Australian Broker Call

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

A general update on the local technology sector includes a downgrade for Altium to Neutral from Buy. Citi's price target falls sligtly to $35.30 (-10c).

Generally speaking, Citi analysts are anticipating strong results, not too much impacted by omicron, though rising costs can be a problem for the period ahead.

Target price is $35.30 Current Price is $34.84 Difference: $0.46
If ALU meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $31.47, suggesting downside of -11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Macquarie rates ANN as Underperform (5) -

Ansell has today provided updated guidance for FY22, alongside with the release of preliminary interim financials, and Macquarie reports guidance reveals pressure on margins.

The company seems to be challenged by covid disruptions, weak demand for certain products and supply chain issues, the broker highlights.

Revised guidance, on Macquarie's assessment, is some -20% below market consensus. Plus it does not factor in additional omicron impacts that are as yet unknown.

Macquarie had been warning about ongoing downside risks and sits comfortably with an Underperform rating. Price target $30.70.

Target price is $30.70 Current Price is $31.24 Difference: minus $0.54 (current price is over target).
If ANN 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 $40.65, suggesting upside of 50.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

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

On January 28, AusNet Services received 86.43% of votes in favour of the Scheme Resolution for the Brookfield consortium to acquire the company.

On the same day, the Australian Energy regulator published its final determination on the distributor's electricity network, with nominal allowed revenue 1.4% above the analyst's forecast.

Morgan Stanley retains an Equal-weight rating and $2.60 target. Industry view: Cautious.

Target price is $2.60 Current Price is $2.59 Difference: $0.01
If AST meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.57, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates AUB as Outperform (1) -

AUB Group had updated on FY22 profit guidance to be at or near the top of the established range, citing favourable outlook momentum. But new first half guidance is actually below Credit Suisse' forecast.

On balance the broker makes negligible forecast changes, backing positive commentary to leave FY22 as is. Outperform and $25.70 target unchanged.

Target price is $25.70 Current Price is $23.27 Difference: $2.43
If AUB meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.84, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates AWC as Upgrade to Buy from Hold (1) -

Following an -11% share price drop since January 18, Ord Minnett is attracted to the current valuation of Alumina Ltd given expected long-term alumina and aluminium market trends.

The broker considers a 10% dividend remains likely in 2022 given forecast alumina sport pricing, which should be attractive to investors. Low inventories have already driven aluminium pricing to its highest level since 2008, and this trend is likely to persist in the medium term. 

The rating is upgraded to Buy from Hold and the target price of $2.20 is retained.

Target price is $2.20 Current Price is $1.83 Difference: $0.37
If AWC meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.07, suggesting upside of 8.9% (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: 0.6

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

Morgan Stanley rates BRG as Overweight (1) -

Morgan Stanley points to a positive read through for Breville Group from DeLonghi's (a global peer) 4Q results, which showed double-digit growth for coffee products, as well as cook and food preparation products.

These results auger well for the group's February results and are consistent with the broker's industry feedback, which suggests elevated demand, stabilisation of supply chains and acceptance of price rises by retailers.

The Overweight rating and target price of $36 are maintained. Industry: In-line.

Target price is $36.00 Current Price is $27.52 Difference: $8.48
If BRG meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $33.59, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates CBL as Add (1) -

Following Control Bionics' 2Q cashflow report, Morgans lowers FY22 revenue assumptions and increases cost estimates (higher staff and product development expenses).

The target price slips to $1.32 from $1.42 and the Speculative Buy rating is maintained, as the analyst expects several upcoming catalysts for a share price rally. These catalysts include the launch of new products and converting the existing sales pipeline.

Target price is $1.32 Current Price is $0.39 Difference: $0.93
If CBL meets the Morgans target it will return approximately 238% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining announced a maiden resource for the Gonneville deposit in November of 330Mt at the Julimar project. Macquarie notes Chalice gained State government approval in late December and this month (January) gained approval for low-impact diamond drilling at the project.

The company also discovered further mineralisation near Hartog.

