Australian Broker Call

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

Macquarie has analysed revenue growth trends across ASX' key revenue segments, representing 75% of revenues, and concluded revenues can sustainably grow at 4.6%pa.

This implies 3.9%pa dividend growth, assuming 5.5%pa long term expense growth. Given greater confidence in the growth outlook, the broker upgrades to Ourtperform from Neutral. Target rises to $94.00 from $66.50.

Target price is $94.00 Current Price is $77.67 Difference: $16.33
If ASX meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $74.98, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Citi rates AX1 as Neutral (3) -

Citi has reported that Australian sales of Sketchers grew in the June quarter compared to 2020 and 2019 results. Globally Sketchers' distributor business was up 122% on the 2020 June quarter. 

The broker notes that given Sketchers accounts for around 25% of Accent's sales, this should be positive for the company's second half like-for-like sales growth. Citi has increased forecasts by 8%. 

The Neutral rating and target price of $3.10 are retained. 

Target price is $3.10 Current Price is $2.54 Difference: $0.56
If AX1 meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.92, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates BHP as Overweight (1) -

It remains unclear if Woodside Petroleum ((WPL)) would be interested in the entire division, or BHP’s Australian assets.

However, Morgan Stanley notes BHP has consistently commented on the attractiveness of the oil and gas business and its willingness to continue to invest in the division.

The broker also notes a potential sale could accelerate the company's exit from fossil fuel commodities and improve ESG credentials, potentially also benefiting its PLC listing price.

Morgan Stanley values the Australian petroleum business at US$6.2bn (A$1.7/sh), in the broker's total US$11.3bn ($3.2/sh) base case valuation.

According to a press release from Westshore Terminals Investment Corp, its subsidiary has executed an agreement with BHP to
provide port services to the proposed Jansen mine. 

BHP has not commented on the press release, but a final investment decision on Jansen Stage 1 is due within 2 months, with an initial investment budget of US$5.3-5.7bn.

The broker currently values Jansen at US$3.7bn in the broker's base case (A$1/sh), equal to the assets' book value.

Overweight rating. Target price $51. Industry view: Attractive. 

Target price is $51.00 Current Price is $51.27 Difference: minus $0.27 (current price is over target).
If BHP meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.53, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Morgan Stanley rates BTH as Overweight (1) -

Bigtincan Holdings FY21 annual recurring revenue (ARR) of $53.1m implies $4.7m was added in fourth quarter FY21, which Morgan Stanley notes is well ahead of the absolute annualised organic incremental ARR required to hit the broker's FY22 $66.9m estimates.

While no FY22 guidance was provided, Morgan Stanley thinks the fourth quarter data point de-risks expectations into FY22.

The broker sees scope for mid-20% compound organic sales growth over the medium to longer-term, with scope for 30%-plus cash earnings margins longer-term.

The Overweight rating and $1.50 target are unchanged. Industry view is In-Line.

Target price is $1.50 Current Price is $1.12 Difference: $0.38
If BTH meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 CGF as Hold (3) -

After previewing Challenger's FY21 result, due on Tuesday, August 10, Ord Minnett lifts its target price to $6 from $5.50, taking into account takeover risks and strategic interest from Apollo Management & Athene Life, which have sought to purchase 18% of Challenger.

The broker notes strong term annuity growth and even stronger wholesale growth in the third quarter, and expects some tempering of growth as the company focuses more on margins. 

The analyst also expects a favourable mark-to-market review, given recoveries in risk assets broadly in-line with Challenger’s May year-to-date $450m pre-tax profit. Ord Minnett maintains its Hold rating.

Target price is $6.00 Current Price is $5.80 Difference: $0.2
If CGF meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates DDH as Outperform (1) -

DDH1's FY21 trading update implies a solid beat on both prospectus and the broker's forecasts. The beat is driven by buoyant market conditions, operational excellence and disciplined investment, the broker suggests, with momentum carrying into FY22.

The broker sees a positive outlook, underpinned by favourable industry conditions, expansion of the drill rig fleet, higher utilisation and
improving rates. Risks may come from covid restrictions or any meaningful fall in commodity prices.

Outperform retained, target rises to $1.38 from $1.35.

