Australian Broker Call

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January 14, 2021

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COMPANIES DISCUSSED IN THIS ISSUE

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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).

Last Updated: 05:00 PM

Your daily news report on the latest recommendation, valuation, forecast and opinion changes.

This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.

For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE

Today's Upgrades and Downgrades
ABC - AdBri Downgrade to Underweight from Overweight Morgan Stanley
BLD - Boral Upgrade to Overweight from Equal-weight Morgan Stanley
IPL - Incitec Pivot Upgrade to Overweight from Equal-weight Morgan Stanley
ORA - Orora Downgrade to Equal-weight from Overweight Morgan Stanley
PGH - Pact Group Downgrade to Underweight from Equal-weight Morgan Stanley
PMV - Premier Investments Downgrade to Neutral from Buy UBS
ABC  ADBRI LIMITED

Building Products & Services

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Overnight Price: $3.26

Morgan Stanley rates ABC as Downgrade to Underweight from Overweight (5) -

Despite the loss of the Alcoa lime supply contract, Adbri's share price recovered after the initial significant fall and ended off just 4% across the year.

Morgan Stanley sees the valuation as relatively fully priced especially given the relatively modest earnings growth. This prompts the broker to downgrade its rating to Underweight given better upside elsewhere in the sector.

Rating is downgraded to Underweight from Overweight. Target falls to $3.30 from $3.60. Industry view: Cautious.

Target price is $3.30 Current Price is $3.26 Difference: $0.04
If ABC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 10.80 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.5, implying annual growth of 112.3%.

Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 20.1.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 12.00 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.31.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.0, implying annual growth of 3.2%.

Current consensus DPS estimate is 10.8, implying a prospective dividend yield of 3.5%.

Current consensus EPS estimate suggests the PER is 19.4.

Market Sentiment: -0.4

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

AD8  AUDINATE GROUP LIMITED

Hardware & Equipment

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Overnight Price: $7.84

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group has guided to first-half revenues of US$11.1m with the second-quarter revenue at US$5.9m likely to be the highest so far in the group's history. Morgan Stanley highlights all this was achieved even with the live sound segment facing material headwinds.

Post the update, the broker expects USD revenues of the group to rise by 2-7% over FY21-23. Believing the growth story is far from over, Morgan Stanley continues to back the group which is also on the verge of accelerating video adoption. 

The rating is Overweight with the target price rising to $9 from $7.50. Industry view: In-line.

Target price is $9.00 Current Price is $7.84 Difference: $1.16
If AD8 meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 196.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.8, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 784.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.2, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.7

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


UBS rates AD8 as Buy (1) -

Following a stronger than anticipated recovery in business, Audinate Group reported first-half revenue (unaudited) growth of 19% over the previous half. UBS deems the result strong especially against the backdrop of a challenging macro environment.

Even while expecting fx-related headwinds, UBS believes the underlying trend of a stronger-than-expected recovery will outweigh the headwinds. 

The Buy rating is unchanged with a target price of $8.

Target price is $8.00 Current Price is $7.84 Difference: $0.16
If AD8 meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 112.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -4.8, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

UBS forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 784.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.2, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Market Sentiment: 0.7

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

AGL  AGL ENERGY LIMITED

Infrastructure & Utilities

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Overnight Price: $12.07

Macquarie rates AGL as Underperform (5) -

Consider today's update a rather late response to AGL Energy's profit warning delivered in December. Clearly, the analyst was already on holidays, one has to assume.

Anyway, AGL Energy has indicated FY21 shall be weaker than previously anticipated, and FY22 is looking to deliver even more weakness.

Macquarie adds an unfavourable ESG profile due to coal-based power production and finds there is no compelling investment case in AGL Energy.

Estimates have been reduced. Target price has crept up to $11.63 from $11.43. Underperform.

Target price is $11.63 Current Price is $12.07 Difference: minus $0.44 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.76, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 88.00 cents and EPS of 87.90 cents.
At the last closing share price the estimated dividend yield is 7.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 88.1, implying annual growth of -44.4%.

Current consensus DPS estimate is 90.2, implying a prospective dividend yield of 7.4%.

Current consensus EPS estimate suggests the PER is 13.8.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 54.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 4.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 63.3, implying annual growth of -28.1%.

Current consensus DPS estimate is 64.8, implying a prospective dividend yield of 5.3%.

Current consensus EPS estimate suggests the PER is 19.3.

Market Sentiment: -0.5

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

ALL  ARISTOCRAT LEISURE LIMITED

Gaming

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Overnight Price: $31.42

Ord Minnett rates ALL as Accumulate (2) -

Ord Minnett has conducted additional analysis on the basis of download data on iPhone devices and on this basis reduced forecasts for Aristocrat Leisure. The data suggest a -20% reduction in downloads in H1 FY21 in comparison with a year ago.

Another negative factor is the stronger AUD with the analysts lifting their AUDUSD forecast to 0.74 from 0.67.

A recovery in landbased machines in addition to emerging opportunity in iGaming are providing offset and keeping the broker's view overall in positive territory.

Target price declines to $36.90 from $38.60. Accumulate rating retained.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $36.90 Current Price is $31.42 Difference: $5.48
If ALL meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $36.17, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 EPS of 76.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 107.0, implying annual growth of -50.5%.

Current consensus DPS estimate is 43.2, implying a prospective dividend yield of 1.4%.

Current consensus EPS estimate suggests the PER is 29.1.

Forecast for FY22:

Ord Minnett forecasts a full year FY22 EPS of 129.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 156.4, implying annual growth of 46.2%.

Current consensus DPS estimate is 64.0, implying a prospective dividend yield of 2.1%.

Current consensus EPS estimate suggests the PER is 19.9.

Market Sentiment: 0.8

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

ALU  ALTIUM LIMITED

Hardware & Equipment

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Overnight Price: $28.26

Citi rates ALU as Neutral (3) -

A trading update indicates to Citi the worst could be behind Altium as revenue growth is expected to accelerate over the course of 2021 due to the vaccine rollout.

The broker highlights the first half was negatively impacted by discounting and covid-19, but the trend is improving. It's considered recent pricing changes, a weaker US dollar and an improving demand environment should support the second half results.

