Australian Broker Call

Morgans rates ADH as Add (1) -

Adairs issued a strong trading update, according to Morgans, with all sales rates accelerating versus the August (six week) trading update.

Key highlights for the broker included an increase in total sales by 22% and Adairs like-for-like store sales up 17%, (excluding Melbourne). Other highlights were considered Adairs online sales increased 134% and Mocka sales were up 48%.

Gross margins are tracking well ahead of prior market expectations, benefiting from less promotional requirement and a lower inventory position, notes the analyst. 

Operating costs remain well contained, thereby creating the backdrop for significant opex leverage in the first half at least, expects Morgans.

The broker points out the company continues to trade at a large discount to peers.

The Add rating is unchanged and the target price is increased to $4.35 from $3.80.

Target price is $4.35 Current Price is $3.64 Difference: $0.71
If ADH meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates ADH as Buy (1) -

UBS notes Adairs delivered a strong first half, beating UBS's forecast. Sales were up 22% (year on year) for Adairs and up 48% for Mocka.

The broker notes Adairs' sales momentum was in line with peers but its gross margin surprised to the upside, growing by 600bps (ex-freight).

Earnings growth forecast is up 15-39% for FY21-23. The broker thinks the market is under-appreciating Adairs' online scope for growth and store flexibility.

UBS reaffirms its Buy rating with the target price increasing to $4 from $3.30.

Target price is $4.00 Current Price is $3.64 Difference: $0.36
If ADH meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates BPT as Add (1) -

First quarter revenue rose 13% (quarter-on-quarter), while total production was relatively flat, explains Morgans.

The company's drilling program continues to achieve high levels of success with around 94% of wells successfully drilled during the quarter, highlights the broker.

As commodity prices recover Morgans believe the company has the capability to expand production from existing facilities to earn high rates of return on future drilling programs.

The Add rating and target price of $2.06 are unchanged.

Target price is $2.06 Current Price is $1.34 Difference: $0.72
If BPT meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Coca-Cola Amatil has received an acquisition proposal at $12.75/share from Coca-Cola European Partners (CCEP) and Citi believes the proposition has a 90% chance of succeeding.

As this is by now reflected in the share price, the rating moves to Neutral from Buy. Citi reminds investors it'll take 3-4 months to complete procedures, without any hiccups along the way.

New price target: $12.50.

Target price is $12.50 Current Price is $12.50 Difference: $0
If CCL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Neutral (3) -

Coca-Cola Amatil has received an offer from Coca-Cola European Partners at $12.75 a share, which is subject to The Coca-Cola Company selling its 30.8% stake.

Macquarie envisages limited operating synergies between the two entities, although geographic diversification and low funding costs globally along with a lack of organic growth options could provide the appeal.

The third quarter trading update suggests volume declines have found a base and the broker notes the company stands to benefit from any easing of restrictions while cycling undemanding comparables into FY21.

Neutral retained. Target is raised to the offer price from $9.20.

Target price is $12.75 Current Price is $12.50 Difference: $0.25
If CCL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Equal-weight (3) -

Coca-Cola European Partners has announced a non-binding indicative proposal of $12.75 cash per Coca-Cola Amatil share. Coca-Cola Amatil intends to recommend that its shareholders accept the proposal. Morgan Stanley notes the proposal values Coca-Cola Amatil well ahead of the global trading comps average.

Coca-Cola Amatil's third-quarter group revenue declined -4%, consistent with Morgan Stanley's estimate. The broker envisages the first half margin headwind from channel/product shift to ease in the second half.

Morgan Stanley maintains its rating as Equal-weight. The target price rises to $12.75 from $9.25. Industry view: Cautious.

Target price is $12.75 Current Price is $12.50 Difference: $0.25
If CCL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Downgrade to Hold from Add (3) -

In light of the Coca-Cola European Partners PLC (CCEP) takeover offer for Coca-Cola Amatil, Morgans sets a price target in line with the offer price of $12.75.