Meanwhile, the Falcon Metals demerger has been finalised, the company has $65m cash and the commencement of drilling in Julimar this month suggests its full steam ahead. 

Outperform rating and $10.55 target price retained.

Target price is $10.55 Current Price is $7.58 Difference: $2.97
If CHN meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates CTD as Overweight (1) -

In light of quaestions raised by investors, Morgan Stanley reaffirms its existing positive stance on Corporate Travel Management, based on industry consolidation assumptions and high assumed earnings margins. 

The broker also stays firm on valuation assumptions used to assert the company has experienced a relative de-rating versus peers.

The Overweight weighting and $28 target price are retained. Industry view: In-line.

Target price is $28.00 Current Price is $20.31 Difference: $7.69
If CTD meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $26.04, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

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

Following Evolution Mining's 2Q production results, Morgan Stanley reduces FY22 EPS estimates by -25%, while FY23 and FY24 EPS estimates fall by -6% and -5% on higher cost forecasts.

A poor performace for Mt Rawden and Red Lake on production and costs offset beats versus the broker's estimates for Mungari and Ernest Henry. FY22 guidance was maintained. 

After adjusting for these results and incorporating forecasts for spot commodity prices, the broker's target price falls to $3.90 from $4.25. Equal weight. Industry view: In-Line.

Target price is $3.90 Current Price is $3.45 Difference: $0.45
If EVN meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates EVN as Neutral (3) -

Evolution Mining has delivered a -13% miss on UBS's December quarter production forecast alongside an 8% all in sustaining cost overshoot, impacted by weather, covid constraints and a WA hard border, with the latter two expected to persist into the second half. 

Although the company has maintained FY22 guidance of 670-725,000 ounces at $1,135-1,195 per ounce, it is now targeting the lower end of guidance range and higher end of costs, largely driven by weak output from Red Lake.

UBS notes based on first half results, achieving the low end of guidance range will still be a stretch for Evolution Mining. The broker has reduced its production forecast to 658,000 ounces, and earnings per share forecasts -21%, -13% and -19% through to FY24.

The Neutral rating is retained and the target price decreases to $3.50 from $3.95.

Target price is $3.50 Current Price is $3.45 Difference: $0.05
If EVN meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates FCL as Buy (1) -

A general update on the local technology sector includes a reduced price target for Fineos Corp to $4.65 from $5.22. Citi's rating remains Buy.

Generally speaking, Citi analysts are anticipating strong results, not too much impacted by omicron, though rising costs can be a problem for the period ahead.

Target price is $4.65 Current Price is $3.56 Difference: $1.09
If FCL meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.39, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Macquarie rates FCL as Outperform (1) -

Fineos Corporation's December half receipts met Macquarie's expectations, posting a quarterly two-year compound annual growth rate of 9.2%. Payments rose 7.2%.

Guidance was steady. No new clients were announced, the company striking growth from its existing clients. 

Target price falls to $3.98 from $4.92 to reflect the recent shift in relative valuation and the broker is keeping a wary eye to new client acquisition.

Outperform rating retained.

Target price is $3.98 Current Price is $3.56 Difference: $0.42
If FCL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.39, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Morgans rates FMG as Hold (3) -

Morgans likes Fortescue Metal Group's 2Q production and shipment numbers though has a divided view on the overall business. While the power of the iron ore segment is attractive, the broker is bearish on the Fortescue Future Industries push.

Realised prices continued to weaken in the 2Q although the achieved average price did beat consensus, notes the analyst. The discount on the company's product was -32% versus the consensus estimate for -38%.

The Hold rating is unchanged and the target price rises to $20.20 from $16.90 on Morgans upgraded production assumptions.

Target price is $20.20 Current Price is $19.45 Difference: $0.75
If FMG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.24, suggesting downside of -13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Morgans rates GNX as Add (1) -

While 2Q production was down -2% at Genex Power's Kidston operations, revenue for the 1H was a slight beat on Morgans forecast. It's thought the share price trend could reverse by rallying sharply as the company makes progress on its flagship project, Kidston Hydro.