Citi lowers the target price to $32.20 from $36.50 and maintains the Neutral rating.

Target price is $32.20 Current Price is $28.26 Difference: $3.94
If ALU meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $34.23, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 37.64 cents and EPS of 51.48 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.90.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 50.3, implying annual growth of N/A.

Current consensus DPS estimate is 45.4, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 56.4.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 40.52 cents and EPS of 58.54 cents.
At the last closing share price the estimated dividend yield is 1.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 56.0, implying annual growth of 11.3%.

Current consensus DPS estimate is 50.2, implying a prospective dividend yield of 1.8%.

Current consensus EPS estimate suggests the PER is 50.7.

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

Market Sentiment: 0.3

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

ANZ  AUSTRALIA & NEW ZEALAND BANKING GROUP

Banks

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Overnight Price: $24.16

Credit Suisse rates ANZ as Outperform (1) -

Following APRA removing guidance for banks to retain at least half of their earnings, Credit Suisse increases forecast payout ratios to 60% in FY21 (previously 50%) and continues to forecast a 65% payout ratio in FY22 and FY23.

The broker believes that as the year progresses the market will begin to factor in a dividend and earnings recovery before eyeing the potential for capital management in FY22.

With valuations still below pre-covid levels the analyst sees further upside to bank share prices and the broker maintains a positive stance on the sector.

ANZ Bank is Credit Suisse's preferred exposure of the main banks and the broker lifts the target price to $28 from $26.20, while maintaining an Outperform rating.

Target price is $28.00 Current Price is $24.16 Difference: $3.84
If ANZ meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.40, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 98.00 cents and EPS of 164.00 cents.
At the last closing share price the estimated dividend yield is 4.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 160.7, implying annual growth of 21.1%.

Current consensus DPS estimate is 99.7, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 15.3.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 127.00 cents and EPS of 195.00 cents.
At the last closing share price the estimated dividend yield is 5.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.39.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.0, implying annual growth of 12.6%.

Current consensus DPS estimate is 123.2, implying a prospective dividend yield of 5.0%.

Current consensus EPS estimate suggests the PER is 13.6.

Market Sentiment: 0.9

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

APT  AFTERPAY LIMITED

Business & Consumer Credit

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Overnight Price: $110.26

Morgan Stanley rates APT as Overweight (1) -

With Afterpay app downloads surging in both the US and the UK, Morgan Stanley expects active customers to reach 13.6m in the first half. This prompts the broker to increase its revenue forecast for the first half by circa 2% even as the company faces currency headwinds.

With the company foraying into new markets as well as higher usage in its existing markets, the broker thinks Afterpay is well on its way to deliver a three year compounded annual growth of more than 60%.

Backed by a stronger outlook in FY22, the target rises to $136 from $120. Overweight maintained. Industry view: In-line.

Target price is $136.00 Current Price is $110.26 Difference: $25.74
If APT meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $103.11, suggesting downside of -14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 0.00 cents and EPS of 25.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 437.54.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.1, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 916.9.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 0.00 cents and EPS of 70.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 156.62.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 47.9, implying annual growth of 265.6%.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is 250.8.

Market Sentiment: 0.3

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

BLD  BORAL LIMITED

Building Products & Services

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Overnight Price: $4.94

Morgan Stanley rates BLD as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley believes housing momentum is expected to continue into 2021 in the key markets led by affordability, stimulus, changing consumer preferences and a low rate environment continue.

The broker expects infrastructure-focused stimulus to contribute in Australia and gather momentum in the US. As a result, Morgan Stanley retains a preference for Boral given end market momentum, asset sale potential and likely cost out.

Rating upgraded to Overweight from Equal-weight rating. Target rises to $5.80 from $4.80. Industry view is Cautious.

Target price is $5.80 Current Price is $4.94 Difference: $0.86
If BLD meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 19.9, implying annual growth of N/A.

Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 24.9.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 14.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.47.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.3, implying annual growth of 37.2%.

Current consensus DPS estimate is 15.6, implying a prospective dividend yield of 3.1%.

Current consensus EPS estimate suggests the PER is 18.2.

Market Sentiment: 0.6

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

BSL  BLUESCOPE STEEL LIMITED

Steel & Scrap

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Overnight Price: $18.12

Macquarie rates BSL as Outperform (1) -

As fundamentals for steel markets remain strong, Macquarie has increased forecasts for BlueScope Steel which results in its price target lifting to $21.20 from $20.25.

The broker concedes it is not easy to predict how long current positive momentum might last, but seeks solace in the fact market expectations are still relatively low, implying further positive surprise can lead to ongoing strong uplifts to forecasts and valuations.

Outperform rating retained for BlueScope Steel.

Target price is $21.20 Current Price is $18.12 Difference: $3.08
If BSL meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $19.78, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 18.00 cents and EPS of 147.30 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 160.7, implying annual growth of 745.8%.

Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 11.0.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 18.00 cents and EPS of 175.20 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.34.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 163.7, implying annual growth of 1.9%.

Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 10.8.

Market Sentiment: 0.4

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


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

Morgan Stanley sees support for steel markets in the short term but expects this to moderate in the medium term.

BlueScope Steel seems to be benefitting from strong steel spreads in the US with spreads also improving in Asia and Australia. While positive, the broker feels this is unlikely to persist over the long term and would prefer an entry point at a different stage in the cycle.

Equal-weight. Target is raised to $21 from $18.50. Industry view: Cautious.

Target price is $21.00 Current Price is $18.12 Difference: $2.88
If BSL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $19.78, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 14.00 cents and EPS of 188.60 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 160.7, implying annual growth of 745.8%.

Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 11.0.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 14.00 cents and EPS of 219.30 cents.
At the last closing share price the estimated dividend yield is 0.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.26.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 163.7, implying annual growth of 1.9%.

Current consensus DPS estimate is 16.5, implying a prospective dividend yield of 0.9%.

Current consensus EPS estimate suggests the PER is 10.8.

