Australian Broker Call

Credit Suisse rates A2M as Neutral (3) -

First half operating earnings (EBITDA) were ahead of Credit Suisse estimates. The broker understands a lack of confidence in the domestic food chain might be resulting in a shift back to international infant formula brands in China.

The company has also signalled it is evaluating opportunities to participate in manufacturing activity.

Credit Suisse observes a number of risks may be emerging, despite being constructive on the strong momentum in the business.

Still, the current share price signals sufficient valuation support and the broker retains a Neutral rating. Target is raised to NZ$16.38 from NZ$14.40.

Current Price is $15.52. Target price not assessed.

Current consensus price target is $17.34, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Ord Minnett rates ALU as Upgrade to Buy from Lighten (1) -

Ord Minnett notes the share price has fallen -23% over February. While FY20 guidance was lowered to the lower end of the prior range, amid uncertainty surrounding coronavirus, the broker still notes the stock has materially de-rated compared with software stocks globally.

While there is a risk guidance may still prove optimistic, looking ahead to FY21, the broker is comfortable with forecasts which imply revenue growth of 20%.

The stock now represents value to Ord Minnett and the rating is upgraded to Buy from Lighten. Target is reduced to $33.40 from $37.76.

Target price is $33.40 Current Price is $32.04 Difference: $1.36
If ALU meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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: 0.3

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

Morgans rates APT as Add (1) -

The first half loss was greater than Morgans expected. Despite this, top-line growth was strong. Morgans assesses exceptional momentum, particularly in the US, needs to be weighed against the higher investment required.

The broker downgrades FY20 and FY21 estimates for earnings per share by more than -50% on the back of higher marketing/investment expenditure. Add maintained.

The broker believes the company's penetration of offshore markets will drive substantial upside over time. Target is raised to $39.92 from $36.23.

Target price is $39.92 Current Price is $32.53 Difference: $7.39
If APT meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $37.55, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Macquarie rates ASG as Outperform (1) -

The company's exposure to luxury vehicles meant it outperformed the market in the seven months to January 2020. First half underlying net profit was in line with Macquarie's estimates.

However, the broker notes conditions remain challenging, although there is some feedback that rejections of credit are easing.

Hence, the broker envisages underlying business growth and the cycling of weak comparables are reasons to stay cheerful. Outperform rating and $1.75 target maintained.

Target price is $1.75 Current Price is $1.40 Difference: $0.35
If ASG meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates ASG as Buy (1) -

Autosports Group had pre-released in January and reported in line. The company reported a -4.4% fall in new car revenue growth in the first half, mixed across marques. The decline was compounded by missed manufacturer targets, the broker notes. However management highlighted improving revenue through the half, and also noted limited exposure to the virus.

The broker expects stronger sales in the second half as the negative wealth effect of falling house prices abates. Buy and $2.00 target retained.

Target price is $2.00 Current Price is $1.40 Difference: $0.6
If ASG meets the UBS target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates ATL as Hold (3) -

Interim net profit was broadly in line. Ord Minnett notes, during the first half, the Australian rental business suffered, as major bushfires deterred road travel.

North American ex-fleet sales also continued to bear the effects of oversupply. The broker suggests the outlook is murky in FY20.

Hold rating maintained. Target is reduced to $0.26 from $0.29.

Target price is $0.26 Current Price is $0.27 Difference: minus $0.01 (current price is over target).
If ATL meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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

Morgan Stanley rates BOQ as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley believes the bank's revised strategy provides potential to stabilise returns and deal with several years of underperformance. The broker lifts forecasts by 4% for FY20 and FY21.

However, cash profit forecasts remain below the lower end of guidance. While expecting ongoing revenue challenges, Morgan Stanley upgrades to Equal-weight from Underweight, given a clear strategy and a better cost outlook.

Target is raised to $7.60 from $7.50. Industry view is In-Line.

Target price is $7.60 Current Price is $7.35 Difference: $0.25
If BOQ meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.84, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Upgrade to Hold from Reduce (3) -

Bank of Queensland has unveiled its 5-year strategy and is now guiding to FY20 cash earnings being -4-5% lower than FY19.

Morgans increases cash earnings-per-share estimates, largely on expectations of higher home loan growth and lower operating expenses.

