Australian Broker Call

Credit Suisse rates ABC as Underperform (5) -

On review of forecasts post-first-half FY21 result, Credit Suisse notes that the broker misinterpreted Adbri's management comments on FY21 earnings split, with regards to exclusion of property.

On the public earnings call, management confirmed that it was still expecting a 50:50 earnings split in FY21, before the combined -$5m impact for July/August lockdowns and costs associated with the delayed return to service of the Accolade.

Credit Suisse had interpreted these comments to refer to net profit including property, however, Credit Suisse now understands they refer to net profit excluding property, for which the broker models $7.5m net profit on proceeds of $12.5m.

The broker has increased FY21 net profit forecasts 21%, incorporating typical higher second half seasonal margin on products mix and cost, and is now in line with the pre-first half FY21 forecast.

Credit Suisse retains its Underperform rating with the target rising to $2.90 from $2.30.

Target price is $2.90 Current Price is $3.29 Difference: minus $0.39 (current price is over target).
If ABC meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.45, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

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

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

Morgans raises Adbri's rating to Add from Hold on greater confidence in a FY22/23 earnings recovery. This is despite first half results that were slightly below expectations, with margins considered to be impacted by some small lime volume losses and price resets.

The analyst sees progress on strategic initiatives, with positive initial results in infrastructure and a focus on unlocking land value. The price target rises to $3.80 from $3.31.

Management stated second half earnings will be negatively impacted because of a reduction in Alcoa volumes, the anticipated start of a competing NSW cement import terminal and covid impacts.

Target price is $3.80 Current Price is $3.29 Difference: $0.51
If ABC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

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 AFG as Buy (1) -

The broker believes the strong fundamentals evident in Australian Finance Group's FY21 result will drive FY22 profit growth of 18%, despite current lockdowns and strong competition. Lockdowns will weigh in the first half before a rebound in settlements in the second.

Strong competition will continue, but lower funding costs can offset in FY22, the broker notes, and a subtle mix-shift towards near-prime loans and SMSF loans will help manage net interest margins.

Buy and $3.60 target retained. The "solid" FY21 performance beat Citi's forecast and is seen as justification for the share price rally prior to the results release.

Target price is $3.60 Current Price is $2.94 Difference: $0.66
If AFG meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 11.6% (ex-dividends)

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 AFG as Outperform (1) -

FY21 results were in line with Macquarie's estimates. Activity has remained elevated despite the lockdowns.

The broker considers the outlook supported by mortgage market lodgement activity, while the valuation is supported by net cash and trail receivables.

Earnings risk is seen as to the upside and the broker retains an Outperform rating. Target is raised to $3.18 from $3.06.

Target price is $3.18 Current Price is $2.94 Difference: $0.24
If AFG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 11.6% (ex-dividends)

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 AFG as Add (1) -

Australian Finance Group reported an FY21 net profit of $51.304m, which is 0.6% better than Morgans' expectation, and a final dividend of 7.4cps fully franked has been declared.

The group has “refreshed” its higher-margin near-prime product offering, which Morgans takes to mean the group will look to grow Link settlements in FY22. The group also said that it will launch an SMSF product in first quarter FY22, which the broker presumes will be a higher margin product than the Retro product.

The group also stated that AFG Securities (AFGS) lodgement volumes in second half FY21 are up 80% on second-half FY20, supporting a strong settlement pipeline into FY22, and Morgans is forecasting 104% growth in settlements for the AFGS business from FY21 to FY22.

The broker lifts its target price to $3.40 from $3.30 and maintains its Add rating.

Target price is $3.40 Current Price is $2.94 Difference: $0.46
If AFG meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 11.6% (ex-dividends)

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

UBS rates AGI as Sell (5) -

The highlight of Ainswortth Game Technology's FY21 result, which was was in line with the company’s pre-announced result, was the sequential improvement in North America, which delivered a second-half segment profit of $26m broadly in line with pre-covid levels.

The limited outlook commentary pointed to continued strength in North America. However, UBS notes, other key end markets are likely
to recover slower due to closures, operating restrictions, and the continued rollout of the vaccination process.

The broker notes some of the weakness in land-based should be offset by online, which will benefit from the distribution agreement with GAN earlier this year. 

The broker has made a number of changes to assumptions and now assumes a segment profit of $63m, $95m, and $111m in FY22-24.

Sell rating is unchanged and the target increases to $0.72 from $0.35.

Target price is $0.72 Current Price is $1.06 Difference: minus $0.34 (current price is over target).
If AGI meets the UBS target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

UBS rates AIZ as Sell (5) -

In line with recent guidance, Air New Zealand reported an FY21 pre-tax loss of -NZ$440m.

Relative to UBS, lower-than-expected passenger and contract services revenues were partly offset by greater cargo revenues and lower fuel (hedging gains) and labour costs.

The airline has suspended its FY22 earnings guidance due to uncertainty arising from the NZ lockdown. Cash burn reduced from -NZ$96m in first half FY21 to -NZ$9m in second half FY21 helped by strong domestic and cargo performance, Australian travel bubble, no aircraft deliveries and no PAYE tax payments.