CCEP has made a non-binding indicative proposal, via scheme of arrangement, to acquire 100% of the shares from independent shareholders - ex The Coca Cola Company (KO) - for a cash consideration of $12.75 per share.

In the broker's view, the timing of CCEP’s takeover offer is somewhat opportunistic given Coca-Cola Amatil's earnings/share price have been impacted by covid-19.

While the offer price is in line with other bottler transactions, overall the analyst thinks this is a reasonable offer for shareholders but it isn’t a knock-out offer.

With volumes recovering as pandemic restrictions ease and with $145m of cost savings targeted by FY22, Morgans feels the business is well placed in the future.

The rating is downgraded to Hold from Add. The target price is increased to $12.75 from $10.39.

Target price is $12.75 Current Price is $12.50 Difference: $0.25
If CCL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Downgrade to Hold from Accumulate (3) -

The company's European counterpart, Coca-Cola European Partners, has announced an indicative offer at $12.75 a share. Coca-Cola Amatil's board, excluding The Coca-Cola Company, has recommended the proposal.

Ord Minnett suspects the indicative price is on the low side, given the latest trading update, which shows leverage to a recovery as consumer mobility improves, and increased cost savings.

The share price is now well above fundamental value, in the broker's view, and the rating is downgraded to Hold from Accumulate. Target is raised to $12.75 from $11.00.

Target price is $12.75 Current Price is $12.50 Difference: $0.25
If CCL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.01, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

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 COH as Outperform (1) -

Macquarie, having surveyed 16 US-based audiologists who specialise in cochlear implants, notes activity levels have improved substantially since May.

Cochlear was also frequently cited as increasing its share over the past 3-6 months as well as being the most highly rated.

Macquarie considers its survey consistent with the company's quarterly update and retains an Outperform rating. Target is $241.

Target price is $241.00 Current Price is $227.35 Difference: $13.65
If COH meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $206.05, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

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

Morgan Stanley highlights Australian construction markets have weathered covid-19 challenges better than the broker expected. The broker has a less bearish outlook on residential construction, incorporate a more shallow trough and a cyclical recovery in its housing forecast.

CSR's FY21 operating income forecast for building products is up 27% with upgrades also for FY22-23. FY21 net profit forecast has been lifted by 18%. While challenges remain, the broker believes declines in activity and in building products earnings will be less severe than expected.

Morgan Stanley upgrades its rating to Equal-weight from Underweight. The target price is increased to $4.70 from $3.10.

The industry view is cautious.

Target price is $4.70 Current Price is $4.72 Difference: minus $0.02 (current price is over target).
If CSR meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.75, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates CSR as Accumulate (2) -

Ord Minnett expects CSR will deliver underlying net profit of $59.7m and reinstate its dividend when it reports first half results on November 2.

The broker observes the share price has performed well in recent months, up 35% since July 20, which is likely stemming from improvement in detached housing construction.

While acknowledging the shares are becoming more fairly valued the broker retains an Accumulate rating and envisages the results along with the strategy briefing on November 12 are potentially positive catalysts. Target is raised to $4.80 from $4.60.

Target price is $4.80 Current Price is $4.72 Difference: $0.08
If CSR meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates DTC as Overweight (1) -

Damstra Holdings' first-quarter receipts were up 61% year on year with gross margin improving to 72% versus 69% last year.

Morgan Stanley estimates organic growth of 11%. The company will provide an update on its operating performance at its AGM on November 16.

Overweight rating. Target is $2. Industry view: In-line.

Target price is $2.00 Current Price is $2.03 Difference: minus $0.03 (current price is over target).
If DTC meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates FXL as Buy (1) -

UBS highlights Flexigroup may not be a market leader but its strategic shift towards the buy now pay later (BNPL) sector makes sense and can improve awareness and usage of Humm in a high-growth market.

The broker considers the company to be a beneficiary of the recent federal budget on account of tax cuts and the extension to instant tax write-off of capex.

