Australian Broker Call

Credit Suisse rates ACL as Initiation of coverage with Outperform (1) -

Credit Suisse initiates coverage on Australian Clinical Labs, Australia's third largest private pathology provider. The broker notes Australian Clinical Labs' earnings are declining from a covid-driven peak, but finds the market is undervaluing the core business.

According to Credit Suisse the company's Unified Laboratory Network is its key differentiator, allowing high volume central labs to deliver improved turnaround times and manage peaks at a lower cost base, and supporting the company base business earnings margin target of 27%, compared to 19% pre-covid.

The broker highlights the company is likely to continue its acquisition growth strategy and currently holds $500m in acquisition capacity. The broker initiates with an Outperform rating and a target price of $6.15.

Target price is $6.15 Current Price is $5.06 Difference: $1.09
If ACL meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates AGL as Neutral (3) -

AGL Energy needs to secure shareholder approval for the strategy to demerge via the scheme vote on 15 June 2022. While the recently released scheme booklet reiterated the strategic rationale to demerge, UBS considers the shareholder vote hasn't been re-risked.

Despite various company rationales, the analyst feels much of the benefit to demerge is difficult to quantify.

While management assumes more than $40m of sustainable savings to offset the dis-synergy costs, there's insufficient detail in the scheme documents to back this assertion up, believes the broker.

The Neutral rating and $8.50 target are retained.

Target price is $8.50 Current Price is $8.20 Difference: $0.3
If AGL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.63, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates ALG as Buy (1) -

Citi has produced a report on Ardent Leisure in which the broker finds data points from Main Events suggesting softness in March (particularly in alcohol) as competition tightens as stimulus wanes.

The broker expects the timing of weakness should support the timing of Ardent's decision to sell Main Event to Dave & Busters.

US sales continued to improve in March, with the exception of Texas, and Citi expects low sales growth and negative traffic in April, with labour shortages continuing to bite, but expects a growth spurt come end of 2022 and into 2023.

Target price is $1.96. Buy rating retained.

Target price is $1.96 Current Price is $1.24 Difference: $0.72
If ALG meets the Citi target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 62.0% (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

Macquarie rates ALL as Outperform (1) -

Macquarie tinkers with earnings revisions ahead of Aristocrat Leisure's FY22 first-half result.

The broker notes Aristocrat's businesses are gaining ground and with $1.3bn (net cash) in the kitty, M&A is on the cards.

Macquarie estimates the company will achieve a compound annual growth rate of 10% in the three years to 2024.

The broker's $44 target price attributes $40.50 to the underlying business and $3.50 to M&A upside. 

Outperform rating retained after the share-price retreat following the Playtech lapse.

Target price is $44.00 Current Price is $31.31 Difference: $12.69
If ALL meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $46.25, suggesting upside of 45.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Credit Suisse rates AMC as Neutral (3) -

Amcor's recently announced next-generation PET bottle technology will allow the production of hot-fill containers with -30% less plastic resin and energy. Credit Suisse notes the new tech targets the hot-fill beverage market, which it assumes accounts for 10% of company sales. 

The broker also assumes Amcor holds around 45% US hot-fill beverage market share by volume, with a total addressable market of $2.6bn, with previous innovation allowing the company to gain market share.

Noting Amcor is currently trading above major packaging peers, Credit Suisse retains a Neutral rating and target price of $17.00.

Target price is $17.00 Current Price is $18.18 Difference: minus $1.18 (current price is over target).
If AMC meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.34, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Macquarie rates ARB as Outperform (1) -

ARB Corporation's March-quarter trading update missed Macquarie's forecasts (-4% on FY22 guidance) and the broker revises down estimates accordingly.

Despite the miss, the broker notes demand and orders remain strong, and while the old supply chain, freight and labour chestnuts continue to drag, Macquarie considers the medium-term outlook to be positive.

EPS forecasts fall -8% in FY22, and -9% in FY23.

Target price falls -21% to $37.90. Outperform rating retained.

Target price is $37.90 Current Price is $31.47 Difference: $6.43
If ARB meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $43.91, suggesting upside of 38.5% (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 AUB as Accumulate (2) -

Ord Minnett expects EPS accretion from AUB Group's acquisition of UK insurance broker Tysers for -$880m. The premium rate environment remains favourable and is expected to support Tysers earnings.