Market Sentiment: 0.4

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

CBA  COMMONWEALTH BANK OF AUSTRALIA

Banks

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Overnight Price: $85.97

Credit Suisse rates CBA as Neutral (3) -

Following APRA removing guidance for banks to retain at least half of their earnings, Credit Suisse increases forecast payout ratios to 60% in FY21 (previously 50%) and continues to forecast a 65% payout ratio in FY22 and FY23.

The broker believes that as the year progresses the market will begin to factor in a dividend and earnings recovery before eyeing the potential for capital management in FY22.

With valuations still below pre-covid levels the analyst sees further upside to bank share prices and maintains a positive stance on the sector.

Credit Suisse raises the target price for Commonwealth Bank to $82 from $74.8 and maintains a Neutral rating.

Target price is $82.00 Current Price is $85.97 Difference: minus $3.97 (current price is over target).
If CBA meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.67, suggesting downside of -14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 250.00 cents and EPS of 414.00 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.77.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 412.4, implying annual growth of -0.1%.

Current consensus DPS estimate is 290.3, implying a prospective dividend yield of 3.4%.

Current consensus EPS estimate suggests the PER is 20.9.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 288.00 cents and EPS of 442.00 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.45.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 448.6, implying annual growth of 8.8%.

Current consensus DPS estimate is 330.9, implying a prospective dividend yield of 3.8%.

Current consensus EPS estimate suggests the PER is 19.2.

Market Sentiment: -0.4

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

CHN  CHALICE GOLD MINES LIMITED

Industrial Metals

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Overnight Price: $4.13

Macquarie rates CHN as Outperform (1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Outperform rating retained for Chalice Gold Mines. Price target gained 10c to $5.40.

Target price is $5.40 Current Price is $4.13 Difference: $1.27
If CHN meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.37.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.94.

Market Sentiment: 1.0

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

CLQ  CLEAN TEQ HOLDINGS LIMITED

New Battery Elements

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Overnight Price: $0.32

Macquarie rates CLQ as No Rating (-1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Macquarie is currently under research restriction on Clean Teq Holdings.

Current Price is $0.32. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.67.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.67.

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

DBI  DALRYMPLE BAY INFRASTRUCTURE LTD

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Overnight Price: $0.00

Citi rates DBI as No Rating (-1) -

Citi initiates coverage of Dalrymple Bay Infrastructure with a Buy rating and a target price of $2.42 and alerts investors to the around 8% dividend yield and attractive valuation.

The broker explains the Dalrymple Bay Port is a regulated asset with a high degree of cash flow certainty given take-or-pay contracts,
socialisation of default risk and pass-through of operational costs.

Dalrymple Bay’s current gearing is regarded by Citi as relatively high, but the broker believes management will likely prioritise its dividend
and avoid raising equity.

The analyst understands caution on coal in the current environment, but believes met coal trade flows are more likely to adjust then be displaced.

Target price is $2.42

The company's fiscal year ends in December.

Forecast for FY20:

Citi forecasts a full year FY20 dividend of 0.00 cents and EPS of 5.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 17.50 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.00.

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

FBU  FLETCHER BUILDING LIMITED

Building Products & Services

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Overnight Price: $5.57

Morgan Stanley rates FBU as Overweight (1) -

Morgan Stanley believes housing momentum is expected to continue into 2021 in the key markets led by affordability, stimulus, changing consumer preferences and a low rate environment continue.

The broker expects infrastructure-focused stimulus to contribute in Australia and gather momentum in the US. As a result, Morgan Stanley likes Fletcher Building on valuation and earnings upside risk.

Overweight rating reiterated. Target rises to NZ$7 from NZ$6.90. Industry view is Cautious.

Overweight rating and NZ$6.30 target. Industry view is Cautious.

Current Price is $5.57. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 24.47 cents and EPS of 32.94 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.91.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.3, implying annual growth of N/A.

Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 3.2%.

Current consensus EPS estimate suggests the PER is 16.2.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 32.94 cents and EPS of 43.29 cents.
At the last closing share price the estimated dividend yield is 5.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 35.8, implying annual growth of 4.4%.

Current consensus DPS estimate is 23.2, implying a prospective dividend yield of 4.2%.

Current consensus EPS estimate suggests the PER is 15.6.

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

Market Sentiment: 0.2

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

FCL  FINEOS CORPORATION HOLDINGS PLC

Cloud services

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Overnight Price: $3.83

Macquarie rates FCL as Outperform (1) -

Macquarie has reviewed insurance industry dynamics and concluded the sector knows full well they will migrate to the cloud, but they simply may not be ready to do so as yet.

Fineos should benefit from this trend, say the analysts. They believe the key risk comes in the form of timing of new contract announcements.

Outperform rating retained alongside a price target of $5.22.

Target price is $5.22 Current Price is $3.83 Difference: $1.39
If FCL meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.65 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 144.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -2.0, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.99 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 386.09.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -0.1, implying annual growth of N/A.

Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.

Current consensus EPS estimate suggests the PER is N/A.

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

IGO  IGO LIMITED

Nickel

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Overnight Price: $7.10

Macquarie rates IGO as No Rating (-1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Macquarie is under research restriction for IGO.

Current Price is $7.10. Target price not assessed.

Current consensus price target is $5.32, suggesting downside of -25.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 13.00 cents and EPS of 25.70 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.6, implying annual growth of -10.1%.

Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 30.3.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 10.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.5, implying annual growth of 3.8%.

Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 2.5%.

Current consensus EPS estimate suggests the PER is 29.1.

Market Sentiment: 0.2

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

IPL  INCITEC PIVOT LIMITED

Agriculture

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Overnight Price: $2.38

Morgan Stanley rates IPL as Upgrade to Overweight from Equal-weight (1) -

It looks like Morgan Stanley's wait for a catalyst for Incitec Pivot is finally over with the broker noting an improvement in all commodities for the company. 

Fertiliser prices are expected to strengthen during FY21-22 and the broker sees Incitec well-positioned to benefit from this improving trend.

Rating is upgraded to Overweight from Equal-weight with the target rising to $2.75 from $2.45. Industry view: Cautious.

Target price is $2.75 Current Price is $2.38 Difference: $0.37
If IPL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 7.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 2.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 12.0, implying annual growth of 69.0%.

Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 21.1.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 9.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.1, implying annual growth of 34.2%.

