Australian Broker Call

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

Morgan Stanley believes regulatory uncertainty is under appreciated by investors. The COAG Energy Council released its consultation progress for gas pipelines, providing options for additional regulation.

Such considerations include the ACCC or Australian energy regulator deciding which type of regulation to apply as well as disclosure of tariffs paid and rates of return.

Morgan Stanley retains an Equal-weight rating. Industry view is Cautious. Price target is $11.22.

Target price is $11.22 Current Price is $11.53 Difference: minus $0.31 (current price is over target).
If APA meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.90, suggesting downside of -5.5% (ex-dividends)

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

Macquarie rates BAP as Outperform (1) -

Macquarie found the FY20 trading update marginally weaker than expected. The company has acquired Driveline & Diesel Drive, truck parts businesses. This is expected to be 5-6% accretive to FY21.

Macquarie finds the valuation undemanding and retains an Outperform rating. The earnings profile also appears resilient in the current environment. Target is raised to $7.70 from $7.45.

Target price is $7.70 Current Price is $7.23 Difference: $0.47
If BAP meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 2.8% (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 BAP as Hold (3) -

Bapcor's trading update revealed strong sales growth but margin pressure across all businesses due to competition. The acquisition of two trucking parts companies was announced, supporting growth from FY21.

Management reiterated FY guidance but Morgans detected a softening in tone, likely due to said competition. Profit forecast lowered to the bottom end of guidance and Hold retained. Target falls to $6.90 from $6.98.

Target price is $6.90 Current Price is $7.23 Difference: minus $0.33 (current price is over target).
If BAP meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.43, suggesting upside of 2.8% (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 BAP as Buy (1) -

Bapcor has reiterated FY guidance, with margins under pressure due to competition despite price rises implemented to offset the weaker currency. The broker sees available growth levers, supported by the acquisition of two truck part companies and the Asia rollout from early next year.

Netting it all out means an increase in forecast earnings and a target increase to $7.70 from $7.30. Buy retained.

Target price is $7.70 Current Price is $7.23 Difference: $0.47
If BAP meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 2.8% (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 BKL as Hold (3) -

Blackmores has lowered earnings expectations for the first half, expecting it to be in line with the second half of FY19. Higher raw ingredient costs have affected gross margins.

Ord Minnett envisages near-term risk to earnings given slowing volumes in the export market as China's e-commerce rules change and affect the channel and route to market.

The broker believes the business should be generating higher margins vs what is currently being delivered. New management strategy is yet to be outlined. Hold rating maintained. Target rises to $80 from $70.

Target price is $80.00 Current Price is $84.81 Difference: minus $4.81 (current price is over target).
If BKL meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $71.00, suggesting downside of -16.3% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates CLH as Lighten (4) -

The company's trading update was broadly in line with Ord Minnett's expectations. Another arrangement sale with US private equity fund manager Balbec Capital has signalled additional sales could be forthcoming in FY20.

Ord Minnett believes management's cash collections targets are necessary in order to be comfortable about the outlook, given the current financial position of the business.

While the valuation may appear cheap, Ord Minnett suggests this disguises the financial leverage and significant underperformance of asset yields relative to listed domestic competitors. Lighten rating and $1.10 target maintained.

Target price is $1.10 Current Price is $1.22 Difference: minus $0.12 (current price is over target).
If CLH meets the Ord Minnett 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: -1.0

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

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

Citi has upgraded to Neutral from Sell following an interim report that turned out "in line", with a special dividend surprise and rather soft guidance for FY20. Citi analysts suggest the strong share price response was likely due to short covering on the day.

Property earnings were stronger and there is expectation the domestic housing cycle might be about to turn, which should underpin further improvement. Falling coal prices could benefit the aluminium operations, suggest the analysts.

Target price jumps to $4.30 from $3.60. Citi does see a profitable future for the Tomago smelter.

