Australian Broker Call

Deutsche Bank rates ALL as Buy (1) -

Deutsche Bank expects upside earnings risks will emerge from the legacy digital business, as well as gaming ops, along with the proposed tax changes in the US.

The broker expects these tax changes will result in upgrades to earnings per share of 6%, with further benefits arising from the cessation of the bilateral tax arrangements. Buy rating maintained. Target rises to $31.00 from $29.75.

Target price is $31.00 Current Price is $22.75 Difference: $8.25
If ALL meets the Deutsche Bank target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $25.58, suggesting upside of 12.4% (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

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

Ord Minnett initiates coverage on Afterpay Touch, a dominant player in the "buy now, pay later" segment, with a Buy rating and $9.50 target. The broker bases its investment case on the market leading position, high uptake velocity and a highly scalable business model.

Over the short term the broker believes earnings are going to be driven by continued penetration in the online retail space in Australasia.  Longer term the company's plans to expand into the US have enormous potential.

Target price is $9.50 Current Price is $7.84 Difference: $1.66
If APT meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates AQG as Outperform (1) -

The company has achieved 2017 forecasts with a strong December quarter, Credit Suisse notes. Guidance for 2018 reflects sulphide commissioning, with the broker noting costs/revenue are capitalised until commercial but elevated by a high fixed cost and low production during ramp up.

Outperform rating and $5.30 target maintained.

Target price is $5.30 Current Price is $2.34 Difference: $2.96
If AQG meets the Credit Suisse target it will return approximately 126% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 62.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Deutsche Bank rates AQG as Buy (1) -

Buy rating and $4.30 target retained as Q4 production volume proved noticeably above expectations. Deutsche Bank analysts are talking "impressive quarter".

Costs were below expectations. The analysts note Alacer is fully funded. Earnings estimates have lifted by some 20%. It is their view the shares trade at a significant discount to valuation.

Target price is $4.30 Current Price is $2.34 Difference: $1.96
If AQG meets the Deutsche Bank target it will return approximately 84% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 62.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Macquarie rates AQG as Outperform (1) -

The company has achieved 2017 production guidance and beat Macquarie's estimates on costs.

The broker believes 2018 will be a critical year, given the ramp up of the sulphide project. If successful, this should deliver a 20-year mine life at very low production costs.

Outperform retained. Target is $3.00.

Target price is $3.00 Current Price is $2.34 Difference: $0.66
If AQG meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 62.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

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

The company has provided a strong trading update and, with the benefits of cost management, has materially upgraded FY18 earnings guidance for the second time.

Morgans sets forecasts at the top end of guidance ranges, upgrading EBITDA forecasts for FY18 and FY19 by 29.9% and 44.5% respectively, and has greater conviction in the company's growth outlook.

Rating is upgraded to Add from Hold. Providing CFDA registration is approved the broker expects FY19 and FY20 should be strong years for the company. Target is raised to $14.70 from $9.95.

Target price is $14.70 Current Price is $13.90 Difference: $0.8
If BAL meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates BTT as Neutral (3) -

Funds under management in the December quarter were broadly in line with Credit Suisse expectations, but net flows were weaker than expected.

The broker considers the outflows in this quarter generally one-off in nature but if they were to persist this would pose downside risk.

Neutral maintained. Target is $11.10.

Target price is $11.10 Current Price is $11.38 Difference: minus $0.28 (current price is over target).
If BTT meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Macquarie rates BTT as Outperform (1) -

Macquarie notes favourable market conditions and foreign exchange were enough to offset the net outflows in the first quarter. The broker is encouraged by the underlying $1.1bn in inflows.

With a change of analyst the broker maintains an Outperform rating. Target is $12.30.

Target price is $12.30 Current Price is $11.38 Difference: $0.92
If BTT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgan Stanley rates BTT as Overweight (1) -

December quarter outflows were higher than Morgan Stanley expected, largely because of the redemption relating to the Westpac ((WBC)) MySuper reconfiguration and partly offset by inflows into two new Australian equities mandates.

Overweight. Industry view: In-Line. Target is $13.20.

Target price is $13.20 Current Price is $11.38 Difference: $1.82
If BTT meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

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

First quarter funds under management were up 2.4%, predominantly driven by fund performance. Morgans upgrades to Add from Hold,  believing the company's diversified exposure supports a solid medium-term outlook.

The previous Hold rating was based on a short-term view to assess first-quarter flows. Target is raised to $12.28 from $11.96.

