Australian Broker Call

Macquarie rates AFG as Outperform (1) -

Australian Finance Group’s lodgement activity in the June quarter was up 30% versus the prior comparable period, with FY20 growth at 22.5%

Macquarie expects funding cost-benefit to continue for the first quarter of FY21 with bank bill swap rates about -15% below the cash rate. High economic uncertainty has led the broker to increase anticipated credit provisioning.

Driven by lodgement activity and increased margin assumptions, earnings forecasts for FY20 went up 3.4% with FY21 up by 17.5%.

Macquarie rates the stock as Outperform with a target price of $2.34.

Target price is $2.34 Current Price is $1.65 Difference: $0.69
If AFG meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

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 APT as Downgrade to Neutral from Outperform (3) -

The pandemic has accelerated Afterpay’s growth with sales momentum showing up through a jump of 127% in the June quarter, driven by scaling of the business in three markets.

Macquarie expects strong subscriber growth to underpin sales growth. The company’s ability to scale quickly gives it a competitive advantage, highlights the broker.

There is uncertainty in forecasting an emerging model, admits the broker and downgrades to Neutral from Outperform with the target price increasing to $70 from $36. This reflects increased long term gross merchandise value (GMV) assumptions and the capital raising.

Target price is $70.00 Current Price is $67.50 Difference: $2.5
If APT meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $55.09, suggesting downside of -16.6% (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 APT as Equal-weight (3) -

Afterpay has had an impressive June quarter, comments Morgan Stanley, with sales growing 127% versus the third quarter. Active customers at 9.9m beat the broker’s estimate by 6%.

The company is raising $800m to accelerate global growth. The broker expects an upgrade to consensus estimates.

Morgan Stanley retains its Equal-weight rating with a target price of $36. Industry view: In-line.

Target price is $36.00 Current Price is $67.50 Difference: minus $31.5 (current price is over target).
If APT meets the Morgan Stanley target it will return approximately minus 47% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $55.09, suggesting downside of -16.6% (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

Morgans rates APT as Hold (3) -

Morgans notes the June quarter was very strong, delivering 46% sequential sales growth and relatively stable operating margins.

The company has announced an $800m capital raising to strengthen the balance sheet, which the broker considers opportunistic following the strong run up in the share price.

While the co-founders sell-down comes with negative connotations, the parcel is only 10% of their respective holdings and both maintain sizeable positions.

The launch in Canada is expected in the first quarter of FY21. Hold rating retained. Target is raised to $68.58 from $45.96.

Target price is $68.58 Current Price is $67.50 Difference: $1.08
If APT meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $55.09, suggesting downside of -16.6% (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

UBS rates APT as Sell (5) -

UBS was not surprised by the $800m capital raising and the $250m sell-down by the company's co-founders, assessing this is understandable given the current valuation.

The capital raising significantly de-risks the operating model and the broker estimates the company can now fund its entire FY22 sales assumptions via equity.

Nevertheless, the UBS view on the fundamental valuation of the stock is unchanged and a Sell rating is retained. Target is raised to $27 from $25.

Target price is $27.00 Current Price is $67.50 Difference: minus $40.5 (current price is over target).
If APT meets the UBS target it will return approximately minus 60% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $55.09, suggesting downside of -16.6% (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 ASX as Lighten (4) -

Ord Minnett remains concerned about valuation and also notes pressures around interest income and increased expenses.

The extension of the CHESS replacement timeline to April 2022 is expected to increase expenses for the company, particularly related to staff employment.

ASX will report its FY20 result on August 20. The broker retains a Lighten rating and raises the target to $79.14 from $78.00.

Target price is $79.14 Current Price is $86.45 Difference: minus $7.31 (current price is over target).
If ASX 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 $72.37, suggesting downside of -15.4% (ex-dividends)

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

Credit Suisse rates AZJ as Outperform (1) -

Credit Suisse lowers coal volume forecasts by -5.8% for FY21. Overall, the impact on the Australian export market is more benign compared with other global markets because of the relatively higher quality of Australian coal, and higher fixed costs.

Aurizon, however, obtains half its earnings from the regulated rail infrastructure network which is not exposed to volume risks.

Hence, Credit Suisse still expects earnings growth in FY21. Outperform maintained. Target is reduced to $5.55 from $5.80.