Target price is $4.30 Current Price is $4.71 Difference: minus $0.41 (current price is over target).
If CSR meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates CSR as Underperform (5) -

First half earnings (EBIT) were 11% ahead of Credit Suisse estimates. Net profit guidance for the full year is -10% below the broker's estimates at the mid point, explained by negligible property expectations.

The broker does not expect bricks/AFS/People divisions will improve in the second half. Underperform maintained. Target is $3.10.

Target price is $3.10 Current Price is $4.71 Difference: minus $1.61 (current price is over target).
If CSR meets the Credit Suisse target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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 CSR as Outperform (1) -

First half net profit was below expectations although aluminium earnings beat forecasts, helped by lower costs. Macquarie finds the market outlook somewhat opaque but notes the company remains positioned to cut costs.

The main catalysts will be whether macro signs improve and support a firming FY21 outlook. Outperform maintained. Target is raised to $4.80 from $4.65.

Target price is $4.80 Current Price is $4.71 Difference: $0.09
If CSR meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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 CSR as Underweight (5) -

First half results were ahead of Morgan Stanley's expectations at the earnings (EBIT) line. Net profit was below forecasts. The company has guided to FY20 net profit of $107-133m.

Morgan Stanley assesses there is downside risk to the outlook, although this appears to be entirely driven by lower property profits. Building products conditions are expected to deteriorate as the year progresses, which warrants caution in the broker's view.

Underweight rating maintained. Target is raised to $3.25 from $3.00. Industry view is Cautious.

Target price is $3.25 Current Price is $4.71 Difference: minus $1.46 (current price is over target).
If CSR meets the Morgan Stanley target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates CSR as Lighten (4) -

First half net profit was ahead of estimates. This was a challenging period for the building products division, Ord Minnett notes, with margins eroding materially. Aluminium earnings were better than forecast because of strong realised prices.

The broker expects the 12 months ahead will be particularly challenging and the business is yet to experience the full extent of the weakness in residential construction activity. Lighten rating and $3.60 target maintained.

Target price is $3.60 Current Price is $4.71 Difference: minus $1.11 (current price is over target).
If CSR meets the Ord Minnett target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates CSR as Sell (5) -

CSR delivered a soft result in challenging conditions for building products and aluminium. Margins were weak and FY guidance was also weak but ex of property. Property was the star in the result, the broker notes, with the company receiving a high price for its Horsley Park stage two asset. But this only serves to offset weakness, hence the broker sees limited earnings growth over the next two years.

The outlook for building materials is improving but it will be a while before CSR sees the benefits, while aluminium continues to deteriorate. Sell retained, target rises to $3.60 from $3.32.

Target price is $3.60 Current Price is $4.71 Difference: minus $1.11 (current price is over target).
If CSR meets the UBS target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates EOF as Initiation of coverage with Buy (1) -

Ecofibre provides hemp-based products and technologies. Ord Minnett notes there is increasing awareness of the potential therapeutic benefits of cannabidiol and, amid complete deregulation of hemp cultivation and production, these products have emerged as the fastest-growing industry in the US.

The business is well-placed to fully participate in this growth and Ord Minnett initiates coverage with a Buy rating and $4.07 target.

Target price is $4.07 Current Price is $3.42 Difference: $0.65
If EOF 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

Credit Suisse rates IGO as Underperform (5) -

Credit Suisse revises earnings estimates, assuming 77% payability versus 72% previously. The company has neither disclosed the payability settlement nor whether cobalt or copper payability has been revised.

As a result Credit Suisse only adjusts nickel payability. The broker raises FY20 estimates for earnings per share by 3% and FY21 by a more material 16%. Underperform rating maintained. Target rises to $4.65 from $4.45.

Target price is $4.65 Current Price is $6.33 Difference: minus $1.68 (current price is over target).
If IGO meets the Credit Suisse target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.05, suggesting downside of -4.4% (ex-dividends)

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

Ord Minnett rates IGO as Hold (3) -

The company has successfully negotiated improved offtake terms. A material improvement in payability terms was reached, which should bolster the bottom line, Ord Minnett notes.

