Australian Broker Call

Deutsche Bank rates ASX as Upgrade to Hold from Sell (3) -

ASX has made a strong start to FY19 from a cash market perspective, Deutsche Bank observes, with the value traded up 17% for the first four months of the year on a 17% increase in volume traded.

The recent market correction, nevertheless, is expected to drag on capital raisings for the next six months.

The pullback in the share price now means the stock is in line with fair value and the broker upgrades to Hold from Sell. $58.50 target maintained.

Target price is $58.50 Current Price is $59.54 Difference: minus $1.04 (current price is over target).
If ASX meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.91, suggesting downside of -4.4% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.6

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

Credit Suisse rates BSL as Outperform (1) -

BlueScope's Malaysian business has acquired a galvanising and colour coating facility in Klang. The deal is subject to YKGI Holdings' shareholder and regulatory approvals.

The acquisition, for $42m, is located 10 km from the company's existing Malaysians facilities. Credit Suisse considers the deal a cost-effective transaction with clear strategic benefits.

Outperform rating and $19 target retained.

Target price is $19.00 Current Price is $14.31 Difference: $4.69
If BSL meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $19.65, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Citi rates COH as Upgrade to Buy from Neutral (1) -

A US court has awarded damages of US$268m against Cochlear in a patent infringement case. As the patent in the litigation has expired the judgment will not disrupt the company's business in the US.

Cochlear will appeal the judgment, a process that is expected to take up to two years. To stay the execution of the outcome pending appeal Cochlear will need to lodge a US$335m insurance bond with the court.

As a consequence of the recent fall in the share price Citi has upgraded to Buy from Neutral and reduced the target price to $202 from $220.

Target price is $202.00 Current Price is $171.89 Difference: $30.11
If COH meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $180.73, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Deutsche Bank rates COH as Hold (3) -

A US District Court has awarded damages against Cochlear of US$268m in relation to a patented infringement case. Cochlear was surprised by the decision and had only provisioned for $21m in relation to this dispute.

The company is appealing and expects it will take two years for a decision. Deutsche Bank notes Cochlear will now need to lodge a US$335m insurance bond for the dispute. Hold rating and $188 target maintained.

Target price is $188.00 Current Price is $171.89 Difference: $16.11
If COH meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $180.73, suggesting upside of 5.1% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

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

Damages of US$268m have been awarded against Cochlear in a US patent infringement case. The company will appeal and needs to lodge a US$335m insurance bond with the court. An appeal will take two years for an outcome.

Morgan Stanley believes, if Cochlear were to lose the appeal, the FY21 estimate of net debt would increase to $436m and there may be downside to FY21 net profit estimates.

Equal-weight rating, In-Line industry view. Target is reduced to $175 from $182.

Target price is $175.00 Current Price is $171.89 Difference: $3.11
If COH meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $180.73, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Ord Minnett rates COH as Lighten (4) -

A US District Court has ordered damages of US$268m to be paid by Cochlear as a result of a patient infringement case. The company will appeal the latest decision in a process expected to take two years.

A provision of $21.3m was expensed in FY14 in relation to this dispute and this will now be reviewed by an independent expert. Ord Minnett maintains a Lighten rating and $170 target.

Target price is $170.00 Current Price is $171.89 Difference: minus $1.89 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $180.73, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Deutsche Bank rates CSR as Upgrade to Buy from Hold (1) -

First half net profit was below expectations, largely because of a worse result from property, which is now heavily skewed to the second half. Deutsche Bank believes the company's varied end markets help offset a decline in residential volumes and building product margins.

The broker recognises some earnings risk in aluminium but believes the alumina/aluminium link is likely to return to its historical ratio by the time CSR has a new contract in January 2020.

Rating is upgraded to Buy from Hold as the stock is trading at a significant discount to peers.

Target price is $3.70 Current Price is $3.34 Difference: $0.36
If CSR meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.74, suggesting upside of 12.0% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

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

Ord Minnett suggests investors take the opportunity to build a position in the stock, after weakness stemming from the issues raised in the recent report on the company's business signalled some sloppy attention to detail regarding patents and the status of offices.

