Australian Broker Call

Macquarie rates ALL as Outperform (1) -

Macquarie believes the company still has growth opportunities in North America and in digital, driven by superior products and under-penetration. The broker highlights digital profitability, taking into account new game launches and user acquisition expenditure.

This is likely to push margins below 30%, with some recovery in the second half as revenues build. Macquarie lifts North American forecasts and lowers digital forecasts. The company will report its first half result on May 23. Outperform rating and $27.25 target maintained.

Target price is $27.25 Current Price is $25.74 Difference: $1.51
If ALL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $31.39, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

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

AP Eagers has raised its offer and now has the support, unanimously, from the Automotive Holdings ((AHG)) board. Morgan Stanley welcomes this as a positive development.

Odds now seem in favour of AP Eagers receiving 90% or higher acceptances from AHG shareholders. The analysts remind investors the ACCC still needs to grants its approval as well.

Next week AP Eagers shareholders will gather for this year's AGM and the analysts believe the company will confirm ongoing tough industry conditions. Equal-weight. Target $7. Industry view In-Line.

Target price is $7.00 Current Price is $8.65 Difference: minus $1.65 (current price is over target).
If APE meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.63, suggesting downside of -11.8% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates AWC as Upgrade to Neutral from Sell (3) -

UBS forecasts a US11.9c per share dividend in 2019. This is well down on 2018, which was driven by a very high, yet unsustainable, pricing environment.

The broker envisages a longer-term dividend of US11-12c per share based on a US$350/t alumina price that will support the share price, assuming free cash flow is returned to shareholders.

UBS considers the outlook now more balanced and moves to a Neutral rating from Sell. There is potential downside risk in the alumina price should Alunorte reach full capacity in the current quarter. Target is steady at $2.20.

Target price is $2.20 Current Price is $2.19 Difference: $0.01
If AWC meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Macquarie rates CCL as Downgrade to Underperform from Neutral (5) -

Macquarie downgrades to Underperform from Neutral following the recent re-rating of the share price above its target, which is steady at $8.15. The broker believes Australian beverages remain susceptible to a number of headwinds such as competition and sugar issues, and more investment in price is likely.

The broker expects more money will need to be spent to meet growth targets and forecasts $10-20m per annum expenditure over the next three years. Indonesian volumes have improved but Macquarie notes this can be attributed to the cycling of undemanding comparables.

Target price is $8.15 Current Price is $8.82 Difference: minus $0.67 (current price is over target).
If CCL meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.36, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in December.

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 CMW as Resume Coverage with Hold (3) -

The company has confirmed that ARA Asset Management has increased its stake to 20.1%. Speculation centres on whether ARA may call an investor meeting to change the composition of the board.

Ord Minnett believes this development has potential for a change in strategy for Cromwell and/or ARA making a bid for outstanding shares.

Following a period of restriction, the broker moves back to a Hold rating with a target of $1.15.

Target price is $1.15 Current Price is $1.18 Difference: minus $0.03 (current price is over target).
If CMW meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.06, suggesting downside of -9.9% (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

Citi rates CSR as Neutral (3) -

Citi notes, while the market may slow, management expects that downturn to be short lived. The company is witnessing relatively firm underlying demand at present, although notes a moderation in second half volumes.

Energy cost headwinds have eased but alumina costs are expected to rise from 2020. The broker expects the strong balance sheet and growing net cash reserves should support a share buyback and/or opportunistic M&A.

Citi maintains a Neutral rating and reduces the target to $3.50 from $3.60.

Target price is $3.50 Current Price is $3.37 Difference: $0.13
If CSR meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates CSR as Downgrade to Underperform from Neutral (5) -

FY19 net profit was in line with guidance. Credit Suisse believes the downturn in building activity is only just beginning and volume declines are likely to accelerated during the year. History points to significant operating leverage for the company.

The broker also believes it will be challenging to maintain earnings for aluminium, given the second half step up in coal, alumina and other costs. The broker downgrades to Underperform from Neutral, maintaining a target of $2.90.

Target price is $2.90 Current Price is $3.37 Difference: minus $0.47 (current price is over target).
If CSR meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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

Deutsche Bank rates CSR as Downgrade to Hold from Buy (3) -

FY19 net profit was broadly in line with Deutsche Bank's expectations. No quantitative guidance was provided for FY20, as is usually the case.

Management has indicated that building products volumes in April are consistent, although there are mixed economic signals which make it difficult to predict activity in FY20.