Target price is $12.28 Current Price is $11.38 Difference: $0.9
If BTT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Ord Minnett rates BTT as Hold (3) -

Strong investment markets more than offset outflows in the first quarter, Ord Minnett observes. The broker notes JO Hambro has seen significant growth over the past four years but, in recent quarters, flows have started to slow, particularly in the UK.

Some of this may be considered one-off, but nevertheless, the broker considers the outlook in the UK somewhat uncertain. Hold rating maintained. Target is raised to $11.45 from $10.50.

Target price is $11.45 Current Price is $11.38 Difference: $0.07
If BTT meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

UBS rates BTT as Neutral (3) -

While the company benefited from a modest improvement in performance fees from JO Hambro over the December quarter, UBS notes net outflows also suggest an increasingly mixed performance across the company's strategies.

UBS believes JO Hambro is now highly reliant on the continued performance of a handful of funds and this risk is not adequately reflected in consensus earnings estimates.

UBS maintains a Neutral rating.  Target is $11.85.

Target price is $11.85 Current Price is $11.38 Difference: $0.47
If BTT meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Ord Minnett rates CSL as Accumulate (2) -

Ord Minnett expects a more severe flu season in the US and Europe should mean the company delivers a maiden profit from its vaccine business as rates of vaccination lift. The broker is confident the company will deliver a solid first half.

FY18 net profit estimates are now 3% ahead of the top of management's guidance range and an upgrade to full year guidance is expected. Despite upward revisions, the broker lowers the target to $161 from $163 to reflect the recent lift in the Australian dollar versus the US dollar. Accumulate rating maintained.

Target price is $161.00 Current Price is $141.51 Difference: $19.49
If CSL meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $145.34, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Citi rates GXY as Neutral (3) -

Citi believes progress on the next stage of the company's projects will be key to 2018. The company is currently working on a feasibility study for James Bay and is looking for a funding partner for Sale de Vida.

Pricing and structure of any sell-down of these projects remains the catalyst for further gains in the share price, in the broker's opinion,  outside of lithium price movement.

Neutral rating retained. Target is raised to $4.60 from $4.40.

Target price is $4.60 Current Price is $4.08 Difference: $0.52
If GXY meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates GXY as Neutral (3) -

December quarter production was strong at Mount Cattlin, although realised pricing and production costs were softer than Macquarie expected.

However, the broker expects Mount Cattlin to generate strong cash flow over 2018 and this will be key to the company progressing the exploration and development of James Bay and Sal de Vida. Neutral rating and $4 target.

Target price is $4.00 Current Price is $4.08 Difference: minus $0.08 (current price is over target).
If GXY 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 $3.98, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 Equal-weight (3) -

December quarter production was stronger than Morgan Stanley expected, driven by higher feed grade. 2017 production was 5% above Morgan Stanley's forecast while costs were 3% better.

The broker notes potential for a resource increase at Mount Cattlin in the current quarter. Equal-weight and Attractive industry view retained. Target is $3.70.

Target price is $3.70 Current Price is $4.08 Difference: minus $0.38 (current price is over target).
If GXY meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

UBS rates GXY as Neutral (3) -

Spodumene production in the December quarter was 9% ahead of UBS forecasts. This was because of the increase in ore treated and improvement in plant processes. Volume strength was also supported by a 3% lift in realised selling prices.

The broker notes the company is now free of debt, with cash in hand of $59.7m as of December 31, 2017. UBS maintains a Neutral rating and $3.60 target.

Target price is $3.60 Current Price is $4.08 Difference: minus $0.48 (current price is over target).
If GXY meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates IAG as Hold (3) -

The company's aggregate reinsurance protection should mean it produces a very strong first half, in Morgan's view. The broker expects an insurance margin in the 16-17% range.

The strong first half result could mean a buyback is announced at the February result, although the broker believes management is more likely to do a $300m buyback at the end of FY18.

Hold rating maintained. Target rises to $6.57 from $6.51.

Target price is $6.57 Current Price is $7.12 Difference: minus $0.55 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.78, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Ord Minnett rates IVC as Lighten (4) -

The company has announced an all-cash takeover bid for Norwood Park which values this business at $15m and represents a 10% premium to the offer made by Propel Funeral Partners ((PFP)). The ACCC intends to conduct a public merger review in relation to the proposed acquisition with a decision expected in March.