Target price is $5.55 Current Price is $4.85 Difference: $0.7
If AZJ meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in June.

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 BGL as Outperform (1) -

Bellevue Gold has released a maiden indicated resource of 860koz at 11.6g/t at the Bellevue gold project in Western Australia. The company expects more increase in indicated resources in the fourth quarter of 2020.

The company also reported a higher grade indicated resource from Viago and Deacon which Macquarie has incorporated into its early mine plan. The broker expects Bellevue Gold’s indicated resource to grow towards the broker's 1.5moz mining inventory assumption.

Earnings forecasts reduced for FY22 by -59% while increased for FY23-25.

Macquarie retains its Outperform rating with a target price of $1.30.

Target price is $1.30 Current Price is $1.00 Difference: $0.3
If BGL meets the Macquarie target it will return approximately 30% (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

Credit Suisse rates CCL as Downgrade to Neutral from Outperform (3) -

Credit Suisse observes early signs consumers are seeking value in the beverage category. Discounted water volumes have started to grow again.

The broker is also concerned about the short-term impact of the renewed lockdown in Victoria.

Until the uncertainty around the operating performance clears, Credit Suisse downgrades to Neutral from Outperform.

Target is lowered to $9.00 from $10.00.

Target price is $9.00 Current Price is $8.76 Difference: $0.24
If CCL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.24, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CIP as Hold (3) -

The company has announced preliminary portfolio valuations, resulting in a 1.3% uplift. Rent collection has also averaged 95% throughout April-June, a key positive.

Morgans expects the next trading update on August 5 with the full year results. Hold maintained. Target rises to $2.93 from $2.82.

Target price is $2.93 Current Price is $3.16 Difference: minus $0.23 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.90, suggesting downside of -4.7% (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

Morgans rates COF as Add (1) -

Preliminary revaluations have resulted in a -1.1% portfolio reduction compared with the prior comparable period. The decrease in value is mainly the result of valuers adopting lower growth rates.

Rent collection has averaged 89% since April, in line with expectations.

At current prices Morgans believes the stock continues to offer an attractive return and retains an Add rating. Target is $2.33.

The company will report its results on August 5.

Target price is $2.33 Current Price is $2.05 Difference: $0.28
If COF meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.33, suggesting upside of 16.5% (ex-dividends)

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 DMP as Downgrade to Neutral from Outperform (3) -

Analysts at Macquarie observe consumer discretionary stocks have significantly outperformed in Australia as trading restrictions have seen consumer spending on services switch to goods.

Meanwhile, strong fiscal stimulus programs and incentives to retain employees will gradually unwind leaving current valuations vulnerable to a derating, the analysts believe.

They have downgraded Domino's Pizza to Neutral from Outperform. Target $66.10, unchanged.

Target price is $66.10 Current Price is $72.75 Difference: minus $6.65 (current price is over target).
If DMP meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $58.11, suggesting downside of -17.8% (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 GXY as Hold (3) -

Sal de Vida has advanced to the design stage although pandemic restrictions continue to affect the development schedule in Argentina.

First production has been pushed out until the fourth quarter of 2022.

Ord Minnett suggests a final investment decision, offtake, funding, construction and commissioning will be the string of catalysts ahead for the stock, as Sal de Vida is the mainstay of its valuation.

Hold rating and $0.90 target maintained.

Target price is $0.90 Current Price is $0.84 Difference: $0.06
If GXY meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.80, suggesting downside of -6.5% (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: -0.3

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

UBS rates IMD as Buy (1) -

Imdex has acquired AusSpec International, an NZ-based provider of spectral mineralogy, for $8.5m. This expands the company's capabilities in mineralogy.

The acquisition is expected to be positive for cash flow immediately. UBS observes the acquisition is strategic and consistent with the company's strategy to provide a complete rock knowledge solution.

The broker retains a Buy rating and $1.30 target.

Target price is $1.30 Current Price is $1.12 Difference: $0.18
If IMD meets the UBS target it will return approximately 16% (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 JBH as Downgrade to Neutral from Outperform (3) -

Analysts at Macquarie observe consumer discretionary stocks have significantly outperformed in Australia as trading restrictions have seen consumer spending on services switch to goods.