Rating is upgraded to Hold from Reduce and the target is raised to $7.60 from $7.20.

Target price is $7.60 Current Price is $7.35 Difference: $0.25
If BOQ meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.84, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in August.

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

Ord Minnett rates CHC as Downgrade to Hold from Accumulate (3) -

First half operating earnings were ahead of forecasts. Ord Minnett observes Charter Hall is a strongly performing business but commercial property transaction volumes in Australia are likely to slow in response to travel restrictions and uncertainty over asset values.

At least until the impact of coronavirus is better understood. The broker's main concern is that, if vendors are not willing to take assets to the market, then the company's growth in assets under management is likely to moderate.

Rating is downgraded to Hold from Accumulate and the target lowered to $12.50 from $14.20.

Target price is $12.50 Current Price is $12.16 Difference: $0.34
If CHC meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.52, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates CMW as Upgrade to Neutral from Underperform (3) -

First half earnings were well ahead of expectations. This was driven by development and performance fees. Despite the beat on expectations being driven by non-recurring items, Macquarie suspects there is upside risk to FY20 guidance.

There is also a path for the funds management platform to generate stable earnings in the medium term. The broker upgrades to Neutral from Underperform. Target is reduced to $1.20 from $1.22.

Target price is $1.20 Current Price is $1.13 Difference: $0.07
If CMW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgans rates CMW as Hold (3) -

First half results were ahead of Morgans' expectations, driven by performance fees in funds management. Guidance is unchanged, with 80% of earnings sourced from property income.

Morgans assesses active assets will deliver returns over the medium/long term and there are potential catalysts from the strategic review.

Hold maintained. Target is $1.22.

Target price is $1.22 Current Price is $1.13 Difference: $0.09
If CMW meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

Macquarie believes the market correction has provided an opportunity to buy a high-quality asset, and current supermarket trading is favouring Coles over Woolworths ((WOW)).

The first seven weeks of 2020 have shown Coles is gaining share. The broker considers the valuation attractive at current levels and upgrades to Outperform from Neutral. Target is $17.20.

Target price is $17.20 Current Price is $14.70 Difference: $2.5
If COL meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.83, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

Morgans rates CTP as Add (1) -

First half results were in line with estimates. Morgans suspects heavy selling pressure on the shares has been caused by a combination of investor jitters surrounding domestic/offshore energy markets, the company's relatively high debt and the sizeable amount of external capital that is required to support an accelerated development of Range.

The focus is now firmly on the funding package the company needs, and the broker retains an Add rating on a longer-term view. Target is reduced to $0.20 from $0.25.

Target price is $0.20 Current Price is $0.11 Difference: $0.09
If CTP meets the Morgans target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates CVN as Outperform (1) -

First half results were better than Macquarie expected. The Dorado concept has been released, with initial oil production rates anticipated at 75-100,000 bbl/day.

The broker assesses the business is well funded through to final testing at Dorado-3 and the final investment decision. Outperform maintained. Target is reduced to $0.55 from $0.60.

Target price is $0.55 Current Price is $0.25 Difference: $0.3
If CVN meets the Macquarie target it will return approximately 120% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates DTC as Overweight (1) -

First half earnings were in line with prior guidance. The company now expects organic revenue and operating earnings targets to be exceeded versus prospectus. An additional contribution from bolt-on acquisitions is envisaged.

Morgan Stanley retains an Overweight rating and raises the target to $1.70 from $1.60. Industry view: In Line.

Target price is $1.70 Current Price is $1.00 Difference: $0.7
If DTC meets the Morgan Stanley target it will return approximately 70% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates FNP as Buy (1) -

Citi upgrades FY20-22 operating earnings estimates by 1-9% to reflect better momentum in the core business.

The broker believes high returns can be expected going forward as the nutritional capability is expanded and UHT volumes ramp up.

Citi reiterates a Buy rating and raises the target to $5.90 from $5.80.

Target price is $5.80 Current Price is $4.47 Difference: $1.33
If FNP meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $5.79, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates FNP as Upgrade to Add from Hold (1) -

First half operating earnings (EBITDA) beat Morgans' forecasts. The broker expects strong earnings growth because of strong demand for the company's products across Australia and Asia.

Following material share price weakness, the stock is now trading at an attractive forward multiple and the broker upgrades to Add from Hold. Target is steady at $5.16.