Target price is $1.38 Current Price is $1.22 Difference: $0.16
If DDH meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates DMP as Neutral (3) -

According to Citi, US-listed Domino's Pizza's second half results have positive read-throughs for Domino's Pizza Enterprises. Domino's Pizza flagged the results of the Japan and Germany regions, which account for around 40% of Domino's Pizza Enterprises stores. 

The broker notes Domino's Pizza's positive results as regions reopen suggest growth can continue as markets emerge from lockdown. However, Citi also flagged the increasing food and labour costs facing Domino's Pizza may be a headwind for ASX-listed Domino's Pizza Enterprises.

The Neutral rating and target price of $120.00 are retained.

Target price is $120.00 Current Price is $119.00 Difference: $1
If DMP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $99.59, suggesting downside of -15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

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

Damstra Holdings rallied 20% on strong fourth-quarter revenues and growth run-rate, but record revenue for the quarter of $9.1m included acquired Vault revenues.

However, Morgan Stanley rebases FY22/23 earnings -20-23% lower on a flatter margin trajectory.

While the company has struggled to land longstanding deals during Covid, the broker notes activity and rollout are accelerating
across existing large customers in key verticals like mining and construction.

The broker believes revenue is the key metric and feels the risk on Damstra remains balanced at this point and concludes more
lifting is needed from the business to hit FY22 expectations.

Equal-weight rating with a target of $1.25. Industry view: In-line.

Target price is $1.25 Current Price is $1.16 Difference: $0.09
If DTC meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates EOS as Buy (1) -

Following nine consecutive quarters of cash flow decline, Electro Optic Systems Holdings has reported positive operating cash flow in the second quarter. Citi had forecast this following the cash collection announcement issued in May. The broker expects cash collection to continue to improve in the second half of FY21.

The company has reiterated FY21 revenue guidance of $235-245m, and while Citi notes guidance is subject to risks from the covid-19 delta variant, the company has shifted some production to the US to mitigate risk. 

The Buy rating and target price of $5.15 are retained. 

Target price is $5.15 Current Price is $4.48 Difference: $0.67
If EOS meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Morgans rates EVN as Hold (3) -

Evolution Mining is raising $450m in a placement and share purchase plan to purchase the Kundera assets from Northern Star Resources ((NST)) for -$400m. The purchase price is considered fair compared to market averages over the last two years.

The broker points to the potential ability to convert Resources into Reserve by resetting the cost base for production with its closer, lower cost processing centre at Mungari. Mungari was Evolution Mining’s borderline operation, and this is considered to cement its place in the portfolio and underpins expansion plans.

Morgans maintains its Hold rating, and reduces its price target to $4.34 from $4.49, as the broker awaits further detail on the Mungari expansion. A pre-feasibility is planned for release in the current quarter.

Target price is $4.34 Current Price is $4.25 Difference: $0.09
If EVN meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.29, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Credit Suisse rates HVN as Neutral (3) -

Credit Suisse makes upgrades to forecasts as the second half appears to be stronger than the broker's initial forecasts. Restrictions in Australia in June/July are expected to be partly mitigated by the growth in offshore businesses, at various stages of re-opening.

The broker expects non-Australia retail to contribute 31% of group earnings (EBIT)  in 1H22 (up from 24% in FY19), demonstrating increasing diversification in the company’s earnings base. The broker retains its Neutral rating and lifts the target to $5.68 from $5.65.

Credit Suisse also lifts its FY22 forecasts on recovery expectations in Europe and Asia and continuing strength in New Zealand.  

Target price is $5.68 Current Price is $5.60 Difference: $0.08
If HVN meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates IAG as Buy (1) -

While Citi believes Insurance Australia Group's FY21 miss is disappointing especially in light of some previous commentary, the broker is encouraged that the outlook for FY22 seems to be intact.

While Citi has left FY22 and FY23 forecasts largely unchanged, the broker still expects the underlying momentum in the business to drive margin improvement.

Citi notes while the targets are not without risk with further reserve top-ups a possibility, with Business Interruption insurance (BI) provision releases possible as early as first-half FY22, it is also possible the news on that front will turn.

IAG’s maiden guidance for FY22 suggests an insurance margin range of 13.5% to 15.5%, and Citi continues to forecast towards the top end at 14.9%.

Citi retains its Buy rating and $5.60 price target.

