Australian Broker Call

Morgan Stanley rates ABY as Overweight (1) -

Ahead of the February reporting season, Morgan Stanley has conviction around the group's earnings and out-performance for the year ahead. 

The broker also sees upside to gross margins from the launch of a private label in 2021. It's also considered online penetration is in its infancy for the Australian beauty category at 7% in FY19 and covid-19 has accelerated the shift to online.

The overweight rating is unchanged. Target is $8.35. Industry view: In-line.  

Target price is $8.35 Current Price is $5.50 Difference: $2.85
If ABY meets the Morgan Stanley target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates AFG as Hold (3) -

Despite the last six months delivering strong lodgement and settlement volumes, significantly favourable movement in the cash-bill spread and a downtrend in covid concessions, Morgans believes the group’s share price has overreacted.

The broker estimates the refinancing boom is normalising and expects the net interest margin (NIM) to contract. Additionally, it's considered the loan growth of AFG securities will slow.

Morgans increases EPS forecasts by 15.6% and 9.0% for FY21 and FY22, respectively. This is due largely to higher residential settlement volumes and an increase to the FY21 NIM forecast.

The target price is increased to $2.30 from $1.80 and the Hold rating is unchanged.

Target price is $2.30 Current Price is $2.74 Difference: minus $0.44 (current price is over target).
If AFG meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.75, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates ALL as Outperform (1) -

The American Gaming Association highlighted slot machine gross gaming revenue (GGR) in November in commercial casinos across the US was down -20%. Credit Suisse suggests the weakness may have continued into December.

The broker has reduced its forecast for FY21 gaming operations yield to US$41 from US$43 but expects the second half would be 88% higher than last year.

Earnings per share reduced by -8-10% over the forecast period led by weaker US casino revenue trends and a stronger AUD. Outperform retained. Target reduced to $34.50 from $37.60.

Target price is $34.50 Current Price is $29.38 Difference: $5.12
If ALL meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $35.73, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates AMP as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector with headwinds including lower bond yields, some insurance catastrophe activity and covid-19 impacting activity levels and provisioning.

In the case of AMP, Morgans believes any updates on the progress of the acquisition bid arguably overshadows any upcoming result outcomes.

The broker makes relatively minor changes to EPS estimates with some positive mark-to-market revisions, offset by some more conservative earnings assumptions particularly in the Wealth Management segment.

The Hold rating is unchanged and the target price is increased to $1.59 from $1.50.

Target price is $1.59 Current Price is $1.55 Difference: $0.04
If AMP meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates APT as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker considers the Buy-Now-Pay-Later providers remain the shining lights in the space.

It's considered they have robust sales momentum, albeit with limited profitability achieved so far. 

The broker lifts FY21 EPS estimates for Afterpay by around 7% on higher sales forecasts, but lowers FY22 estimates by -5% on slightly more conservative profit margin forecasts.

The price target rises to $110.65 from $104.3 and the Hold rating is unchanged.

Target price is $110.65 Current Price is $132.01 Difference: minus $21.36 (current price is over target).
If APT meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $104.02, suggesting downside of -22.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker believes ASX is one of the best positioned of the large cap stocks to produce solid/stable results.

The analyst upgrades the company to Hold from Reduce after a significant recent fall in the share price.

Morgans also reduces EPS estimates for FY21 and FY22 by -4% and -5%, respectively, mainly on lower futures volumes forecasts. The target price falls to $67.37 from $74.82.

Target price is $67.37 Current Price is $71.37 Difference: minus $4 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.01, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.7

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

Morgan Stanley rates AVN as Initiation of coverage with Equal-weight (3) -

Morgan Stanley initiates coverage on large format retail landlord Aventus Group after scanning the market for a REIT that is somewhat off the beaten track. Potentially it may offer exposure that is quite scarce and not traditionally provided by the large-cap REITs.

The broker believes the pure-play nature may in some instances deliver cleaner leverage to the property cycle than diversified and/or mainstream REITs. It's considered investors can potentially generate stronger than index returns by looking at the non-traditional. 

The target price is $2.70 and the rating is Equal-weight. Despite offering 5.9% dividend yield, the broker feels the risk-reward is finely balanced.

The analyst explains this category of retail is subject to less disruption from online retail than the traditional shopping malls. Most of the group's tenants are homewares, furniture stores, or electrical retailers. Shoppers generally want to feel the products prior to purchasing.

Refer to three other REIT suggestions by Morgan Stanley in today's updates.