The analyst maintains an Add rating and lifts the target price to $0.34 from $0.33.

Morgans believes the company is one of the most promising renewable energy pure-play's on the ASX.

Target price is $0.34 Current Price is $0.18 Difference: $0.16
If GNX meets the Morgans target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates HRL as Add (1) -

While Morgans assesses solid revenue growth within HRL Holding's 1H results, greater than expected near-term margin pressure impacts earnings forecasts. Hence, the target price slips to $0.14 from $0.15.

Nonetheless, the broker expects upside from the company's three year organic growth strategy and M&A ambitions. Should the latter not pan out, at current valuation levels there's considered potential for the company itself to be acquired. Add rating maintained.

Target price is $0.14 Current Price is $0.10 Difference: $0.04
If HRL meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates IDX as Upgrade to Buy from Accumulate (1) -

Integral Diagnostics' trading update outpaced Ord Minnett's forecasts but the broker spies growing covid pressure, noting several markets have yet to endure the omicron variant. 

EPS forecasts fall -2% in FY22, -9% in FY23 and -14% in FY24.

Target price falls to $5 from $5.25. Recent share price weakness has the broker upgrading to Buy from Accumulate.

Target price is $5.00 Current Price is $3.97 Difference: $1.03
If IDX meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Following Iluka Resources' 4Q production results, which beat Morgan Stanley's estimates by around 41%, the target price rises to $8.85 from $8.80.

The broker incorporates an announced increase in zircon pricing into forecasts though the synthetic rutile forecast for production/sales falls for 2023. Equal-weight maintained. Industry view: Attractive.

Target price is $8.85 Current Price is $10.18 Difference: minus $1.33 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.13, suggesting downside of -2.7% (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 LRK as Buy (1) -

Lark Distilling's December-quarter results outpaced Ord Minnett at the top line, although margins fell shy as cost inflation bit.

The broker says growth fundamentals are strong and the company has proved resilient during covid.

Ord Minnett suggests buying the covid-induced dip and increases the target price 8% to $6.59 from $6.08.

Buy rating retained. 

Target price is $6.59 Current Price is $4.45 Difference: $2.14
If LRK meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

A general update on the local technology sector includes an upgrade for LiveTiles to Buy/High Risk from Neutral. Citi's price target tumbles to 10c from 18c.

Generally speaking, Citi analysts are anticipating strong results, not too much impacted by omicron, though rising costs can be a problem for the period ahead.

Target price is $0.10 Current Price is $0.07 Difference: $0.03
If LVT meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates MPL as Downgrade to Lighten from Hold (4) -

Ord Minnett downgrades Medibank Private ahead of the February 25 result after assessing key industry issues.

While the company should enjoy lower covid claims and has committed to return gains to shareholders, Ord Minnett is cautious on the sector fearing lower rate increases possibly below inflation, federal election uncertainty, rising costs and expenses and sharp rises in capital requirements from APRA, which could dampen dividends.

Rating downgraded to Lighten from Hold. Target price falls to $3 from $3.30.

Target price is $3.00 Current Price is $3.16 Difference: minus $0.16 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.51, suggesting upside of 13.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Credit Suisse rates NCM as Outperform (1) -

Newcrest Mining's December quarter gold production was -11% below Credit Suisse' forecast and costs 11% above. FY22 group guidance has been maintained but Lihir is expected to hit the lower end of the range, and the numbers assume no covid disruption.

Hence the brokers sees a risk, given guidance includes a second half production skew, but notes that disruptions to date have been fairly benign across the mines.

Target falls to $30.00 from $30.60, Outperform retained.

Target price is $30.00 Current Price is $21.50 Difference: $8.5
If NCM meets the Credit Suisse target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Macquarie rates NCM as Outperform (1) -

Newcrest Mining's December-quarter production and all-in-sustaining cost fell shy of Macquarie's estimate (-9% for gold and -19% for copper), grades and throughput disappointing.

