BUB – Citi rates the stock as Sell
Citi retains its Sell rating on Bubs Australia with a target of $0.51. The broker remains concerned about the structural pressures Australian infant formula market brands are facing.
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PLS – Credit Suisse rates the stock as Downgrade to Neutral
Credit Suisse downgrades its rating to Neutral from Outperform with the target rising to $0.95 from $0.40.
Read MoreCLW – UBS rates the stock as Neutral
First half operating earnings per share of 14.5c reflected a respectable growth rate of 3.6%, UBS assesses. UBS retains its Neutral rating with a target price of $5.20.
Read MoreVOC – Morgans rates the stock as Hold
Vocus Communications has received an indicative proposal from MIRA to acquire 100% of the company at $5.50 per share. Morgans retains a Hold rating and increases the target price to $5.50 from $3.35.
Read MoreORG – UBS rates the stock as Buy
Origin Energy has downgraded FY21 energy markets guidance by -13% at the mid point. UBS expects mild summer weather will lower earnings from the peaking generation fleet. The broker retains a Buy rating based on valuation and reduces the target to $5.75 from $6.65.
Read MoreNWS – UBS rates the stock as Buy
Second quarter results were materially ahead of UBS estimates. UBS plans to review its forecasts and retains its Buy rating and $29 target.
Read MoreCOF – Morgans rates the stock as Add
Centuria Office REIT provided funds from operations (FFO) guidance above Morgans expectations. The Add rating is unchanged and the target rises to $2.31 from $2.29.
Read MoreZ1P – Citi rates the stock as Neutral
On its earnings release, PayPal noted its new BNPL product has proven to be the fastest launch for the company ever. It’s a double-edged sword for locals Afterpay and Zip Co, the broker suggests. Neutral and $6.50 target retained on Zip.
Read MoreAGL – Credit Suisse rates the stock as Underperform
AGL Energy announced -$3.6bn in impairments and provisions before tax, leading to a -$1.6 reduction in Credit Suisse’s target price. Credit Suisse retains its Underperform rating with the target price decreasing to $9.50 from $11.10.
Read MoreWBC – Morgans rates the stock as Add
Morgans expects the upcoming result for the Commonwealth Bank ((CBA)) to likely increase upside risk to earnings and dividend forecasts for FY21. The Hold rating is maintained and the target price is increased to $25.50 from $23.50.
Read MoreGWA – Macquarie rates the stock as Upgrade to Outperform
Macquarie reviews housing data, noting approvals continue to strengthen, which the broker saw as necessary for a further re-rating in the stock. Macquarie upgrades to Outperform from Neutral and raises the target to $3.90 from $3.25.
Read MoreAIZ – Macquarie rates the stock as Underperform
Macquarie assesses cargo is currently an important part of Air New Zealand’s revenue for FY21 and appears to be maintaining solid volumes and yields. The broker retains an Underperform rating. Target is raised to NZ$1.15 from NZ$1.05.
Read MoreVUK – Morgans rates the stock as Reduce
Virgin Money UK has released a December quarter trading update (sans earnings figures) and reaffirmed the FY21 guidance and targets set out at the FY20 results. The Reduce rating is unchanged and the target is increased to $2.36 from $2.
Read MoreAMC – UBS rates the stock as Upgrade to Buy
First half results beat UBS estimates. Earnings growth was supported organically along with the Bemis merger synergies and share buyback accretion. UBS upgrades to Buy from Hold. Target is reduced to $16.60 from $16.66.
Read MoreNHC – Morgans rates the stock as Add
Morgans is not surprised by the muted share price response to the legal action against Acland 3 as no value had previously been recognised by the market. The Add rating is unchanged and the target price is increased to $1.60 from $1.53.
Read MoreTPW – Macquarie rates the stock as Neutral
First half revenue and earnings were slightly lower than Macquarie estimated. Neutral maintained. Target rises to $10.90 from $10.60.
Read MoreCSL – Citi rates the stock as Neutral
Global immunology company Argenx has announced the expansion of a trial, the outcome of which is potentially negative for CSL, warns Citi. The Neutral rating and $320 target are unchanged.
Read MoreVHT – Morgans rates the stock as Add
Volpara Health Technologies has completed a strategic acquisition of CRA Health, a Boston based breast cancer risk assessment company. Morgans’ add rating is maintained and the target price is increased to $1.92 from $1.70.
Read MoreWSA – Morgans rates the stock as Add
After a brief hiatus from coverage, Morgans takes another look at Western Areas and derives a target price of $2.96, with an Add rating.
Read MoreHUO – Credit Suisse rates the stock as Neutral
Credit Suisse highlights Huon Aquaculture has been impacted by lower global salmon prices due to higher sales channel skew to exports. Neutral rating retained with a target of $2.90.
Read MoreDRR – UBS rates the stock as Upgrade to Buy
UBS forecasts a 5% lift in world’s steel production in 2021. The broker upgrades the rating for Deterra Royalties to Buy from Neutral and raises the target to $5.15 from $5.00.