UBS expects cash burn to lift to -NZ$30m/mth in first half FY22 with no Australian bubble travel, PAYE tax payments (NZ$60m), and aircraft deliveries. UBS thinks this could see net debt lift from NZ$1.3bn in FY21 to NZ$1.5bn in first half FY22, and in the broker's view illustrates the acute recapitalisation requirement.

UBS retains a Sell rating and target of NZ$0.75.

Current Price is $1.44. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Morgans rates APE as Add (1) -

Following first half results, Morgans makes another round of upgrades on increased confidence structurally higher margins are here to stay. Strength is thought more about internal cost efficiencies than cyclical market tailwinds.

The broker also has increased confidence around EA123 (used cars online) profitability/growth potential and the 16 months of forward order book growth. A driver of the result included a full 6-month contribution from the -$100m cost out program, notes the analyst.

The Add rating is unchanged and the target price lifts to $20.45 from $19.20.

Target price is $20.45 Current Price is $16.21 Difference: $4.24
If APE meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 12.9% (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

Ord Minnett rates APE as Accumulate (2) -

Ord Minnett remains positive on the company’s medium-term prospects after first half results were in-line with guidance. The company declared an interim dividend of 20c and a special dividend of 8.4c, distributing the profit on sale of the Daimler Trucks business.

The analyst highlights a meaningful gap between orders written and delivered, implying strong new vehicle sales numbers will
continue. While profit (PBT) margins remain elevated versus history, it's thought they will continue for the forseeable future.

The underlying profit margin improvement was driven by annualisation of cost out, Automotive Holdings Group ((AHG)) synergies and positive industry dynamics, explains the broker. The target price rises to $18 from $16.50 and the Accumulate rating is unchanged.

Target price is $18.00 Current Price is $16.21 Difference: $1.79
If APE meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 12.9% (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 AUB as Outperform (1) -

AUB Group's FY21 net profit of $65.3m was up 23% on the previous period, in line with Credit Suisse and consensus. The company declared a final dividend of 39.0cps.

FY22 guidance is in line with the current consensus.

Credit Suisse notes AUB continues to execute well on key initiatives and could deliver significant earnings growth with a turnaround of agencies and then NZ in a similar fashion to the success achieved in broking.

The broker increases FY22 net profit forecasts by 6% and outer years by 8-10%. Outperform rating and the target rises to $25.70 from $20.

Target price is $25.70 Current Price is $24.18 Difference: $1.52
If AUB meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.40, suggesting upside of 2.0% (ex-dividends)

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 BEX as Add (1) -

FY21 operating metrics were pre-released and the main surprise for Morgans was the increase in the cost base in the second half. The EBITDA loss was also greater than expected and second half operating expenditure almost doubled.

BikeExchange has invested heavily in building out its senior management team and the platform. The business is entering a heavy investment phase yet the broker considers it well capitalised to undertake the expenditure.

Speculative Buy rating maintained with the target dipping to $0.30 from $0.31.

Target price is $0.30 Current Price is $0.19 Difference: $0.11
If BEX meets the Morgans target it will return approximately 58% (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 BGA as Add (1) -

Morgans assesses a solid FY21 result which beat expectations and further earnings growth is targeted in FY22, given a full year of the Lion Dairy & Drinks acquisition. The broker retains its Add rating and lifts its target to $6.53 from $6.35, due to a lower-than expected debt position.

The analyst points out branded sales are now over 73% of group sales, up from 59% in FY20. With a full year of LD&D, branded sales are expected to represent over 80% of group sales in FY22.

The broker cautions challenges remain around competition for milk, record high farmgate milk prices, and covid lockdowns are impacting the higher margin convenience and food service channels.

Target price is $6.53 Current Price is $5.51 Difference: $1.02
If BGA meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 20.8% (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 BLD as Lighten (4) -

For Ord Minnett's initial response, see last week's Report.

Upon a third review of FY21 results, the broker reduces its target to $6 from $6.70. This comes after taking into account the underlying earnings revisions in the continuing business, as well as updated capital expenditure guidance. The Lighten rating is unchanged.

The lack of dividend was a disappointment, with Ord Minnett forecasting 4 cents, while the consensus estimate was for 6 cents. 

Boral reported FY21 earnings of $445m in-line with Ord Minnett's forecast ($439m) and consensus ($441m). Earnings guidance of $430-450m was provided with the release of the target statement in June.

Target price is $6.00 Current Price is $6.12 Difference: minus $0.12 (current price is over target).
If BLD meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.83, suggesting upside of 11.9% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Morgans rates CGC as Hold (3) -

While Costa Group's headline first half FY21 results were pre-released, the produce segment was weaker than Morgans expected, yet the International business materially exceeded expectations.

FY21 guidance was reiterated and Morgans notes a far stronger second half FY21 produce result will be required to deliver it.