Telfer production outpaced but Cadia and Lihir exhibited weakness.

The broker considers the Pretium acquisition to be completed this quarter to be a key catalyst.

EPS forecasts fall 8% for FY22 and are fairly steady thereafter.

Target price falls 3% to $33 from $34. Outperform rating retained.

Target price is $33.00 Current Price is $21.50 Difference: $11.5
If NCM meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Morgan Stanley rates NCM as Overweight (1) -

While Newcrest Mining's 2Q results were an -11% miss on production and a -20% miss on costs versus Morgan Stanley's estimates, overall cost guidance is still on track. This is considered an achievement given widespread cost inflation.

The broker generally agrees with management's expectation for higher production from Cadia and Lihir in the 2H, driven by grades at the former and throughput rates at the latter.

Overweight rating and $29.40 target price are retained. Industry view: In-Line.

Target price is $29.40 Current Price is $21.50 Difference: $7.9
If NCM meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Morgans rates NCM as Add (1) -

Morgans believes the selloff in Newcrest Mining's shares in reaction to a 3Q production report that came in -7% below consensus was overdone. Longer than expected maintenance at Cadia is considered a one-off, and heavy rainfall impacted Lihir production.

The broker expects gold production and headline costs at Cadia to normalise in the 2H of 2022, and maintains its Add rating. The target price eases to $26.05 from $27.18. 

Management has maintained group guidance for FY22.

Target price is $26.05 Current Price is $21.50 Difference: $4.55
If NCM meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Ord Minnett rates NCM as Buy (1) -

Ord Minnett notes the largest drivers of an -11% production forecast miss from Newcrest Mining in the December quarter were a slow maintenance recovery at the Cadia project, and impacts from weather and covid. 

The company is now aiming for the lower end of production range, and the broker notes the normalisation of some headwinds should help achieve guidance.

Ord Minnett continues to look to the closure of the Brucejack deal as a catalyst for the company, with the acquisition expected to complete for the March quarter and increase production 115,000 ounces in FY22. 

The Buy rating is retained and the target price decreases to $29.00 from $30.00.

Target price is $29.00 Current Price is $21.50 Difference: $7.5
If NCM meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

UBS rates NCM as Buy (1) -

Despite a soft December quarter compared UBS's forecasts, Newcrest Mining expects significant production increase in the second half will sustain full-year production of 1.8-2.0m ounces. 

The broker notes pressure is on Cadia and Lihir to each produce 100,000 ounces in the June quarter to achieve the low end of guidance. 

Low recoveries at Cadia and weather impacts on Lihir saw December quarter production miss forecast by -16% while all in sustaining costs were a 26% beat, although a quarter-on-quarter improvement. Earnings per share decrease -5% and -4% for FY22 and FY23. 

The Buy rating is retained and the target price decreases to $26.25 from $27.00. 

Target price is $26.25 Current Price is $21.50 Difference: $4.75
If NCM meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $28.53, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Ord Minnett rates NHF as Downgrade to Lighten from Hold (4) -

Ord Minnett downgrades nib Holdings ahead of the February 21 result after assessing key industry issues.

While the company should enjoy from lower covid claims and has committed to return gains to shareholders, Ord Minnett is cautious on the sector fearing lower rate increases possibly below inflation, federal election uncertainty, rising costs and expenses and sharp rises in capital requirements from APRA, which could dampen dividends.

Persisting margin pressure is also a concern.

The broker expects nib's travel business should pick up over FY22 and break even in FY23.

Rating downgraded to Lighten from Hold. Target price falls to $6.10 from $6.90.

Target price is $6.10 Current Price is $6.63 Difference: minus $0.53 (current price is over target).
If NHF 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 $7.00, suggesting upside of 11.5% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgan Stanley rates NTO as Overweight (1) -

Fourth quarter results for Nitro Software were a beat for earnings (EBITDA) versus Morgan Stanley's forecast, while annual recurring revenues (ARR) were in-line.

The broker sees continued momentum and awaits management guidance at the February result.