Target price is $5.60 Current Price is $4.91 Difference: $0.69
If IAG meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates IAG as Outperform (1) -

While Credit Suisse considers pre-announced FY21 earnings are underwhelming, driven mainly by an extra -$200m of corporate expenses, it's felt most of the bad news is factored-in. The earnings recovery is considered more a FY23 than a FY22 story.

Even though the group maintained its medium-term target of a 15%-17% insurance margin, the analyst expects more optimistic FY22 guidance, given the hardening commercial rate environment.

The broker lowers its target price to $5.40 from $5.60, in-line with its earnings downgrades, and retains the Outperform rating.

Target price is $5.60 Current Price is $4.91 Difference: $0.69
If IAG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates IAG as Neutral (3) -

Insurance Australia Group has pre-released earnings numbers but the broker provides no qualification. The focus is on reintroduced FY22 guidance, which suggests low single-digit premium growth and margins of 13.5-14.5%.

The second half FY21 result included -$200m of expenses related to customer refunds and payroll compliance, with no update on business insurance provisions. The broker is not convinced the staff underpayment problem has yet been resolved.

An update on business insurance remains some 3-6 months away, suggests Macquarie. Neutral retained, target falls to $4.80 from $5.00.

Target price is $4.80 Current Price is $4.91 Difference: minus $0.11 (current price is over target).
If IAG 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 $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Insurance Australia Group's FY21 cash earnings of $747m are -2% below Morgan Stanley and -4% below consensus.

Driven by a previously announced -$90m impairment charge from the proposed AmGeneral sale, plus further -$200m pre-tax top-up for customer and payroll refunds in second half FY21, reported net loss of -$427m is well below the broker's -$183m estimate.

While the large CAT budget increase helped improve earnings quality, the broker thinks they may be a headwind to margins.

On balance, the broker thinks below the line charges depleting capital optionality, and reserve top-ups that add to earnings uncertainty are negative developments.

The analyst's Equal-weight rating and target price of $4.85 are unchanged. Industry view: In-line.

Target price is $4.85 Current Price is $4.91 Difference: minus $0.06 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates IAG as Add (1) -

Morgans assesses a disappointing FY21 net loss of -$427m after Insurance Australia Group outlined its preliminary results. More positively, FY22 guidance is considered to point to a reported insurance margin (RIM) improvement on the second half of FY21.

The broker highlights the RIM is also “better quality”, given it provides for an additional circa $100m in natural hazard claims ($765m in total). It's felt the group's earnings trajectory should improve from here, off cyclically-low levels.

Morgans sees value in the group and retains its Add rating while lowering FY21 and FY22 EPS estimates by -8% and -2%. The broker's price target falls to $5.37 from $5.46. 

Target price is $5.37 Current Price is $4.91 Difference: $0.46
If IAG meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates IAG as Accumulate (2) -

Ord Minnett notes the pre-released FY21 result included second-half underlying margins of 13.5%, slightly below expectations. However, reported margins of 13.5%, excluding any “one-off” adjustments, and gross written premiums (GWP) were estimated to be in-line. 

The broker feels market sentiment for the company should be supported by likely business interruption releases, lockdown benefits and a focus on margin restoration ahead of volumes. Additionally, the prospect of fixing the intermediated business is predicted to assist.

Management's FY22 guidance is for 13.5-15.5% reported margins and low-single-digit GWP growth. The broker maintains its Accumulate rating and lowers its target price to $5.05 from $5.30.

Target price is $5.05 Current Price is $4.91 Difference: $0.14
If IAG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates IAG as Buy (1) -

Preliminary financial results for Insurance Australia Group revealed a reported loss -$180m worse than UBS's estimate. This was considered largely attributable to further ‘one-offs’ related to customer refunds, payroll compliance, and reserve strengthening.

The broker highlights the 'one-offs' were offset by stronger shareholder funds income. Management guided to underlying margin trends, tracking at the lower end of the 13.5-15.5% guidance range, with potential upside from current covid-19 mobility restrictions.

While long-tail reserve strengthening remains a concern, the analyst thinks this will likely be outweighed by the potential for a business interruption (BI) provision release. UBS retains its Buy rating and lowers its target price to $5.65 from $5.80.

