Australian Broker Call

Citi rates ALG as Buy (1) -

Citi finds signs in the trading update of a turnaround at both Main Event and Dreamworld. Improved operating performance appears largely driven by strategic initiatives.

The broker envisages potential for further growth as the roll-out of Main Event resumes and new rides are built at Dreamworld. The broker retains a Buy rating and reduces the target to $1.52 from $1.55.

Target price is $1.52 Current Price is $1.16 Difference: $0.36
If ALG meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.32, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates ALG as Neutral (3) -

The AGM update indicated constant revenue growth at Main Event has improved but remains in negative while attendance for the year to date at Dreamworld is up 10.7%.

The company is targeting break-even at Dreamworld in the second half of FY20 after previously guiding to a return to profitability.

UBS continues to believe Ardent Leisure is making the right strategic moves but finds few near-term positive catalysts. Neutral rating and $1.28 target maintained.

Target price is $1.28 Current Price is $1.16 Difference: $0.12
If ALG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.32, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Citi rates APT as Buy (1) -

The trading update signals stronger-than-expected customer growth and in-line merchant sales. Citi maintains a Buy rating and continues to envisage upside risk to medium-term forecasts.

The company is expected to use the proceeds from its strategic placement to accelerate international expansion and the broker envisages Canada and Europe as logical opportunities. Target of $31.10 maintained.

Target price is $31.10 Current Price is $31.71 Difference: minus $0.61 (current price is over target).
If APT meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.08, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgan Stanley rates APT as Overweight (1) -

AUSTRAC will receive the final auditor's report by November 23, at which time the company will provide a market update.

Morgan Stanley considers this a possible positive catalyst, even if technical breaches of the act are confirmed and moderate penalties are incurred.

The broker suspects there is a discount embedded in the stock price and, after the removal of the AUSTRAC overhang, it should react positively.

Overweight rating and $44 target. Industry view is In-Line.

Target price is $44.00 Current Price is $31.71 Difference: $12.29
If APT meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $32.08, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates APT as Add (1) -

An AGM update from Afterpay Touch for the first four months of FY20 suggested all key metrics are showing positive momentum, the broker notes, and margins are stable. The company also announced a strategic agreement with Mastercard along with eBay Australia beginning in 2020, and a private placement of $200m at $28.50ps, escrowed for twelve months.

The broker upgrades FY20 forecast earnings by 16%, noting this is off a low base, and lifts its target to $32.60 from $31.75. Add retained.

Target price is $32.60 Current Price is $31.71 Difference: $0.89
If APT meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $32.08, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates APT as Sell (5) -

The business update has indicated more than 400,000 customers have become active in the UK since the launch and there were $100m in underlying sales in the four months to October 31.

As a result, UBS raises FY20 sales forecasts for the UK by 90% and increases assumptions for UK subscribers to 6% of the adult population over the long-term.

While this drives near-term upgrades to earnings estimates, longer-term underlying sales and transaction margin forecasts are relatively unchanged. Sell rating maintained. Target rises to $17.60 from $17.25.

Target price is $17.60 Current Price is $31.71 Difference: minus $14.11 (current price is over target).
If APT meets the UBS target it will return approximately minus 44% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.08, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates AST as Neutral (3) -

First half earnings were slightly below Credit Suisse forecasts. The broker acknowledges half of the miss to forecasts came from the Mondo segment, for which it had an erroneous weighting to the first half.

Beyond FY20, the company has indicated there are many options to manage the impact of low rates and lower regulated revenues. The draft determination for the Victorian electricity distribution network remains the next catalyst, in March 2020.

Neutral rating maintained. Target reduced to $1.75 from $1.80.

Target price is $1.75 Current Price is $1.84 Difference: minus $0.09 (current price is over target).
If AST meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.78, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in March.

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 AST as Neutral (3) -

First half net profit was down -6% on the prior corresponding half. Clarity around the distribution policy has lifted Macquarie's confidence in medium-term growth.

The company believes it can still deliver growth in the coming years despite adverse WACC changes. Macquarie notes this is in sharp contrast to Spark Infrastructure ((SKI)).

The broker assesses upside centres on management delivering a new round of cost initiatives. Neutral rating maintained. Target is reduced $1.90 from $1.97.

Target price is $1.90 Current Price is $1.84 Difference: $0.06
If AST meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in March.

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

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

First half results were in line with Morgan Stanley's estimates. Distribution guidance and capital settings are unchanged.