Viewing the stock as a 'value play' in BNPL, UBS retains its Buy rating with a target price of $1.45.

Target price is $1.45 Current Price is $1.09 Difference: $0.36
If FXL meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.39, suggesting upside of 34.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates GNX as Add (1) -

Genex Power reported that it had reached completion on 85% of scheduled activities for construction of the Jemalong solar plant.

The company has also finalised its arrangements with UGL Pty Ltd, which was operating the Kidston Solar Plant (KS1) for Genex Power. Due to performance issues, UGL has agreed to pay $2.5m to the company and the operating contract is out for tender. The solar forecast output was reduced by -24%, but revenue was supported by UGL payments.

Because a large amount of the upside potential is attributable to Kidston Hydro project (K2-H), Morgans warns it is important for investors to realise there are significant risks in Genex Power as financial close is not guaranteed.

The Speculative Buy rating and target price of $0.36 are unchanged.

Target price is $0.36 Current Price is $0.19 Difference: $0.17
If GNX meets the Morgans target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates ILU as Hold (3) -

Ord Minnett revamps forecasts after the spin-off of Deterra Royalties ((DRR)). The main value drivers are considered zircon and rutile pricing, sales volumes and unlocking value in the project pipeline.

The smaller Iluka Resources now offers greater leverage, the broker adds. Balranald and Sembehun could offer upside to valuation, and Ord Minnett awaits updates on these projects. Hold maintained. Target is lowered to $5.90 from $9.40.

Target price is $5.90 Current Price is $5.31 Difference: $0.59
If ILU meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Neutral (3) -

Deterra Royalties ((DRR)) listed on the ASX on 23 October 2020 after Iluka Resources received shareholder support for demerging its royalty streams. Iluka has retained a 20% shareholding in Deterra.

Under the discounted cash flow approach, UBS values Iluka Resources at $5.49 per share while under the multiples approach, the valuation is $5.30 per share. 

UBS retains its Neutral rating with the target price declining to $5.50 from $10, reflecting the distribution of Deterra Royalties to Iluka shareholders and the replacement of the MAC royalty valuation with a 20% shareholding in Deterra.

Target price is $5.50 Current Price is $5.31 Difference: $0.19
If ILU meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

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 KAR as Overweight (1) -

Karoon Energy has announced Dr Julian Fowles as its new CEO, starting after Karoon's AGM in November. Dr Fowles worked previously with Oil Search and also has extensive experience in Brazil with Shell. 

Overweight rating retained with a target price of $1.14. Industry view: Cautious.

Target price is $1.14 Current Price is $0.90 Difference: $0.24
If KAR meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.35, suggesting upside of 57.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

The PEP/Carlyle consortium has increased its proposed offer to $5.40 from $5.20. A scrip alternative has been offered for PEXA along with a cash component of $3.80 for Link ex-PEXA. Morgan Stanley notes this implies Link's 44% stake in PEXA is worth $1.60 per share.

The broker highlights 14.6% of shareholders are in favour of the revised proposal, up from 9.6% earlier. A deadline of October 28 has been given to be granted access to due diligence. The board is considering the revised proposal.

Equal-weighted retained. Target is $5.20. Industry view: In-Line.

Target price is $5.20 Current Price is $4.94 Difference: $0.26
If LNK meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates LNK as Hold (3) -

Link Administration has received an updated proposal from the consortium led by PEP and Carlyle at $5.40 a share, with some flexibility relating to PEXA. The board had previously rejected the prior offer at $5.20 a share.

The option includes a cash bid, excluding PEXA, at $3.80 a share and allowing for a direct stake in PEXA.

Ord Minnett believes the board, if it decides not to pursue the proposals, will have to produce better results than has been the case in the past few halves. Hold rating and $5 target retained.