Nonetheless, the broker has concerns around the longer-term earnings growth trajectory of Tysers relative to AUB Group's core business. Additionally, it remains to be seen if Tysers earnings can rebound fully to pre-covid-19 levels.

The Accumulate rating and $26.88 target price are maintained.

Target price is $26.88 Current Price is $19.73 Difference: $7.15
If AUB meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $25.76, suggesting upside of 32.0% (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 CCP as Outperform (1) -

Macquarie notes that collection efficiency is combining with rising prices of US purchased debt ledgers (PDL), and expect an uptick in supply (due to rising non-performing loans) by the end of FY22, after which time the broker expects volumes should normalise.

The broker notes Credit Corp has the capacity to buy $200m in PDLs a year, and has boosted its investment market share to 10% from 3%-4%.

Meanwhile, competition has come off the 2018 boil and the broker believes Credit Corp is well positioned to increase market share.

Target price is $37.80. Outperform rating retained.

Target price is $37.80 Current Price is $24.55 Difference: $13.25
If CCP meets the Macquarie target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $35.72, suggesting upside of 42.4% (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 CCP as Accumulate (2) -

Following first quarter results for two key competitors to Credit Corp in the US debt purchasing market, Ord Minnett finds collection efficiency metrics remain healthy, which has aided profitability.

The broker maintains its Accumulate rating and $36 target price for Credit Corp.

Target price is $36.00 Current Price is $24.55 Difference: $11.45
If CCP meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $35.72, suggesting upside of 42.4% (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 COE as Underperform (5) -

Macquarie notes movement is afoot at Cooper Energy's Orbost Gas Plant, after processing hit a new high in May, with reduction of Sole GSA production allowing some of the Orbost production to be sold at spot.

But the broker casts a cautious eye to the company's balance sheet, expecting more capital expenditure will be required, raising the spectre of a recapitalisation.

EPS forecasts rise 6% in FY22, 58% in FY23, and 30% in FY24.

Target price rises 4% to 25c from 24c. Underperform rating retained.

Target price is $0.25 Current Price is $0.28 Difference: minus $0.03 (current price is over target).
If COE meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.29, suggesting upside of 5.9% (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

Credit Suisse rates CRN as Outperform (1) -

Coronado Global Resources looks to remain focused on returning cash to shareholders for now, with Credit Suisse noting the company reiterated inorganic growth is not a priority and it has no intention of holding funds for acquisition opportunity. 

With the company announcing a US11.9 cents per share special dividend will be paid in late June, Credit Suisse has noted this equates to 7% yield for the quarter and forecasts a 26-36% annual yield through to 2024 with further upside potential. 

The Outperform rating is retained and the target price decreases to $3.40 from $3.50.

Target price is $3.40 Current Price is $2.17 Difference: $1.23
If CRN meets the Credit Suisse target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $3.11, suggesting upside of 42.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates CRN as Outperform (1) -

Coronado Global Resources has announced a $100.6m Senior Secured Notes purchase offer and a special dividend of US$200m and Macquarie increases its dividend payout ratio assumption to 60% from 40% accordingly for following years.

Management retains 2022 guidance, a good thing given strong metallurgical coal prices. Cost guidance was also retained, despite rising costs.

Macquarie notes the dividend represents 78% of the company's free cash flow (and that free cash flow yields rise to 100% at spot prices from 2023 onward), and reaffirms the company's commitment to returning funds to shareholders.

EPS forecasts fall -4% in 2022 but are steady thereafter. Outperform rating and $3.20 target price retained.

Target price is $3.20 Current Price is $2.17 Difference: $1.03
If CRN meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $3.11, suggesting upside of 42.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley estimates CSL's collections will reach pre-pandemic levels in the 2H of FY22, which should result in around 12% EPS growth in FY23. This comes after the broker assessed 4Q results for peer Haemonetics and reviewed the latest plasma industry data.

The Overweight rating and $310 target are retained. Industry View: In-line.

Target price is $310.00 Current Price is $270.65 Difference: $39.35
If CSL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $319.02, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Citi rates CSR as Buy (1) -

Upon initial glance, CSR's FY22 headline result beat consensus by 3% and Citi by 2% thanks to lower corporate costs and higher property earnings, but the broker considers the broader mix to be on the soft side.