Morgan Stanley expects returns from the regulated asset base will remain under pressure but be offset by growth in the contracted asset base.

Equal-weight. Target is raised to $1.86 from $1.84. Industry view: Cautious.

Target price is $1.86 Current Price is $1.84 Difference: $0.02
If AST meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Morgans rates AST as Downgrade to Reduce from Hold (5) -

AusNet Services' first half result was weaker than Morgans expected, even after including a one-off boost from a sale of inventory. The broker has materially downgraded forecasts, re-basing to the weak first half performance, and including assumptions of lower-for-longer interest rates and inflation.

Target falls to $1.58 from $1.74. Morgans now calculates a forecast total shareholder return of -10%, hence a downgrade to Reduce from Hold.

Target price is $1.58 Current Price is $1.84 Difference: minus $0.26 (current price is over target).
If AST meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.78, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates AST as Hold (3) -

First half net profit was below forecasts. Ord Minnett notes the strong performance in the electricity distribution business but remains lukewarm on the stock, pointing to a number of macro economic headwinds.

These include downward pressure on regulated returns and a notable slowing in the deployment of renewable generation. Hold rating maintained. Target is raised to $1.90 from $1.85.

Target price is $1.90 Current Price is $1.84 Difference: $0.06
If AST meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in March.

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

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

The company has reaffirmed its FY20 guidance. Credit Suisse was encouraged by the update and notes the share price has underperformed the market by around -30% over the last 12 months following a series of earnings downgrades.

Company specific issues have had an impact and offset a favourable operating environment. With this risk passing, the broker upgrades to Outperform from Neutral. Target is raised to $12.75 from $11.45.

Target price is $12.75 Current Price is $12.10 Difference: $0.65
If AUB meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BIN as Neutral (3) -

After the company's trading update at the AGM, Citi expects FY20 operating earnings (EBITDA) of $164m, at the top end of guidance. The broker believes the current share price and valuation reflect considerable upside over the long run.

Despite the likelihood of strong growth, Citi assesses the current valuation does not provide an adequate risk/reward trade-off. Neutral High Risk rating maintained. Target is raised to $2.80 from $2.40.

Target price is $2.80 Current Price is $2.83 Difference: minus $0.03 (current price is over target).
If BIN meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.75, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates BIN as Neutral (3) -

Given the improved visibility regarding pricing and the fact that Bingo Industries has been able to guide to a narrow range of $159-164m for FY20 underlying operating earnings (EBITDA), Macquarie has increased its multiple.

Hence, the target is raised to $2.75 from $2.25. The broker considers the valuation full, given residual market pressures and a Neutral rating is maintained.

Target price is $2.75 Current Price is $2.83 Difference: minus $0.08 (current price is over target).
If BIN meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.75, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates BIN as Buy (1) -

The company has issued FY20 operating earnings (EBITDA) guidance of $159-164m. UBS increases FY20-22 forecasts for earnings per share by 1-3%.

The broker does not incorporate any benefit from upside opportunities such as a successful increase in the Eastern Creek landfill capacity and/or if the Victorian government follows other states in increasing landfill levies.

Buy rating maintained. Target rises to $3.15 from $2.75.

Target price is $3.15 Current Price is $2.83 Difference: $0.32
If BIN meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates CGR as Add (1) -

CML Group has announced a merger with Consolidated Operations Group ((COG)) on a cash/scrip split, with both sides announcing rights issues. On first glance the broker believes the deal undervalues CML, given shareholders will only get 45% of the combined entity against 55% earnings contribution.

The broker is yet to evaluate the combined entity but retains Add given the possibility of the deal being revised upward or value to be realised if the deal is not approved. Target falls to 51c from 60c.

Target price is $0.51 Current Price is $0.46 Difference: $0.05
If CGR meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Cromwell Property will acquire a portfolio of seven Polish retail properties for around $1bn on an estimated capitalisation rate of 5-5.25%. The transaction will settle in November and the company intends to reduce its interest to 20-30% over the next 18-24 months.

Cromwell Property already manages the assets on behalf of third-party investors. The company has not disclosed its gearing post the transaction, nor its covenants.

Given real estate investment trusts have a chequered history when it comes to leverage during the global financial crisis, Ord Minnett suspects the buffer to covenants will be too tight for some equity investors.

Rating is downgraded to Lighten from Hold. Target is $1.10.