Target price is $5.00 Current Price is $4.94 Difference: $0.06
If LNK meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates LNK as No Rating (-1) -

The consortium comprising Pacific Equity Partners (PEP) and Carlyle Group has upped its offer to acquire 100% of Link Administration to $5.40 per share from $5.20 per share, subject to an agreement to access Link Administration's due diligence materials by October 28.

UBS notes the new proposal has the support of 14.6% of shareholders versus 9.65% shareholders previously. 

The broker believes the board will be under pressure to deliver a better outcome including a better valuation of Link's stake in PEXA (currently valued at circa $1.93bn)

The broker is currently research restricted on providing a rating and target.

Current Price is $4.94. Target price not assessed.

Current consensus price target is $5.13, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MIN as Upgrade to Hold from Lighten (3) -

Ord Minnett upgrades to Hold from Lighten and raises the target to $24.20 from $22.40. The broker has included Wonmunna and continued strength in the mining services division in its estimates.

This has resulted in an increase in earnings forecasts of 17% for FY21 and 15% for FY22. Mining services volumes grew 7% in the first quarter and the company retains its 20-25% growth forecast for FY21.

The Wonmunna iron ore project is expected to add 1-2mt in FY21 and 5mtpa from FY22.

Target price is $24.20 Current Price is $25.61 Difference: minus $1.41 (current price is over target).
If MIN 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 $26.57, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates MYX as Neutral (3) -

Mayne Pharma Group's first-quarter volume trends in its generic products division (GPD) improved versus the June quarter. In the specialty brands division (SBD), the performance was mixed with Fabior script volumes increasing by 7% on a quarterly basis while Sorilux volumes declined by -16%.

Overall, the result was mixed and UBS makes no changes to its earnings forecasts. In the broker's view, the approval for Myring remains a key factor for Mayne Pharma's short term earnings performance.

The broker maintains its Neutral rating with a target price of $0.37.

Target price is $0.37 Current Price is $0.32 Difference: $0.05
If MYX meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates NCK as Buy (1) -

Citi expects Nick Scali will emerge from the pandemic with a stronger balance sheet that could be used for M&A or capital management.

The company has upgraded first half net profit growth guidance to 70-80% from 50-60%, despite the supply chain challenges and extended lockdown in Melbourne.

Citi upgrades FY21-22 estimates by 3-8% and raises the target to $10.10 from $9.80. Buy retained.

Target price is $10.10 Current Price is $8.42 Difference: $1.68
If NCK meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates RMD as Neutral (3) -

Credit Suisse updates estimates ahead of the first quarter results on October 30. Revenue growth of 3% and net profit growth of 10% are forecast.

Weak sleep diagnoses, affected by the lockdowns/closures, were likely offset by the re-supply of masks, given increased engagement with the existing customer base, suggests the analyst.

The broker retains a Neutral rating and $28 target and remains cautious about gross margin performance in FY21, ventilator oversupply and competitive bidding pressure.

Target price is $28.00 Current Price is $25.51 Difference: $2.49
If RMD meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.21, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates RMD as Neutral (3) -

ResMed will report its first-quarter results on 30 October. UBS forecasts revenue growth for US/Canada/Latin America to be 3%. Europe and Asia are expected to show revenue growth of 5%.

Gross margin is expected to be flat versus the fourth quarter and net profit is forecast to be up 12% versus last year. 

The broker also anticipates ventilator sales this quarter to be down circa -65% versus the June quarter although still well above pre-covid-19 levels.

Believing the fundamental drivers of longer-term growth remain intact, UBS maintains its Neutral rating with a target price of US$200.

Current Price is $25.51. Target price not assessed.

Current consensus price target is $25.21, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates SGM as Neutral (3) -

Credit Suisse envisages upside risk to consensus FY21 earnings estimates as a macro recovery should support the share price.

Still, the broker cautions that all key markets are at risk from further disruption, including the emergence of second and third waves of the pandemic.

On balance, the market recovery is expected to support growth in steel and scrap demand and sustain improved pricing of non-ferrous scrap.