Current consensus DPS estimate is 8.4, implying a prospective dividend yield of 3.3%.

Current consensus EPS estimate suggests the PER is 15.7.

Market Sentiment: 0.9

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

JHX  JAMES HARDIE INDUSTRIES N.V.

Building Products & Services

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Overnight Price: $36.85

Morgan Stanley rates JHX as Overweight (1) -

Morgan Stanley believes housing momentum is expected to continue into 2021 in the key markets led by affordability, stimulus, changing consumer preferences and a low rate environment continue.

The broker expects infrastructure-focused stimulus to contribute in Australia and gather momentum in the US. As a result, Morgan Stanley retains a preference for James Hardie on quality and share growth.

Overweight rating reiterated. Target rises to $43 from $42. Industry view is Cautious.

Target price is $43.00 Current Price is $36.85 Difference: $6.15
If JHX meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $40.76, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 69.21 cents and EPS of 141.31 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 123.8, implying annual growth of N/A.

Current consensus DPS estimate is 61.0, implying a prospective dividend yield of 1.6%.

Current consensus EPS estimate suggests the PER is 29.9.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 77.87 cents and EPS of 165.83 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 146.8, implying annual growth of 18.6%.

Current consensus DPS estimate is 75.5, implying a prospective dividend yield of 2.0%.

Current consensus EPS estimate suggests the PER is 25.2.

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

MCR  MINCOR RESOURCES NL

Nickel

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Overnight Price: $1.19

Macquarie rates MCR as Outperform (1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Mincor Resources' price target has improved by 20c to $1.40. Outperform.

Target price is $1.40 Current Price is $1.19 Difference: $0.21
If MCR meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.32.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.00.

Market Sentiment: 1.0

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

NAB  NATIONAL AUSTRALIA BANK LIMITED

Banks

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Overnight Price: $23.48

Credit Suisse rates NAB as Outperform (1) -

Following APRA removing guidance for banks to retain at least half of their earnings, Credit Suisse increases forecast payout ratios to 60% in FY21 (previously 50%) and continues to forecast a 65% payout ratio in FY22 and FY23.

The broker believes that as the year progresses the market will begin to factor in a dividend and earnings recovery before eyeing the potential for capital management in FY22.

With valuations still below pre-covid levels the analyst sees further upside to bank share prices and maintains a positive stance on the sector.

Credit Suisse raises the target price for National Australia Bank to $26 from $22 and maintains the Outperform rating.

Target price is $26.00 Current Price is $23.48 Difference: $2.52
If NAB meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $22.79, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 88.00 cents and EPS of 146.00 cents.
At the last closing share price the estimated dividend yield is 3.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.7, implying annual growth of 20.5%.

Current consensus DPS estimate is 97.1, implying a prospective dividend yield of 4.1%.

Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 106.00 cents and EPS of 163.00 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 158.6, implying annual growth of 8.9%.

Current consensus DPS estimate is 112.4, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 15.0.

Market Sentiment: 0.1

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

NCM  NEWCREST MINING LIMITED

Gold & Silver

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Overnight Price: $26.96

Ord Minnett rates NCM as Accumulate (2) -

Ord Minnett believes Newcrest Mining is staring towards a better 2021 with newsflow from growth projects Havieron and Red Chris of key importance.

Now that the first stage of Havieron has been approved, the broker believes this project is on track for delivery of a pre-feasibility study (PFS) in late 2021 with first production following within three years.

Accumulate rating retained. Target price $34.70.

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $34.70 Current Price is $26.96 Difference: $7.74
If NCM meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $32.67, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 41.82 cents and EPS of 206.20 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 188.4, implying annual growth of N/A.

Current consensus DPS estimate is 30.3, implying a prospective dividend yield of 1.1%.

Current consensus EPS estimate suggests the PER is 14.2.

Forecast for FY22:

Ord Minnett forecasts a full year FY22 dividend of 38.93 cents and EPS of 191.78 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.4, implying annual growth of -6.4%.

Current consensus DPS estimate is 27.3, implying a prospective dividend yield of 1.0%.

Current consensus EPS estimate suggests the PER is 15.1.

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

NIC  NICKEL MINES LIMITED

Nickel

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Overnight Price: $1.22

Macquarie rates NIC as Outperform (1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Outperform. The new target price of $1.40 compares with $1.20 prior.

Target price is $1.40 Current Price is $1.22 Difference: $0.18
If NIC meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.38, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Macquarie forecasts a full year FY20 dividend of 3.75 cents and EPS of 8.80 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.2, implying annual growth of N/A.

Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 20.2.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 3.61 cents and EPS of 11.82 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.5, implying annual growth of 21.0%.

Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 2.2%.

Current consensus EPS estimate suggests the PER is 16.7.

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

ORA  ORORA LIMITED

Paper & Packaging

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Overnight Price: $2.58

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

Morgan Stanley believes packaging stocks are a valuable defensive addition but favour Amcor ((AMC)) which the broker considers a quality defensive name with an attractive yield.

While Orora offers a similar yield along with upside from better performance in the North America segment, concerns around wine volume prompt caution and lead the broker to downgrade its rating to Equal-weight from Overweight.

The target price falls to $3 from $3.40. Industry view: Cautious.

Target price is $3.00 Current Price is $2.58 Difference: $0.42
If ORA meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.70, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 11.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 4.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 427.6%.

Current consensus DPS estimate is 11.4, implying a prospective dividend yield of 4.5%.

Current consensus EPS estimate suggests the PER is 16.5.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 12.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.2, implying annual growth of 12.4%.

Current consensus DPS estimate is 12.2, implying a prospective dividend yield of 4.8%.

Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.0

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

ORG  ORIGIN ENERGY LIMITED

NatGas

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Overnight Price: $5.16

Macquarie rates ORG as Neutral (3) -

On Macquarie's assessment, Origin Energy's outlook is two-pronged as weaker pricing in energy markets is offset by APLNG gains from higher LNG and Brent oil prices.

The broker believes key risk stems from government policy driven NEM oversupply while the opportunity lays with batteries.

Neutral rating retained. Price target is $5.58 (up from $5.47). Earnings estimates have been lowered due reflect lower electricity prices.