Target price is $1.10 Current Price is $1.26 Difference: minus $0.16 (current price is over target).
If CMW meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.15, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Macquarie rates COL as Neutral (3) -

The company held its first AGM since the de-merger and reiterated a four-year transformation program. Macquarie finds early indications that first half sales are tracking better than bearish market expectations.

However, higher costs and increased competitive pressures elicit a Neutral rating. Target is $15.

Target price is $15.00 Current Price is $15.42 Difference: minus $0.42 (current price is over target).
If COL meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.63, suggesting downside of -11.6% (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

Morgan Stanley rates CPU as Underweight (5) -

Computershare has reaffirmed FY20 guidance which Morgan Stanley believes is satisfactory, given weakness in global M&A and interest income. Macro weakness has been offset by mortgage servicing and share plans running ahead of expectations.

The broker suspects, with guidance being updated at the first half results, that the company will pull back from forecasts of flat margin income in FY20, and the earnings risk remains skewed to the downside.

Underweight maintained. Target is $13.00. Industry view is In-Line.

Target price is $13.00 Current Price is $16.60 Difference: minus $3.6 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.75, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.3

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

Ord Minnett rates CPU as Hold (3) -

Computershare maintained FY20 guidance, expecting management earnings to be down around -5% on a constant currency basis. Ord Minnett is positive, given the outlook was not downgraded, but suspects there are still risks in the future.

The broker is cautious because of the prospect of lower yields into FY21 while revenues in the UK mortgage servicing division are expected to fall because of the UK Asset Resolution contract falling off.

Low interest rates in the US are also likely to lead to more re-financing of mortgages which could in turn lead to greater amortisation of mortgage servicing rights.

Hold maintained. Target is $16.00.

Target price is $16.00 Current Price is $16.60 Difference: minus $0.6 (current price is over target).
If CPU meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.75, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.3

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

Credit Suisse rates CWN as Neutral (3) -

Credit Suisse has included the Sydney apartment sales in its valuation and adjusted earnings. The broker now carries $850m of apartment sales in its model. A more conservative view about digital earnings has also been incorporated.

Melco has agreed to purchase a further 10% of Crown Resorts, subject to the outcome of the NSW public inquiry.

Neutral rating maintained. Target rises to $12.45 from $11.90.

Target price is $12.45 Current Price is $12.56 Difference: minus $0.11 (current price is over target).
If CWN meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.96, suggesting downside of -4.8% (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

Morgans rates DTL as Hold (3) -

Data#3 expects a first half profit increase of 22-39% year on year, it was revealed at the AGM, comfortably ahead of the broker's forecast. Momentum has continued from FY19 thanks to major new contracts and projects.

The broker assumes the usual second half earnings skew and has raised its forecast by 15% to the middle of the guidance range. Target rises to $3.21 from $2.50, Hold retained.

Target price is $3.21 Current Price is $3.55 Difference: minus $0.34 (current price is over target).
If DTL meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates ECX as Outperform (1) -

Credit Suisse observes the company has already realised some of the early gains associated with the turnaround. The broker suspects further gains will be more gradual.

Nevertheless, there remains room for upside on a combination of growth in underlying earnings and a further reduction in net debt as well as potential disposal of Right2Drive.

The broker retains an Outperform rating and raises the target to $1.85 from $1.75.

Target price is $1.85 Current Price is $1.63 Difference: $0.22
If ECX meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates ECX as Outperform (1) -

Macquarie considers the investment case remains attractive and there remains the potential for sector consolidation. FY19 results indicate the balance sheet is being repaired and the fleet and novated leasing business has stabilised.

The broker notes management has a clear plan to exit non-core businesses via sale and restructure in FY20. Outperform rating maintained. Target rises to $1.93 from $1.80.

Target price is $1.93 Current Price is $1.63 Difference: $0.3
If ECX meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in September.

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 ECX as Buy (1) -

The FY19 result was complicated, as expected. Core business was in line with UBS estimates. The broker expects non-core business to be divested in FY20 and, post restructuring, to have a neutral impact on FY20 operating earnings (EBITDA).

Deleveraging remains in focus and the broker expects gross debt to reduce to $175m by FY21 and dividends to be declared from the second half of that year. Buy rating and $2.20 target maintained.

Target price is $2.20 Current Price is $1.63 Difference: $0.57
If ECX meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in September.