Ord Minnett suggests, while the size of the acquisition is relatively small, the fact it is being pursued by two publicly listed industry players with access to capital could be an indication of increasing competition for future acquisitions and may lead to price inflation. Lighten rating and $13.75 target maintained.

Target price is $13.75 Current Price is $15.70 Difference: minus $1.95 (current price is over target).
If IVC meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.24, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Macquarie rates MPL as Outperform (1) -

Macquarie's analysis suggests that the structure of the claims pool is reducing the volatility in earnings. FY18 net margin forecast of 8% is unchanged. The broker expects the industry to receive ongoing policy support to ensure sufficient young people retain private health insurance.

Outperform rating retained. Target rises to $3.45 from $3.24.

Target price is $3.45 Current Price is $3.24 Difference: $0.21
If MPL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.96, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates MQG as Buy (1) -

Macquarie Group has generated around 30% of its revenue from the Americas and UBS incorporates recent tax cuts into forecasts, although any valuation adjustments are expected to be minimal. The US corporate tax rate is being reduced to 21% from 35% as of January 1, 2018.

The broker expects M&A activity to improve with a strengthening global economy. As a result of the improving revenue environment and the tax changes UBS upgrades forecasts for earnings per share by 3-6% over FY18-20.

Buy rating maintained. Target  rises to $110 from $105.

Target price is $110.00 Current Price is $102.09 Difference: $7.91
If MQG meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $97.10, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates NEW as Initiation of coverage with Equal-weight (3) -

New Energy Solar provides exposure to global renewable energy, with four majority-owned contracted solar projects in the US. The company has committed to purchasing 14 more similar plants.

Morgan Stanley estimates the company can generate FY18 free cash flow of US$6m, growing 45% per annum over FY18-21. The broker acknowledges the main risk for all utilities is uncertainty in government policy as this will drive the availability of quality contracted projects for future growth.

The broker initiates coverage with an Equal-weight rating and $1.59 target. Industry view is Cautious.

Target price is $1.59 Current Price is $1.48 Difference: $0.11
If NEW meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates NHF as Outperform (1) -

Macquarie believes the structure of the claims pool is reducing the volatility of earnings. The broker expects the industry to receive ongoing policy support to ensure that sufficient young people retain private health insurance.

Forecasts are unchanged. Outperform retained. Target is raised to $6.90 from $6.50.

Target price is $6.90 Current Price is $6.67 Difference: $0.23
If NHF meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.78, suggesting downside of -13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Citi rates ORE as Downgrade to Neutral from Buy (3) -

The share price appreciation has caused Citi to downgrade its rating to Neutral from Buy. The target is raised to $7.70 from $5.50.

The company is raising $361m through a $282m strategic placement to Toyota Tsusho and $79m from a one-for-20 accelerated renounceable entitlement offer.

Toyota Tsusho will be a 15% shareholder, entitled to nominate one director and appointed as a sales representative for stage 2. Funds will be applied to an expansion of Olaroz.

Target price is $7.70 Current Price is $7.17 Difference: $0.53
If ORE meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.96, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

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

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

The company will place stock with Toyota Tsusho at $7.50 a share along with a rights issue at $6.55 a share to existing shareholders to raise $361m. This will fund the company's portion of the expansion of Olaroz.

Despite recent share price strength Morgans upgrades to Add from Hold. Target is lifted to $8.17 from $6.84.

Target price is $8.17 Current Price is $7.17 Difference: $1
If ORE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.96, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates ORE as Buy (1) -

December quarter lithium carbonate production was ahead of UBS estimates. Production guidance for FY18 remains at 14,000t, which allows for a drop in production in the March quarter because of the wet season.

Toyota's intention to seek upstream investment reflects further OEM concerns regarding raw material, in the broker's view.

UBS maintains a Buy rating and raises the target to $8.10 from $7.00.

Target price is $8.10 Current Price is $7.17 Difference: $0.93
If ORE meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.96, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

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

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

Morgans suggests that as the December quarter was an active period for global catastrophe events, this creates some risk to 2017 guidance. Risks also exist for the second half dividend from a potential re-basing by the new CEO.

The broker downgrades to Hold from Add. Morgans finds the risks hard to ignore and needs greater clarity before shifting back to an Add rating. Target is reduced to $11.45 from $11.63.

Target price is $11.45 Current Price is $10.44 Difference: $1.01
If QBE meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.33, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

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

Despite a material improvement in earnings in FY17 Morgans observes the share price has significantly lagged peers, particularly Elders ((ELD)).  The broker believes the extent of the valuation gap is now unwarranted and upgrades to Add from Hold.