Target price is $5.58 Current Price is $5.16 Difference: $0.42
If ORG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 24.00 cents and EPS of 22.50 cents.
At the last closing share price the estimated dividend yield is 4.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.93.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.1, implying annual growth of 391.5%.

Current consensus DPS estimate is 19.1, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 19.00 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.89.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.8, implying annual growth of 20.3%.

Current consensus DPS estimate is 23.1, implying a prospective dividend yield of 4.5%.

Current consensus EPS estimate suggests the PER is 18.5.

Market Sentiment: 0.6

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

PAN  PANORAMIC RESOURCES LIMITED

Nickel

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Overnight Price: $0.17

Macquarie rates PAN as Neutral (3) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Price target for Panoramic Resources has lifted to 16c from 13c. Neutral.

Target price is $0.16 Current Price is $0.17 Difference: minus $0.01 (current price is over target).
If PAN meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.00.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.95.

Market Sentiment: 0.0

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

PGH  PACT GROUP HOLDINGS LTD

Paper & Packaging

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Overnight Price: $2.71

Morgan Stanley rates PGH as Downgrade to Underweight from Equal-weight (5) -

While Morgan Stanley's earnings forecast for Pact Group Holdings remains unchanged, the stock has traded beyond the broker's price target and is thus the least attractive among packaging companies with the broker preferring Amcor ((AMC)) and Orora ((ORA)).

The broker believes the key to performance for the group will be delivery on key turnaround milestones and progress on the targeted sale of the contract manufacturing business. Since those remain uncertain, the broker adopts a wait and watch approach.

Rating is downgraded to Underweight from Overweight. Target is unchanged at $2.60. Industry view: Cautious.

Target price is $2.60 Current Price is $2.71 Difference: minus $0.11 (current price is over target).
If PGH meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.65, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 9.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.32.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.8, implying annual growth of -19.4%.

Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 3.0%.

Current consensus EPS estimate suggests the PER is 12.8.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 10.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.5, implying annual growth of 8.2%.

Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 3.9%.

Current consensus EPS estimate suggests the PER is 11.8.

Market Sentiment: 0.0

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

PMV  PREMIER INVESTMENTS LIMITED

Apparel & Footwear

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Overnight Price: $25.35

Citi rates PMV as Neutral (3) -

Premier Investments' first half guidance of 75-85% retail earnings (EBIT) growth was well ahead of Citi's expectations and was driven by gross margin expansion and operating leverage.

The broker estimates gross margins expanded by 300 basis points year-on-year, reflecting industry-wide reductions in promotions as inventory levels were low.

Citi maintains a Neutral rating and lifts the target price to $25 from $20.60

Target price is $25.00 Current Price is $25.35 Difference: minus $0.35 (current price is over target).
If PMV meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.04, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Citi forecasts a full year FY21 dividend of 114.00 cents and EPS of 146.30 cents.
At the last closing share price the estimated dividend yield is 4.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.33.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.4, implying annual growth of 35.1%.

Current consensus DPS estimate is 90.8, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Citi forecasts a full year FY22 dividend of 90.00 cents and EPS of 110.20 cents.
At the last closing share price the estimated dividend yield is 3.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.0, implying annual growth of -7.2%.

Current consensus DPS estimate is 88.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.4.

Market Sentiment: 0.2

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


Credit Suisse rates PMV as Neutral (3) -

Credit Suisse considers Premier Investments produced a very strong trading update, with Retail earnings (EBIT) guidance for the first half exceeding consensus forecasts for the full year by around 18%.

The broker highlights continued strength in online and gross margin expansion were supportive of significant profit growth. Due to an increased cash balance forecast, the broker believes there is a possibility the company may pay a special dividend to shareholders.

Changes to  the analyst's earnings estimates are driven by short-term upgrades to gross margin assumptions, partially offset by pushing out the full recovery of Smiggle sales to FY22. The target price moves to $23.09 from $20.39 and the rating remains Neutral.

Target price is $23.09 Current Price is $25.35 Difference: minus $2.26 (current price is over target).
If PMV meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.04, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 86.87 cents and EPS of 112.00 cents.
At the last closing share price the estimated dividend yield is 3.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.4, implying annual growth of 35.1%.

Current consensus DPS estimate is 90.8, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 95.37 cents and EPS of 117.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.67.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.0, implying annual growth of -7.2%.

Current consensus DPS estimate is 88.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.4.

Market Sentiment: 0.2

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


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

Morgan Stanley notes Premier Investments' first-half operating income guidance at $221-233m not only implies a 75-80% year on year growth but is also ahead of the broker's full-year FY21 operating income forecast of $190m.

While the strong momentum is likely to continue in the near term, Morgan Stanley thinks earnings growth will decelerate in FY22 as conditions normalise.

Equal-weight rating with the target price unchanged at $18.40. Industry view: In-Line.

Target price is $18.40 Current Price is $25.35 Difference: minus $6.95 (current price is over target).
If PMV meets the Morgan Stanley target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.04, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 EPS of 96.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.4, implying annual growth of 35.1%.

Current consensus DPS estimate is 90.8, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 EPS of 102.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.0, implying annual growth of -7.2%.

Current consensus DPS estimate is 88.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.4.

Market Sentiment: 0.2

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


UBS rates PMV as Downgrade to Neutral from Buy (3) -

Premier Investments' first-half operating income guidance is circa 80% ahead of UBS's expectations led by strong sales momentum and higher gross margins.

While UBS is optimistic on the outlook for the next 12-24 months (driven by a falling AUD and potential rent reductions), the circa 52% share price rally over the last few months may mean this strong outlook has already been priced in. 

Rating is downgraded to Neutral from Buy with the target rising to $24.50 from $20.50.

Target price is $24.50 Current Price is $25.35 Difference: minus $0.85 (current price is over target).
If PMV meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.04, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

UBS forecasts a full year FY21 dividend of 92.50 cents and EPS of 133.60 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.97.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 117.4, implying annual growth of 35.1%.

Current consensus DPS estimate is 90.8, implying a prospective dividend yield of 3.7%.

Current consensus EPS estimate suggests the PER is 20.8.