Target price is $5.65 Current Price is $4.91 Difference: $0.74
If IAG meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 5.1% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates IMD as Upgrade to Buy from Neutral (1) -

UBS raises its rating for Imdex to Buy from Neutral and raises its target price to $2.40 from $1.90. The company is considered well positioned to leverage the potentially strong multi-year exploration cycle, supported by strength in gold and copper prices.

The broker also points to improved access to capital, and while supply chain bottlenecks will likely challenge the near-term recovery profile, it's felt they may result in increased drilling prices.

Successful commercialisation of the company's new technologies is an increasingly important aspect of the analyst's investment thesis. However, currently covid-19 restrictions challenge access to mine sites for trials, explains the broker.

Target price is $2.40 Current Price is $2.06 Difference: $0.34
If IMD meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates ING as Buy (1) -

While Inghams Group FY21 result is likely to benefit from a recovery in the higher-ASP QSR and food service channels in the second half FY21, Citi's scenario analysis suggests that much of this channel recovery could be wiped out in the first half of FY22.

This results in lower volumes and pricing for Ingham's in Australia and a -2% downgrade to the broker's FY22 earnings estimate.

However, as with prior lockdowns, Citi expects any potential impacts to be largely transitory; and still expects a feed cost-benefit to come through in FY22.

The broker is forecasting FY21 underlying earnings of $443 million, at the midpoint of company guidance.

The Buy rating is maintained and the target price is lowered to $4.35 from $4.40.

Target price is $4.35 Current Price is $3.91 Difference: $0.44
If ING meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates MME as Buy (1) -

Ord Minnett estimates the June quarter was a 10% beat on the gross loan book, which closed at $333m, almost doubling from December 31. Growth was recorded across all product categories. The broker lifts its target to $2.35 from $1.94.

The analyst notes the vehicle funding product, AutoPay, has begun well, with $12m of loans issued in the 12 weeks post launch. There's considered potential for over $100m of loans for this product during FY23. Ord Minnett maintains its Buy rating.

Target price is $2.35 Current Price is $1.99 Difference: $0.36
If MME meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 MQG as Accumulate (2) -

In anticipation of Macquarie Group's annual general meeting (AGM) on Thursday July 29, Ord Minnett feels commentary on trading conditions for commodities will be key. Revenues are expected to have normalised in the quarter versus a strong FY21.

The broker also expects the June quarter was solid, with three of the four operating divisions likely to have seen higher earnings versus the prior corresponding period.

Ord Minnett retains its Buy rating and $170 price target, and believes the share price doesn't look stretched, based on current multiples.

Target price is $170.00 Current Price is $157.70 Difference: $12.3
If MQG meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $161.20, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates NST as Outperform (1) -

While June quarter production was in-line with Credit Suisse's estimate, company estimates for three years of flat all-in sustaining costs (AISC) disappointed. It's concluded the company is experiencing substantial wage inflation, as recently reported by peers.

The broker lowers its target price to $12.55 from $13, with FY22 and FY23 earnings (EBITDA) forecasts reduced on a weaker cost profile than previously forecast. EPS forecasts also decrease for both years, on operating costs and a step-up in depreciation & amortisation.

Target price is $12.55 Current Price is $10.09 Difference: $2.46
If NST meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $12.74, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates NST as Outperform (1) -

Northern Star has provided mixed FY22 guidance, with production in line but costs higher than forecast. Medium term production and cost guidance is more in line with the broker's assumptions, as is the three-year capex outlook.

While the broker has lowered its production numbers, it continues to see upside from exploration success at Kalgoorlie.

Outperform retained, target falls to $13.00 from $13.30.

Target price is $13.00 Current Price is $10.09 Difference: $2.91
If NST meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $12.74, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates NST as Buy (1) -

The June quarter production report revealed gold output of 451,000oz, 6% ahead of Ord Minnett's forecast. This was considered driven by a strong performance from the Super Pit and Jundee, while costs at the group level were in-line.

After taking out the recently sold Kundana operation, the ramp-up to 2moz per year is delayed a year to FY26, explains the analyst. In addition, modest cuts across other assets, result in the overall production estimate falling by -7% over the five-year forecast horizon.

While the broker considers the pipeline growth remains enviable for the sector, higher capital expenditure, higher costs and lower production negatively impact valuation. Ord Minnett's target price falls to $12.70 from $13.60 and its Buy rating is retained.