The company will not progress studies on downstream processing to convert nickel sulphide concentrate from Nova to battery-grade nickel sulphate as the economics are no longer supportive.

Hold rating and $5.70 target maintained.

Target price is $5.70 Current Price is $6.33 Difference: minus $0.63 (current price is over target).
If IGO meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.05, suggesting downside of -4.4% (ex-dividends)

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

UBS rates IGO as Neutral (3) -

Independence Group has entered into offtake agreements fro nickel/copper concentrate due to expire in 2020. Exact terms have not been disclosed but the broker estimates nickel payability has increased from 70% to 78-79%, in line with expectation.

With this catalyst confirmed, attention now turns to exploration. Neutral retained on valuation. The stock is the broker's preferred nickel play. Target unchanged at $6.40.

Target price is $6.40 Current Price is $6.33 Difference: $0.07
If IGO meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.05, suggesting downside of -4.4% (ex-dividends)

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 MIN as Overweight (1) -

Mineral Resources has completed its deal with Albemarle. Cash of US$820m has been received.

Wodgina has been put on care and maintenance until markets improve and Morgan Stanley assesses the impact on operating earnings is negligible.

Target is $18.20. Overweight rating. Industry view: Attractive.

Target price is $18.20 Current Price is $14.29 Difference: $3.91
If MIN meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $16.90, suggesting upside of 18.3% (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 MIN as Accumulate (2) -

Mineral Resources has confirmed it has transferred a 60% interest in Wodgina to Albemarle and received US$820m as a cash payment. The joint venture has placed Wodgina on care and maintenance, following similar moves by peers to reduce production.

Operations will resume when market demand improves. Accumulate rating and $15.60 target maintained.

Target price is $15.60 Current Price is $14.29 Difference: $1.31
If MIN meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.90, suggesting upside of 18.3% (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

Citi rates MQG as Neutral (3) -

Macquarie's FY20 was always about the performance in H2, argues Citi post Friday's interim report release. The analysts believe Macquarie is in a better position to beat guidance for the full year after a first half that is being described as "humming along".

It is not Citi's base case that guidance will be beaten. Price target retained at $123.50. Neutral.

Also, Citi analysts argue H2 shall be more informative about whether Macquarie can keep growing its Return on Equity (ROE) above the long term trend.

Target price is $123.50 Current Price is $134.60 Difference: minus $11.1 (current price is over target).
If MQG meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $134.65, suggesting upside of 0.0% (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 MQG as Downgrade to Neutral from Outperform (3) -

First half profit was $1.46bn. Earnings quality was enhanced by the normalisation of asset & equity investment income and affected by a lower tax rate.

Following the first half result Credit Suisse downgrades to Neutral from Outperform. Target is steady at $135.

Results were broadly in line with expectations and the broker continues to believe this is a quality business, although upside appears limited in the near term.

Target price is $135.00 Current Price is $134.60 Difference: $0.4
If MQG meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $134.65, suggesting upside of 0.0% (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 MQG as Overweight (1) -

First half results were firm and Morgan Stanley notes an upgrade to FY20 asset manager fees guidance, given strong growth.

This provides confidence that the group will ultimately meet or beat full-year guidance. Revenue was ahead of estimates in the half-year while pre-tax profit was -2% below Morgan Stanley's forecasts.

The broker maintains an Overweight rating and In-Line industry view. Target is $143.

Target price is $143.00 Current Price is $134.60 Difference: $8.4
If MQG meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $134.65, suggesting upside of 0.0% (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 MQG as Add (1) -

Macquarie's result was largely in line with consensus and relatively clean and solid, the broker suggests. The Group is tracking well against FY guidance of "slightly lower" but is cycling a very strong second half last year, Morgans notes.