Forecast for FY22:

UBS forecasts a full year FY22 dividend of 81.30 cents and EPS of 109.60 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 109.0, implying annual growth of -7.2%.

Current consensus DPS estimate is 88.9, implying a prospective dividend yield of 3.6%.

Current consensus EPS estimate suggests the PER is 22.4.

Market Sentiment: 0.2

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

RDY  READYTECH HOLDINGS LTD

Software & Services

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Overnight Price: $1.84

Macquarie rates RDY as Outperform (1) -

ReadyTech is in the process of acquiring Open Office. While the deal is expected to conclude in March, there are still several conditions attached to the agreement, but Macquarie has decided to already incorporate the transaction into its modeling.

Assuming the deal concludes successfully, Macquarie highlights it adds a third pillar to the company's existing Education and Employment divisions, in the form of Government & Justice.

The broker finds the stock is cheaply valued, in particular when assessed against what Macquarie believes is a solid growth outlook. Target lifts to $2.85 from $2.40. Outperform.

Target price is $2.85 Current Price is $1.84 Difference: $1.01
If RDY meets the Macquarie target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 4.90 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 2.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 6.00 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.38.

Market Sentiment: 1.0

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

RIO  RIO TINTO LIMITED

Bulks

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Overnight Price: $120.74

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

Driven by its low-cost iron ore business, Rio Tinto's returns on capital employed have been better and less volatile than peers, remarks Morgan Stanley.

On the flip side, iron ore contributes to 85% of the company's operating income with Rio Tinto having limited exposure to future-facing commodities. Also, the Jukaan Gorge incident necessitates the need to rebuild the company's social license, adds the broker.

Equal-weight rating retained, alongside an Attractive industry view. Target price is unchanged at $116.

Target price is $116.00 Current Price is $120.74 Difference: minus $4.74 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $118.00, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Morgan Stanley forecasts a full year FY20 dividend of 670.51 cents and EPS of 1074.26 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 910.1, implying annual growth of N/A.

Current consensus DPS estimate is 580.5, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 13.2.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 764.24 cents and EPS of 1264.60 cents.
At the last closing share price the estimated dividend yield is 6.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.55.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1083.9, implying annual growth of 19.1%.

Current consensus DPS estimate is 725.8, implying a prospective dividend yield of 6.1%.

Current consensus EPS estimate suggests the PER is 11.0.

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

Market Sentiment: 0.4

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

RMD  RESMED INC

Medical Equipment & Devices

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Overnight Price: $27.90

Ord Minnett rates RMD as Lighten (4) -

Is Ord Minnett confused? Only three days ago, the broker published a general sector report which clearly stated ResMed was rated Hold. Today, an update following a prominent healthcare conference in the US states the rating is Lighten, unchanged.

Yes, beats us too.

Target remains $21.30. Maybe the most important sentence from today's report is the following: "With more than 80% of sleep apnea undiagnosed across the world, the opportunity remains large with education and awareness through digital channels seen as a key opportunity."

This stock is not covered in-house by Ord Minnett. Instead, the broker whitelabels research by JP Morgan.

Target price is $21.30 Current Price is $27.90 Difference: minus $6.6 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.79, suggesting downside of -1.0% (ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 66.4, implying annual growth of N/A.

Current consensus DPS estimate is 20.6, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 42.3.

Forecast for FY22:

Current consensus EPS estimate is 74.0, implying annual growth of 11.4%.

Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 0.8%.

Current consensus EPS estimate suggests the PER is 37.9.

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

Market Sentiment: 0.3

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

RWC  RELIANCE WORLDWIDE CORPORATION LIMITED

Building Products & Services

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Overnight Price: $3.88

Morgan Stanley rates RWC as Underweight (5) -

With copper prices lifting and a likely impact from further UK lockdowns, Morgan Stanley sees headwinds to Reliance Worldwide Corp's earnings profile and believes the risks lay to the downside.

Target falls to $3.70 from $4.00. Industry view is Cautious. Underweight.

Target price is $3.70 Current Price is $3.88 Difference: minus $0.18 (current price is over target).
If RWC meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.36, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 10.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.7, implying annual growth of 81.6%.

Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 2.6%.

Current consensus EPS estimate suggests the PER is 18.5.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 10.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.40.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.5, implying annual growth of 3.9%.

Current consensus DPS estimate is 10.7, implying a prospective dividend yield of 2.8%.

Current consensus EPS estimate suggests the PER is 17.8.

Market Sentiment: 0.3

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

SGM  SIMS LIMITED

Steel & Scrap

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Overnight Price: $13.86

Macquarie rates SGM as Outperform (1) -

As fundamentals for steel markets remain strong, Macquarie has increased forecasts for Sims which results in its price target lifting to $16.40 from $11.60.

The broker concedes it is not easy to predict how long current positive momentum might last, but seeks solace in the fact market expectations are still relatively low, implying further positive surprise can lead to ongoing strong uplifts to forecasts and valuations.

Outperform rating retained for Sims. Estimates have received a significant boost, including DPS forecasts.

Target price is $16.40 Current Price is $13.86 Difference: $2.54
If SGM meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.38, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 16.50 cents and EPS of 35.20 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.37.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.4, implying annual growth of N/A.

Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 42.7.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 46.90 cents and EPS of 91.20 cents.
At the last closing share price the estimated dividend yield is 3.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.4, implying annual growth of 98.8%.

Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Market Sentiment: 0.3

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


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

Scrap prices have staged a dramatic rally since mid-late 2020, notes Morgan Stanley. The broker considers Sims is well-positioned to benefit from this trend and has upgraded its earnings forecasts across FY21-23.

Equal-weight rating retained. Target is raised to $15.50 from $12. Industry view is Cautious.

Target price is $15.50 Current Price is $13.86 Difference: $1.64
If SGM meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.38, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Morgan Stanley forecasts a full year FY21 dividend of 24.00 cents and EPS of 55.30 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 32.4, implying annual growth of N/A.

Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 0.7%.

Current consensus EPS estimate suggests the PER is 42.7.