Target price is $12.70 Current Price is $10.09 Difference: $2.61
If NST meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $12.74, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates ORG as Outperform (1) -

Generation problems and a resultant jump in forward curves in the National Electricity Market will be too late for Origin Energy's FY22 earnings trajectory, the broker warns, hence pressure will remain significant as renewables reprice and gas prices step lower.

The broker nonetheless believes this will be the bottom, and an increase in the APLNG dividend will alow for debt repayment. Cash generation can quickly restore the balance sheet, the broker notes, but risk remains from oil prices.

Outperform retained, target rises to $5.08 from $4.88.

Target price is $5.08 Current Price is $4.53 Difference: $0.55
If ORG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.09, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates PDL as Outperform (1) -

Credit Suisse reiterates its Outperform rating and $8.90 target price, after the Thompson, Siegal & Warmsley acquisition closed around two months earlier than expected. The broker upgrades its EPS forecasts by 5% for FY21, for two months of additional earnings.

The broker continues to be positive on Pendal Group, which remains its most preferred exposure amongst asset managers under coverage.

Target price is $8.90 Current Price is $8.07 Difference: $0.83
If PDL meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.62, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates PNV as Outperform (1) -

While two recent trials conducted by Polynovo were retrospective and limited in size, they offer insight into the company's capability to heal difficult, complex wounds and chronic wounds, the broker notes.

Researchers concluded Polynovo’s product has shown to be more resistant to infection compared to competing biologics.

Outside of covid uncertainty, the broker continues to see Polynovo as well positioned to increase share within existing indications due to several benefits relative to competing biologic products. Outperform and $2.95 target retained.

Target price is $2.95 Current Price is $2.27 Difference: $0.68
If PNV meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates PPT as Neutral (3) -

In Citi's view, Perpetual’s fourth-quarter performance, which saw combined assets under management rise $3bn or 3% quarter-on-quarter to $98.3bn, was a mixed bag.

As in the third quarter, the broker notes much of the Funds under management growth was driven by positive markets investment returns and forex tailwinds

Citi believes the stock price now looks full based on the broker's current forecasts.

But with the key lead indicator of Barrow Hanley’s relative investment performance improving, Citi stays Neutral ahead of the FY21 result, with no change to the $35.00 target price.

Target price is $35.00 Current Price is $38.40 Difference: minus $3.4 (current price is over target).
If PPT meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.36, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates PPT as Outperform (1) -

While Credit Suisse sees generally positive trends from the fourth quarter business update, it was weaker than expected. The broker downgrades its FY21-23 EPS estimates by -2 to -3%, though forecasts were previously 10% above consensus.

The broker highlights the asset management business saw outflows of -$2.4bn, entirely driven by Barrow Handley, which was -$0.8bn below expectations. Credit Suisse lowers its target price to $41.50 from $43.

While the quarter didn't deliver the expected improvement in flows, the analyst is hopeful that the stronger fund performance will eventually lead to better flows, and is encouraged by the positive flows into Trillium.

Target price is $41.50 Current Price is $38.40 Difference: $3.1
If PPT meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $38.36, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates PPT as Overweight (1) -

Due to US equities and fixed Income, Perpetual Limited's June quarter saw -$-2.3bn outflows in Investments, but June's investments assets under management (AUM) of $98.3bn was well ahead of Morgan Stanley's $94.9bn estimate.

Given improving performance in almost all funds, growing ESG options, and strong performance in wealth, the broker
remains Overweight.

Target increases to $41.50 from $40.60. Industry view: In-line.

Target price is $41.50 Current Price is $38.40 Difference: $3.1
If PPT meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $38.36, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates PPT as Hold (3) -

After Perpetual reported fourth quarter funds under management (FUM), Ord Minnett noted net outflows of -$2.3bn were largely in the institutional channel and US equities, along with Australian equities and fixed interest.

However, these outflows were more than offset by market movement/investment performance of $4.3bn, with positive currency movement adding $1.1bn, explains the analyst. Thus, total FUM was 3% higher on the previous quarter.

The broker retains its Hold rating and raises its target price to $36 from $34, and awaits signs of the investment and strong near-term
fund performance leading to a change in the flows outlook.