Target price is $2.70 Current Price is $2.65 Difference: $0.05
If AVN meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates BKL as Sell (5) -

All is not going smoothly for the former share market darling also known as Blackmores, suggest Citi analysts. On their analysis, competitors Swisse and By-Health have been extending their lead as the number 1 foreign and domestic market leader in the Chinese market respectively.

Finding that strategic partner is likely to have become more of a challenge during times of corona, the analysts add. Plus competition is heating up in Australia & New Zealand. Plus the daigou channel is still disrupted.

Blackmores is scheduled to report interim financials on Feb 24. Citi sticks with its Sell rating and $60.60 price target.

Target price is $60.50 Current Price is $71.21 Difference: minus $10.71 (current price is over target).
If BKL meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $66.96, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Credit Suisse rates BSL as Outperform (1) -

The first few weeks of 2021 have seen record steel spreads and US hot-rolled coil (HRC) steel prices, observes Credit Suisse. 

With spot US HRC price more than 50% above November 2020 levels, steel spreads have expanded to US$690/t. A combination of recovering steel demand and supply constraints are responsible for the steel price and spread expansion, assesses Credit Suisse. 

While not sustainable, Credit Suisse notes the higher spreads provide a strong earnings tailwind which is not currently reflected in consensus forecasts and retains its Outperform rating.

Target rises to $19.80 from $19.50.

Target price is $19.80 Current Price is $17.27 Difference: $2.53
If BSL meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $20.32, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates BSL as Accumulate (2) -

Since Ord Minnett's last update in mid-December, BlueScope Steel has seen its Australian Steel Products (ASP) and North Star spreads diverge further, with ASP falling -3% and North Star rising 18%.

Scrap and pig iron prices have also risen 11% and 15% although the key driver of the North Star outperformance was the US hot-rolled coil (HRC) price, which rose 15% or US$160 per tonne over the month.

With US capacity beginning to rise again, Ord Minnett expects BlueScope Steel's operating income to improve to $915m for the second half, up from $475m in the first half.

Ord Minnett retains its Accumulate rating with the target price rising to $22.80 from $19.90.

Target price is $22.80 Current Price is $17.27 Difference: $5.53
If BSL meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $20.32, suggesting upside of 19.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates CGF as Neutral (3) -

Citi analysts have conducted a mark-to-market update for Challenger. On their observation, market conditions are much improved.

The analysts also note the Challenger share price is now trading broadly in line with their valuation. Hence, the Neutral rating has been retained.

Citi has removed the -35% discount previously applied and this has allowed the price target to lift to $7 (was $4.55 mid-October). While EPS estimates have slightly changed, DPS forecasts have remained intact.

Target price is $7.00 Current Price is $6.87 Difference: $0.13
If CGF meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting downside of -13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates CGF as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker believes Challenger is one of the best positioned of the large cap stocks to produce solid/stable results.

Morgans makes small EPS estimates downgrades on more conservative life business margin assumptions, given recent interest rate cuts.

The Hold rating is unchanged and the target price is $6.80.

Target price is $6.80 Current Price is $6.87 Difference: minus $0.07 (current price is over target).
If CGF meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.12, suggesting downside of -13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates CIP as No Rating (-1) -

Morgan Stanley initiates coverage on Centuria Industrial REIT after scanning the market for a REIT that is somewhat off the beaten track. It offers an exposures that is quite scarce and not traditionally provided by the large-cap REITs. 

The broker believes the pure-play nature may potentially deliver cleaner leverage to the property cycle than diversified and/or mainstream REITs. It's considered investors can potentially generate stronger than Index returns by looking at the non-traditional. 

The target price is $3.50 and the rating is Overweight.

The REIT is the largest passive pure-play warehouse owner in Australia, and offers benefits as the industrial tide continues to rise, enthuses the broker.

The analyst explains the warehouse/industrials category of property has gained immense popularity during 2020 in part due to the proliferation of consumers purchasing goods online.

In turn, this has highlighted the importance of well located warehouse facilities for retailers, product distributors, as well as third-party logistics companies.

Morgan Stanley recommends the REIT as the best industrials stock for investors looking for warehouse exposure.

Refer to three other REIT suggestions by Morgan Stanley in today's updates.

Target price is $3.50 Current Price is $2.97 Difference: $0.53
If CIP meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Morgan Stanley initiates coverage on property fund manager Centuria Capital Group after scanning the market for a REIT that is somewhat off the beaten track. It offers an exposures that is quite scarce and not traditionally provided by the large-cap REITs. 

The broker believes the pure-play nature may potentially deliver cleaner leverage to the property cycle than diversified and/
or mainstream REITs. It's considered investors can potentially generate stronger than Index returns by looking at the non-traditional. 