Forecast for FY22:

Morgan Stanley forecasts a full year FY22 dividend of 26.00 cents and EPS of 88.60 cents.
At the last closing share price the estimated dividend yield is 1.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.64.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 64.4, implying annual growth of 98.8%.

Current consensus DPS estimate is 26.1, implying a prospective dividend yield of 1.9%.

Current consensus EPS estimate suggests the PER is 21.5.

Market Sentiment: 0.3

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

SZL  SEZZLE INC

Diversified Financials

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Overnight Price: $6.50

Ord Minnett rates SZL as Buy (1) -

As Ord Minnett points out in its update on Sezzle Inc today, not many businesses are able to achieve more than 200% growth from key drivers, but this company's recent market update showed 205% year-on-year growth in Underlying Merchant Sales (UMS) over the December quarter.

The broker observes the shares are still valued at a sizeable discount to peers such as Afterpay. In addition, the analysts point out penetration for the BNPL space in the USA remains relatively low in comparison with markets like Australia, which implies plenty of growth should still be ahead.

Target price gains 20c to $11.20. Buy.

Target price is $11.20 Current Price is $6.50 Difference: $4.7
If SZL meets the Ord Minnett target it will return approximately 72% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Ord Minnett forecasts a full year FY20 dividend of 0.00 cents and EPS of minus 10.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 63.49.

Forecast for FY21:

Ord Minnett forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.26 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.03.

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

TLS  TELSTRA CORPORATION LIMITED

Telecommunication

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Overnight Price: $3.09

Macquarie rates TLS as Outperform (1) -

Macquarie is already looking forward to Telstra selling equity in some of its assets. TowerCo, valued at $5-6bn, is expected to see 50% divested.

Marking-to-market of InfraCo sees Macquarie estimating an asset value in the range of $2.69-$4.29 for Telstra. Any value release from this asset would be a positive catalyst in the broker's view.

Outperform rating retained. Price target $4, up from $3.50 prior.

Target price is $4.00 Current Price is $3.09 Difference: $0.91
If TLS meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 16.00 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.43.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.5, implying annual growth of -11.8%.

Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 4.9%.

Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 16.00 cents and EPS of 14.90 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.74.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 14.4, implying annual growth of 6.7%.

Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 21.5.

Market Sentiment: 0.4

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

UNI  UNIVERSAL STORE HOLDINGS LTD

Apparel & Footwear

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Overnight Price: $5.89

Morgans rates UNI as Add (1) -

In the wake of a first half trading update from Universal Store Holdings, Morgans makes 12-20% EPS upgrades across the forecast years and raises the price target to $6.93 from $6.05.

The broker highlights gross margins have improved year-on-year, while the earnings uplift (EBIT growth of 49.7%) reflects both gross margin expansion and material operating expense leverage.

The analyst considers this a big period of growth for the group, reflecting strong trading out of peak disruptions caused by covid-19 and despite continued impacts from Victoria over the half.

The Add rating is unchanged.

Target price is $6.93 Current Price is $5.89 Difference: $1.04
If UNI meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 13.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 2.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.72.

Forecast for FY22:

Morgans forecasts a full year FY22 dividend of 27.00 cents and EPS of 41.00 cents.
At the last closing share price the estimated dividend yield is 4.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.37.

Market Sentiment: 1.0

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

WBC  WESTPAC BANKING CORPORATION

Banks

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Overnight Price: $20.60

Credit Suisse rates WBC as Outperform (1) -

Following APRA removing guidance for banks to retain at least half of their earnings, Credit Suisse increases forecast payout ratios to 60% in FY21 (previously 50%) and continues to forecast a 65% payout ratio in FY22 and FY23.

The broker believes that as the year progresses the market will begin to factor in a dividend and earnings recovery before eyeing the potential for capital management in FY22.

With valuations still below pre-covid levels the analyst sees further upside to bank share prices and maintains a positive stance on the sector.

Credit Suisse raises the target price for Westpac Bank to $22.50 from $20.60 and maintains the Outperform rating.

Target price is $22.50 Current Price is $20.60 Difference: $1.9
If WBC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $22.30, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Credit Suisse forecasts a full year FY21 dividend of 86.00 cents and EPS of 143.00 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.41.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 145.7, implying annual growth of 101.0%.

Current consensus DPS estimate is 98.6, implying a prospective dividend yield of 4.7%.

Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Credit Suisse forecasts a full year FY22 dividend of 108.00 cents and EPS of 165.00 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 160.4, implying annual growth of 10.1%.

Current consensus DPS estimate is 114.6, implying a prospective dividend yield of 5.4%.

Current consensus EPS estimate suggests the PER is 13.1.

Market Sentiment: 0.9

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

WSA  WESTERN AREAS NL

Nickel

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Overnight Price: $2.88

Macquarie rates WSA as Outperform (1) -

Macquarie’s Commodities Strategy team has upgraded its short term nickel price forecasts by 7-8%, medium-term by 10-13% and long-term by 3%.

As one would expect, these changes translate to material earnings estimates upgrades for Australian nickel miners. Western Areas and Nickel Mines remain the broker's preferred pure play producers.

Western Areas' rating remains Outperform with a price target of $3.30, up from $2.80, on a significant rise in earnings and DPS forecasts.

Target price is $3.30 Current Price is $2.88 Difference: $0.42
If WSA meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 2.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.57.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.4, implying annual growth of -45.1%.

Current consensus DPS estimate is 1.6, implying a prospective dividend yield of 0.6%.

Current consensus EPS estimate suggests the PER is 43.7.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 2.00 cents and EPS of 7.10 cents.
At the last closing share price the estimated dividend yield is 0.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.56.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.4, implying annual growth of 46.9%.

Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 0.5%.

Current consensus EPS estimate suggests the PER is 29.8.