The broker also notes Costa Group will be supported by the on-year citrus crop and solid growth in the main berry season is expected.

Morgans FY21 earnings forecast is lowered -2.2% and net profit falls -7.7%, with more conservative produce assumptions offsetting material International upgrades.

Morgans upgrades Costa Group to Add from Hold, and the target price is lowered to $3.70 from $3.81.

Target price is $3.70 Current Price is $3.18 Difference: $0.52
If CGC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates CWY as Buy (1) -

A 3.8% earnings increase in FY21 was a good result for Cleanaway Waste, the broker suggests, given covid-related headwinds. The broker upgrades forecasts to account for recent acquisitions.

Lockdowns make for low earnings visibility heading into FY22 but on a medium term view, the broker believes rational pricing and consolidation will continue to play out across the Australian Waste industry, hence Cleanaway is well-placed for further M&A.

Target rises to $2.71 from $2.60, Buy retained.

Target price is $2.71 Current Price is $2.61 Difference: $0.1
If CWY meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.73, suggesting upside of 3.9% (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

Macquarie rates DDH as Outperform (1) -

FY21 results beat prospectus forecasts and there was a strong improvement across most operating metrics, Macquarie observes. The company has guided to strong growth in FY22 on the back of further expansion of its fleet.

While mindful of the threat posed by the pandemic, Macquarie assesses the company is now better placed to deal with constraints. Outperform retained. Target is raised to $1.45 from $1.38.

Target price is $1.45 Current Price is $1.14 Difference: $0.31
If DDH meets the Macquarie target it will return approximately 27% (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 FCL as Buy (1) -

The broker has homed in on Fineos Corp's FY22 guidance of 15-20% revenue growth, including 30% subscription growth, in substantially raising earnings forecasts post result.

The broker expects the company's cloud-based Admin Suite to benefit from life insurers accelerating their digital transformation initiatives, regulatory changes, and Australian customers transitioning to the cloud.

July cash receipts will likely delay, but not defer, a need to raise growth capital in F22, the broker believes. Target rises to $5.25 from $4.65, Buy retained.

Target price is $5.25 Current Price is $4.20 Difference: $1.05
If FCL meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 12.8% (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: 0.9

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

Macquarie rates FMG as Outperform (1) -

At first glance, Macquarie notes Fortescue Metals Group's FY21 earnings result was solid with key metrics and the dividend in line with the broker's estimates.

Revenue and earnings were both records for the company and up 74% and 96% on the previous record year, respectively.

The group declared a final dividend of $2.11, bringing the total payout to shareholders in FY21 to $3.58 after returning $1.47 in the first half. 

The group has not made any changes to key guidance ranges for FY22. At spot prices, the broker's earnings estimates rise 14% and 77% in FY22 and FY23. 

The Outperform rating and target price of $27.00 are retained. 

Target price is $27.00 Current Price is $20.00 Difference: $7
If FMG meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $22.12, suggesting upside of 3.8% (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: 0.0

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

Ord Minnett rates FMG as Buy (1) -

In an initial response to FY21 results, Ord Minnett notes profit was in-line with the broker's and consensus expectations, while US$2.7bn net cash was pre-reported. The final dividend of $2.11 was also in-line with consensus estimates.

The analyst feels a key overhang on the stock has been the announcement of a -$500-600m spend on Fortescue Future Industries (FFI) spending plans in FY22. The lack of detail on the breakdown is considered to detract from an otherwise outstanding result.

There were no changes to FY22 guidance and the broker doesn't expect any material change to overall consensus forecasts. The Buy rating and $29 target price are unchanged.

Target price is $29.00 Current Price is $20.00 Difference: $9
If FMG meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $22.12, suggesting upside of 3.8% (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: 0.0

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

Morgans rates GDG as Add (1) -

FY21 net profit was ahead of expectations. Morgans notes the company experienced a strong sales performance over the year with growth in life business funds under management of 38%.

FY22 estimates are upgraded by 13% and FY23 by 15%. The broker continues to believe Generation Development is well-positioned to execute in the medium term and retains an Add rating. Target is raised to $1.40 from $1.16.

Target price is $1.40 Current Price is $1.18 Difference: $0.22
If GDG meets the Morgans target it will return approximately 19% (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 GNX as Add (1) -

FY21 operating earnings were weaker than Morgans expected. The recently commissioned Jemalong solar farm has been slower to ramp up during commissioning.

Morgans believes the company is trading at a discount to fair value because of the uncertainty related to the construction of Kidston Hydro 2 and the remaining project pipeline.

The Add rating is retained given the value potential but the broker acknowledges it may take longer to realise upside. Target is reduced to $0.33 from $0.34.

Target price is $0.33 Current Price is $0.24 Difference: $0.09
If GNX meets the Morgans target it will return approximately 38% (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 GNX as Buy (1) -

After FY21 results, Ord Minnett continues to believe Genex Power is undervalued and maintains its Buy rating and price target of $0.29. The Jemalong project is generating at full capacity and is expected to double the company's revenue in FY22.