The target price is $2.75 and the rating is Overweight.

The analyst explains property funds managers are different to traditional Real Estate stocks in that they do not operate as passive rent collectors. They are platforms that source funds from listed and unlisted avenues, and invest the money in physical real estate.

The capital light model of property fund managers are riskier than typical REITs in that there is minimal tangible asset backing, cautions the broker.

A predominant portion of Centuria Capital Group's income is derived from management fees. The company is effectively an investment platform with circa $10bn of assets under management (AUM) in the listed and unlisted space.

The broker explains the group earns healthy up front fees upon acquisition of an asset and it earns modest fees during the life of the fund. In addition, it can earn potential performance fees upon the winding up of the funds.

Refer to three other REIT suggestions by Morgan Stanley in today's updates.

Target price is $2.75 Current Price is $2.35 Difference: $0.4
If CNI meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.40, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates COF as Initiation of coverage with Underweight (5) -

Morgan Stanley initiates coverage on suburban office landlord Centuria Office REIT after scanning the market for a REIT somewhat off the beaten track. Potentially it may offer exposure that is quite scarce and not traditionally provided by the large-cap REITs. 

The broker believes a pure-play nature may in some instances deliver cleaner leverage to the property cycle than diversified and/or mainstream REITs. It's considered investors can potentially generate stronger than Index returns by looking at the non-traditional. 

The target price is $2 and the rating is Underweight.

Despite a yield of 7.6%, the broker feels headwinds include 35% of assets with greater than 40% of leases expiring between now and FY22. In addition, industry agents are expecting metro market rents to decline in 2021/22. 

Refer to three other REIT suggestions by Morgan Stanley in today's updates.

Target price is $2.00 Current Price is $2.04 Difference: minus $0.04 (current price is over target).
If COF meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.23, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates CPU as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite the broker seeing a broadly difficult reporting season for stocks in the sector, earnings estimates for Computershare remain largely unchanged. The price target rises to $15.13 from $14.98 and the Add rating is unchanged.

Target price is $15.13 Current Price is $14.22 Difference: $0.91
If CPU meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.65, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Macquarie rates DMP as Upgrade to Outperform from Neutral (1) -

Industry feedback suggests Domino's Pizza Enterprises is winning offshore market share from Pizza Hut etc.

Macquarie believes the shift towards digital delivery will continue in 2021 with 25-35% of the spending that shifts to digital delivery estimated to stick post the pandemic.

The outlook for the stock is positive with Dominos expected to grow in double-digits per annum along with the possibility of accretive acquisitions. 

The broker upgrades to Outperform from Neutral. Target rises to $90.30 from $72.10.

Target price is $90.30 Current Price is $82.98 Difference: $7.32
If DMP meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $75.20, suggesting downside of -16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates ELD as Buy (1) -

Citi analysts point out the 2020/21 winter crop is set to beat expectations, with record collections during the current harvest. 

In addition, above-average rainfall is expected to continue until autumn, creating favourable conditions for sales of rural products.

Long story short: Citi sees plenty of justification for its above-consensus forecasts, which are supporting the Buy rating and $13 price target.

Target price is $13.00 Current Price is $10.70 Difference: $2.3
If ELD meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $12.89, suggesting upside of 15.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates GDG as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector. 

The analyst makes no earnings estimate changes for Generation Development Group for FY21 and FY22, but downgrades FY23 EPS estimates by around -5%. The Add rating is unchanged and the price target is $0.85.

Target price is $0.85 Current Price is $0.70 Difference: $0.15
If GDG meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

As underlying margin and earnings momentum is subdued, cost-out is likely delayed, and investment yield is low, Morgan Stanley believes it's tough to envisage a re-rate in the near term.

The broker's FY21 reported profit (NPAT) estimate for Insurance Australia Group rises around $80m or 48% to reflect favourable investment mark-to-market. The FY22-23 estimates are broadly unchanged.

The group's business interruption (BI) provision may ultimately prove to be conservative, but the analyst expects this will not be known for some time.

Industry view: In-line. The price target is increased to $5 from $4.80 and the Equal-Weight rating is unchanged.

Target price is $5.00 Current Price is $5.02 Difference: minus $0.02 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.49, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates IAG as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector with headwinds including lower bond yields, some insurance catastrophe activity and covid-19 impacting activity levels and provisioning.

Morgans lifts reported EPS estimates for Insurance Australia Group by around 26% for FY21. These are lifted on some adjustments to modelling for business interruptions claims and other one-off costs that the group will book in the first half. FY22 and FY23 estimates are lowered by around -4% on mark-to-market.