Morgan Stanley retains an Overweight rating. Target is $4.50. Industry view: In-line.

Target price is $4.50 Current Price is $1.76 Difference: $2.74
If NTO meets the Morgan Stanley target it will return approximately 156% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates NTO as Buy (1) -

It appears Nitro Software's FY21 was either a bit ahead or a bit below UBS's forecasts, depending on the financial metric. The operational loss proved smaller-than-expected while cash flow was a positive surprise.

UBS points out management will provide guidance at the release of FY21 financials, scheduled for February 24.

Target price $3.80. Buy.

Target price is $3.80 Current Price is $1.76 Difference: $2.04
If NTO meets the UBS target it will return approximately 116% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates OZL as Neutral (3) -

Despite OZ Minerals achieving its 2021 guidance UBS notes the company finished the year on a slightly disappointing note with copper production a -15% miss on forecast and all in sustaining costs 27% higher than expected. 

The broker largely likes 2022 guidance, although all in sustaining costs are above expectations with further cost pressure likely in the coming year. Lower production and higher cost expectations see earnings per share decrease -14% and -23% for 2022 and 2023.

The Neutral rating is retained and the target price decreased to $25.20 from $26.94.

Target price is $25.20 Current Price is $25.18 Difference: $0.02
If OZL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $24.69, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates PAC as Buy (1) -

Ord Minnett assesses Pacific Current Group's Q2 market update as "slightly ahead of forecasts". The broker is equally optimistic/positive about the recent acquisition of Banner Oak.

As the stock is seen as "cheap", the Buy rating is reiterated. Target price shifts to $11 from $10.30 as the acquisition is incorporated in the forward modeling.

Not to be missed: the company has increased its guidance range for new fund commitments for the two years to Jun-23 to $5-8bn from $3-8bn, excluding GQG Partners ((GQG)).

Target price is $11.00 Current Price is $6.74 Difference: $4.26
If PAC meets the Ord Minnett target it will return approximately 63% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PAN as Outperform (1) -

Panoramic Resource's December-quarter production beat the broker by 1% but shipments disappointed by -8%.

Macquarie notes Panoramic Resources returned to producer status in December and expects shipments to accelerate but given the disappointing quarter lowers forecasts to the middle of guidance.

The broker spies higher operating costs due to the extended closure of the WA border for FY23 and FY24 and earnings estimates drop -14% and -13% to reflect higher shipping costs.

Target price eases 3% to 29c from 30c. Outperform rating retained.

Target price is $0.29 Current Price is $0.25 Difference: $0.04
If PAN meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

In the wake of PointsBet's reported 4.2% turnover share of the US market in the December quarter, Credit Suisse is assuming further market share loss and increased marketing spend from the current number 5 in the marketplace.

The broker is concerned a further capital raising will be required before the year's out, unless management can achieve its 10% market share goal or the company is taken over.

Target falls to $5.50 from $8.00, downgrade to Neutral from Outperform.

Target price is $5.50 Current Price is $5.07 Difference: $0.43
If PBH meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates PBH as Hold (3) -

Pointsbet Holdings' December-quarter result revealed intensifying competition in the US, the company losing market share across most states and turnover per customer falling shy of Ord Minnett's forecasts.

While the broker notes the Australian business fared well, net win margins of 3.1% disappointed, the broker expecting 4.1%.

Ord Minnett cuts revenue forecast and its target price falls to $5.20 from $8.80. Hold rating retained, the broker taking a wait and see approach given there are several launches in the wings.

Target price is $5.20 Current Price is $5.07 Difference: $0.13
If PBH meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates PPT as Neutral (3) -

Perpetual's business update and December-half guidance proved a mixed bag. Underlying profit after tax (UPAT) outpaced Macquarie's forecasts while outflows disappointed by about -$0.7bn, leading the broker to conclude the UPAT beat was timing driven and reflected delayed cost growth.