Organic growth, acquisitions and investment in technology are driving margins higher, and the broker believes the key to understanding this business is the importance of the scale and leverage this creates.

Ord Minnett upgrades to Buy from Hold. Target is steady at $30.30.

Target price is $30.30 Current Price is $20.32 Difference: $9.98
If CTD meets the Ord Minnett target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $27.46, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Ord Minnett rates EVT as Buy (1) -

The company has sold the German cinema business for what Ord Minnett believes is an "excellent" price. Approval of the sale is assumed by June 30, 2019. In the meantime, the broker downgrades FY19 German cinema earnings materially.

Sale proceeds will be applied to existing property over the medium term with strong returns expected, particularly for the Sydney assets. Some proceeds may be distributed in the form of a higher dividend, which is likely to be deferred until FY20.

Ord Minnett maintains a Buy rating and reduces the target to $15.96 from $16.83.

Target price is $15.96 Current Price is $13.59 Difference: $2.37
If EVT meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Deutsche Bank rates GXL as Hold (3) -

Greencross has entered into a scheme implementation deed with an entity owned by TPG Capital, which has made an offer at $5.55 cash per share.

The offer also includes an equity alternative, allowing shareholders to receive up to 75% of consideration in equity. Deutsche Bank has a Hold rating and $5.55 target.

Target price is $5.55 Current Price is $5.42 Difference: $0.13
If GXL meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting downside of -13.7% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

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

After a significant correction in the share price Morgan Stanley upgrades Galaxy Resources to Overweight from Equal-weight.

While maintaining a negative house view on lithium prices, the broker envisages a valuation gap has emerged which may close as near term catalysts approach, such as the sale process at Sal de Vida and resource drilling results at Mount Cattlin.

Moreover, after receiving cash from POSCO the broker expects a cash balance of around US$270m, roughly 1/3 of the market capitalisation. Target is raised to $2.90 from $2.85. Industry View: In-Line.

Target price is $2.90 Current Price is $2.62 Difference: $0.28
If GXY meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.8

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

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

After recent commodity price weakness Morgan Stanley envisages upside for the near term for both nickel and gold prices. Hence, valuation support has emerged for Independence Group, leading to an upgrade to Equal-weight from Underweight.

Drilling currently underway at Nova could provide a near-term catalyst for the stock, the broker adds. Moreover, management has flagged a move to dividends based on free cash flow in the near future, which could improve yield significantly.

Industry view is: In-Line. Target is raised to $4.40 from $4.15.

Target price is $4.40 Current Price is $4.42 Difference: minus $0.02 (current price is over target).
If IGO 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 $4.57, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates ING as Neutral (3) -

Credit Suisse believes the company is handling rising input costs, continuing to generate incremental improvements to margins from its efficiency program. Capital management remains on track.

On an underlying basis, the broker expects mid-to-high single digit price increases in the first half. While Australia is performing well New Zealand is challenged by tough market conditions with FY19 likely to be weak.

Neutral rating is maintained. Target is raised to $3.95 from $3.90.

Target price is $3.95 Current Price is $4.07 Difference: minus $0.12 (current price is over target).
If ING 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 $3.71, suggesting downside of -8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

Credit Suisse rates IPL as Upgrade to Outperform from Neutral (1) -

Ahead of the FY18 result on November 13, Credit Suisse upgrades to Outperform from Neutral. The broker suspects the market is playing catch up on fertiliser prices and the tightening supply for explosives in eastern Australia.

Assumptions for fertiliser prices drive upgrades to the broker's earnings estimate and the target is increased to $4.33 from $4.02.

As the company is intent on maintaining its dominance of the Bowen Basin the next major capital project is likely to be an expansion of the ammonia capacity at Moranbah to support additional ammonium nitrate production, Credit Suisse suggests.

Target price is $4.33 Current Price is $4.20 Difference: $0.13
If IPL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Deutsche Bank rates MQG as Hold (3) -

First half results were in line with Deutsche Bank's forecasts. The confidence in the outlook was apparent, as guidance has been upgraded for profit to be around 10% higher.