Meanwhile, strong fiscal stimulus programs and incentives to retain employees will gradually unwind leaving current valuations vulnerable to a derating, the analysts believe.

They have downgraded JB Hifi to Neutral from Outperform. Target $41, unchanged.

Target price is $41.00 Current Price is $43.48 Difference: minus $2.48 (current price is over target).
If JBH meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.53, suggesting downside of -4.7% (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

Ord Minnett rates MCP as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on McPherson's with a Buy rating and $3.50 target. The broker observes management has successfully rationalised the product portfolio and redeployed capital.

The Dr LeWinn's product is emerging as a winner, Ord Minnett assesses. The company appears on track to deliver growth of 10% in underlying pre-tax profit for FY20.

Target price is $3.50 Current Price is $2.90 Difference: $0.6
If MCP meets the Ord Minnett target it will return approximately 21% (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 MFG as Downgrade to Neutral from Buy (3) -

Citi has downgraded to Neutral from Buy, while remaining attracted to Magellan Financial's positive leverage to equity markets, its solid investment performance on top of strong net cash generation, but it's time for a pause in the share price rally, apparently.

The analysts have taken the opportunity to lift earnings estimates (noticeably) and this has pushed up the price target to $66 from $40. The new target includes a 10% valuation premium for the potential growth into retirement income, the analysts explain.

Target price is $66.00 Current Price is $64.01 Difference: $1.99
If MFG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $53.92, suggesting downside of -12.2% (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

Credit Suisse rates MFG as Neutral (3) -

Funds under management in June were $97.2bn, in line with Credit Suisse expectations. Negative market movements were only partially offset by positive net inflows during the month.

Performance fees in the second half were ahead of expectations and the broker suspects the majority were generated in institutional strategies.

The valuation appeal is limited as Magellan Financial is the most expensive manager under the broker's coverage but no negative catalysts are on the horizon. Neutral maintained. Target is $55.

Target price is $55.00 Current Price is $64.01 Difference: minus $9.01 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $53.92, suggesting downside of -12.2% (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

Morgans rates MFG as Hold (3) -

Magellan Financial ended FY20 with $97.2bn in funds under management, up 12% for the year.

Morgans considers the stock fair value but the business and earnings profile high-quality. Market direction is the largest swing factor for forecasts.

More detail on the retirement income product and potential unlisted/investment banking opportunity is expected with the FY20 result on August 12. Hold rating and $61.15 target maintained.

Target price is $61.15 Current Price is $64.01 Difference: minus $2.86 (current price is over target).
If MFG meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $53.92, suggesting downside of -12.2% (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

UBS rates MFG as Neutral (3) -

Funds under management were broadly in line with UBS estimates in June.

Performance fees of $39m in the second half suggest a greater degree of outperformance across more opaque institutional mandates.

Looking forward, the broker expects growth rates will moderate, given the company's large asset base and key funds being "soft closed" to new institutional clients.

Neutral rating and $56.70 target maintained.

Target price is $56.70 Current Price is $64.01 Difference: minus $7.31 (current price is over target).
If MFG 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 $53.92, suggesting downside of -12.2% (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

Morgans rates PDL as Hold (3) -

Morgans estimates June funds under management at $92.5bn, up 7.6% in the quarter.

Flows at JO Hambro will be the focus, given the volatile conditions and the underperformance of several large UK/EU funds over the past 12 months.

The valuation is undemanding but Morgans is looking for an improvement in investment performance and retains a Hold rating. Target is $6.90.

Target price is $6.90 Current Price is $6.11 Difference: $0.79
If PDL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 10.7% (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

Morgans rates PNI as Add (1) -

The company has noted net flows were modest in both retail and institutional channels over the second half. Gross performance fees were $25.8m.

The outstanding performer was Hyperion, with Hyperion Global delivering 16.5% outperformance for the six months.

Morgans retains an Add rating and $4.75 target.

Target price is $4.75 Current Price is $4.45 Difference: $0.3
If PNI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 14.1% (ex-dividends)

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

Morgan Stanley rates PSQ as Overweight (1) -

Pacific Smiles has signed a ten year agreement with the fifth largest private health insurer – HBF – under which HBF will build and operate five HBF dental centres in the next 18 months. 

Pacific Smiles will receive a percentage of revenue in exchange for support during construction and operation of the centres.