The slowing of positive momentum in inflows occurred mainly within the institutional channel. Funds under management rose 3.6% to $102.8bn. Given expense skews, Macquarie forecasts expenses will grow -21.5% in FY22, and -5% in FY23 before returning to -3% thereafter.

EPS forecasts rise 4.5% in FY22, fall -1% in FY23 and the broker downgrades -1% to -2% thereafter, expecting expenses to weigh in outer years.

Neutral rating retained, market uncertainty outweighing attractive valuations. Target price falls to $35 from $38.75.

Target price is $35.00 Current Price is $33.31 Difference: $1.69
If PPT meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $40.66, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates RCW as Add (1) -

While Morgans liked Rightcrowd's strong 2Q annual recurring revenues, up 50% year-on-year, the target falls to $0.26 from $0.37 after the recent multiple compression of technology peers. A slightly lower FY24 earnings forecast also negatively impacted the target price.

The 2Q results confirm to the analyst that business momentum is intact, a point which gives management comfort on executing medium-term plans, including profitability by the end of FY23. Add retained.

Target price is $0.26 Current Price is $0.18 Difference: $0.08
If RCW meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Market Sentiment: 1.0

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

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

A general update on the local technology sector includes an upgrade for REA Group to Buy from Neutral. Citi's price target is $172.65.

Generally speaking, Citi analysts are anticipating strong results, not too much impacted by omicron, though rising costs can be a problem for the period ahead.

Target price is $172.65 Current Price is $142.00 Difference: $30.65
If REA meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $169.55, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Citi expects ResMed will still deliver notable growth in FY22 despite impacts of supply chain disruptions and elevated freight and manufacturing costs on gross margins. 

The broker forecasts 14% revenue growth, 12% before tax earnings growth and 13% profit after tax growth, while ResMed Inc continues to guide to a US$300-350 additional device benefit from the Philips recall this financial year. 

Given recent share price decline the rating is upgraded to Buy from Neutral and the target price decreases to $38.00 from $38.50.

Target price is $38.00 Current Price is $31.25 Difference: $6.75
If RMD meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $38.30, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Credit Suisse rates RMD as Outperform (1) -

ResMed's December quarter result was solid, Credit Suisse suggests. Profit was in line with expectation and weaker revenues simply reflected supply challenges for Devices. US mask and software sales were above expectation.

Despite supply issues, ResMed remains confident it can achieve FY22 guidance after re-engineering and re-purposing products and components within the devices to increase supply, although this is a lengthy process, the broker notes.

The broker does not see competitor Philips returning to the market until 2023, giving ResMed an unprecedented opportunity to gain market share. Target falls to $41.50 in the meantime from $43.00. Outperform retained.

Target price is $41.50 Current Price is $31.25 Difference: $10.25
If RMD meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $38.30, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Macquarie rates RMD as Outperform (1) -

ResMed's December-quarter earnings (EBIT) fell -1% shy of Macquarie's estimates, better-than-expected gross margins saving the day after revenue disappointed. Profit outpaced by 2%.

Covid-induced component shortages dragged but the broker expects these will ease into FY23. Otherwise, Macquarie considers the medium-term growth outlook favourable, admires the strong balance sheet, and its earning forecasts sit at the top end of consensus for FY23 and FY24. 

EPS eases -1% across FY22 to FY24. Outperform rating retained. Target price inches up to $38.50 from $38.40.

Target price is $38.50 Current Price is $31.25 Difference: $7.25
If RMD meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $38.30, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

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

While Morgan Stanley sees upside risk to FY23 estimates and beyond following ResMed's 2Q results, the bigger picture at present is rising bond yields.

Even after a recent share price pullback, the broker only estimates 4% upside potential from the $33.10 target, lowered from $37. 

Gross margins are likely to remain suppressed due to higher freight costs, elevated component pricing and trend of product mix toward devices, according to the analyst. Management provided no gross margin guidance.

The Equal-weight rating is unchanged. Industry view In-Line.