The price target is increased to $5.29 from $5.25 and the Hold rating is unchanged.

Target price is $5.29 Current Price is $5.02 Difference: $0.27
If IAG meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates JBH as Neutral (3) -

JB Hi-Fi is enjoying strong sales momentum in combination with expanding margins at The Good Guys which is once again forcing market consensus forecasts upwards, observe analysts at Citi.

Those analysts remain convinced this won't be the last time JB Hi-Fi is forcing market expectations to increase. On the analysts' assessment, the post-covid-19 normalisation process will take until FY23 to complete.

Increased forecasts have lifted the broker's price target by $3 to $53 but since the share price has already moved, the rating remains Neutral.

Target price is $53.00 Current Price is $52.70 Difference: $0.3
If JBH meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Sales increased by 23% for JB Hi-Fi in the first half while net profit rose 86%. While admitting these results are a reflection of a unique set of circumstances, Credit Suisse argues the market is still not sufficiently pricing in factors like permanent changes to spending.

Consequently the broker has more confidence in the company's FY22 earnings than the market. Other positives include an enhanced cash position posing an upside risk to the interim dividend and an increasing likelihood of capital management activities.  

Even so, Credit Suisse downgrades its rating to Neutral from Outperform with the target rising to $54.72 from $53.02.

Target price is $54.72 Current Price is $52.70 Difference: $2.02
If JBH meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates JBH as Neutral (3) -

JB Hi-Fi's first-half trading update highlights strong sales momentum and is in line with Macquarie's estimate. Operating income was 43.8% ahead of Macquarie's forecast and with cost-cutting driving operating leverage, the company posted profit growth of 86.2% versus last year.

Macquarie still prefers Harvey Norman ((HVN)) over JB Hi-Fi due to the former's strong exposure to regional Australia.

JB Hi-Fi's target rises to $53.10 from $49.50. Neutral rating. 

Target price is $53.10 Current Price is $52.70 Difference: $0.4
If JBH meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

In the wake of JB Hi-Fi's provisional first half results, Morgan Stanley considers the 'beat' implies an 18% upgrade to the broking community's consensus profit (NPAT) estimates.

The broker highlights the driver was the profitability (and importantly operating leverage and gross margin expansion) of The Good Guys (TGG).

Equal-weight. Target is $48.50. Industry view: Cautious.

Target price is $48.50 Current Price is $52.70 Difference: minus $4.2 (current price is over target).
If JBH meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates JBH as Hold (3) -

The first half trading update highlighted to Morgans a continuation of very strong growth trends. Strong like-for-like sales at JB Australia and The Good Guys (TGG) results in the broker lifting EPS forecasts by 40% in FY21 and around 20% in FY22 and FY23.

The analyst believes more normalised trading patterns for the group will be at levels well above those of pre-covid. While conceding it's debateable, Morgans considers there's a case for the company's products now being regarded a staple for Australian households.

As such, the broker notes that despite the company's multiple being above historical levels, it is well below staple peers such as Woolworths ((WOW)) and Coles Group ((COL)). 

The Hold rating is maintained and the target price is increased to $52.19 from $41.30.

Target price is $52.19 Current Price is $52.70 Difference: minus $0.51 (current price is over target).
If JBH meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates JBH as Hold (3) -

JB H-Fi 's released a strong trading update for the first half, observes Ord Minnett, with sales rising 24% and operating income increasing by 76%. Ord Minnett suggests the strong update is the result of customer spending reallocating towards retail.

The broker considers JB Australia executed its operations well with gross margin expansion, cost management and operating leverage boosting operating income margins. The outlook remains supported by a home and lifestyle skew.

The Hold rating is unchanged with a target price of $50.

Target price is $50.00 Current Price is $52.70 Difference: minus $2.7 (current price is over target).
If JBH meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates JBH as Neutral (3) -

UBS observes JB Hi-Fi delivered a strong result with first-half net profit up 86% driven by second-quarter like for like sales. Online sales made up circa 44% of the total first-half sales.

While optimistic, UBS believes JB Hi-Fi is already pricing in the upside with the company's two year forward P/E at a circa 31% premium to history and about 5% ahead of its typical premium to peers.

Overall, the broker considers the risk/reward balanced after factoring in valuation, covid related uncertainty and continued channel shift out of stores to online. 

UBS retains its Neutral rating with the target price increased to $51 from $47.80.