Catalysts include positive trading updates, further accretive M&A and corporate appeal in a consolidating sector. The broker raises the target to $3.55 from $3.15.

Target price is $3.55 Current Price is $3.22 Difference: $0.33
If RHL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates RIO as Buy (1) -

December quarter production was in line with Citi's estimates for the major commodities, with a record shipment for Pilbara iron ore.  2018 guidance remains at 330-340mt because of track maintenance.

Target price remains $82. Rating is Buy.

Target price is $82.00 Current Price is $79.07 Difference: $2.93
If RIO meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Credit Suisse rates RIO as Outperform (1) -

Credit Suisse expects the company to perform well in 2018 given the healthy dynamics for high-grade iron ore producers and the likelihood of further returns to shareholders.

If or when commodity prices retreat the balance sheet is in good shape such that the downside risk is not significant, in the broker's opinion.

Outperform rating retained. Target is raised to $82 from $76.

Target price is $82.00 Current Price is $79.07 Difference: $2.93
If RIO meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Deutsche Bank rates RIO as Buy (1) -

December quarter production was 3% ahead of Deutsche Bank's estimates in copper equivalent terms while 2018 guidance was achieved for the major commodities. Pilbara shipments were 1% ahead of estimates while copper benefited from higher head grades.

Bauxite, alumina, titanium dioxide and diamonds were all strong. Realised pricing was in line for iron ore but weaker  than expected for aluminium and coking coal. Deutsche Bank maintains a Buy rating and $83.50 target.

Target price is $83.50 Current Price is $79.07 Difference: $4.43
If RIO meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Macquarie rates RIO as Outperform (1) -

Macquarie observes the company performed solidly in the December quarter, with improvement in copper, bauxite, diamonds and coking coal. The US$1.9bn plc share buyback is expected to be completed by the end of this year.

The broker believes risks to the capital management forecasts are to the upside, with the US$500m divestment of the Dunkerque smelter expected to settle in the June quarter and spot prices trading well ahead of the base case.

Price target $85. Outperform.

Target price is $85.00 Current Price is $79.07 Difference: $5.93
If RIO meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Overweight (1) -

December quarter production beat Morgan Stanley's estimates across most commodities, with iron ore and copper standing out. 2018 guidance is unchanged.

While the equity has rallied since mid December, spot commodity prices continue to support strong earnings and cash flow, the broker observes.

Overweight rating maintained. Target is $83.50. Industry view: Attractive.

Target price is $83.50 Current Price is $79.07 Difference: $4.43
If RIO meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Ord Minnett rates RIO as Hold (3) -

Ord Minnett suggests the 16% bounce in the share price over a month is based on a positive sentiment towards global growth.

2018 multiples appear reasonable and the cash flow is attractive but the broker does not expect spot prices, which would incentivise a production response, to be sustained over the medium term. Hold rating and $75 target maintained.

Target price is $75.00 Current Price is $79.07 Difference: minus $4.07 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

UBS rates RIO as Buy (1) -

December quarter production was in line with guidance. Guidance has been maintained for 2018.

UBS notes, while aluminium was in line with guidance, production at Boyne Island smelter is scaled back because of the cost of power and the Sohar smelter has not yet recovered from a power interruption incident.

UBS maintains a Buy rating with the view that the company will focus on value over volume and return surplus cash to shareholders. Target is $79.

Target price is $79.00 Current Price is $79.07 Difference: minus $0.07 (current price is over target).
If RIO meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.42, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Ord Minnett rates TAH as Lighten (4) -

The merger with Tatts has now been completed and the company trades as one of the largest gaming businesses globally, with a market capitalisation of about $10.5bn. Ord Minnett update its model with the transaction details and some earnings changes.

Lighten rating retained. Target rises to $4.80 from $4.10.

Target price is $4.80 Current Price is $5.34 Difference: minus $0.54 (current price is over target).
If TAH 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 $5.54, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

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

Recent stabilisation and improvement in commodity prices have positive implications for near-term earnings growth for WorleyParsons, and Ord Minnett initiates coverage with a Buy rating and $16.90 target.

The broker's earnings estimates are at the top end of the consensus range and potential is envisaged for corporate appeal in a consolidating sector. The main risk is further acquisitions, as the broker finds limited evidence of the value being created by the company's acquisitive growth strategy.

Target price is $16.90 Current Price is $14.38 Difference: $2.52
If WOR meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $14.41, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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