Target price is $36.00 Current Price is $38.40 Difference: minus $2.4 (current price is over target).
If PPT meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.36, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates QAN as Buy (1) -

After previewing Qantas Airway's FY21 result, due on Thursday, August 26, Ord Minnett retains its Buy rating and $5.70 target price. It's thought the focus over the next 18 months will be on cash generation.

The company's balance sheet is relatively strong and could withstand the lockdowns. However, if lockdowns do not end as scheduled, it's believed the airline will likely stand-down staff to offset the impact.

Target price is $5.70 Current Price is $4.55 Difference: $1.15
If QAN meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $5.75, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates RHC as Underweight (5) -

Morgan Stanley resumes coverage on Ramsey Health Care. The broker notes that Ramsey Health Care will be at risk of tighter revenue margins driven by low private health insurance premium increases, and that the company is vulnerable to disruption from evolving clinical pathways. 

The broker has reduced forecasts for long-term organic growth in Australian admissions to 3% from 3.5%. Morgan Stanley notes data may suggest the pandemic has accelerated drive for out-of-hospital care. 

Morgan Stanley resumes coverage with an Underweight rating and a target price of $57.00. Industry view: In-line.

Target price is $57.00 Current Price is $64.64 Difference: minus $7.64 (current price is over target).
If RHC 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 $68.38, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto's June quarter production was in line or lower than forecast among products, the broker notes, but strong iron ore, copper and aluminium prices continue to drive earnings and dividends.

At current spot prices, Rio is trading on free cash flow yields of 21% and 26% in 2021-22.

The broker retains an Outperform rating and $162 target.

Target price is $162.00 Current Price is $127.10 Difference: $34.9
If RIO meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $135.43, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates S32 as Outperform (1) -

The broker has incorporated in-house upgrades to nickel price assumptions due to increased stainless steel demand, improving the earnings outlook for South32's Cerro Matoso operation in Columbia.

A long term power deal with Eskom provides energy security for the smelter until 2031.

On current spot forecasts for aluminium, manganese and coal, South32 is offering 18% free cash flow yields over FY22-23, the broker calculates. Outperform retained, target rises to $3.50 from $3.40.

Target price is $3.50 Current Price is $2.95 Difference: $0.55
If S32 meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Morgan Stanley rates SHL as Overweight (1) -

Morgan Stanley expects Sonic Healthcare to benefit from momentum to pre-covid recovery.

Based on results from US competitors, the broker has modeled that Sonic Healthcare averages 20,000 tests per day in the first quarter of 2021, but will be down to an average of 4,500 tests per day during the first half of 2022. Morgan Stanley expects base business to grow, and is forecasting at least 3% growth in US revenue. 

The Overweight rating and target price of $39.50 are retained. Industry view: In-line.

Target price is $39.50 Current Price is $40.10 Difference: minus $0.6 (current price is over target).
If SHL meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.16, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates SLR as Outperform (1) -

Silver Lake Resources' gold production and sales were largely in line in the June quarter to round out a solid year. Costs were 5% higher, impacted by an incident at Mt Monger.

FY22 guidance is nevertheless lower than the broker's expectation due to a decision to draw from stockpiles at Mt Monger in the second half rather than commencing the next phase of development, due to a shortage of skilled labour in WA.

Outperform retained. Target falls to $2.00 from $2.30.

Target price is $2.00 Current Price is $1.62 Difference: $0.38
If SLR meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Silver Lake Resources has closed out the fourth quarter with group gold production, sales and all-in sustaining costs all within 3% of Morgan Stanley forecasts. Further, the company has met FY21 guidance, with gold production at the better end of the expected range. 

However, Morgan Stanley highlights the company's guidance for FY22 gold sales is -8% below the broker's expectations, with all-in sustaining costs for the same financial year 12% above expectations. One driver of the weak guidance is skilled labour and mobility issues. 

Equal-weight rating and target price of $1.90 are retained. Industry view is Attractive.

Target price is $1.90 Current Price is $1.62 Difference: $0.28
If SLR meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates STO as Neutral (3) -

Credit Suisse lifts its target price to $7.08 from $7.01, on higher prices offset by overhang/risk of overpaying, regarding the Oil Search ((OSH)) potential merger. However, it's felt management is unlikely to risk its hard-earned reputation for discipline by getting carried away.