Credit Suisse increases the target to $9.85 from $8.25 and retains a Neutral rating.

Target price is $9.85 Current Price is $9.25 Difference: $0.6
If SGM meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.74, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SSM as Outperform (1) -

Service Stream has reiterated the pandemic and restrictions on activity will create a bias to the second half. Macquarie assesses first half headwinds have been priced in and the long-term outlook remains compelling.

The broker highlights the exposure to a diversified service provider in critical infrastructure. There are also organic opportunities and the likelihood of M&A. Outperform rating and $2.72 target maintained.

Target price is $2.72 Current Price is $2.12 Difference: $0.6
If SSM meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates TCL as Neutral (3) -

Macquarie assesses that working from home has had a limited impact, mainly for roads that are close to major business districts, and has affected public transport more so than toll roads.

In the company's quarterly traffic data, traffic was better than expected on Sydney's M5E/M8 although it were short trips that lifted volumes. The emerging concern is the lack of population growth, as for toll roads this translates to fewer car registrations.

Macquarie finds the extra detail around Sydney roads shows the assets are recovering faster and the next bounce is expected to come from the reopening of airport traffic. Neutral rating retained. Target is reduced -1.1% to $14.33.

Target price is $14.33 Current Price is $13.85 Difference: $0.48
If TCL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.32, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Credit Suisse rates WBC as Outperform (1) -

The bank has announced second half cash earnings will be affected by -$1.22bn in "notable items". Credit Suisse believes this will clean up a range of items around specialist business which should mean "cleaner" results going forward.

The broker suggests Westpac could feasibly pay a second half dividend that incorporates up to 50% of first half statutory profit.

Credit Suisse retains an Outperform rating and $20.60 target.

Target price is $20.60 Current Price is $18.70 Difference: $1.9
If WBC meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Outperform (1) -

Westpac has disclosed several large notable items worth around -$1.2bn that will affect the second half earnings. While acknowledging investor patience is running thin, Macquarie assesses the bulk of re-basing is arguably done and a turnaround should occur in FY21.

The capital position is weak but the broker expects a dividend and the bank should avoid raising capital. Asset disposal is considered the catalyst for a share price re-rating. Outperform retained. Target is $18.

Target price is $18.00 Current Price is $18.70 Difference: minus $0.7 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.20, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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

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

Westpac Bank has announced its second half result will include net charges of -$1,220m post-tax. This compares with Morgan Stanley's forecast of -$1,002m.

The broker notes the detractions include charges for customer remediation, litigation, goodwill, asset sales and revaluations. The net impact on the CET1 ratio is expected to be -24bps in the second half.

Westpac Bank's profit is expected to be circa -12% lower and the broker estimates a final dividend of 25c.

Equal-weight rating retained with a target price of $17.50. Industry view: In-line.

Target price is $17.50 Current Price is $18.70 Difference: minus $1.2 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.20, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WBC as Hold (3) -

Westpac has announced "notable items" amounting to -$1.22bn for the second half. As a result, Ord Minnett lowers cash earnings forecast by -30% for the second half and -20% for the full year.

Forecasts for the final dividend are unchanged at $0.25. The broker retains a Hold rating with a target of $18.80.

Target price is $18.80 Current Price is $18.70 Difference: $0.1
If WBC meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates WBC as Buy (1) -

Westpac Bank announced its second half result will be impacted by -$1,220m after-tax in 'notable items'. While UBS notes these write-downs are in-line with its expectations, the broker had included them as below-the-line (within statutory profit) while the bank will be taking them via cash net profit (above-the-line). This leads the broker to reduce its cash earnings forecasts by -20%.

The broker expects the bank to pay a final dividend of 35c.

While FY20 has been a challenging year for the bank, UBS believes Westpac's balance sheet is relatively well provisioned and retains its Buy rating with a $20.50 target.

Target price is $20.50 Current Price is $18.70 Difference: $1.8
If WBC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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