Target price is $33.10 Current Price is $31.25 Difference: $1.85
If RMD meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $38.30, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Ord Minnett rates RMD as Buy (1) -

ResMed Inc's expected benefit from the Philips competitor recall has been somewhat diminished by the supply chain and freight constraints in recent months, achieving a $50m revenue boost compared to the $70m forecast. 

The company still reported revenue in the December quarter in line with Ord Minnett's expectations, and both the broker and company management are confident of an output boost by the June quarter to support strong 2022 results. 

The Buy rating and target price of $37.90 are retained.

Target price is $37.90 Current Price is $31.25 Difference: $6.65
If RMD meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $38.30, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Ord Minnett rates RMS as Accumulate (2) -

Ord Minnett notes a slighter softer than expected second quarter from Ramelius Resources, with low grades at both assets and Western Australia labour shortages impacting on haulage capacity from Tampia and Marda and further on Edna May ore optionality. 

While the company achieved the lower end of first half guidance, Ord Minnett notes labour and supply chain constraints, particularly in Western Australia, will continue to impact on full year targets and the company has stated guidance is uncertain. 

The Accumulate rating is retained and the target price decreases to $1.45 from $1.60.

Target price is $1.45 Current Price is $1.32 Difference: $0.13
If RMS meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting upside of 45.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates SRL as Neutral (3) -

Sunrise Energy Metals' December-quarter result was in line with pre-released funding and exploration updates.

Projects are on track and Macquarie considers recent securing of finance from Export Finance Australia to be a key milestone.

Macquarie increases its equity-raising assumptions and downgrades the raising price to $1.20 a share form $1.55 accordingly.

This triggered a shaving in FY22 in EPS forecasts and an -18% downgrade to the target price to $1.80 from $2.20.

Neutral rating retained.

Target price is $1.80 Current Price is $1.73 Difference: $0.07
If SRL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgan Stanley rates TUA as Initiation of coverage with Overweight (1) -

Tuas Ltd was de-merged as part of the June 2020 merger between TPG Telecom and Vodafone Australia, which is now called TPG Telecom ((TPG)).

Morgan Stanley initiations coverage with an Overweight rating and boldly asserts the company could become the next TPG. The company is currently disrupting the Singapore telco market, under the leadership of TPG founder David Teoh. The target price is set at $2.10.

The company has been scaling rapidly, reaching 5% market share by November 2021 and is highly profitable. Earnings (EBITDA) margins of 30% in the 1Q22, suggests meaningful upside potential to the broker.

Target price is $2.10 Current Price is $1.72 Difference: $0.38
If TUA meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates WGX as Outperform (1) -

Westgold Resources December-quarter report broadly met Macquarie's forecasts and the broker notes steady production guidance suggests a slightly stronger second-half. 

FY22 EPS forecasts fall -5% but FY23 EPS estimates rise 6% after updating Westgold's hedge position.

Target price steady at $2.90. Outperform rating retained, Macquarie noting growing cash generation and shrinking capital expenditure at Big Bell positions the company well to execute its strategy.

Target price is $2.90 Current Price is $1.80 Difference: $1.1
If WGX meets the Macquarie target it will return approximately 61% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates WSA as Underweight (5) -

Western Areas' December-quarter results revealed a -8% miss on nickel mined and a -15% miss on cash costs versus Morgan Stanley's estimates.

Management maintains its full year FY22 nickel production guidance targets though now expects unit cost to come in at the top
end of the unit cost range, or marginally above. This is due to increased lower grades and labour shortages.

The broker retains its Underweight rating and $2.95 target price. Industry view: In-Line.

Target price is $2.95 Current Price is $3.43 Difference: minus $0.48 (current price is over target).
If WSA 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 $3.25, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Citi rates WTC as Neutral (3) -

A general update on the local technology sector includes an a fresh price target for WiseTech Global; $48.90. Rating remains Neutral.

Generally speaking, Citi analysts are anticipating strong results, not too much impacted by omicron, though rising costs can be a problem for the period ahead.

Target price is $48.90 Current Price is $43.19 Difference: $5.71
If WTC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $45.73, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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