The broker expects there to be support for the share price despite relatively full valuation multiples. Hold rating maintained. Target is $115.

Target price is $115.00 Current Price is $121.50 Difference: minus $6.5 (current price is over target).
If MQG meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $128.11, suggesting upside of 5.4% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Macquarie rates NCM as Underperform (5) -

A site tour of Cadia has highlighted the challenges at the mine, given the natural constraints imposed by block cave design and operation.

While performance has improved recently, Macquarie believes that, with so much effort required to keep things running smoothly, the balance of risks is to the downside.

Underperform and $16 target retained.

Target price is $16.00 Current Price is $21.06 Difference: minus $5.06 (current price is over target).
If NCM meets the Macquarie target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.22, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Macquarie rates ORG as Outperform (1) -

Macquarie believes the agreement between APLNG and Arrow provide some minor upside and an enhanced return. Of most significance is the potential for additional volumes from Arrow, as it lowers the medium-term risk of needing to ramp up fields to replace the Bellevue and Kenya production.

Despite softness in the earnings outlook Macquarie observes Origin Energy's cash flow is strong and limited capital expenditure will ensure rapid repayment of debt. Outperform rating maintained. Target is lowered to $9.11 from $9.51.

Target price is $9.11 Current Price is $7.23 Difference: $1.88
If ORG meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.16, suggesting upside of 26.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Citi rates OSH as Upgrade to Neutral from Sell (3) -

Citi now considers the ASX energy sector fairly priced but ASX names are not being priced at a premium to global peers. Under price assumptions of US$70/bbl for oil and US$9/mmbtu for LNG in the long term the stock would be trading at a -21% discount to the broker's valuation, before considering the dividend yield.

The broker upgrades to Neutral from Sell. Target is raised to $7.42 from $7.07.

Target price is $7.42 Current Price is $7.72 Difference: minus $0.3 (current price is over target).
If OSH meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.85, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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 PDL as Hold (3) -

Ahead of Pendal's result release on Thursday, the broker has cut its target to $10.05 from $11.00, forecasting lower earnings in FY19 due to materially lower performance fee expectations. Net flows could be weaker than the market anticipates due to weak funds performance.

Value appears to have emerged on an historical PE basis but the broker retains Hold, seeing limited upside to valuation.

Target price is $10.05 Current Price is $8.18 Difference: $1.87
If PDL meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $9.49, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Ord Minnett rates SCG as Accumulate (2) -

Ord Minnett observes the stock has been under pressure since it acquired a 50% stake in the Westfields Eastgardens in July. Recent speculation suggests Scentre Group is looking to sell down a 50% stake in three assets to a joint venture partner.

If so, this could free up around $1.6bn to fund the Eastgardens acquisition, Ord Minnett calculates, and provide capital to continue with the buyback. The broker expects such a decision would be well received by the market.

Accumulate rating and $4.70 target maintained.

Target price is $4.70 Current Price is $3.93 Difference: $0.77
If SCG meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

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

Macquarie reviews the investment thesis for Treasury Wine following the recent de-rating of the stock. The broker is increasingly convinced about margin improvement in the US, which remains a significant growth opportunity.

The broker also expects the company to remain on the acquisition trail, principally focused on the US. Successful execution of US distribution changes presents margin upside of around 2-2.5%, in Macquarie's opinion.

Rating is upgraded to Outperform from Neutral. Target is raised to $18.22 from $17.15.

Target price is $18.22 Current Price is $15.81 Difference: $2.41
If TWE meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.40, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Credit Suisse rates WBC as Neutral (3) -

FY18 results were in line with expectations. Credit Suisse upgrades earnings estimates by 3% for FY19 and 1% for FY20 because of slightly lower cost estimates.

The broker applauds the bank's heightened focus on costs but does not expect a step change to materialise until FY20. Neutral rating and $31.50 target maintained.

Target price is $31.50 Current Price is $26.92 Difference: $4.58
If WBC meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Deutsche Bank rates WBC as Buy (1) -

Second half results were slightly ahead of forecasts with benefits from very low bad debt charges. Underlying net interest margin was slightly better than forecast and the CET1 ratio was higher.