Deutsche Bank believes risk is to the downside for building product margins. Aluminium earnings are expected to remain depressed until at least FY21. The broker downgrades to Hold from Buy and reduces the target to $3.60 from $3.80.

Target price is $3.60 Current Price is $3.37 Difference: $0.23
If CSR meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

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 CSR as Neutral (3) -

FY19 results were below Macquarie's expectations because of weaker building products. The broker believes the lack of visibility in the outlook is a symptom of the challenges in the building industry.

The broker considers the balance sheet robust while the company is waiting for the re-setting of valuations to build out its building products portfolio. Macquarie maintains a Neutral rating and reduces the target to $3.40 from $3.45.

Target price is $3.40 Current Price is $3.37 Difference: $0.03
If CSR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates CSR as Underweight (5) -

FY19 results were in line with Morgan Stanley's expectations, helped by -$12m in restructuring costs taken below the line. Otherwise, the broker suggests weakness in Australian housing and cost pressures from aluminium are creating headwinds.

Morgan Stanley maintains an Underweight rating. The broker accepts the business is primarily exposed to the less-volatile detached dwelling segment but still expects the top line and margins to be pressured. Target is raised to $3.00 from $2.75. Industry view: Cautious.

Target price is $3.00 Current Price is $3.37 Difference: minus $0.37 (current price is over target).
If CSR meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates CSR as Hold (3) -

Ord Minnett found operating cash flow weak while underlying net profit was 2% ahead of estimates in FY19. The outlook also appears weak, as cyclical headwinds weigh on building products and lower prices and higher costs affect aluminium.

The broker notes the cash position is solid, which provides ample room for investment or buybacks. Hold rating maintained. Target rises to $3.45 from $3.35.

Target price is $3.45 Current Price is $3.37 Difference: $0.08
If CSR meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates CSR as Sell (5) -

UBS assesses the weakness in housing approvals is yet to hit the company's earnings. FY19 earnings (EBIT) declined by -18% and almost all of the reduction was in aluminium and property.

UBS observes CSR was relatively optimistic about housing, believing sentiment can turn quickly, although actions in preparing for the weakness suggests there is still genuine concern.

The balance sheet remains in the company's favour, the broker notes, with net cash of $50m plus a further $188m from the sale of Viridian and land. Sell rating and $2.70 target maintained.

Target price is $2.70 Current Price is $3.37 Difference: minus $0.67 (current price is over target).
If CSR meets the UBS target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.22, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in March.

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 CWY as Add (1) -

The company's presentation to the Morgans adviser network has provided more confidence in the outlook and the strategic position of Cleanaway Waste Management within the industry.

Morgans lifts estimates for earnings per share by 1-2%. The broker raises the target to $2.34 from $2.01 to reflect revenue resilience and the rolling forward of valuation. Hold maintained.

Target price is $2.34 Current Price is $2.27 Difference: $0.07
If CWY meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.30, suggesting upside of 1.5% (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

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

Morgans believes the stock is back into buying territory, and upgrades to Add from Hold. The broker forecasts an 11% total shareholder return on a 12-month horizon.

Upside potential exists if gross margins for Business Energy Australia are in the mid-upper range of guidance, or if the energy services division can increase its earnings faster than forecast.

The broker assumes the Neerabup power station will be refinanced in the first half of FY20. Target is reduced to $1.86 from $1.90.

Target price is $1.86 Current Price is $1.82 Difference: $0.04
If EPW meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

UBS rates MYR as Downgrade to Sell from Neutral (5) -

UBS notes the stock price has lifted around 58% in the year to date as the new CEO executes well and delivers on early commitments. The broker's analysis of lease expiry suggests a significant opportunity, resulting in 10-33% upgrades to earnings per share.

Still, the market remains, in the broker's opinion, overly optimistic on the size of potential upgrades and the pace at which the new strategy can be executed. Hence, the broker downgrades to Sell from Neutral. Target is raised to $0.59 from $0.47.

Target price is $0.59 Current Price is $0.64 Difference: minus $0.05 (current price is over target).
If MYR meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.47, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates NCM as Underperform (5) -

Credit Suisse assesses there is potential for Telfer to be sustained at around 400,000 ounces per year, with reduced costs, albeit contingent on technical success at Havieron and ore sorting at Telfer.

The broker acknowledges that these bold assumptions cannot be readily reconciled with the company's perfunctory reporting. Sustaining Telfer requires identification of an underground replacement and an alternative high-grade source as well as reducing the fixed cost base.

Credit Suisse maintains an Underperform rating and $20.30 target.