Target price is $51.00 Current Price is $52.70 Difference: minus $1.7 (current price is over target).
If JBH 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 $51.79, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates JHX as Accumulate (2) -

Pulp producer Domtar announced it will increase its pulp prices by US$110/t to US$1,300/t beginning from February 1. This price represents a 14% increase over the average price relevant for James Hardie Industries’ FY22 period, explains the broker.

According to Ord Minnett, the 14% rise in pulp prices could pose a -US$28m headwind for James Hardie’s North America Fibre Cement (NAFC) division in FY22 compared to flat pricing.

The good news is James Hardie had already anticipated average prices to rise by 3%, meaning the price-to-cost ratio would be roughly neutral for divisional gross profit in FY22.

Target price is $42. Accumulate rating is retained. 

Target price is $42.00 Current Price is $36.85 Difference: $5.15
If JHX meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $40.76, suggesting upside of 7.9% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Morgans rates KSL as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker remains optimistic on some smaller cap names including Kina Securities.

Morgans leaves earnings estimates unchanged and the price target of $1.55 and the Add rating are maintained.

Target price is $1.55 Current Price is $0.94 Difference: $0.61
If KSL meets the Morgans target it will return approximately 65% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Morgans rates LNK as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector. However, in the case of Link Administration, Morgans believes any update on the progress of the acquisition bid arguably overshadows any upcoming result outcomes.

The broker makes no change to FY21 EPS estimates and lifts FY22 EPS estimates by 3% reflecting a more favourable operating environment outlook post Brexit.

The Hold rating is unchanged and the target price is $5.40, which is the bid price of the private equity consortium.

Target price is $5.40 Current Price is $4.63 Difference: $0.77
If LNK meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates MAI as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions. The broker also reviews a second quarter funds under administration (FUA) update to the market.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker remains optimistic on some smaller cap names including Mainstream Group.

The analyst considers the second quarter was strong with funds under administration (FUA) rising 7%, and highlights growth in funds under custody continues to be robust with a further increase of $4.3bn in the quarter.

Morgans makes no changes to earnings estimates on the sector review, but makes mild upgrades on the FUA update. As a result of the latter, the target price is increased to $1.14 from $0.94. The Add rating is unchanged.

Target price is $1.14 Current Price is $1.02 Difference: $0.12
If MAI meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates MME as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker remains optimistic on some smaller cap names including MoneyMe.

Morgans makes no changes to earnings estimates and the price target of $1.95, after updating numbers for the company’s recent business update. The Add rating is unchanged.

Target price is $1.95 Current Price is $1.42 Difference: $0.53
If MME meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates MPL as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker believes Medibank Private is one of the best positioned of the large cap stocks to produce solid/stable results.

Morgans lifts FY21 EPS forecasts by around 14% on a mark-to-market of investment assets.

The Hold rating is unchanged and the price target rises to $3.03 from $2.90.

Target price is $3.03 Current Price is $2.91 Difference: $0.12
If MPL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.96, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgans rates NHF as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker believes NIB Holdings is one of the best positioned of the large cap stocks to produce solid/stable results.

Morgans lifts FY21 EPS forecasts by around 10% on a mark-to-market of investment assets. 

The Hold rating is unchanged and the target price is increased to $5.41 from $4.80.

Target price is $5.41 Current Price is $5.82 Difference: minus $0.41 (current price is over target).
If NHF meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.48, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates NUF as Overweight (1) -

Morgan Stanley increases estimates to reflect an improved climate outlook, particularly in Australia. It's also considered the current share price is ascribing little to no value for Omega-3.

The broker notes improved seasonal conditions in Europe are also driving strong revenue growth, supported to some degree by covid/pull-forward.

The analyst lifts group earnings (EBITDA) forecasts for FY21 by 11% and continues to see meaningful upside for the company.

Overweight. Target price is increased to $5.20 from $4.80. Industry view: Cautious.

Target price is $5.20 Current Price is $4.20 Difference: $1
If NUF meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates OGC as Neutral (3) -

OceanaGold reported a stronger than expected preliminary production result for the December quarter led by better grade at the Haile gold mine. Production was 8% ahead of Macquarie's forecast.

Although with potentially strong catalysts ahead, Macquarie believes covid remains a significant challenge for the company with the return on Didipio mine remaining uncertain.

Neutral rating. Target falls to $2.60 from $2.70.

Target price is $2.60 Current Price is $2.28 Difference: $0.32
If OGC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Ord Minnett rates OGC as Accumulate (2) -

OceanaGold Corp released its December quarterly production and Ord Minnett has updated its model accordingly.

Group production of 99,200oz was slightly ahead of the broker's forecast of 96,000oz forecast. Costs were lower than expected backed by the performance from the Haile gold mine operation. 