Underlying revenue was up 12% on the previous corresponding period though earnings (EBITDA) and profit were flat due to increased development and interest costs, explains the analyst.

The broker highlights future growth will come from the Bouldercombe Battery (expected online in 2023), K2-Hydro in 2024 and K3-Wind in 2025.

Target price is $0.29 Current Price is $0.24 Difference: $0.05
If GNX meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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 IDX as Outperform (1) -

Macquarie found the FY21 result mixed with revenue in line and operating EBITDA and net profit below forecasts.

Increased capital expenditure is likely to support medium to longer-term earnings with expenditure to include -$11m on four new sites and -$8m on technology/equipment upgrades.

The business is underpinned by attractive industry fundamentals and Macquarie retains an Outperform rating. Target is reduced to $5.30 from $5.45.

Target price is $5.30 Current Price is $4.58 Difference: $0.72
If IDX meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 10.4% (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

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

While revenue rose 27.3% to $348m, driven by organic growth and acquisitions, growth was below Morgan Stanley's forecast. Covid-19 lockdowns are having a negative impact on the start of FY22, which is expected to lead to negative earnings revisions for FY22.

However, the analyst feels activity will recover once restrictions lift, in-line with the experience in FY21. Equal-weight and target of $5.20 are retained. Industry view: In-line. 

Target price is $5.20 Current Price is $4.58 Difference: $0.62
If IDX meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 10.4% (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

Morgan Stanley rates IPL as Overweight (1) -

Morgan Stanley notes the Tampa Ammonia price benchmark has settled -US$10/t lower though remains well above consensus forecasts. Running spot prices for all commodity inputs implies 85% upgrades to the broker's FY22 earnings (EBIT) forecast.

This is supported by higher fertiliser prices and a lower Australian dollar, and partly offset by the higher Henry Hub benchmark. Overweight maintained. Industry view: In-Line. Target is $2.90.

Target price is $2.90 Current Price is $2.78 Difference: $0.12
If IPL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in September.

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 JIN as Add (1) -

Jumbo Interactive's  FY21 result was in line with Morgans' forecasts and consensus, with group total transaction value (TTV) up 37.0%, revenue up 17.1%, and underlying earnings of $48.9m, up 14.7% year-on-year.

Management flagged that a ‘step up’  in investment is expected in FY22 to support the company's domestic and offshore growth strategy and reduce execution risk.

While organic B2B/B2G contracts can take time to execute, the broker continues to believe Jumbo is well placed to grow its SaaS/MS businesses over time, which remain exposed to large, global addressable markets affording a long runway of potential growth.

Add retained. Target is increased to $17.10 from $14.78.

Target price is $17.10 Current Price is $14.92 Difference: $2.18
If JIN meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $17.37, suggesting upside of 14.2% (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 KSL as Add (1) -

First half net profit was ahead of expectations. Morgans assesses management has done a good job, delivering 25% growth in net profit over the last two years.

Completion of the WAP acquisition also has potential to improve growth prospects into FY22. The stock is considered "too cheap" and an Add rating is retained. Target is reduced to $1.57 from $1.63.

Target price is $1.57 Current Price is $0.93 Difference: $0.64
If KSL meets the Morgans target it will return approximately 69% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates LME as Outperform (1) -

First half subscription revenue was ahead of Macquarie's forecasts and 2021 guidance has been reiterated for revenue of $50-53m and a net loss of -$7-10m.

An update on guidance is anticipated following the completion of the TINYpulse acquisition. Macquarie expects operating conditions to improve as budgets that were affected by the pandemic are expanded.

Outperform retained. Target is reduced to $1.64 from $1.73.

Target price is $1.64 Current Price is $0.74 Difference: $0.9
If LME meets the Macquarie target it will return approximately 122% (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

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

FY21 EBITDA was ahead of Macquarie's estimates. There has been solid trading for the first eight weeks of FY22 in markets where pandemic-related restrictions are low and stores are able to trade.

The company remains focused on opportunities for expanding its network, although Macquarie suspects the roll-out of stores may be affected by logistic challenges.

The stock is currently exceeding its pre-pandemic average, trading at 28.5x EV/EBITA and Macquarie downgrades to Neutral from Outperform. Target is raised to $17.00 from $15.50.

Target price is $17.00 Current Price is $19.45 Difference: minus $2.45 (current price is over target).
If LOV 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 $19.89, suggesting upside of 3.0% (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

Ord Minnett rates MME as Buy (1) -

At first glance, Ord Minnett notes the Moneyme FY21 result is largely in line with expectations.

The broker's favourable investment thesis remains in place supported by the company's capacity to continue taking share from major banks and demonstrate improving profit metrics as the business scales, including lower interest costs, more products and increased average products per customer.

The broker also notes the company has already contracted $50m revenues for FY22, which is 52% of the broker's total revenue forecast.

Ord Minnett maintains its Buy rating. Target $2.35, but is under review.