Morgan Stanley considers Pacific Smiles to have the strongest corporatised dental model in Australia with a strategy based on economics, consistent network and a compelling value proposition to customers, dentists, staff and private health insurers.

The threat of lockdowns and centre closures could lead to lower earnings but the broker expects network size, capacity and market position to keep improving.

Morgan Stanley maintains its Overweight rating with the target price increasing to $2 from $1.80. Industry view: In-line.

Target price is $2.00 Current Price is $1.60 Difference: $0.4
If PSQ meets the Morgan Stanley target it will return approximately 25% (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

Ord Minnett rates RHC as Accumulate (2) -

Industry feedback signals some patients in Melbourne have already cancelled surgery, in the wake of the rapid rise in coronavirus cases.

Ord Minnett expects to hear about the Victorian plans for private hospitals in coming days but suspects there is likely to be a reduction in the number of elective surgeries.

It remains unclear whether Ramsay Health Care's Victorian operations will revert to viability funding for another quarter.

The broker estimates a lost quarter of revenue from Victoria would reduce FY21 earnings by around -4%. Accumulate rating and $78.25 target maintained.

Target price is $78.25 Current Price is $64.52 Difference: $13.73
If RHC meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $67.52, suggesting upside of 6.8% (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

Macquarie rates SBM as Underperform (5) -

St Barbara had a strong June quarter with gold production of 109koz exceeding Macquarie’s estimates by 18% and meeting its FY20 guidance. 

While all operations were stronger than expected in FY20, Gwalia was the standout with production of 51.3koz, 26% above the broker’s estimates. On a quarterly basis, mill throughput was up 36% quarter on quarter at Gwalia, the highest since 2014.

FY20 net cash at $90m is more than expected by the broker ($41m) and points at lower operating costs. Earnings forecasts for FY20 increased by 3%. The company will be releasing its full fourth-quarter report and FY21 guidance on July 29^th.

Macquarie reiterates its Underperform rating with a target price of $2.80.

Target price is $2.80 Current Price is $3.63 Difference: minus $0.83 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.46, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

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 SBM as Overweight (1) -

St Barbara pre-released a 4Q20 gold production update above Morgan Stanley's forecast, largely due to Atlantic Gold and Gwalia.

Gwalia achieved the highest quarterly throughput since 2014. The broker had previously stated that despite falling grades, higher Gwalia tonnage is paramount to mine production in FY21 and FY22.

FY20 gold production was within guidance of 370-400koz and costs will be released with the full 4Q20 update. However, the broker deduces from the released net cash balance that operating costs will be slightly lower 

Overweight rating is maintained. Target price unchanged at $3.65. Industry view is In-Line

Target price is $3.65 Current Price is $3.63 Difference: $0.02
If SBM meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

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 SBM as Buy (1) -

St Barbara has met the mid point of guidance, with FY20 production of 382,000 ounces.

Ord Minnett considers the stock is good value in a sector where value is hard to find and retains a Buy rating and $4.40 target.

Cash at the bank grew $82m quarter on quarter, to $406m, with the company retaining $316m in debt.

Target price is $4.40 Current Price is $3.63 Difference: $0.77
If SBM meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

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 SZL as Buy (1) -

Sezzle has, for the first time, provided guidance for underlying merchant sales. The annualised run rate is expected to exceed US$1.0bn by the end of 2020.

This leads Ord Minnett to upgrade 2020 and 2021 forecasts for revenue by 8% and 16%, respectively.

Buy rating maintained. Target rises to $5.95 from $4.00.

Target price is $5.95 Current Price is $5.07 Difference: $0.88
If SZL meets the Ord Minnett target it will return approximately 17% (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

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

Analysts at Macquarie observe consumer discretionary stocks have significantly outperformed in Australia as trading restrictions have seen consumer spending on services switch to goods.

Meanwhile, strong fiscal stimulus programs and incentives to retain employees will gradually unwind leaving current valuations vulnerable to a derating, the analysts believe.

They have downgraded Wesfarmers to Neutral from Outperform. Target $44.50, unchanged.

Target price is $44.50 Current Price is $46.35 Difference: minus $1.85 (current price is over target).
If WES meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.96, suggesting downside of -14.3% (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