The highlight was the dividend (31.5c compared with consensus' 27c).

Citi notes building product sales rose just 5%, despite building starts growing 44%. But with completions only rising 6%, the broker expects this will translate into a strong pipeline for FY23.

Buy rating and $6.63 target price.

Target price is $6.63 Current Price is $5.69 Difference: $0.94
If CSR meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.60, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in March.

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 CSR as Accumulate (2) -

At first glance, CSR's FY22 result fell -1% shy of consensus and outpaced Ord Minnett's forecasts by 1%.

On the upside, the aluminium hedge book was extended, the company sharply outpaced on dividend (to be paid on May 27) and management provided a property valuation update of $1.1bn - up 20% on the previous year.

On the downside, the broker spies working capital and Coke cost headwinds.

Management guided to continued supply-chain challenges in its building products division but expects an improvement in multi-residential and non-residential business.

Target price is $6.15. Accumulate rating.

Target price is $6.15 Current Price is $5.69 Difference: $0.46
If CSR meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.60, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in March.

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 DDH as Outperform (1) -

DDH1's March-quarter result largely met Macquarie's forecasts but margins weakened, as strong drilling demand encountered covid labour challenges, wet weather and delayed border reopenings.

Macquarie expects rising prices should help the company offset rising costs and spies further revenue upside as old contracts roll off.

EPS forecasts fall -10% in FY22; -14% in FY23 and -5% in FY24.

Target price falls -9% to $1.50 from $1.65. Outperform rating retained given the positive growth outlook in the medium-term (the company has a strong expansion strategy) and strong industry conditions (as long as commodity prices remain strong).

Target price is $1.50 Current Price is $0.88 Difference: $0.62
If DDH meets the Macquarie target it will return approximately 70% (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 FLT as Neutral (3) -

Flight Centre Travel's trading update appears to have satisfied Macquarie, the company returning to profit in March and continuing to gain market share.

Corporate and domestic family and friends travel was strong while leisure proved a slight miss, the skew constraining revenue margins.

Cash flow was positive and the company maintains strong liquidity. Meanwhile, the broker says the prognosis is positive once the covid recovery kicks in.

For now, EPS forecasts fall -6% in FY22, -5% in FY23 and rise 6% in FY24.

Target price rises 16% to $21.95 from $18.85. Neutral rating retained but the broker notes activity is recovering faster than forecast pointing to a margin recovery and M&A remains a catalyst.

Target price is $21.95 Current Price is $20.28 Difference: $1.67
If FLT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.24, suggesting downside of -8.5% (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

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

With Healius yet to invest in a unified lab information system and missing the efficiency benefits one could offer, Credit Suisse notes better longer-term earnings margins exist elsewhere in the segment. 

Anticipating covid disruptions to impact base business, the broker downgrades full year earnings -5% and -30% for FY22 and FY23 respectively.

Noting a preference for Australian Clinical Labs ((ACL)) over Healius, the rating is downgraded to Neutral from Outperform and the target price decreases to $4.65 from $5.50. The broker forecasts Healius' pathology margin to be -150 basis points below Australian Clinical Labs.

Target price is $4.65 Current Price is $4.20 Difference: $0.45
If HLS meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates IAG as Underweight (5) -

Weather forecasts suggest above average winter-spring rainfall. While Morgan Stanley sees support for Insurance Australia Group from rising interest rates, potential weather claims volatilty lends a note of caution.

The Underweight rating and $4.05 target are maintained. Industry view: Attractive.

Target price is $4.05 Current Price is $4.68 Difference: minus $0.63 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.05, suggesting upside of 9.5% (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 IAP as No Rating (-1) -

Irongate Group's FY22 full-year Funds From Operations outpaced the top end of guidance by 5% (and Macquarie's forecasts by 12%), thanks to strong net property and asset-management income.

Net tangible assets jumped 13% thanks largely to capital rate compression. No guidance was provided.

Macquarie expects the Scheme of Implementation booklet for the Charter Hall Group ((CHC)) offer will be published in May followed by a June meeting. Subject to approval, completion is expected in July.

FFO forecasts rise 5% in FY22, 1.7% in FY23, and 0.2% in FY24.