Target price is $2.35 Current Price is $2.13 Difference: $0.22
If MME meets the Ord Minnett target it will return approximately 10% (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

Morgans rates MX1 as Speculative Buy (1) -

The net loss in FY21 was slightly greater than Morgans anticipated because of higher D&A, interest and employee costs.

In line with guidance, the broker increases the cost base for FY22 and FY23 to reflect increased sales and engineering staff numbers as several key projects ramp up.

Morgans also moderates the military and IED revenue contribution in its estimates. Speculative Buy rating maintained. Target is reduced to $0.58 from $0.60.

Target price is $0.58 Current Price is $0.28 Difference: $0.3
If MX1 meets the Morgans target it will return approximately 107% (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 MYX as Upgrade to Buy from Neutral (1) -

Mayne Pharma is in a transition phase, Citi notes, moving from being dominated by generic drug revenue to branded products being
the company's largest segment. To that end FY22 guidance includes a big step-up in the cost of the launch of Nextstellis.

In the meantime, generic revenues will likely continue to fall, while Nextstellis should make a loss until revenues become meaningful. The launch is not without significant risk, the broker warns.

Target falls to 35c from 43c but on the stock market reaction Citi upgrades to Buy (High Risk)  from Neutral.

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

Current consensus price target is $0.31, suggesting upside of 3.3% (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

Credit Suisse rates MYX as Neutral (3) -

Mayne Pharma reported FY21 underlying earnings of $63.5m, down -34% versus the previous period and -4% below Credit Suisse.

The underlying figures exclude -$229m impairment of the group's generic intangibles, of which -$214m was announced at the first-half result.

Following the FY21 result, the broker has made numerous changes to forecasts which have resulted in -16% earnings reduction in FY22 and a -2% decrease in FY23.

Neutral rating is unchanged and the target is lowered to $0.29 from $0.36.

Target price is $0.29 Current Price is $0.26 Difference: $0.03
If MYX meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $0.31, suggesting upside of 3.3% (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

Macquarie rates MYX as Neutral (3) -

Profit in FY21 was slightly below Macquarie's estimates. Gross margins, at 33%, were also below forecasts. Pricing pressure is occurring because of increased competition within the existing product portfolio.

Impairments of -$229m were incurred relating to the generics portfolio. Macquarie balances the longer-term opportunities for key products with the near-term challenges. Neutral maintained. Target is reduced to $0.28 from $0.33.

Target price is $0.28 Current Price is $0.26 Difference: $0.02
If MYX meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $0.31, suggesting upside of 3.3% (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 NIC as Buy (1) -

Nickel Mines' interim result was lifted by increased ownership in rotary kiln electric arc furnace (RKEF) lines offsetting lower production, the broker notes, bringing revenue in line with forecast. Earnings came in ahead of forecast.

Management suggested future quarters look strong due to strong nickel pig iron pricing, hence the higher dividend is likely to remain.

Target falls to $1.25 from $1.30, Buy retained.

Target price is $1.25 Current Price is $1.00 Difference: $0.25
If NIC meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.25, suggesting upside of 21.4% (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 NVX as Add (1) -

Novonix reported a loss of -$18.1m which was a miss on Morgans' forecast (-4%) but not outside of the broker's expectations given the early stage of the company.

In FY22, Morgans expect the company to ramp up production capacity as it has secured the US$41.5m ‘Big Blue’ facility in Chattanooga, TN.

Add rating is unchanged with the view that the broker sees the potential for upwards re-rating of the stock being more likely than the downside.

Target price is lowered to $4.49 from $4.53.

Target price is $4.49 Current Price is $4.11 Difference: $0.38
If NVX meets the Morgans target it will return approximately 9% (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

Credit Suisse rates NXT as Neutral (3) -

NextDC reported FY21 results just below Credit Suisse estimates at the revenue line but with earnings ahead, with data centre services revenue of $246.1m and underlying earnings of $134.5m.

Capex was lower than Credit Suisse's forecast and guidance at $301m, but the broker notes this appears to reflect a delay of spend into FY22, with capex guidance for FY22 coming in ahead of the broker's estimates.

While revenue guidance into FY22 is lower than anticipated, the broker attributes this to lower power costs, which are largely a pass-through.

The broker has made minimal changes to earnings estimates following the FY21 result. The broker retains its Neutral rating and the target price increases to $12.30 from.$11.90.

Target price is $12.30 Current Price is $12.75 Difference: minus $0.45 (current price is over target).
If NXT meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.18, suggesting upside of 10.7% (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

Macquarie rates NXT as Outperform (1) -

FY21 results beat Macquarie's estimates. FY22 data centre revenue guidance is $285-295m and EBITDA $160-165m. Macquarie envisages further upside from enterprise and government segments while development activity continues to accelerate.

S3 is on track for completion in the second half of FY22 while M3 planned capacity has increased to 150 MW. Outperform retained. Target rises to $14.05 from $13.95.