Target price is $5.16 Current Price is $4.47 Difference: $0.69
If FNP meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.79, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates FNP as Buy (1) -

Freedom Foods reported a strong half featuring 56% earnings growth, albeit a little short of the broker's forecast. A soft cereals contribution dragged, as did corporate costs and D&A, but the Plant-Based and Dairy & Nutritionals segments, representing 90% of earnings, performed well.

The outlook remains positive, the broker suggests, with the FY21 ramp-up of lactoferrin production on track and Plant Based momentum underpinned by new supply contracts. There is risk from 15% of revenues being in China, but on current pricing the broker believes the stock is undervalued. Buy retained. Target falls to $6.40 from $7.10.

Target price is $6.40 Current Price is $4.47 Difference: $1.93
If FNP meets the UBS target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $5.79, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates GDF as Hold (3) -

First half results were in line with expectations. The main focus for the near term is on leasing Botanicca 9 and the roll out of the project pipeline in Brisbane's industrial property.

The company has successfully refinanced its debt facilities. Morgans retains a Hold rating and reduces the target to $1.37 from $1.42.

Target price is $1.37 Current Price is $1.35 Difference: $0.02
If GDF meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 GNX as Add (1) -

Production in the first half suffered from an extended outage in October. The broker still envisages value in the stock despite the weaker performance of Kidston Stage 1.

Still, valuation remains heavily reliant on the assessment of Kidston Stage 2. Jemalong has commenced construction, with commissioning expected in the second quarter of FY21.

The broker retains Speculative Buy (Add). Target is raised to $0.26 from $0.25.

Target price is $0.26 Current Price is $0.19 Difference: $0.07
If GNX meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates HSN as Buy (1) -

Hansen Technologies' first half operating earnings (EBITDA) were slightly better than Ord Minnett expected. Given record new business has been obtained in the year to date, the broker estimates organic revenue growth should be 8%.

This is considered impressive for a stock trading on less than 14x FY20 gross free cash flow. Ord Minnett reiterates a Buy rating and reduces the target to $4.00 from $4.26.

Target price is $4.00 Current Price is $3.35 Difference: $0.65
If HSN meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates HVN as Neutral (3) -

Harvey Norman's first half pre-tax profit was poor, in Citi's view. The broker downgrades estimates for underlying earnings by -9.2% for FY20.

Housing indicators suggest a recovery in sales is likely over the next six months, but Citi is cautious.

There are potential supply chain risks from coronavirus, particularly in audiovisual, IT and large appliances, suggest the analysts. Buy rating maintained. Target is reduced to $4.30 from $4.70.

Target price is $4.30 Current Price is $3.62 Difference: $0.68
If HVN meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Credit Suisse rates HVN as Neutral (3) -

First half results were largely in line with expectations. However, Credit Suisse notes comparisons are unfavourable with The Good Guys ((JBH)) and Nick Scali ((NCK)), as Harvey Norman's Australian franchisee performance weakened in the second quarter relative to the other two.

A greater regional exposure is considered a partial explanation. Offshore results continue to show a strong positive trend but this is of insufficient size to materially influence valuation, in the broker's view.

Credit Suisse retains a Neutral rating and reduces the target to $4.17 from $4.28.

Target price is $4.17 Current Price is $3.62 Difference: $0.55
If HVN meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Macquarie rates HVN as Neutral (3) -

First half results were in line with Macquarie's estimates. However, the outlook appears weaker, with a particularly challenging second half from Australia and Asia.

The broker notes the company is looking to gain further market share in the smartphone market and will work with Optus to expand the partnership. There was no comment on capital management.

Macquarie retains a Neutral rating and reduces the target to $3.90 from $4.30.

Target price is $3.90 Current Price is $3.62 Difference: $0.28
If HVN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates HVN as Upgrade to Hold from Lighten (3) -

First half results were slightly ahead of Ord Minnett's forecasts. International and property were better than expected, while the core franchising operations disappointed.

However, the broker assesses the recent decline in the share price makes the valuation more attractive and the rating is upgraded to Hold from Lighten. Target is lowered to $3.75 from $4.00.

