Australian Broker Call

Macquarie rates BKW as Outperform (1) -

A trading update at Brickworks' AGM revealed a strong performance year to date from Building Products Australia, thanks to housing stimulus, but slow conditions for Building Products North America.

Property remains a "solid pillar", the broker notes, with rent collections expected to grow by over 25% on completion of the new Amazon and Coles facilities, the combined footprints of which only cover 40% of the available Oakdale West site.

Following a re-rating, the share price reflects full value in the broker's view, at a 22% premium to the ASX Industrials. Neutral retained, target rises to $19.70 from $18.80.

Target price is $19.70 Current Price is $19.48 Difference: $0.22
If BKW meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $21.09, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in July.

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 BKW as Add (1) -

Morgans assesses building products Australia (BPA) has made a positive start in FY21, with rising first quarter earnings and indications of a solid pipeline of work for the balance of FY21.

The broker highlights non-residential construction activity in North America remains challenging, with sales for building products North America (BPNA) below expectations.

Brickworks expects a strong first half result for the Property division, which suggests to the analyst likely further revaluation gains.

Morgans remains attracted to significant value being created in the Property Trust and cyclical upside potential in the Building Products business.

The Add rating is unchanged and the target is increased to $21.01 from $19.98.

Target price is $21.01 Current Price is $19.48 Difference: $1.53
If BKW meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $21.09, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in July.

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

UBS rates BKW as Buy (1) -

First quarter trading was mixed and no quantitative guidance was provided. UBS assesses a margin recovery in the second half is still likely amid lower costs.

The company has noted strong order books at customers, with some becoming concerned about the ability for bricks & masonry producers to keep up with demand.

In the US operations continue to be negatively affected by absenteeism related to the pandemic. UBS maintains a Buy rating and raises the target to $22.70 from $20.50.

Target price is $22.70 Current Price is $19.48 Difference: $3.22
If BKW meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $21.09, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates BVS as Outperform (1) -

Bravura Solutions has guided to an FY21 profit similar to FY20, but skewed 80% to the second half. The lengthening UK sales cycle due to covid, the recent Delta Financial Systems acquisition and the winning of the Aware Super contract were cited as contributing factors.

Given the high degree of uncertainty in the UK, the broker takes a conservative approach and forecasts FY21 profit -10% below FY20, acknowledging upside risk to outer year forecasts if all goes to plan. Target falls to $5.00 from $5.50, Outperform retained.

Target price is $5.00 Current Price is $3.43 Difference: $1.57
If BVS meets the Macquarie target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates FCL as Initiation of coverage with Buy (1) -

UBS broadens its technology coverage and initiates on Fineos Corp with a Buy rating and $5.10 target. The company is considered well able to leverage its leadership in claims and absence management and gain new contracts amid significant cross-selling opportunities.

The broker forecasts a five-year revenue growth rate of 19%. The company defines its total addressable market as more than US$10bn, and growth is expected to accelerate as life insurers face a non-negotiable transition away from legacy in-house systems.

Target price is $5.10 Current Price is $3.94 Difference: $1.16
If FCL meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $4.94, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 FPH as Outperform (1) -

Ahead of Fisher & Paykel Healthcare's earnings result today, the broker has upgraded earnings forecasts. While a vaccine in theory might be seen as bringing the company's golden ventilator run to an end, the broker does not believe so.

Aside from there still being a period of delay and uncertainty before a vaccine can be widely distributed, the broker notes covid is not the only condition requiring ventilator treatment, and F&P's Airvo machines have now been used and appreciated by doctors over the period.

Outperform retained, target rises 2% to NZ$38.18.

Current Price is $32.20. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

UBS rates LYC as Buy (1) -

UBS considers Lynas Corp favourably exposed to the demand for electric vehicles and now forecasts EV sales growing to around 36m by 2030, from around 2m currently.

The broker does not observe sufficient investment in supply to match the need for rare metals. The company's assets are considered very strategic, with the best rare earth deposit globally being exploited through the only active non-China based processing facility.

The broker retains a Buy rating and raises the target to $4.05 from $3.40.

Target price is $4.05 Current Price is $3.53 Difference: $0.52
If LYC meets the UBS target it will return approximately 15% (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

Morgan Stanley rates MFG as Underweight (5) -

Given Magellan Financial Group's bias toward a growth strategy, Morgan Stanley warns on recently identified negative returns (as a result of the recent rotation toward value).

The broker thinks retail flows should remain resilient (strong brand and distribution), while redemption risks may affect the institutional flows. Importantly, it's considered these risks are not factored into the current price.

The analyst acknowledges that relatively better returns and more capacity in the global infrastructure strategies should partly protect institutional flows.

Morgan Stanley maintains its Underweight rating. Industry view: In-line. Target is $48.