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 ENN as Upgrade to Accumulate from Hold (2) -

The company has announced the IPO of the Elanor Commercial Property Fund and the establishment of the Elanor Wildlife Fund along with a placement of $31m and a $5m share purchase plan at $2.10.

The Wildlife Fund will be seeded from the Featherdale Wildlife Park, which Ord Minnett considers an inflection point for the business, as it re-casts the company as a pure-play fund manager as opposed to a diverse alternative investor.

The broker upgrades to Accumulate from Hold, believing the business is now a more accessible investment. Target is raised to $2.32 from $2.28.

Target price is $2.32 Current Price is $2.21 Difference: $0.11
If ENN meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

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 EXP as Buy (1) -

Ord Minnett notes another soft trading update for the first quarter after an endless supply of bad news over the last 18 months. The difference this time is that it was issued under the new management.

Given the strategic review is underway the broker expects changes are already taking place. The company has noted that first quarter skydiving volumes were down -10.4%, largely affected by the weather.

This is disappointing although Ord Minnett expects earnings for this division will normalise. Buy rating maintained. Target is reduced to $0.31 from $0.39. Estimates for earnings per share are downgraded by -52% in FY20 and -33% in FY21.

Target price is $0.31 Current Price is $0.23 Difference: $0.08
If EXP meets the Ord Minnett target it will return approximately 35% (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 HMC as Initiation of coverage with Neutral (3) -

Home Consortium owns and develops a portfolio of convenience retail centres in Australia. The business has no exposure to department stores, discount department stores and specialty apparel.

Credit Suisse notes an impressive track record of redeveloping the former Masters sites and scope for attractive earnings growth.

The company is forecasting a consolidated loss in FY20 but positive freehold cash flow after reimbursement from the lease mitigation account. Credit Suisse initiates coverage with a Neutral rating and $3.90 target.

Target price is $3.90 Current Price is $3.83 Difference: $0.07
If HMC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Ord Minnett rates LNK as Accumulate (2) -

Link Administration has made a minority investment in Smart Pension, a financial technology start-up operating in the UK. It will join with current investors Legal & General and JPMorgan. Link will take on administration of Smart UK's workplace pension operation.

The broker assesses the announcement is immaterial from a capital perspective and contribution to FY20 earnings, and is unlikely to bridge the earnings gap envisaged in the company stated guidance for FY20.

The investment does appear to remove the risk of a big overseas acquisition and the capital raising that may have eventuated. Accumulate rating and $7 target.

Target price is $7.00 Current Price is $5.77 Difference: $1.23
If LNK meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.71, suggesting upside of 16.3% (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

Macquarie rates OFX as Neutral (3) -

First half net operating income was down -0.5% and in line with Macquarie's estimates. The company has committed to deliver annual positive operating leverage on an operating earnings (EBITDA) basis and maintain a stable net operating income margin.

Macquarie awaits a demonstration of this commitment before forming a stronger conviction on the stock. Neutral maintained. Target is reduced to $1.39 from $1.47.

Target price is $1.39 Current Price is $1.36 Difference: $0.03
If OFX meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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 SKI as Upgrade to Equal-weight from Underweight (3) -

Morgan Stanley assesses the share price has now incorporated the FY21 re-basing of the distribution. The stock is down -9% over the year to date so valuation has become undemanding and the risk/reward is more balanced.

The broker upgrades to Equal-weight from Underweight. Target is reduced to $2.15 from $2.24. Industry view is Cautious.

Target price is $2.15 Current Price is $2.05 Difference: $0.1
If SKI meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.26, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.2

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

Credit Suisse rates SWM as Neutral (3) -

The company has revised expectations for the TV advertising market and now forecasts a decline in the mid single digits. Management now expects FY20 earnings (EBIT) to be at the lower end of the $190-200m range.

Credit Suisse suspects the Seven Network will be unable to maintain its revenue share into the second half. Neutral maintained. Target is reduced to $0.42 from $0.43.

Target price is $0.42 Current Price is $0.42 Difference: $0
If SWM meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates SWM as Buy (1) -

Ord Minnett now estimates metropolitan TV industry advertising expenditure will decline -7.5% in the first half and -4.0% in the second half. This is in line with the company's guidance for a mid single-digit decline over the year.

The broker lowers operating earnings (EBITDA) estimates by -2.7% for FY20. Buy rating and $0.65 target maintained.

Target price is $0.65 Current Price is $0.42 Difference: $0.23
If SWM meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 10.0% (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