Target price is $3.75 Current Price is $3.62 Difference: $0.13
If HVN meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

UBS rates HVN as Buy (1) -

Harvey Norman's result missed the broker by -6%, driven by weakness in Australia, where sales trends deteriorated and tactical support was required. A trading update for January showed a further -3% decline in sales due to the bushfires and virus. The broker has cut its earnings forecasts by -5% on the expectation margins will continue to weaken.

That said, the broker cites a housing recovery, lower than expected impact from the Amazons of the world and industry consolidation as reasons to assume stronger results in the second half and beyond. At 12.5x FY21 forecasts, the broker does not see a recovery as priced in. Buy retained, target falls to $4.35 from $4.50.

Target price is $4.35 Current Price is $3.62 Difference: $0.73
If HVN meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.08, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

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

Given further deterioration in macro economic conditions on the back of the coronavirus contagion, Morgans has become more cautious. Rating is downgraded to Hold from Add.

The short-term nature of any impact makes the broker reluctant to change its long-term view but, at current multiples, the stock is more vulnerable to any impact from coronavirus. Target is $24.49.

Target price is $24.49 Current Price is $21.19 Difference: $3.3
If IEL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $22.61, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates IRE as Upgrade to Buy from Hold (1) -

FY20 guidance was slightly below Ord Minnett's forecasts and the second half skew provides a slightly higher risk profile. However, the share price has fallen -15% throughout February and this is a noteworthy de-rating versus software stocks globally.

Ord Minnett is comfortable with forecasts and assesses, while market volatility could persist for a few weeks yet, the stock now represents value. Target is raised to $12.90 from $12.85 and the rating upgraded to Buy from Hold.

Target price is $12.90 Current Price is $11.84 Difference: $1.06
If IRE meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.69, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates JHC as Hold (3) -

First half results were below forecasts. The main positives are stable operating cashflow and occupancy. Cost headwinds are expected to continue.

Morgans places a -15% discount on the valuation to reflect uncertainty surrounding royal commission outcomes.

Hold maintained. Target is reduced to 89c from $1.15.

Target price is $0.89 Current Price is $0.90 Difference: minus $0.01 (current price is over target).
If JHC 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 $0.92, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates JHC as Lighten (4) -

First half results were below expectations, which reflected modest funding growth and occupancy challenges.

Soft conditions are set to continue, in Ord Minnett's view, with no meaningful change to funding expected until after the Royal Commission reports in November.

The spread of coronavirus also adds an additional risk. Lighten maintained. Target is reduced to $0.80 from $0.95.

Target price is $0.80 Current Price is $0.90 Difference: minus $0.1 (current price is over target).
If JHC meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.92, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

UBS rates JHC as Neutral (3) -

Japara Healthcare's -17% fall in earnings was -4% worse than the broker had forecast but not as bad, the broker believes, as the market had feared. Following material downgrades from peers back in December, the stock had fallen -16% into the result release. But the headwinds that drove those material headwinds are set to continue.

The company has guided to a -10% fall in earnings in FY20 but adjusting for new accounting rules and gains on asset sales the broker calculates -23%. Neutral retained, target falls to 95c from $1.10.

Target price is $0.95 Current Price is $0.90 Difference: $0.05
If JHC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.92, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgans rates LNK as Add (1) -

First half net profit was below estimates. Morgans is disappointed the company has downgraded guidance again, although acknowledges the original guidance was always going to be optimistic.

While the downgrade is a test of investor patience, Morgans defends FY20 as a transition year and expects an improving trajectory into FY21 will be forthcoming. Add rating maintained. Target is reduced to $5.95 from $7.50.

Target price is $5.95 Current Price is $4.58 Difference: $1.37
If LNK meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.13, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates LNK as Accumulate (2) -

Net profit was ahead of Ord Minnett's forecasts in the first half while operating earnings (EBITDA) were broadly in line.

However, most disappointingly, the company has downgraded guidance, expecting no bounce in earnings.

Still, Ord Minnett assesses earnings forecasts are now more realistic and retains an Accumulate rating, although the target is reduced to $5.75 from $7.14.

Target price is $5.75 Current Price is $4.58 Difference: $1.17
If LNK meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.13, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates LYC as Buy (1) -

Lynas Corp's first half earnings were modest but not indicative of the underlying value of the business, the broker believes. The processing plant was running at only 75% capacity during the period due to licence limits while a neodymium-praseodymium price of US$37/kg was well below an incentive price.