Target price is $14.05 Current Price is $12.75 Difference: $1.3
If NXT meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.7% (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

Morgans rates NXT as Add (1) -

The FY21 result was slightly better than guidance and Morgans forecasts, while FY22 revenue and earnings (EBITDA) guidance was in-line with market expectations. The broker raises revenue and earnings forecasts.

The highlight was the 4.6MW of capacity contracted in the second half versus 0.6MW forecast by the analyst. This was thought due to a combination of strong enterprise demand and a variety of Cloud Service Providers placing orders in Sydney.

Morgans retains its add rating and lifts its target price to $14.64 from $14.02.

Target price is $14.64 Current Price is $12.75 Difference: $1.89
If NXT meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.7% (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 NXT as Downgrade to Accumulate from Buy (2) -

For Ord Minnett’s initial response to FY21 results, see Friday's Report.

The adjusted net loss of -$21m was an improvement on the -$44m loss a year ago and in-line with Ord Minnett’s estimate. The broker downgrades its rating to Accumulate from Buy on valuation and lowers its target to $14 from $14.50.

The analyst suggests guidance was soft and the company called out some slippage at its S3 Sydney construction site as a result of covid-19 restrictions.

Target price is $14.00 Current Price is $12.75 Difference: $1.25
If NXT meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.7% (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

UBS rates NXT as Buy (1) -

It is UBS's view that NextDC revealed yet another strong performance when it released FY21 financials. But optically, the broker suggests, it looked like the business's growth had taken a leg down in the second half.

UBS believes the apparent slowing in the top line can be 60% attributed to lower power costs. The broker proclaims to have a focus on the bigger picture and here operational momentum is still seen as "solid" with the business harbouring "desirable characteristics".

Estimates have been reduced with small reductions in data centres ramp-up having larger impact on EPS forecasts. Buy rating retained. Price target loses -20c to $15.20.

Target price is $15.20 Current Price is $12.75 Difference: $2.45
If NXT meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting upside of 10.7% (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

Morgans rates PAR as Upgrade to Hold from Reduce (3) -

Paradigm Biopharmaceuticals reported its FY21 result with net losses increasing as regulatory programs progress, but there were major surprises on this front given quarterly reporting. 

The company's largely in-line result was aided by a difference in R&D rebate treatment with the company recognising its expected rebate in FY21.

While there are clearly some major upcoming catalysts, which are likely to increase volatility and may present a short-term trading opportunity, over the long term Morgans continues to see risks to the downside around narrower marketability and higher competition than consensus suggests.

Morgans upgrades the company to Hold from Reduce and lowers the target price to $1.68 from $1.69.

Target price is $1.68 Current Price is $1.92 Difference: minus $0.24 (current price is over target).
If PAR meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates PLS as Neutral (3) -

Pilbara Minerals' FY21 result was a touch below but it was a transformational year for the company, the broker notes, given the acquisition of Altura's assets and restart of the processing plant have increased capacity by around 60%.

Recent strong online spot sales further highlight the tightness in lithium feedstock markets at present, and meanwhile Pilbara and POSCO will seek board approval for their JV ahead of a final investment decision. The broker risks the JV at 50% for now.

Target rises to $2.20 from $1.30, Neutral (High Risk) retained.

Target price is $2.20 Current Price is $2.07 Difference: $0.13
If PLS meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.17, suggesting downside 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

Morgan Stanley rates PWR as Overweight (1) -

Morgan Stanley assesses a strong result across the board, with revenue and opex a 5% beat and market share gains. Higher gross margins were considered largely driven by favourable industry conditions and strong sales in high margin categories.

All this implies to the analyst a sustainable profit (PBT) base of at least 58.5m. The target price is increased to $4.60 from $4.40 and the Overweight rating is retained. Industry view: In-Line.

Target price is $4.40 Current Price is $3.39 Difference: $1.01
If PWR meets the Morgan Stanley target it will return approximately 30% (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 PWR as Add (1) -

Peter Warren Automotive experienced a strong FY21, significantly exceeding prospectus net profit (before tax) forecasts by 68%.

With the company's exposure limited to NSW and QLD, lockdowns in the former have impacted trading into first-half FY22. The company has therefore reiterated its prospectus first half FY22 forecast which represents -43% contraction versus second half FY21.

Morgans has lowered FY22 forecasts following the company flagging lockdown impacts to its NSW operations. Morgans retains its Add rating and lowers the target price to $4.08 from $4.33.

Target price is $4.08 Current Price is $3.39 Difference: $0.69
If PWR meets the Morgans target it will return approximately 20% (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 QAN as Buy (1) -

For Citi, the highlights from Qantas' result were all about FY22 guidance, including increased domestic capacity, implying market share gains, and balance sheet strength.

The broker notes a large part is contingent on politics, but when vaccination rates reaching the appropriate targets, Qantas has the planes ready to fly to meet pent-up demand. Qantas is ever optimistic, and the broker retains Buy.

Target rises to $5.93 from $5.61.