Overall, the broker considers the result mixed while the cost outlook is a small positive. Buy rating and $31 target maintained.

Target price is $31.00 Current Price is $26.92 Difference: $4.08
If WBC meets the Deutsche Bank target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Macquarie rates WBC as Neutral (3) -

Macquarie expects lower margins in FY19 and, along with slowing credit growth, suspects underlying revenue trends will remain weak.

While the cost guidance is considered a step in the right direction the broker suggests it will probably not be enough to drive earnings growth in FY19-20.

The broker envisages limited scope for outperformance in the near term and maintains a Neutral rating. Target is $29.50.

Target price is $29.50 Current Price is $26.92 Difference: $2.58
If WBC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

Morgan Stanley expects another year of hard going for Westpac. Current trading multiples are not viewed as providing much valuation support.

Credit quality remains firm and the broker suspects, if the underlying loss rate remains in line with current levels, forecasts for earnings per share would need to be raised by 3-4%.

While expecting the margin to rebound from home loan re-pricing, Morgan Stanley believes lower wealth revenue and further customer refunds will weigh on non-interest income.

Equal-weight maintained. Target is raised to $27.00 from $26.80. Industry view: In Line.

Target price is $27.00 Current Price is $26.92 Difference: $0.08
If WBC meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Morgans rates WBC as Add (1) -

One of the impressive features of Westpac's result was a significant increase in productivity savings, the broker suggests. Otherwise the profit number was a slight miss. The dividend was as expected and given a strong capital position and sound asset quality, the broker expects no change to dividend policy ahead.

The broker believes the bank's net interest margin may have troughed in the June quarter, but expects ongoing productivity savings to be the main driver of earnings growth for all the majors over the next three years. Add and $34.50 target retained.

Target price is $34.50 Current Price is $26.92 Difference: $7.58
If WBC meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

Ord Minnett rates WBC as Accumulate (2) -

Cash earnings were in line with forecasts. Ord Minnett observes the second half was tough for Westpac, with a significant decline in net interest margin. On the positive side, cost guidance was better than expected and asset quality was firm.

The broker expects mortgage re-pricing will boost the performance in the first half but the consumer bank is likely to face ongoing pressure. Accumulate rating maintained. Target is lowered to $30.90 from $31.30.

Target price is $30.90 Current Price is $26.92 Difference: $3.98
If WBC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $30.05, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.2

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

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

Webjet has acquired DOTW for $240m. Morgan Stanley notes, in FY18, DOTW grew total transactions by 7% in AUD terms, although operating earnings declined -20% and expenses grew 74%.

The broker believes the acquisition reduces the clarity on B2B growth in FY19 and FY20. Equal-weight. Target is $16.60. Industry View is In-Line.

Target price is $16.60 Current Price is $12.91 Difference: $3.69
If WEB meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $17.28, suggesting upside of 33.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Citi rates WPL as Upgrade to Neutral from Sell (3) -

Citi now considers the ASX energy sector fairly priced but ASX names are not being priced at a premium to global peers. Under price assumptions of US$70/bbl for oil and US$9/mmbtu for LNG in the long term the stock would be trading at a -14% discount to the broker's valuation, before considering the dividend yield.

Meanwhile, the changes announced by the Commonwealth government to the petroleum resource rent tax have resulted in a -5% reduction to the broker's valuation of Woodside.

Rating is upgraded to Neutral from Sell. Target is reduced to $32.91 from $34.64.

Target price is $32.91 Current Price is $33.98 Difference: minus $1.07 (current price is over target).
If WPL meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.51, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

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

As the project metrics at Odysseus have improved and there is upside for the nickel price, Morgan Stanley upgrades to Equal-weight from Underweight.

Nevertheless, limited mine life at the Forrestania assets and risks related to construction and commissioning of Odysseus provide higher pre-production expenditure estimates of $299m.

Industry view is In-Line. Target is reduced to $2.50 from $2.55.

Target price is $2.50 Current Price is $2.47 Difference: $0.03
If WSA meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.7

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