Target price is $48.00 Current Price is $62.00 Difference: minus $14 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $61.18, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

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

Due to covid-19 uncertainties, Mirvac Group has not given FY21 guidance, despite going ex-dividend by the end of December. This means they will provide first-time disclosure for December-half distribution next month.

The broker highlights this will give the market insights into how earnings are tracking this year and the payout policy in a post-pandemic world.

The analyst predicts a 4.5 cent dividend for the December-half, and 9.1 cents for the full year, based on a 70% payout ratio (broadly in line with pre-covid).

Morgan Stanley maintains its Equal Weight rating with a target of $2.30. Industry view is In-Line.

Target price is $2.30 Current Price is $2.60 Difference: minus $0.3 (current price is over target).
If MGR meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.62, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates MND as Outperform (1) -

Monadelphous has provided first half FY21 revenue growth guidance of 10% on second half FY20, or 3% on first half FY20, the broker notes. The broker had previously forecast flat year on year revenues.

The company will benefit from border re-openings, the broker points out, allowing easier access to labour for major works. Maintenance activity in the resources and energy sectors has recovered steadily and Monadelphous has seen increasing demand for its services. 

The broker forecasts a 53% increase in earnings in FY21. Outperform retained, target rises to $13.34 from $11.57.

Target price is $13.34 Current Price is $12.28 Difference: $1.06
If MND meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $11.58, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates MND as Neutral (3) -

Monadelphous has guided to sales being up around 10% in the first half versus the prior half, better than UBS anticipated. The stronger resumption in activity is reflected in improved staffing levels which have increased by around 20% since June.

UBS assumes a gradual recovery in maintenance revenue in FY21 while pressure on the oil & gas sector is likely to continue.

The AGM provided no further details on the dispute with Rio Tinto ((RIO)). UBS retains a Neutral rating and raises the target to $12.10 from $10.00.

Target price is $12.10 Current Price is $12.28 Difference: minus $0.18 (current price is over target).
If MND meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.58, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates MYX as Neutral (3) -

Citi notes cost savings were achieved in the first four months of FY21 through a significant reduction in personnel amid sharp declines in revenue and profit margins, particularly in generics.

The broker does not assume the cost reductions are permanent, given the required investment to support the launch of new products. Mayne Pharma is preparing for a potential launch of Nextstellis in the first half of 2021.

The broker estimates the product could be worth 2-32c a share for the company but given uncertainty around US FDA approval it is excluded from forecasts at this stage. Neutral/High Risk retained. Target is reduced to $0.36 from $0.37.

Target price is $0.36 Current Price is $0.36 Difference: $0
If MYX meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates MYX as Neutral (3) -

Revenue was down -9% in the four months to October amid a continued decline in generics and specialty brands. In specialty brands, revenue continues to be affected by increased competition and unfavourable changes to managed care.

Credit Suisse is also disappointed by the ramp up of Tolsura, as the pandemic has limited the ability to get the product on hospital lists, and does not expect it will contribute meaningfully to earnings until FY23.

While Mayne Pharma has two drugs driving earnings growth beyond FY22 the broker believes the market needs evidence of successful execution of some of the launches before factoring in the full earnings benefit. Neutral rating and $0.38 target retained.

Target price is $0.38 Current Price is $0.36 Difference: $0.02
If MYX meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates MYX as Neutral (3) -

Mayne Pharma's AGM revealed conditions in Generics are tough, with revenue down -14% year to date, and down -7% for Specialty Brands. The broker nonetheless expects improvement from the second half on the launch of five new generic products.

That's assuming there are no delays. Neutral retained, target rises to 36c from 35c.

Target price is $0.36 Current Price is $0.36 Difference: $0
If MYX meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates MYX as Neutral (3) -

Mayne Pharma has experienced a decline in revenue and gross profit of around -9% in the first four months of FY21.

UBS highlights the impact of the pandemic across the company's segments, which encompasses a decline in physician surgery visits, reduced ability of sales staff to engage with hospital-based clinicians and delays to programs.

The broker expects, as effective vaccines are rolled out across the US, underlying market condition should improve. Neutral rating with a target price of $0.37.

Target price is $0.37 Current Price is $0.36 Difference: $0.01
If MYX meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

After a comprehensive trading update earlier in the month, Morgans feels little was added by way of additional news at the AGM.

After a rally in the share price the broker pulls back the rating to Hold from Add.

The analyst anticipates the key upside/downside risk stems from the timing of the regulatory approval for the next product.

The target price of $6.86 is unchanged.

Target price is $6.86 Current Price is $6.68 Difference: $0.18
If NAN meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.82, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Citi rates NIC as Buy (1) -

Nickel Mines has an agreement to acquire a 70% equity interest in Angel Nickel Industry, located within the Weda Bay industrial Park.