The broker has ticked up FY20-21 earnings forecasts and a roll-forward of valuation sees its target rise to $140.40 from $132.20. Relatively inexpensive, so Add retained.

Target price is $140.40 Current Price is $134.60 Difference: $5.8
If MQG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $134.65, suggesting upside of 0.0% (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 MQG as Accumulate (2) -

First half net profit was ahead of Ord Minnett's forecasts. The broker makes no changes to estimates for FY20 or FY21. Given the run-up in the share price, Ord Minnett assesses the stock is not overly cheap and there is only modest potential upside to valuation.

Still there remains some relative appeal, leading to an Accumulate rating being maintained. Target is raised to $136 from $133.

Target price is $136.00 Current Price is $134.60 Difference: $1.4
If MQG meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $134.65, suggesting upside of 0.0% (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 MQG as Neutral (3) -

Macquarie's result was in line with expectation and guidance, with revenue the highlight. The group continues to benefit from expansion of its commodities operation, and while management is conservative about the prospects of ongoing strength in the second half, the broker sees this as a source of potential upside.

Investments are currently weighted to green energy, which the broker believes should underpin a pipeline of gains on sales in coming years. Target rises to $130 from $125. Neutral retained on valuation.

Target price is $130.00 Current Price is $134.60 Difference: minus $4.6 (current price is over target).
If MQG meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $134.65, suggesting upside of 0.0% (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

Citi rates NHC as Neutral (3) -

New Hope Corp's win at the Queensland Court of Appeal has removed the final barrier for the state government to grant approval for the development of stage 3 of the Acland mine, comment analysts at Citi.

Incorporating this fresh development has pushed up the broker's valuation to $2.30 and its price target to $2.35. Ongoing weak coal pricing means the Neutral rating remains in place with Citi not enthusiastic about growth perspectives, at least not for the medium term.

Target price is $2.35 Current Price is $2.25 Difference: $0.1
If NHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in July.

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

Citi rates OGC as Buy (1) -

Problems at Didipio continue to weigh on the share price but Citi analysts remain hopeful a resolution will be achieved. Meanwhile, they remain positive about exploration potential in New Zealand and at Haile.

Overall, pre-released quarterly numbers were close to expectations, on Citi's assessment. $4.85 target and Buy/High rating both retained.

Target price is $4.85 Current Price is $3.45 Difference: $1.4
If OGC meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 33.0% (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: 0.9

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

Credit Suisse rates OGC as Outperform (1) -

The company has confirmed that the Waihi underground mining area will be depleted in the March quarter and Martha will not commence production until 2021. Credit Suisse reduces 2020 production estimates for Waihi to 19,000 ounces and group earnings (EBIT) to US$237m.

The potential of Haile will be visible after May 2020, when the operation will be leveraging the combined benefits of nameplate throughput, a new mining fleet and production flexibility. The broker maintains an Outperform rating and reduces the target to $4.75 from $5.70.

Target price is $4.75 Current Price is $3.45 Difference: $1.3
If OGC meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 33.0% (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: 0.9

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

Macquarie rates OGC as Outperform (1) -

The September quarter production report was in line with the pre-released aspects. Operating earnings (EBITDA) of US$34m were recorded in the quarter and a loss of -US$22m.

The loss was unexpected, with Macquarie noting non-production costs at Didipio and a loss on hedges as the cause. An Outperform rating is maintained. Target is reduced to $4.80 from $5.40.

Target price is $4.80 Current Price is $3.45 Difference: $1.35
If OGC meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 33.0% (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: 0.9

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

UBS rates OGC as Buy (1) -

OceanaGold's Sep Q earnings were in line with expectation. The near tem outlook is nevertheless one of disruption and transition, the broker notes, with Didipio still halted pending the renewal of its mining licence which is taking longer than expected, and mining at Waihi about to cease temporarily before moving underground.

This means the near term earnings outlook is not indicative of asset value, but the broker notes the market has discounted the stock to the point it is lagging peers and gold price improvement. Target falls to $4.15 from $4.30 but Buy retained.