The broker sees merger value though doesn't see Santos as worse off if no deal eventuates and the overhang lifts. A modest and
face-saving increase in bid price could potentially be contemplated, believes the analyst. Credit Suisse retains its Neutral rating.

Target price is $7.08 Current Price is $6.59 Difference: $0.49
If STO meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.02, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Morgans rates STO as Add (1) -

Morgans assesses a consistent second quarter result for Santos, with group production and sales revenue close to estimates. The analyst now expects a slower drilling pace at Cooper Basin and GLNG upstream, with resulting decreases across capex at each.

The broker highlights that strong free cash flow generation remains a fundamental strength, and reflective of a robust capital discipline. Morgans retains its Add rating and slightly lowers its target price to $8.60 from $8.70, due to lower earnings and capex forecasts.

The company remains the broker’s top pick amongst ASX-listed large-cap oil and gas producers.

Target price is $8.60 Current Price is $6.59 Difference: $2.01
If STO meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $8.02, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Ord Minnett rates SUN as Hold (3) -

After previewing Suncorp Group's FY21 result, due on Monday, August 9, Ord Minnett lifts its target price to $13 from $12 and retains its Hold rating. The broker forecasts special dividends starting in six months though this will depend upon the impact of current lockdowns.

The broker will be focusing upon commentary around pricing increases in personal and commercial lines. The group pushed up home insurance costs materially in the December half of FY21, but there are considered signs of this tempering.

The analyst estimates bank volumes remains weak while margin trends are strong, and awaits any signs of the group's success in achieving its targets.

Target price is $13.00 Current Price is $11.40 Difference: $1.6
If SUN meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.09, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates SYD as Hold (3) -

After previewing Sydney Airport's FY21 result, due on Friday, August 20, Ord Minnett retains its Hold rating and $8.25 target price. While the recovery, seen earlier this year, will be disrupted by the recent lockdowns, a normalisation is expected in the December quarter.

The broker forecasts a broad-based recovery in 2022. The recovery of international travel is considered key, and is likely to be prolonged.

Regarding the consortium takeover offer, the analyst considers it rare, in such a large potential privatisation, for a bidder to make a first and final offer.

Target price is $8.25 Current Price is $7.80 Difference: $0.45
If SYD meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.21, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates TCL as Buy (1) -

After previewing Transurban Group's FY21 result, due on Monday, August 9, Ord Minnett retains its Buy rating and $16 target price. It's estimated FY21 traffic will have fallen -15% on 2019 levels, with most lockdown impact to be seen in the first quarter of FY22.

The broker expects traffic to rebound strongly after that, and believes the group is positioned well for its next growth phase, with a
material pipeline of opportunities in core markets over the next decade.

Target price is $16.00 Current Price is $14.34 Difference: $1.66
If TCL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.35, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates TLS as Buy (1) -

After previewing Telstra's FY21 result, due on Thursday, August 12, Ord Minnett retains its Buy rating and $4.25 target price. It's expected the cost-savings program will continue.

Mobile market share and average revenue per user (ARPU) will also be in focus, given recent headline price increases put through
by Telstra and Optus, explains the broker.

Ord Minnett estimates FY21 underlying operating earnings (EBITDA) of $6.7bn, and lease-adjusted earnings (EBITDA) of $7.6bn versus consensus of $7.4bn. Key issues will include fixed consumer margins, and fixed cost savings (Telstra has guided to $250m in the half).

Target price is $4.25 Current Price is $3.77 Difference: $0.48
If TLS meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates TPG as Buy (1) -

After previewing TPG Telecom's FY21 result, due on Friday, August 20, Ord Minnett retains its Buy rating and $6.45 target price.  Substantial cost synergies from recent M&A activity are expected and management has guided to $70m in 2021.

The broker forecasts earnings (EBITDA) of $863m for the June 2021 half, a 2% increase on the December 2020 half. Key issues are likely to include mobile subscribers, after a significant network outage and a ban on international travel continuing for the half.

As the company moves closer to its target net debt to earnings (EBITDA) range, it could announce a payout ratio of greater than 50%, explains the analyst.

Target price is $6.45 Current Price is $6.19 Difference: $0.26
If TPG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.55, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates TPW as Outperform (1) -

In anticipation of FY21 results due on Tuesday, 27 July, Credit Suisse notes industry trends and website traffic are supportive
of fourth quarter top-line performance for Temple & Webster. The broker lifts its target price to $12.67 from $12.54.