Citi expects this will lift attributable production to 60,000tpa of nickel pig iron by 2023 and make Nickel Mines a top 10 nickel producer globally.

Terms for the US$490m stake are in line with the MOU. Funding discussions are advanced with the current proposal a split between debt and equity.

Citi now models a US$180m equity raising in the first half and US$180m in new debt. Buy/High Risk retained. Target is $1.30.

Target price is $1.30 Current Price is $1.06 Difference: $0.24
If NIC meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Macquarie rates NIC as Outperform (1) -

Nickel Mines has advanced its Weda Bay, now renamed Angel Nickel, acquisition to binding. The project should see Nickel Mines' share of production rise to 60kt in 2024 from 30kt in 2020, the broker notes.

Timing of first production in 2022 and the debt-equity funding split are in line with the broker's assumptions. Buoyant nickel prices underpin earnings momentum. Outperform retained, target rises to $1.30 from $1.20.

Target price is $1.30 Current Price is $1.06 Difference: $0.24
If NIC meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

UBS rates NWH as Buy (1) -

NRW Holdings has announced an off-market bid for Primero Group ((PGX)) at $0.55 a share. UBS observes the proposal builds on the recent acquisition of DIAB Engineering and RCR Mining Technologies, representing a further diversification of the strategic platform.

Primero is a vertically integrated business providing engineering, design, construction and operating services to the minerals, energy and infrastructure sectors. Buy rating and $3.15 target retained.

Target price is $3.15 Current Price is $2.71 Difference: $0.44
If NWH meets the UBS target it will return approximately 16% (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

Morgan Stanley rates NXT as Overweight (1) -

Morgan Stanley judges NextDC's announced $350m expansion of a debt facility as further evidence of the company's ability to attract capital. This is considered one of the drivers of out-performance over recent years, along with an ability to deploy that capital at attractive rates of return.

In terms of the latter, the broker sees the next major catalyst (outside of a major contract) is planning approvals on M3. This will allow the company to commence the building capex program.

Overweight retained. Target is unchanged at $14.60. Industry view is In-Line.

Target price is $14.60 Current Price is $12.10 Difference: $2.5
If NXT meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $14.00, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates PPE as Buy (1) -

Ord Minnett notes a strong rally since the peak of the pandemic and associated capital raising, as fears of prolonged disruption have abated. IT recruitment, having stalled, is now rebounding.

The long-term growth opportunity in health & community services, supported by the NDIS, underscores the broker's investment thesis.

Ord Minnett considers the re-rating justified and reiterates a Buy rating, raising the target to $4.48 from $3.25.

Target price is $4.48 Current Price is $3.78 Difference: $0.7
If PPE meets the Ord Minnett target it will return approximately 19% (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

Morgan Stanley rates PSQ as Overweight (1) -

An AGM update for Pacific Smiles prompts Morgan Stanley to upgrade FY21 and FY22 EPS forecasts by 6% and 7%, respectively.

After a material acceleration in the first two weeks of November and the financial year-to-date, the broker expects a strong first half result and sees upside to FY21 growth targets.

Even after annualising a slower roll-out in the second half, the analyst expects space growth to be around 10%. This implies first half patient fee growth well ahead of FY21 guidance of 20%.

Target price is increased to $2.65 from $2.40. Overweight rating. Industry view: In-line.

Target price is $2.65 Current Price is $1.96 Difference: $0.69
If PSQ meets the Morgan Stanley target it will return approximately 35% (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 RAP as Add (1) -

ResApp Health has received a path for regulatory submission for the SleepCheck application with the US food and drug administration (FDA).

A human factors (HF) study is required, which is expected to commence in the next couple of months, followed shortly by submission of the 510(k). This latter submission is to demonstrate the device is safe and effective.

Morgans explains if the HF studies are approved, SleepCheck will be cleared initially as a diagnostic (prescription only) in the US. Further clinical studies are required to support over-the-counter (OTC). 

The broker believes investors are unlikely to assign much value to the announcement until receipt of approval (given the difficulty in dealing with the FDA to date).

Morgans makes no changes to forecasts and retains the Speculative Buy rating with a target of $0.21.

Target price is $0.21 Current Price is $0.09 Difference: $0.12
If RAP meets the Morgans target it will return approximately 133% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates RHC as Neutral (3) -

Citi concludes from its analysis that the ageing population will continue to provide strong demand for surgeries and volume growth of around 3% can be expected in the private system.

Combined with a 2% growth rate for price and mix, the broker is now forecasting 5% Australian revenue growth for Ramsay Health Care in Australia from 2023-30.