Also, the Martha underground mine remains on track for its first production in the second quarter.

Accumulate retained with a target of $3.60.

Target price is $3.60 Current Price is $2.28 Difference: $1.32
If OGC meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 21.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgans rates PDL as Add (1) -

Pendal Group reported first quarter funds under management of $97.4bn, up 5.4% on the prior quarter.

As the investment performance was partially offset by net outflows and currency, Morgans would like to see the group returning to net inflows before a further share price re-rating is likely.

If the market performance/flows remain benign, Morgans views the group as having a decent level of valuation/yield support. The Add rating is unchanged and the target price is increased to $7.15 from $7.02.

Target price is $7.15 Current Price is $6.66 Difference: $0.49
If PDL meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.03, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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) -

In the wake of Premier Investments' first-half record profits, Morgan Stanley expects near-term momentum is likely to continue into the second half.

The broker assesses the material beat was largely driven by a robust consumer environment and online sales increasing 60% year-on-year. 

While Morgan Stanley lifts EPS forecasts by 19-53% for FY21-23, the broker believes the prospect of negative EPS growth in FY22 is likely. 

Equal-weight rating with the target price increased to $24 from $18.40. Industry view: In-Line.

Target price is $24.00 Current Price is $23.75 Difference: $0.25
If PMV meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $24.92, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgans rates PPT as Hold (3) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker lifts FY21-FY22 EPS estimates for Perpetual by 7% and 12%, respectively, reflecting rising equity market levels in the second half of 2020.

The Add rating is maintained. The target price is increased to $39.76 from $36.12.

Target price is $39.76 Current Price is $35.38 Difference: $4.38
If PPT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.46, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates QBE as Buy (1) -

Citi had already expressed its disappointment because of QBE Insurance Group's profit warning late last year, and the newsflow has remained negative since, prompting yet more reductions to forecasts.

Bigger picture, the analysts maintain the story of QBE remains about likely margin expansion on the back of strong premium rate rises, even if the claims environment has turned even more uncertain.

For this reason, Citi analysts retain their Buy rating with a new price target of $10.40, down from $10.60 previously.

Target price is $10.40 Current Price is $8.08 Difference: $2.32
If QBE meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Macquarie rates QBE as Underperform (5) -

QBE Insurance Group's FY20 UK business interruption (BI) claim remains net cost unchanged (US$70m) but Macquarie cautions about the downside risk in FY21 with in-force policies having no reinsurance cover.

The increase in gross UK BI claims has used up more of the insurer's total reinsurance cover than anticipated, reducing the cover available for potential Australian BI claims.

To rectify this and add further buffers, the broker notes the insurer will include an additional US$185m risk margin above previous disclosures in its FY20 result.

Target price is $7.70. Underperform.

Target price is $7.70 Current Price is $8.08 Difference: minus $0.38 (current price is over target).
If QBE meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Morgan Stanley rates QBE as Overweight (1) -

Morgan Stanley considers FY21 is a crucial year for the group to ensure it capitalises on the global hard pricing cycle to produce earnings growth with lower volatility.

The broker's analysis of current pricing increases across the group's lines of business suggests around 7.5% pricing momentum into FY21, led by liability lines.

The group has updated its business interruption (BI) provisions in the UK and Australia and the analyst notes the earnings impact is
neutral.

Morgan Stanley retains an Overweight rating and lowers the target price to $10.30 from $11.50, with the higher Australian dollar a headwind. Industry view: In-line.

Target price is $10.30 Current Price is $8.08 Difference: $2.22
If QBE meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Morgans rates QBE as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector with headwinds including lower bond yields, some insurance catastrophe activity and covid-19 impacting activity levels and provisioning.

The analysts downgrade FY20 numbers for QBE Insurance Group by more than -100%, reflecting the December loss guidance. It also reflects yesterday's guidance for an additional -$185m strengthening of risk margins for Australian business interruption claims.

Morgans downgrades FY21 and F22 EPS estimates by -8% and -9%, respectively, on more conservative future year insurance margin forecasts.

The Add rating is maintained and the target is reduced to $10.37 from $12.07.

Target price is $10.37 Current Price is $8.08 Difference: $2.29
If QBE meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Ord Minnett rates QBE as Accumulate (2) -

Ord Minnett has updated its financial model with respect to QBE Insurance Group's business interruption test case ruling in the UK.

Gross losses in the UK are expected to increase but the net losses will remain unchanged at -US$70m. The insurer will use more of its aggregate reinsurance cover, meaning there would be less protection if the Australian business interruption cases went against it.