Target price is $5.93 Current Price is $5.15 Difference: $0.78
If QAN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.86, suggesting upside of 16.2% (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

Macquarie rates RSG as Outperform (1) -

First half results were mixed relative to Macquarie's expectations, with operating costs below forecasts while operating EBITDA was better. Incorporating the result means the underlying loss estimate for 2021 is reduced by -71%.

Continued improvement at Syama sulphides is key for sustained de-leveraging, in the broker's view. Outperform retained. Target is steady at $0.65.

Target price is $0.65 Current Price is $0.45 Difference: $0.2
If RSG meets the Macquarie target it will return approximately 44% (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: 0.5

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

Credit Suisse rates SBM as Outperform (1) -

St Barbara's FY21 underlying earnings of $300m were in line with consensus, and a $2cps final dividend was slightly below.

Primarily due to -$248m impairment at Atlantic, as was flagged before the result, the statutory performance was significantly worse than expected.

FY22 production guidance is roughly flat on FY21 with all-in costs expected to increase from $1,616/oz to $1,710-1,860/oz. 

Outperform rating retained. Target is lowered to $2.00 from $2.95.

Target price is $2.00 Current Price is $1.58 Difference: $0.42
If SBM meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates SLA as Buy (1) -

Ord Minnett was impressed by Silk Laser's maiden FY21 result which came in ahead of prospectus forecasts and updated guidance. This was thought due to the maturation of existing Corporate/JV75 clinics, increased franchisee revenue and skincare category growth.

The broker points out the mix shift towards higher Adapted Structured Pulse (ASP) categories (injectables) drove the 28% growth in average spend albeit at a lower gross margin. The broker retains its Buy rating and lowers the target to $4.85 from $5.06.

Target price is $4.85 Current Price is $3.94 Difference: $0.91
If SLA meets the Ord Minnett target it will return approximately 23% (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 SLH as Add (1) -

Morgans is aware the operating environment has a great deal of uncertainty and there are volume risks across the business. Yet Silk Logistics beat FY21 prospectors forecasts and the broker is confident the same could be the case with FY22.

Estimates for FY22 net profit and EBITDA are upgraded by 8% and 18%, respectively. Morgans retains an Add rating and raises the target to $2.82 from $2.76.

Target price is $2.82 Current Price is $2.35 Difference: $0.47
If SLH meets the Morgans target it will return approximately 20% (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 TSI as Buy (1) -

The FY21 result revealed better gross margins than Ord Minnett anticipated off the back of increased direct-to-consumer and higher priced products. The broker's current forecasts anticipate a capital raise in FY23 to provide a working capital buffer.

Ord Minnett lowers its price target to $2.51 from $2.71 due to FY22 covid-19 impacts and maintains its Speculative Buy recommendation.

While Ned Whisky and Grainshaker Vodka offer near-term upside, the analyst is most attracted to the opportunity surrounding the Agave product. Whilst some incremental revenue from FY22 and FY23 is expected, the opportunity really exists from FY24.

Target price is $2.51 Current Price is $1.95 Difference: $0.56
If TSI meets the Ord Minnett target it will return approximately 29% (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 WAF as Outperform (1) -

First half results were mixed compared with Macquarie's forecasts, with EBITDA better-than-expected but offset by higher D&A and tax charges.

The broker assesses the recently released drill intersections from the northern shoot of M1S have potential to grow high-grade underground inventory.

Proving the continuity at this location is key to the outlook and the broker retains an Outperform rating. Target is $1.15.

Target price is $1.15 Current Price is $1.01 Difference: $0.14
If WAF meets the Macquarie target it will return approximately 14% (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

Citi rates WES as Sell (5) -

Wesfarmers' FY21 performance met expectations, plus the company announced a $2.3bn capital return program. Earnings estimates have lifted but Citi continues to have a problem with the valuation, hence the Sell rating remains in place.

Citi analysts spotted many topics that are typical for retailers in 2021: supply-chain disruptions, rising freight and commodity costs, transition to online, on top of increasing investment in digital and automation.

Ongoing lockdowns are creating headwinds of their own. Target price climbs to $49 from $47.

Target price is $49.00 Current Price is $62.20 Difference: minus $13.2 (current price is over target).
If WES meets the Citi target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

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 WES as Neutral (3) -

Wesfarmers FY21 result was solid and in line at an aggregate level, while Bunnings was -3% below forecast earnings and department stores were 12% above forecast.

An intriguing part of the result, notes Credit Suisse, was the announcement of -$100m in incremental operating expenditure in FY22 to accelerate digital development; an undisclosed amount is startup-related and other than the term ‘market-leading digital and data ecosystem’.

There is no detail as to what that expenditure actually delivers at the end of FY22.

With a significant proportion of the Bunnings store network now closed to retail customers, Credit Suisse forecasts factor-in a further weakening of sales versus the first 7 weeks at -4.7% year-on-year (total sales).

Credit Suisse retains a Neutral rating and raises the target to $59.91 from $58.74.

Target price is $59.91 Current Price is $62.20 Difference: minus $2.29 (current price is over target).
If WES meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

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

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

FY21 results beat expectations. Bunnings delivered comparable sales growth of 11.9% and total sales reaching a record $16.87bn. Kmart also reaped operating leverage from the store conversion program.