The analyst's forecast assumes the earnings (EBITDA) margin remains at the higher end of management's guidance range of 2-4%. Downside risk to the 2H21 forecast is considered to be if costs increase at a quicker rate than anticipated. 

Credit Suisse retains its Outperform rating.

Target price is $12.67 Current Price is $11.48 Difference: $1.19
If TPW meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.86, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates VVA as Buy (1) -

Both May and June revenues were in excess of $8m, implying a FY21 result in-line with Ord Minnett’s $82.8m revenue forecast. As the company is trading on attractive multiples, the broker maintains its Buy recommendation.

However, Ord Minnett reduces its FY22 revenue forecast by -5.7%, and lowers its price target to $3.42 from $3.73, due to the current lockdown situation in NSW and Victoria. 

Reduced member growth during the locked down period, and a delayed return to normal operations driven by potentially lingering restrictions, also impacts the analyst's FY23 revenue and earnings (EBITDA) forecast.

Target price is $3.42 Current Price is $1.85 Difference: $1.57
If VVA meets the Ord Minnett target it will return approximately 85% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Credit Suisse rates WSA as Downgrade to Underperform from Neutral (5) -

Credit Suisse downgrades its rating for Western Areas to Underperform from Neutral and lowers its target price to $2 from $2.40, after incorporating a bearish mid-term commodity forecast from the broker's commodities team.

This comes despite the analyst's forecast earnings upgrade for FY22 and FY23, after production/sales numbers in the preliminary production disclosure of July 8 were reaffirmed.

The commodities team forecasts the nickel market may be flooded with new supply in mid-decade, underpinned by Tsingshan’s aggressive expansion plan to lift its Indonesian nickel output capacity.

Target price is $2.00 Current Price is $2.52 Difference: minus $0.52 (current price is over target).
If WSA meets the Credit Suisse target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.56, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates WSA as Outperform (1) -

Western Areas' June quarter featured better numbers for costs and realised prices driving a modest increase in cash flow, the broker notes. Improved recoveries at Cosmos should underpin increased production, while a scoping study has commenced at Mt Goode.

Western Areas is seriously leveraged to nickel prices, the broker notes, and current spot prices would increase the broker's earnings forecasts by 25% and 162% in FY22-23. Outperform retained, target rises to $2.80 from $2.70.

Target price is $2.80 Current Price is $2.52 Difference: $0.28
If WSA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

While Western Areas' costs for the fourth quarter were 4% higher than Morgan Stanley's forecast, the broker notes this is in-line with the -4% miss on previously reported nickel production. 

Grade concerns persist at the Spotted Quoll project, impacted by pegmatite intrusions. Morgan Stanley's view is that this may continue into the first quarter. 

The Equal-weight rating is retained and the target price decreases to $2.45 from $2.50. Industry view: Attractive.

Target price is $2.45 Current Price is $2.52 Difference: minus $0.07 (current price is over target).
If WSA meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.56, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates WSA as Add (1) -

Morgans assesses a strong fourth quarter, with cost and production guidance achieved at Forrestania, while Cosmos continues to develop in-line with expectations.

For FY21, nickel production improved to its highest level, while reported unit cash costs reached a low point. However, the broker lowers revenue forecasts slightly in coming years, due to higher non-cash costs.

Morgans retains its Add rating and lifts its target price to $2.69 from $2.61 on higher base case nickel price forecasts.

Target price is $2.69 Current Price is $2.52 Difference: $0.17
If WSA meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates Z1P as Underperform (5) -

New customer additions for Zip Co's Quadpay service in the US slowed in the June quarter, the broker notes, but transaction volumes increased domestically thanks to the new "Tap & Zip" initiative.

Zip has announced an intention to rebrand Quadpay as Zip in the US, which the broker considers as risky given Quadpay's brand recognition as being one of the first BNPLs in the US.

Although earnings forecasts have been upgraded, with Quadpay metrics slowing and US competition heating up, the broker retains Underperform. Target rises to $6.15 from $5.70.

Target price is $6.15 Current Price is $7.09 Difference: minus $0.94 (current price is over target).
If Z1P meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.21, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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