To tackle this, QBE Insurance has increased its risk margins by an additional -US$185m for the Australian business interruption claims as at December 2020.

Accumulate rating. Target price is $11.

Target price is $11.00 Current Price is $8.08 Difference: $2.92
If QBE meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

UBS rates QBE as Neutral (3) -

The UK Supreme Court ruling increases QBE Insurance Group's gross claims estimate from UK Business Interruption (BI) and while the net impact remains unchanged at -US$70m, the ruling will lead to utilisation of additional reinsurance cover, highlights the broker.

This will leave QBE's Australia BI estimates exposed. To avoid any earnings downside risk, the insurer has taken a -US$185m risk margin in its FY20 accounts.

UBS is encouraged by the insurer's stance in closing any gaps in its reinsurance cover and considers the approach prudent. The broker is confident QBE has largely removed the downside risk from both UK and Australia BI claims.

Target price is $9 with a Neutral rating. 

Target price is $9.00 Current Price is $8.08 Difference: $0.92
If QBE meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Credit Suisse rates SGM as Neutral (3) -

Spot prices for ferrous scrap are up more than 50% from their November 2020 average price, considered by Credit Suisse the most rapid price, leaving prices near or above decade highs.

Credit Suisse has increased its FY21 operating income and net profit forecasts by 12% and 8% with FY22 forecasts for operating income and net profit expected to rise by 18% and 15%. 

Expecting consensus forecast upgrades, Credit Suisse retains a Neutral rating. Target rises to $13 from $10.75.

Target price is $13.00 Current Price is $13.44 Difference: minus $0.44 (current price is over target).
If SGM meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.87, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates SUL as Buy (1) -

Strong end-of-year sales momentum and expanding margins have helped Super Retail beating market expectations for the first half, explain Citi analysts.

In line with an overall positive view on consumer spending throughout the year ahead, Citi expects ongoing upgrades for market consensus estimates over the next twelve months.

On this basis, the Buy rating remains in place, with a new price target of $14 (up from $13.10 previously).

Target price is $14.00 Current Price is $11.63 Difference: $2.37
If SUL meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates SUL as Outperform (1) -

Super Retail Group noted a net profit rise of 137% in the first half with sales revenue increasing by 23%. Online sales increased by 87% year on year.

Pointing out that the re-opening of borders will be a drawn-out process, Credit Suisse has more confidence in the company's FY22 earnings prospects than the market. Even after the recent upgrades, the broker considers the group undervalued and believes a re-rating is possible.

Credit Suisse maintains an Outperform rating. Target rises to $13.19 from $12.21.

Target price is $13.19 Current Price is $11.63 Difference: $1.56
If SUL meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SUL as Neutral (3) -

Super Retail Group's first-half pre-release numbers are materially stronger than Macquarie expected. The broker notes the result was driven by operating leverage from higher gross margins.

Macquarie finds Super Retail Group's balance sheet healthy, noting the group has made permanent gains from its omnichannel strategy, margin improvement and re-engagement with new customers. 

Neutral rating is maintained. Target rises to $11.70 from $11.30.

Target price is $11.70 Current Price is $11.63 Difference: $0.07
If SUL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates SUL as Overweight (1) -

Morgan Stanley considers the group had a strong finish to the first half with like-for-like (LFL) sales growth of 24%. It's considered gross margins and operating leverage drove the significant earnings beat.

Profit (NPAT) exceeded the broker's estimates by 43%.

After generating significant cash levels, the analyst thinks the group will exit covid-19 with capital management optionality.

The broker lifts FY21 and FY22 EPS estimates by 40% and 24%, respectively, while FY23 is relatively unchanged.

Overweight rating maintained. Target price is increased to $12.90 from $12.30. Industry View: Cautious.

Target price is $12.90 Current Price is $11.63 Difference: $1.27
If SUL meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates SUL as Hold (3) -

Super Retail Group issued a first half trading update above Morgans' forecasts. It's considered important by the broker that online sales did not detract from group profitability, despite increasing by 87% to $237m (13.3% of sales).

Group total/like-for-like (LFL) sales growth was 23% and 24%, respectively, for the half. This implies LFL sales of around 22% for the last nine weeks.

The analyst considers the company's businesses look well placed to continue to benefit from some key thematics.These include increased domestic tourism and leisure activities, home-based fitness and a general acceleration in online consumption.

Given the strong first half, Morgans upgrades FY21 forecasts by around 34%. The Hold rating is unchanged and the target price rises to $12.57 from $11.78.