Wesfarmers is trading close to peak valuations levels, Macquarie asserts, and there are a larger number of near-term risks posed by global supply chain disruptions. Hence, the rating is downgraded to Neutral from Outperform.

The main upside risk will be if lockdowns end sooner than the broker expects and revive consumer confidence. Target is reduced to $61.35 from $63.45.

Target price is $61.35 Current Price is $62.20 Difference: minus $0.85 (current price is over target).
If WES meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates WES as Hold (3) -

The FY21 result was slightly above Morgans expectations though a bit below consensus forecasts at the underlying earnings (EBIT) line. Management proposed a $2.3bn ($2 per share) capital return that is expected to be paid in December. 

The broker highlights operating cash flow fell -26% and recent lockdowns have affected the retail businesses with trading restrictions and several store closures. The group earnings margin rose 100bps to 10.5% and Kmart Group earnings jumped 69%.

Despite downgrades to near-term earnings forecasts, Morgans raises its target price to $59.00 from $56.08. It's believed the underlying businesses remain strong with opportunities for further organic and inorganic growth. The Hold rating is retained.

Target price is $59.00 Current Price is $62.20 Difference: minus $3.2 (current price is over target).
If WES meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates WES as Neutral (3) -

Wesfarmers FY21 result was in line with UBS but below market, with trading to start first half FY22 subdued due to lockdowns.

In FY22 the company guided to a $1.0-1.25bn, and $2/share capital return is being proposed.

Neutral rating and $62 target were both unchanged.

Target price is $62.00 Current Price is $62.20 Difference: minus $0.2 (current price is over target).
If WES meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -6.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates WGX as Outperform (1) -

Based on an initial response, Macquarie notes Westgold Resources FY21 net profit of $76.8m was within -1% of the broker's estimate, and the company declared a surprise maiden 2.0c/sh (unfranked) dividend in recognition of improved financial performance.

Underlying earnings of $246.3m were in line after stripping out $5.2m in gains on financial assets.

The broker's cash flow outlook for the company remains reliant on a reduced capital spend and improved production from the Big Bell mine at Cue. 

The broker notes Big Bell’s ramp-up appears to be maturing with the cave producing at a rate of 0.8Mtpa in fourth quarter FY21, which is approaching the 1Mpta nameplate.

Outperform and target price of $2.30.

Target price is $2.30 Current Price is $1.71 Difference: $0.59
If WGX meets the Macquarie target it will return approximately 35% (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

UBS rates WOW as Neutral (3) -

Woolworths FY21 sales were in-line with UBS while earnings and net profit were -2% and -4% below the broker's estimates yet in-line
with market.

An off-market buyback of $2.0bn was announced, and the 55cps DPS proved above market expectations.

UBS has incorporated Big W & Corporate guidance and slightly lower earnings across divisions, yet the earnings per share (EPS) estimate has been increased due to the $2.0bn off-market buyback announced.

UBS retains a Neutral rating and the target increases to $40 from $39.

Target price is $40.00 Current Price is $40.96 Difference: minus $0.96 (current price is over target).
If WOW meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.00, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Morgan Stanley rates WPR as Underweight (5) -

Waypoint REIT's first half EPS was just under Morgan Stanley's forecast, with the variance due to higher than expected interest expense. Full year EPS guidance is for 15.72c. The target price is increases to $2.55 from $2.50. Industry view is In-Line.

The analyst remains Underweight rated on longer-term stranded risks and a lack of capital deployment options. Management admitted acquisitions, including developments, are being done at tight returns by unlisted syndicates and retail investors. 

Target price is $2.55 Current Price is $2.73 Difference: minus $0.18 (current price is over target).
If WPR meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.87, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

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 WPR as Add (1) -

The first half result was in-line with Morgans expectations, with the near-term focus on capital management initiatives following asset sales. 2021 guidance was reiterated. Distributions will move to quarterly from September.

The broker assumes capital management will occur in 2021, and incorporates into forecasts revaluations and around $153m of asset sales to arrive at a target price of $3, up from $2.92. The Add rating is unchanged.

Target price is $3.00 Current Price is $2.73 Difference: $0.27
If WPR meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates WPR as Buy (1) -

Waypoint REIT's first half distributable earnings and dividend of 7.81c were in-line with Ord Minnett's estimates. Management also reaffirmed FY21 distributable earnings guidance of 15.72c, which represents 3.75% growth on FY20.

The REIT continues to capitalise on current market conditions, with non-core asset sales now totaling $132m, points out the analyst. Net tangible assets (NTA) increased over 10% to $2.75/share, driven by valuation gains.

The broker believes the yield is attractive and stable and expects to see further NTA upside, with management continuing to sell assets above book value. Ord Minnett maintains its Buy rating and raises its target price to $3.05 from $3.

Target price is $3.05 Current Price is $2.73 Difference: $0.32
If WPR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

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