Target price is $20.30 Current Price is $25.10 Difference: minus $4.8 (current price is over target).
If NCM meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.81, suggesting downside of -5.1% (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: -0.4

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

Macquarie rates PPH as Outperform (1) -

As it turned out, the FY19 financial performance was better-than-expected but was accompanied by the unexpected announcement CEO and co-founder of the business, Chris Heaslip, has resigned. His role will be taken by Bruce Gordon, chair of the board since 2014 and intimately familiar with the company's operations, point out Macquarie analysts.

The FY19 surprise included a higher gross margin, but Macquarie's estimates take a dive first (-24% for FY20) with hefty increases for the subsequent years: up 34% for FY21 and up 27% for FY22. There is a deferred tax impact in FY20.

Target price lifts by NZ20c to NZ$4.63. The company is warming the market for a "strategic acquisition". While acknowledging the sudden changes have created unexpected uncertainty, Macquarie believes the positive operational momentum is likely to continue. Outperform.

Current Price is $3.59. Target price not assessed.

The company's fiscal year ends in March.

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: 0.0

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

Ord Minnett rates PPH as Downgrade to Lighten from Hold (4) -

FY19 revenue was in line with expectations. The deceleration in the back book suggests to Ord Minnett that either the company is finding it harder to increase online penetration or revenue churn is having an impact.

As such, with growth becoming increasingly reliant on signing new customers, amid significant leadership changes, the risks are now considered outweighing the rewards.

Rating is downgraded to Lighten from Hold. Target is reduced to $3.27 from $3.47.

Target price is $3.27 Current Price is $3.59 Difference: minus $0.32 (current price is over target).
If PPH meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in March.

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: 0.0

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

Morgan Stanley rates STO as Overweight (1) -

Morgan Stanley analyses the upcoming Dorado oil appraisal drilling. If successful, the broker believes Dorado could add an additional $0.30 a share to valuation, and more over time as the asset is de-risked.

The broker forecasts -US$1.4bn in debt reduction at an oil price of US$60/bbl and -US$2bn at US$70/bbl between now and 2021. Morgan Stanley acknowledges the reserve risks for GLNG over the medium term but believes this is offset by a production profile that is improving.

Overweight rating retained. Industry view: Attractive. Price target is raised to $7.70 from $7.20.

Target price is $7.70 Current Price is $6.97 Difference: $0.73
If STO meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.04, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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

Credit Suisse rates SUN as Neutral (3) -

Banking business in the March quarter showed a continuation of low growth. There was a net positive movement in impairment losses as gross impaired assets decreased by -2.4%.

Credit Suisse increases FY19 estimates for cash earnings by 0.6% and FY20 by 0.8%. Neutral rating and $13.25 target maintained.

Target price is $13.25 Current Price is $13.61 Difference: minus $0.36 (current price is over target).
If SUN 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 $14.01, suggesting upside of 2.9% (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

Deutsche Bank rates SUN as Buy (1) -

Suncorp experienced loan growth of 1% in the March quarter, declining -0.5% from the December quarter. The decline stems from a fall in the housing portfolio, partly offset by slight growth in business lending, Deutsche Bank observes.

The broker notes the bank has averaged 4% loan growth per annum over the past four years and believes there is significant scale opportunity available if the bank business can be widened. Buy rating and $14.70 target maintained.

Target price is $14.70 Current Price is $13.61 Difference: $1.09
If SUN meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.01, suggesting upside of 2.9% (ex-dividends)

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

Macquarie rates SUN as Underperform (5) -

Macquarie considers impairment levels in the March quarter are unsustainable. The broker continues to expect margin pressure and believes the company needs to lower its margin guidance range by -5-10 basis points in FY20.

Given the prospect of lower FY20 guidance being announced at the results in August, the broker envisages downside risk to forecasts and thus maintains an Underperform rating. Target is raised to $13.35 from $13.00.

Target price is $13.35 Current Price is $13.61 Difference: minus $0.26 (current price is over target).
If SUN meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.01, suggesting upside of 2.9% (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

Morgans rates SUN as Add (1) -

The company has released its March quarter banking update, with Morgans noting growth pressures continue and total lending declined -0.5% on a sequential basis.

The broker considers the separation of the general insurance and banking businesses has some merit, but does not believe it will fully bridge the discount to Insurance Australia Group ((IAG)).

Morgans lowers FY20 estimates for earnings per share by -2% and suspects recent steps to de-risk earnings will ultimately drive a re-rating. Add maintained. Target is reduced to $14.76 from $14.78.