Target price is $12.57 Current Price is $11.63 Difference: $0.94
If SUL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates SUL as Accumulate (2) -

With sales for the first half up 23% and operating income rising by 119-122%, Ord Minnett considers Super Retail Group's latest trading update strong.

The broker notes the group has benefited from undemanding comparable numbers due to bushfires and regional weakness along with a shift to domestic tourism and better execution at Rebel and BCF.

Considering the ongoing improvement in BCF and Rebel, Ord Minnett maintains its Accumulate recommendation and raises its target price to $12.75 from $12.50.

Target price is $12.75 Current Price is $11.63 Difference: $1.12
If SUL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates SUL as Buy (1) -

Super Retail Group expects to report first-half operating income of $253-256m, up circa 121% year on year led by strong like for like strength in all divisions. Gross margins are up circa 270bps year on year led by the acceleration in the first four months of the first half.

In UBS's view, the backdrop remains favourable with the group having a solid portfolio of brands and generating a strong return on capital. Near-term, UBS believes Super Retail is well-positioned to benefit from increased domestic tourism.

Buy rating. Target lifted to $12.60 from $12.20.

Target price is $12.60 Current Price is $11.63 Difference: $0.97
If SUL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

In projecting forward to Suncorp Group's first half result, Morgan Stanley considers the insurer can gradually restore margins and deliver a cost-out.

The broker also believes the key to a re-rating is delivering volume growth in the bank and insurer without sacrificing margins. In addition, it's considered more clarity is required on the group's ability to return excess capital.

Morgan Stanley thinks it's too early for the prior paragraph's wishlist to be filled and maintains the Equal-weight rating. Target is increased to $10.35 from $9.90. Industry view: In-line.

Target price is $10.35 Current Price is $10.32 Difference: $0.03
If SUN meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $10.95, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates SUN as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

The broker sees a broadly difficult reporting season for stocks in the sector with headwinds including lower bond yields, some insurance catastrophe activity and covid-19 impacting activity levels and provisioning.

Morgans lowers FY21 and FY22 EPS estimates by -2% and -4%, respectively, on more conservative earnings assumptions in the group’s banking business.

The Add rating is maintained and the target increased to $11.32 from $10.20.

Target price is $11.32 Current Price is $10.32 Difference: $1
If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.95, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates TCL as Outperform (1) -

The recent bond rate rally adversely affected Transurban Group's share price, assesses Macquarie, with almost -$2 off the share price since late December.

Despite bond rates only increasing by circa 20bps, the increase in discount rate has been around 100bps, implying the company more than anticipated the tougher environment, suggests Macquarie,

The broker notes in this harsher bond rate environment, the sale of the US assets offers some flexibility. 

Outperform. Target falls to $15.06 from $15.93.

Target price is $15.06 Current Price is $12.79 Difference: $2.27
If TCL meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates TLS as Outperform (1) -

With Telstra Corp's committed to seeking TowerCo investment from third parties in 2021, Credit Suisse tries to estimate the likely valuation and proceeds for the tower assets.

Noting an increased appetite for tower assets by telecom firms, the broker believes valuing TowerCo at an enterprise value of $4.7bn would lift Telstra's valuation by 19cps. 

In case the company were to sell a 50% interest in TowerCo, Telstra's debt servicing ratio would put it well within the management comfort zone and also eliminate any concerns over the possibility of a lower dividend.

Credit Suisse retains its Outperform rating with a target of $3.85.

Target price is $3.85 Current Price is $3.10 Difference: $0.75
If TLS meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates TLS as Accumulate (2) -

Ord Minnett updated its financial model for Telstra Corp post the recent re-segmentation of the company’s product base. Assessing the changes to be modest, the broker has reduced its earnings forecasts by less than -2%.

Accumulate rating is maintained with a $3.65 target price.

Target price is $3.65 Current Price is $3.10 Difference: $0.55
If TLS meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates Z1P as Add (1) -

Morgans updates the Insurance/Diversified Financials sector earnings on a mark-to-market basis and a broad review of earnings assumptions.

Despite seeing a broadly difficult reporting season for stocks in the sector, the broker considers the Buy-Now-Pay-Later providers remain the shining lights in the space.

It's considered they have robust sales momentum, albeit with limited profitability achieved so far. 

The broker lowers FY21 EPS estimates for Zip Co by -15% on reduced profit margin estimates, but increases FY22 estimates by 45% on higher sales estimates.

The price target falls to $7.86 from $8.89 and the Add rating is unchanged.

Target price is $7.86 Current Price is $5.73 Difference: $2.13
If Z1P meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $6.32, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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