Macquarie is on rating restriction.

Current Price is $1.92. Target price not assessed.

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Macquarie rates LOV as Outperform (1) -

Lovisa Holdings has reported solid sales momentum for second-half sales to the end of April, and Macquarie says this suggests US consumer resilience in the face of rising inflation and rates, and minimal discounting.

On the downside, store rollouts remain constrained by labour and logistics issues, which are hitting costs. FY22 EPS forecasts rise 6.5% and are steady in FY23 and FY24.

Target price inches up to $24.95 from $24.90. Outperform rating retained.

Target price is $24.95 Current Price is $15.75 Difference: $9.2
If LOV meets the Macquarie target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $22.17, suggesting upside of 38.5% (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

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

Despite a strong first half result from Pendal Group, Credit Suisse sees pressures ahead in the coming 6-12 months. The broker notes global equity markets have declined since March, while performance fees look to be significantly lower in early FY23.

Pendal Group's first half underlying profit beat Credit Suisse's expectations by 20%, with the result driven by higher management fee margins and lower costs, as well as a one-off contribution to non-operating income.

While the strong first half result drove a 12% increase to the broker's FY22 earnings forecast, expected headwinds see forecasts decrease up to -2% for FY23 and FY24.

The rating is downgraded to Neutral from Outperform and the target price decreases to $5.35 from $5.40.

Target price is $5.35 Current Price is $5.33 Difference: $0.02
If PDL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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 PDL as No Rating (-1) -

Pendal Group's FY22 first-half result outpaced Macquarie's forecasts thanks mainly to a $15m beat on costs. Management and performance fees ran second, followed by better-than-expected operating income.

Management has guided to a normalisation in the second half and cut fixed-cost growth guidance to 3%-5% from 6%-8% while raising FY22 operating margin guidance 1% to 2%.

Macquarie expects a near-term reduction in performance fees given only $1.7bn of funds under management are above "high watermarks".

EPS forecasts rise 9.1% for FY22, fall -5.9% for FY23 and fall -2% to -4% thereafter. Macquarie is on rating restriction.

Current Price is $5.33. Target price not assessed.

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates PDL as Downgrade to Equal-weight from Overweight (3) -

Following a strong 1H result and subsequent 8% rally for Pendal Group shares, Morgan Stanley believes it will be difficult for the shares to head higher in the near-term and lowers its rating to Equal-weight from Overweight.

The analyst points to negatives including soft momentum in retail, a modest range of new strategies and industry-wide pressures. While the broker's FY22 EPS estimates rise on lower costs, FY23-24 forecasts fall by -3% and -4%, reducing the target to $5.90 from $6.70.

The 1H dividend of 21cps was in-line with Morgan Stanley's forecast though 11% ahead of the consensus estimate. Industry view is Attractive.

Target price is $5.90 Current Price is $5.33 Difference: $0.57
If PDL meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates PDL as Hold (3) -

Pendal Group's 1H operating profit result was better than Morgans expected and was a 16% beat versus the consensus forecast, driven by tight cost control and a management fee beat. 

The result benefitted from the acquired Thompson, Siegal & Walmsley contribution and higher investment income, explains the analyst. The target price rises to $5.95 from $5.65.

The broker maintains a Hold rating as the outlook remains subdued, and on a relative basis risk/reward is more favourable for stocks elsewhere in the sector.

Target price is $5.95 Current Price is $5.33 Difference: $0.62
If PDL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates PDL as Buy (1) -

Pendal Group revealed underlying net profit of $131.4m for the 1H versus Ord Minnett's $114.4m forecast, while the 10% franked interim dividend of 21cps was in-line. Revenue exceeded the broker's forecast, while costs were lower.

The analyst feels the group has significant room for acquisition-led growth. The target rises to $6.00 from $5.75. As the valuation multiple remains relatively cheap and the medium-to-long-term investment performance remains strong, the Buy rating is maintained.

Target price is $6.00 Current Price is $5.33 Difference: $0.67
If PDL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates PDL as Buy (1) -

Pendal Group's 1H results revealed a 17% beat for operating profit versus the consensus forecast, and UBS points out revenue growth outpaced costs in the core business ex Thompson Siegal & Walmsley.

