morgan Stanley upgrades to Equal-weight from Underweight.

The upgrade stems from an improved margin outlook because of lower funding costs, amid less concern about loan losses and a reduced risk of a capital raising.

Target is raised to $18.10 from $15.00. Industry view: In Line.

Target price is $18.10 Current Price is $18.15 Difference: minus $0.05 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.84, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates WSA as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades to Hold from Accumulate because of recent appreciation in the share price. Target is steady at $2.20.

Target price is $2.20 Current Price is $2.29 Difference: minus $0.09 (current price is over target).
If WSA meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.55, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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