Target price is $4.15 Current Price is $3.45 Difference: $0.7
If OGC meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.59, suggesting upside of 33.0% (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: 0.9

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

Citi rates ORI as Neutral (3) -

Orica's FY19 performance merely met expectations, argue the analysts, but it serves as further confirmation the company's core operations are set for solid growth.

The analysts note Burrup will disappear as a drag on earnings by H2 FY20 and the wireless technology might open up new growth through larger open pit mines.

Citi has pushed up its price target to $24.50, while also retaining the Neutral rating. If the company hits its target, the profit contribution from Webgen, the wireless technology unit, can become significant, point out the analysts.

Target price is $24.50 Current Price is $23.55 Difference: $0.95
If ORI meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates ORI as Neutral (3) -

FY19 results were in line with forecasts. Credit Suisse notes bulk explosives volumes are expanding and technology sales are increasing while Burrup remains on track to reach full production in the second half of FY20.

The broker also suggests Orica is getting on top of its underperformance in manufacturing. Neutral rating maintained. Target rises to $21.85 from $21.45.

Target price is $21.85 Current Price is $23.55 Difference: minus $1.7 (current price is over target).
If ORI meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates ORI as Neutral (3) -

FY19 net profit was ahead of expectations. Macquarie liked the positive growth outlook, particularly in the context of a challenging earnings backdrop in the broader market.

The company is delivering reasonable growth and this is being rewarded, the broker notes, notwithstanding a relatively full valuation.

The start-up of Burrup will be the main driver of growth going forward. Neutral rating maintained. Target is raised to $23.05 from $20.85.

Target price is $23.05 Current Price is $23.55 Difference: minus $0.5 (current price is over target).
If ORI 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 $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

FY19 earnings (EBIT) were ahead of Morgan Stanley's estimates. Management has guided for higher earnings, supported by technology, increased demand and mix across all regions.

The outlook appears consistent with the broker's forecasts and the business is considered well positioned to deliver further growth.

Equal-weight maintained. Target is $21. Industry view is Cautious.

Target price is $21.00 Current Price is $23.55 Difference: minus $2.55 (current price is over target).
If ORI 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 $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Morgans rates ORI as Hold (3) -

Orica matched a first half of strong growth with a second half of no growth but managed a slight beat on earnings. Further growth is targeted in FY20 with the company confident in the Burrup commissioning timetable but Morgans warns this is not without risk.

Headwinds have abated and the market has begun to factor in a technology premium for the stock, the broker notes. Morgans sees the stock as fully valued at this level. Hold retained, target rises to $22.10 from $20.00.

Target price is $22.10 Current Price is $23.55 Difference: minus $1.45 (current price is over target).
If ORI meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates ORI as Lighten (4) -

FY19 earnings (EBIT) were slightly ahead of Ord Minnett's forecast. Differentiated technology remains the focus for management, following the rectification of the Burrup ammonium nitrate plant.

The broker is cautious about the outlook, given recent checks indicated a -30% discount on electronic blasting system contract pricing in a developing market, supporting suspicions of potential volume-for-value trading in terms of margins.

Lighten rating maintained. Target rises to $17.00 from $16.20.

Target price is $17.00 Current Price is $23.55 Difference: minus $6.55 (current price is over target).
If ORI meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates ORI as Neutral (3) -

A solid result from Orica was in line with expectations. Volume increased for the largest divisions were offset by re-contracting, headwinds, increased sourcing costs and problems in Mexico, which the company had flagged. Thus earnings are forecast to increase in FY20, the broker notes, with a second half skew.

Burrup remains on track and the broker sees late stage leverage to a recovery in mining production activity and the easing of oversupply for ammonium nitrate. Target rises to $23.90 from $23.20, Neutral retained.