Market Sentiment: 0.8

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

Today's Price Target Changes
Company Last Price Broker New Target Prev Target Change
AD8 Audinate Group $7.74 Morgan Stanley 9.00 7.50 20.00%
AGL AGL Energy $12.20 Macquarie 11.63 11.43 1.75%
ALL Aristocrat Leisure $31.10 Ord Minnett 36.90 38.60 -4.40%
ALU Altium $28.37 Citi 32.20 34.60 -6.94%
AMC Amcor $14.72 Morgan Stanley 18.00 19.00 -5.26%
ANZ ANZ Banking Group $24.60 Credit Suisse 28.00 26.20 6.87%
APT Afterpay $120.12 Morgan Stanley 136.00 120.00 13.33%
BLD Boral $4.96 Morgan Stanley 5.80 4.80 20.83%
BSL Bluescope Steel $17.75 Macquarie 21.20 20.25 4.69%
Morgan Stanley 21.00 16.00 31.25%
CBA Commbank $86.33 Credit Suisse 82.00 74.80 9.63%
CHN CHALICE GOLD MINES $4.34 Macquarie 5.40 5.30 1.89%
CSR CSR $5.26 Morgan Stanley 5.00 4.70 6.38%
IPL Incitec Pivot $2.53 Morgan Stanley 2.75 2.45 12.24%
JHX James Hardie $37.03 Morgan Stanley 43.00 42.00 2.38%
MCR Mincor Resources $1.18 Macquarie 1.40 1.20 16.67%
NAB National Australia Bank $23.78 Credit Suisse 26.00 22.00 18.18%
NIC Nickel Mines $1.25 Macquarie 1.40 1.20 16.67%
ORA Orora $2.53 Morgan Stanley 3.00 3.40 -11.76%
ORG Origin Energy $5.15 Macquarie 5.58 5.47 2.01%
PAN Panoramic Resources $0.16 Macquarie 0.16 0.13 23.08%
PMV Premier Investments $24.46 Citi 25.00 20.60 21.36%
Credit Suisse 23.09 20.39 13.24%
UBS 24.50 20.50 19.51%
RDY Readytech Holdings $1.98 Macquarie 2.85 2.40 18.75%
RWC Reliance Worldwide $3.83 Morgan Stanley 3.70 4.00 -7.50%
SGM Sims $13.83 Macquarie 16.40 11.60 41.38%
Morgan Stanley 15.50 12.00 29.17%
SZL Sezzle Inc $6.99 Ord Minnett 11.20 11.00 1.82%
TLS Telstra Corp $3.09 Macquarie 4.00 3.50 14.29%
UNI UNIVERSAL STORE HOLDINGS LTD $5.83 Morgans 6.93 6.05 14.55%
WBC Westpac Banking $21.05 Credit Suisse 22.50 20.60 9.22%
WSA Western Areas $2.80 Macquarie 3.30 2.80 17.86%
Summaries
ABC AdBri Downgrade to Underweight from Overweight - Morgan Stanley Overnight Price $3.26
AD8 Audinate Group Overweight - Morgan Stanley Overnight Price $7.84
Buy - UBS Overnight Price $7.84
AGL AGL Energy Underperform - Macquarie Overnight Price $12.07
ALL Aristocrat Leisure Accumulate - Ord Minnett Overnight Price $31.42
ALU Altium Neutral - Citi Overnight Price $28.26
ANZ ANZ Banking Group Outperform - Credit Suisse Overnight Price $24.16
APT Afterpay Overweight - Morgan Stanley Overnight Price $110.26
BLD Boral Upgrade to Overweight from Equal-weight - Morgan Stanley Overnight Price $4.94
BSL Bluescope Steel Outperform - Macquarie Overnight Price $18.12
Equal-weight - Morgan Stanley Overnight Price $18.12
CBA Commbank Neutral - Credit Suisse Overnight Price $85.97
CHN CHALICE GOLD MINES Outperform - Macquarie Overnight Price $4.13
CLQ Clean Teq Holdings No Rating - Macquarie Overnight Price $0.32
DBI DALRYMPLE BAY INFRASTRUCTURE LTD No Rating - Citi Overnight Price $0.00
FBU Fletcher Building Overweight - Morgan Stanley Overnight Price $5.57
FCL Fineos Corp Outperform - Macquarie Overnight Price $3.83
IGO IGO Co No Rating - Macquarie Overnight Price $7.10
IPL Incitec Pivot Upgrade to Overweight from Equal-weight - Morgan Stanley Overnight Price $2.38
JHX James Hardie Overweight - Morgan Stanley Overnight Price $36.85
MCR Mincor Resources Outperform - Macquarie Overnight Price $1.19
NAB National Australia Bank Outperform - Credit Suisse Overnight Price $23.48
NCM Newcrest Mining Accumulate - Ord Minnett Overnight Price $26.96
NIC Nickel Mines Outperform - Macquarie Overnight Price $1.22
ORA Orora Downgrade to Equal-weight from Overweight - Morgan Stanley Overnight Price $2.58
ORG Origin Energy Neutral - Macquarie Overnight Price $5.16
PAN Panoramic Resources Neutral - Macquarie Overnight Price $0.17
PGH Pact Group Downgrade to Underweight from Equal-weight - Morgan Stanley Overnight Price $2.71
PMV Premier Investments Neutral - Citi Overnight Price $25.35
Neutral - Credit Suisse Overnight Price $25.35
Equal-weight - Morgan Stanley Overnight Price $25.35
Downgrade to Neutral from Buy - UBS Overnight Price $25.35
RDY Readytech Holdings Outperform - Macquarie Overnight Price $1.84
RIO Rio Tinto Equal-weight - Morgan Stanley Overnight Price $120.74
RMD Resmed Lighten - Ord Minnett Overnight Price $27.90
RWC Reliance Worldwide Underweight - Morgan Stanley Overnight Price $3.88
SGM Sims Outperform - Macquarie Overnight Price $13.86
Equal-weight - Morgan Stanley Overnight Price $13.86
SZL Sezzle Inc Buy - Ord Minnett Overnight Price $6.50
TLS Telstra Corp Outperform - Macquarie Overnight Price $3.09
UNI UNIVERSAL STORE HOLDINGS LTD Add - Morgans Overnight Price $5.89
WBC Westpac Banking Outperform - Credit Suisse Overnight Price $20.60
WSA Western Areas Outperform - Macquarie Overnight Price $2.88
RATING SUMMARY
Rating No. Of Recommendations
1. Buy

21

2. Accumulate

2

3. Hold

12

4. Reduce

1

5. Sell

4

Thursday 14 January 2021

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