Target price is $14.76 Current Price is $13.61 Difference: $1.15
If SUN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.01, suggesting upside of 2.9% (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 SUN as Hold (3) -

Ord Minnett notes overall lending growth is weak after total lending in the March quarter was just 1% ahead of the same period in 2018. Business lending was up 2.8%.

The company has indicated wholesale funding costs have eased, with a reduction in the 90-day Bank Bill Swap (BBSW) rate to 1.95% from 1.97%.

Continued mortgage price competition is expected to result in FY19 net interest margins at, or just below, the lower end of the 1.8-1.9% guidance.

Ord Minnett maintains a Hold rating and $14.13 target.

Target price is $14.13 Current Price is $13.61 Difference: $0.52
If SUN meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $14.01, suggesting upside of 2.9% (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

UBS rates SUN as Buy (1) -

UBS observes there were no material developments in the banking business in the March quarter at odds with recent trends. The broker believes Suncorp's investment case remains supported by the backdrop in general insurance and this should provide a floor for FY20 earnings per share.

The home lending portfolio remains conservatively positioned. Suncorp expects improved growth in the fourth quarter in both home and business lending. UBS maintains a Buy rating and $15 target.

Target price is $15.00 Current Price is $13.61 Difference: $1.39
If SUN meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.01, suggesting upside of 2.9% (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

Deutsche Bank rates SYR as Hold (3) -

March quarter production was in line with expectations. Sales revenue was US$22.5m, slightly lower than estimates because of lower-than-expected average realised prices.

The company has guided to a June quarter production target of 50-55,000t and reaffirmed its 2019 production target of 250,000t. Deutsche Bank maintains a Hold rating and $1.20 target.

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

Current consensus price target is $2.20, suggesting upside of 94.7% (ex-dividends)

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: 0.6

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

Deutsche Bank rates TLS as Buy (1) -

Deutsche Bank considers the news that the ACCC has opposed the merger of TPG Telecom ((TPM)) and Vodafone Hutchison Australia ((HTA)) is positive for Telstra, as it decreases the mid-term competitive threat to the Telstra 5G network and further entrenches Telstra's first mover advantage.

Telstra is expected to launch its first 5G enabled smart phone/consumer plans in coming months. Deutsche Bank maintains a Buy rating and $3.70 target.

Target price is $3.70 Current Price is $3.38 Difference: $0.32
If TLS meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.24, suggesting downside of -4.1% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Credit Suisse rates TPM as Underperform (5) -

The ACCC has opposed the merger between TPG Telecom and Vodafone Hutchison Australia. While the regulator acknowledges pressure on the underlying business, it remains of the view that allowing the merger would remove any prospects of a new mobile network operator entering the market.

Both TPG Telecom and Vodafone have indicated they will launch legal action in the Federal Court to contest the decision. To facilitate this, the merger agreement has been extended to August 31, 2020.

Credit Suisse believes the prospects for a favourable outcome will likely be better in the Federal Court, given Vodafone's minimal market share in fixed broadband, and with TPG Telecom having made a decision to cease its mobile network roll-out.

However, a favourable outcome is uncertain and the court process could drag on over 12 months. Credit Suisse maintains an Underperform rating and $5.60 target.

Target price is $5.60 Current Price is $6.13 Difference: minus $0.53 (current price is over target).
If TPM meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.31, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates TPM as Hold (3) -

The ACCC has opposed the merger with Vodafone Australia ((HTA)) and the two companies will now escalate the matter to the Federal Court. The ACCC has determined the merger would likely lessen competition in the supply of mobile services as it would preclude TPG Telecom from entering as the fourth mobile network operator.

With respect to the Huawei equipment being blocked, the ACCC said TPG Telecom has the capability and incentive to resolve the technical and commercial challenges it faces. As there are a number of unknowns and many variables, Morgans retains a Hold rating and sets the target at $5.50 from $6.65.

Target price is $5.50 Current Price is $6.13 Difference: minus $0.63 (current price is over target).
If TPM meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.31, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in July.

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 WHC as Buy (1) -

Deutsche Bank does not believe that there are any major stumbling blocks to the approval of the Vickery expansion project.

While many of the issues in the IPC statement will require further testing and investigation by the NSW government, the broker envisages project approval by the end of 2019.

The broker maintains a Buy rating with a $5.10 target.

Target price is $5.10 Current Price is $4.22 Difference: $0.88
If WHC meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.05, suggesting upside of 19.7% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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