Target price is $23.90 Current Price is $23.55 Difference: $0.35
If ORI meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $21.91, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates REG as Downgrade to Neutral from Buy (3) -

The Royal Commission report was heavy on issues but light on solutions, UBS notes. The broker nevertheless believes the government will move on long term structural reforms, suggesting headwinds will persist until at least FY22.

Regis Healthcare annouced two small acquisitions but no financial details, although UBS has lifted earnings forecasts. Target rises to $3.20 from $3.10 but after a solid recent run, the broker pulls back to Neutral.

Target price is $3.20 Current Price is $3.17 Difference: $0.03
If REG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting downside of -7.0% (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 RIO as Outperform (1) -

While sustaining capital expenditure at the Pilbara operations has increased, guidance for the next five years is lower than Macquarie expected.

The company has reiterated a 360mtpa capacity target for its iron ore business but the broker suspects it will operate below this rate and retains a forecast for a long-term rate of 340mtpa.

The business continues to benefit from buoyant iron ore prices and the broker maintains an Outperform rating. Target is reduced to $104 from $105.

Target price is $104.00 Current Price is $93.69 Difference: $10.31
If RIO meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $96.77, suggesting upside of 3.3% (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

Ord Minnett rates RIO as Buy (1) -

The company has pushed US$500m in capital expenditure into 2020 from 2019 and provided new 2022 guidance of US$6.5bn. This is higher than Ord Minnett estimated and is largely because of ongoing expenditure in the iron ore division.

However, the broker does not consider the changes material. Ord Minnett maintains a Buy rating and $99 target.

Target price is $99.00 Current Price is $93.69 Difference: $5.31
If RIO meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $96.77, suggesting upside of 3.3% (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

Morgans rates RWC as Hold (3) -

A brief trading update from Reliance Worldwide left the broker making no change to forecasts. FY20 earnings guidance was reaffirmed but management highlighted weak construction in the UK due to Brexit uncertainty.

On the flipside, easing in US-China trade tensions could lead to tariff reductions on raw material costs. The lower AUD is also supportive and the broker lifts its target to $3.92 from $3.43. Hold retained.

Target price is $3.92 Current Price is $4.22 Difference: minus $0.3 (current price is over target).
If RWC meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.19, suggesting downside of -0.8% (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 SEA as Add (1) -

Sundance Energy's Sep Q sales fell just short of guidance due to well shut-ins and midstream bottlenecks. Company fundamentals are nevertheless improving and the oil price is "healthy", the broker suggests, but all US-based oil companies are trading at weak share price due, the broker believes, to the ongoing trade war.

The broker retains a Speculative Buy but warns sentiment around the oil price will have to improve ahead of any re-rating. Target falls to 61c from 64c.

Target price is $0.61 Current Price is $0.14 Difference: $0.47
If SEA meets the Morgans target it will return approximately 336% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates TAH as Buy (1) -

The broker estimates Tabcorp's wagering app market share rose 3% to 21% in the Sep Q, making it number one share-taker in the period. Sportsbet's app has a share of 34%. In Lotteries, Tabcorp's share is number one at 67%, up 8% in the Sep Q and the highest level since 2015.

This provides for a more optimistic view on revenues but offset by conservative expectations for cost growth associated with app growth. The broker retains Buy and a $5.90 target.

Target price is $5.90 Current Price is $4.83 Difference: $1.07
If TAH meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 1.8% (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 WPL as Outperform (1) -

The company has flagged the potential for a material upgrade to resources at Scarborough. Credit Suisse suggests Woodside Petroleum may need to allay market scepticism about this, by explaining the technical rationale for any upgrade in the absence of new drilling.

The flagging of a resource increase prior to the BHP Group ((BHP)) option expiry could indicate the partners are pursuing unitisation, in which case Credit Suisse suspects a larger Scarborough resource plays to Woodside's advantage. Outperform rating and $35.24 target maintained.

Target price is $35.24 Current Price is $32.73 Difference: $2.51
If WPL meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $32.84, suggesting upside of 0.3% (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: 0.1

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