The next key step is the moving of the cracking and leaching process to Australia from Malaysia at a cost of -$500m.

The broker has trimmed its NdPr price assumptions, with prices tracking below forecast due mainly to weak auto sales. Target falls to $2.80 from $3.00. The broker's Buy rating is underpinned by Lynas being the only producer of rare earths outside China.

Target price is $2.80 Current Price is $1.81 Difference: $0.99
If LYC meets the UBS target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates NXT as Buy (1) -

In the first half S2 billing was ahead of Citi's expectations and margin expansion was stronger than expected, albeit the latter is expected to ease back in the second half.

Earnings growth in the short term is expected to be underpinned by the contracted order book. The main risk to the broker's thesis is increasing supply that may impact on pricing and demand over the medium term.

Citi retains a Buy rating and $9.10 target.

Target price is $9.10 Current Price is $7.61 Difference: $1.49
If NXT meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates NXT as Outperform (1) -

First half operating earnings (EBITDA) were ahead of Macquarie's estimates. The broker notes the second Sydney data centre is gaining momentum and the outlook for Melbourne is improving.

The company has indicated the industry remains rational and demand is strong. The broker retains an Outperform rating and raises the target to $8.80 from $7.75.

Target price is $8.80 Current Price is $7.61 Difference: $1.19
If NXT meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgan Stanley rates NXT as Overweight (1) -

NextDC's first half results were in line with Morgan Stanley's estimates. Guidance for FY20 is reaffirmed.

Morgan Stanley retains an Overweight rating, assessing the business is a differentiated asset that is subject to long-term structural tailwinds.

The broker believes there is strategic value in the asset class, as highlighted by the recent AirTrunk transaction. In-Line industry view. Target is $8.40.

Target price is $8.40 Current Price is $7.61 Difference: $0.79
If NXT meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgans rates NXT as Add (1) -

First half results were in line with forecasts. While expecting costs will increase, Morgans believes the company remains comfortably on track to achieve guidance.

Despite lower interest income, NextDC has held FY20 revenue guidance intact. Data centre underlying operating earnings (EBITDA) guidance of $100-105m was reiterated.

The broker's estimates for earnings per share are lowered because of higher depreciation forecasts. Morgans retains an Add rating and lifts the target to $8.73 from $6.68.

Target price is $8.73 Current Price is $7.61 Difference: $1.12
If NXT meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates NXT as Hold (3) -

The first half net loss was greater than Ord Minnett's forecast. Still, billing and operating expenses were slightly better.

The broker believes the results demonstrate predictability in the revenue stream as well as an ability to control costs.

Still, Ord Minnett is unsure whether the strategy of continuing to build hyper-scale data centres makes sense in the current environment.

Hold maintained. Target is raised to $8.20 from $7.00.

Target price is $8.20 Current Price is $7.61 Difference: $0.59
If NXT meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Ord Minnett rates PAC as Buy (1) -

Performance fees have propelled first half net profit 68% higher. Ord Minnett suggests FY20 guidance for profit of $24-25m could be conservative. The depreciating Australian dollar also provides a tailwind in the second half.

Ord Minnett retains a Buy rating, with the balance sheet now fully deployed and investments delivering returns. Target is raised to $7.91 from $7.55.

Target price is $7.91 Current Price is $5.66 Difference: $2.25
If PAC meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates PWH as Add (1) -

The first half result was ahead of expectations. No formal guidance was provided, although the company has indicated it is on track for growth in the second half and FY21.

Morgans notes, while motorsports remain the key revenue source, most of the growth in the first half was driven by original equipment manufacturers and emerging technologies.

The broker retains an Add rating and reduces the target to $5.10 from $5.30.

Target price is $5.10 Current Price is $4.32 Difference: $0.78
If PWH meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates REH as Sell (5) -

First half results were in line. This signals the US growth strategy is going well and Citi notes underlying margins in both the US and Australasia are holding up.

However, Australian market conditions are expected to remain challenging in 2020 and downside risk to consensus forecasts exist, in the broker's view.

Citi retains a Sell rating and $10.50 target.