As volatile markets will likely challenge the near-term flow outlook, the analyst highlights cost control will be paramount for operational improvement beyond FY22.

The analyst still sees valuation appeal, an attractive dividend and notes shares are trading at a -11% discount to the latest rejected Perpetual ((PPT)) offer. The Buy rating is maintained, while the target price is lowered to $6.45 from $6.60.

Target price is $6.45 Current Price is $5.33 Difference: $1.12
If PDL meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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

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

UBS assesses a strong 3Q result for REA Group though lowers its earnings forecasts due to a weaker residential volume outlook in FY23. Also, given weakness in building approvals figures there's expected to be softness in developer revenues.

Nonetheless, should investors be willing to look through the cycle, the analyst sees value emerging and upgrades the rating to Buy from Neutral. At the same time, it's acknowledged the upgrade may be early given the premium valuation and near-term uncertainty.

A fall in target to $130 from $155 reflects the analyst's earnings downgrades and change to the UBS near-term risk-free rate assumption to 3.5% from 2.5%.

Target price is $130.00 Current Price is $113.16 Difference: $16.84
If REA meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $147.53, suggesting upside of 32.7% (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

Morgan Stanley rates SLC as Overweight (1) -

Following the divestments of Hong Kong/Singaporean assets, Morgan Stanley reviews the investment thesis for Superloop.

After removing earnings associated with the divestments and allowing for higher reinvestment, the broker decreases its target to $1.15 from $1.25. Nonetheless, a bull case valuation of $1.50 is envisaged with the use of proceeds and additional gearing for M&A purposes.

The Overweight rating is maintained. Industry view: In-Line.

Target price is $1.15 Current Price is $0.84 Difference: $0.31
If SLC meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 47.8% (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

Macquarie rates STX as Outperform (1) -

Macquarie says flow tests from Strike Energy's Walyering A & B sands suggest the project will deliver its first revenue in late 2022.

The broker appreciates the project's low-cost commercialisation prospects and believes it will derisk the Ocean Hill prospect.

Macquarie expects the company's progress to producer status will result in a market re-rate.

EPS forecasts jump 74% in FY23 and 105% in FY24.

Outperform rating retained. Target price rises 4% to 52c.

Target price is $0.52 Current Price is $0.30 Difference: $0.22
If STX meets the Macquarie target it will return approximately 73% (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 SWM as Outperform (1) -

Seven West Media's March-quarter trading update outpaced Macquarie's forecasts thanks to a massive beat in broadcaster video on demand (41% compared with forecasts of roughly 6.7% for the March quarter). 

The broker doubts the momentum will continue given the macroeconomic climate, citing the six-12 month delay between a rate rise and its impact on advertising. Management reiterated cost guidance.

The broker is expecting an announcement on capital management in March.

EPS forecasts rise 9% in FY22, 2% in FY23 and 4% in FY24.

Outperform rating retained on valuation. Target price edges up 3% to 95c from 92c.

Target price is $0.95 Current Price is $0.62 Difference: $0.33
If SWM meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $0.89, suggesting upside of 38.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates SXL as Outperform (1) -

Southern Cross Media's January to April trading update outpaced Macquarie's linear radio forecasts but a disappointing digital performance cast a dark shadow.

Management's TV guidance points to market share gains, says the broker, of roughly 25%.

EPS forecasts fall -27% in FY22, -23% in FY23 and -13% in FY24, primarily due to higher digital investment in FY22.

Outperform rating retained, Macquarie appreciating the company's metrics ex-digital, valuation support, solid balance sheet and attractive dividend yield. Target price falls to $1.90 from $2.10.

Target price is $1.90 Current Price is $1.54 Difference: $0.36
If SXL meets the Macquarie 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

UBS rates WBC as Buy (1) -

In the wake of 1H results for Westpac, UBS slightly upgrades near-term cash EPS forecasts, due to a more positive cost outlook and lower credit impairment charges. These positives are thought to be partly offset by weaker revenue estimates.

The broker estimates the bank is trading at a -7% valuation discount to peers and retains its Buy rating, despite a 3% share rally post results and 15% appreciation year-to-date. The $27 target price is retained.

Target price is $27.00 Current Price is $24.65 Difference: $2.35
If WBC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.49, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in September.

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