The challenges for the industry, the broker assesses, include a bipartisan agreement on the role of private health in Australia and an acknowledgement that the value proposition of private health insurance needs to be improved.

Also, insurers need to address out-of-pocket costs and agree on privately-insured patients being mostly treated in private hospitals. Neutral rating retained. Target rises to $72 from $71.

Target price is $72.00 Current Price is $65.08 Difference: $6.92
If RHC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $68.74, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates SGP as Overweight (1) -

Due to covid-19 uncertainties, Stockland has not given FY21 guidance, despite going ex-dividend by the end of December. This means  they will provide first-time disclosure for December-half distribution next month.

The broker highlights this will give the market insights into how earnings are tracking this year and the payout policy in a post-pandemic world.

The analyst predicts a 12.3 cent dividend for the half year, taking full-year FY21 to 26.4 cents. This translates to a 75% payout of FFO and implies an around 5.9% cash covered yield for FY21.

Overweight rating. Target is $4.45. Industry view: In-line.

Target price is $4.45 Current Price is $4.45 Difference: $0
If SGP meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.96, suggesting downside of -13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates TNE as Neutral (3) -

TechnologyOne's 13% increase in profit in FY20 was ahead of the broker and consensus, thanks to lower costs. SaaS fees slowed slightly, the broker notes, reflecting scale, but annual recurring revenue accelerated, led by Education.

With the outlook for tenders solid, the broker sees contract wins as a key catalyst. Target rises to $9.15 from $8.20, Neutral retained.

Target price is $9.15 Current Price is $9.04 Difference: $0.11
If TNE meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.72, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in September.

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 TNE as Add (1) -

TechnologyOne delivered a better FY20 result than Morgans had expected, with underlying profit (NPAT) up 13%, dividends up 8% and free cash flow up around 50%. 

Outlook comments included the ERP market is resilient and the pipeline for 2021 is strong. Additionally, SaaS annual recurring revenue (ARR) and profits should see “strong continuing growth“.

While revenue growth of circa 5% appeared weak, the broker assures this is a function of the transition to SaaS, and this higher quality revenue continues to grow at a healthy rate.

Morgans upgrades forecasts marginally, retains the Add rating and increases the target to $9.99 from $8.76.

Target price is $9.99 Current Price is $9.04 Difference: $0.95
If TNE meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.72, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates TNE as Sell (5) -

TechnologyOne FY20 revenue was in line with expectations, while gross profit was ahead. The company has deferred its long-term revenue target of $500m to FY26 from FY24 because of the impact of the pandemic.

As a result, UBS downgrades revenue assumptions but this is more than offset by revised operating expenditure, as management expects minimal future growth in the cost base.

The main "challenge" for UBS is valuation and a Sell rating is retained. Target is raised to $8.45 from $8.20.

Target price is $8.45 Current Price is $9.04 Difference: minus $0.59 (current price is over target).
If TNE meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.72, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in September.

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 URW as Hold (3) -

Ord Minnett expects the focus to remain on the balance sheet and envisages limited increases in activity at shopping centres over the next year. After a short restriction the broker resumes with an unchanged Hold rating and $4.50 target.

The broker considers the shares approaching fair value, although with an abundance of uncertainty in the outlook and downside risk in the event of further lockdowns or delay to the vaccine programs, there are few reasons for the stock to rally, comments the analyst.

Target price is $4.50 Current Price is $4.83 Difference: minus $0.33 (current price is over target).
If URW meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.62, suggesting downside of -30.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

This company reports in EUR. 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

Morgan Stanley rates VCX as Underweight (5) -

Due to covid-19 uncertainties, Vicinity Centres has not given FY21 guidance, despite going ex-dividend by the end of December. This means they will provide first-time disclosure for December-half distribution next month.

The broker highlights this will give the market insights into how earnings are tracking this year and the payout policy in a post-pandemic world.

The analyst predicts Vicinity Centres will declare a 2.9 cent distribution for the December-half, and 7.8 cents for the full year. This assumes an 80% FFO payout ratio. The estimate is based on cash collection rate of around 60% (first half), and 80% (second half).

The Underweight rating and $1.57 target price are unchanged. Industry view: In-line.

Target price is $1.57 Current Price is $1.68 Difference: minus $0.11 (current price is over target).
If VCX 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 $1.53, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates Z1P as Upgrade to Neutral from Sell (3) -

Citi notes increasing competition does not appear to have affected customer usage or margins in the company's October trading update. Yet the broker continues to envisage downside risk to medium-term growth forecasts and margins from competition.

As the stock is down -22% since the beginning of September, the rating is upgraded to Neutral/High Risk from Sell/High Risk. Target is raised to $6.70 from $6.55.

Target price is $6.70 Current Price is $6.26 Difference: $0.44
If Z1P meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.73, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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