Target price is $10.50 Current Price is $11.69 Difference: minus $1.19 (current price is over target).
If REH meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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 REH as Upgrade to Add from Hold (1) -

First half results were ahead of expectations. US sales revenue grew 19%. Morgans envisages a lot of potential in the US once the company deploys its accelerated bolt-on strategy and rolls out stores.

Margins are expected to continue improving. The main risk centres on the slowing downstream construction activity. The broker upgrades to Add from Hold and raises the target to $12.84 from $12.45.

Target price is $12.84 Current Price is $11.69 Difference: $1.15
If REH meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates RSG as Buy (1) -

Citi notes 2019 was a choppy year, and results were below expectations, but 2020 should be different. The broker expects a re-rating throughout the year as Syama ramps up.

The company has guided to gold recovery in the low 80% region as the roaster ramps up while 85% remains the target. Buy/High Risk rating maintained. Target is $1.60.

Target price is $1.60 Current Price is $0.96 Difference: $0.64
If RSG meets the Citi target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $1.35, suggesting upside of 40.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates RSG as Neutral (3) -

2019 operating earnings (EBITDA) were in line with Macquarie's estimates, although the reported loss was against expectations of a profit.

The broker assesses the continued ramp up of Syama sulphides is critical for de-leveraging the balance sheet, given expectations of a softer performance from the oxide operation.

Macquarie reduces the target to $1.10 from $1.20 and maintains a Neutral rating.

Target price is $1.10 Current Price is $0.96 Difference: $0.14
If RSG meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.35, suggesting upside of 40.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgan Stanley rates S32 as Overweight (1) -

Morgan Stanley updates estimates to allow for FY20 costs and capital expenditure as well as the additional buyback. The broker's base case outlook is unchanged.

Overweight retained. Industry view: In-Line. Target is $2.85.

Target price is $2.85 Current Price is $2.29 Difference: $0.56
If S32 meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 26.9% (ex-dividends)

The company's fiscal year ends in June.

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 SHJ as Add (1) -

First half results were in line with expectations. Cash flow particularly pleased Morgans. The key positive is the upcoming decision on damages following the successful mesh class action.

The broker continues to view the stock as defensive in the current economic climate and retains an Add rating. Target is raised to $1.23 from $1.18.

Target price is $1.23 Current Price is $0.94 Difference: $0.29
If SHJ meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates SZL as Buy (1) -

2019 results, which beat estimates slightly, bode well for 2020 in terms of the company's performance, Ord Minnett assesses.

The sector in North America is continuing to experience hyper rates of growth and the stock provides a pure-play exposure.

Ord Minnett retains a Buy rating and $3.40 target.

Target price is $3.40 Current Price is $1.49 Difference: $1.91
If SZL meets the Ord Minnett target it will return approximately 128% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Ord Minnett rates VOL as Buy (1) -

First half net profit was in line with Ord Minnett's forecast. The broker suggests the stock is far too cheap for the growth that is ahead.

Victory Offices has quickly become the second-largest serviced office provider in the country.

While such aggressive expansion provides a short-term hit to the bottom line, it also establishes a platform for long-term growth, in the broker's view.

Ord Minnett reiterates a Buy rating and raises the target to $2.75 ffrom $2.51.

Target price is $2.75 Current Price is $1.65 Difference: $1.1
If VOL meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates WTC as Upgrade to Buy from Lighten (1) -

The share price has fallen -40% over February. Ord Minnett now assesses the stock is trading on a forward enterprise value/revenue multiple of 9.6x, around -40% below its two-year average.

While there is a risk FY20 guidance may still prove too optimistic, Ord Minnett believes the stock represents value at current levels and upgrades to Buy from Lighten. Target is reduced to $19.00 from $19.34.

Target price is $19.00 Current Price is $17.29 Difference: $1.71
If WTC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $26.83, suggesting upside of 55.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgans rates Z1P as Upgrade to Add from Hold (1) -

First half net loss was greater than Morgans expected. The broker downgrades FY20 and FY21 forecast by more than -50%, given lower cash earnings margin assumptions.

While the Zip Co share price has retraced significantly, the broker envisages long-term value is re-emerging and therefore upgrades to Add from Hold. Target is reduced to $3.23 from $3.92.

Target price is $3.23 Current Price is $2.83 Difference: $0.4
If Z1P meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 33.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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