Read MoreMMS – Credit Suisse rates the stock as Outperform
McMillan Shakespeare’s latest update cites higher recovery in novated lease sales and growth in Plan Partners as reasons for experiencing better than expected conditions. The outlook for FY22 is positive, suggests Credit Suisse. Outperform with target rising to $14 from $12.85.
Read MoreLYC – UBS rates the stock as Neutral
The main positive in the December quarter was record revenue of $119m, 14% above UBS estimates. Pricing was higher than anticipated. The main negative is the plant is still running at 75% capacity. Neutral rating is retained. Target is $4.30.
Read MoreORE – Morgans rates the stock as Downgrade to Hold
Lithium carbonate production at Olaroz was 3,727t, up 58% from the previous quarter, and 4% above the December 2019 quarter. Morgans retains a long-term price of US$10,500/t for LCE. The rating is lowered to Hold from Add and the target price is increased to $5.15 from $3.36.
Read MoreFMG – Macquarie rates the stock as Outperform
Fortescue Metals beat on all of shipments, realised prices and costs in the December quarter. Guidance remains unchanged but currency headwinds are beginning to drag, the broker notes. Target falls to $26.50 from $27.00, Outperform retained.
Read MoreIGO – Credit Suisse rates the stock as Downgrade to Neutral
IGO’s first half beat expectations in terms of operating income with earnings from the Nova project forming 70% of the total earnings. Rating is downgraded to Neutral from Outperform with the target rising to $6.40 from $6.
Read MoreHRL – Morgans rates the stock as Add
HRL Holdings delivered first half revenue of $16.4m and underlying earnings (EBITDA) of $3.5m, slightly ahead of Morgans’ forecast. The Add rating and target price of $0.16 are unchanged.
Read MoreCIA – Macquarie rates the stock as Outperform
Champion Iron’s December quarter revenue and earnings both beat expectations, with higher realised prices offsetting lower shipments. Outperform and $6.00 target retained.
Read MoreFMG – Credit Suisse rates the stock as Neutral
Credit Suisse notes Fortescue Metals Group presented a solid set of December quarter numbers, ahead of expectations. Neutral and $16.50 target retained.
Read MoreVHT – Morgans rates the stock as Add
Volpara Health Technologies posted a third quarter cashflow report in-line with the expectations of Morgans. The add rating is maintained and the target price is decreased to $1.70 from $1.71.
Read MoreALX – UBS rates the stock as Neutral
Falls in traffic and tolls on the APRR in France and the Dulles Greenway in the US in the December quarter were not as extensive as UBS feared. The broker notes liquidty is not an issue for Atlas Arteria given conservative gearing. Neutral and $6.10 target retained.
Read MoreRWC – Morgans rates the stock as Hold
Reliance Worldwide provided what Morgans assesses to be a strong trading update, with first half earnings (EBITDA) well ahead of forecasts. Following upgrades to earnings, the Hold rating is maintained and the target price is increased to $4.62 from $4.08.
Read MoreAHY – Credit Suisse rates the stock as Outperform
In its latest update, Asaleo Care formally rejected Essity’s $1.26 cash offer. The company’s operating income for 2020 was almost in-line with Credit Suisse’s forecast. The broker considers the quality of earnings good, keeps target at $1.50 and maintains the Outperform rating.
Read MoreRMD – UBS rates the stock as Buy
ResMed will report its second-quarter results on January 29, 2021. UBS expects revenue growth to be 5.2% for the US, Canada and Latin America. The Buy rating is unchanged with a target of $US241.
Read MoreNIC – Credit Suisse rates the stock as Outperform
Nickel Mines’ December quarter showed a record 11.5kt nickel production, ahead of Credit Suisse’s 10kt estimate for 2020. Margins expanded by 46% led by rising nickel and nickel pig iron prices. Outperform. Target rises to $1.50 from $1.35.
Read MoreFMG – Macquarie rates the stock as Outperform
Fortescue Metals Group has announced it expects to report earnings of US$4.0-4.1b for the first half FY21, marginally below the estimate of US$4.3b forecast by Macquarie. The Outperform rating is unchanged and the target is reduced to $27 from $27.20.
Read MoreYFZ – Morgans rates the stock as Initiation of coverage with Add
Morgans initiated coverage of Youfoodz in late December 2020 with an Add rating and $1.59 target price. This note also incorporates the company’s recent quarterly update.
Read MoreSXY – Macquarie rates the stock as Outperform
Senex Energy’s CSG production continues to ramp up gradually, Macquarie notes. The broker sees production broadly tripling to FY23. Outperform and 45c target retained.
Read MoreFPH – UBS rates the stock as Sell
Fisher & Paykel Healthcare Corp’s latest trading update showed larger-than-expected covid-led hospital sales. UBS sees a material drop in earnings over the next 18 months and maintains its Sell rating. Target rises to NZ$23.40 from NZ$21.35.
Read MoreDCN – Macquarie rates the stock as Underperform
Dacian Gold’s December quarter report showed production in line with a pre-release and costs -10% lower than expected. Underperform and 34c target retained.
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