Australian Broker Call

Morgan Stanley rates AGL as Underweight (5) -

In response to media speculation, AGL has confirmed the withdrawal of a non-binding indicative offer for Vocus Group ((VOC)), having not agreed due diligence terms.

Morgan Stanley suspects many investors are surprised by the potential interest in the telco, although synergies on cost-to-serve, energy procurement and technology have been within the company's stated strategy scope for some time.

The company has also flagged an unplanned outage at Loy Yang A which may take several months to bring back online. FY19 earnings guidance has not changed. The broker retains an Underweight rating. Target is $20.23. Industry view is Cautious.

Target price is $20.23 Current Price is $20.24 Difference: minus $0.01 (current price is over target).
If AGL 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 $20.40, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.8

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

Deutsche Bank rates AMC as Buy (1) -

Amcor has finally received the remaining anti-trust approvals from the US government for the proposed acquisition of Bemis. A condition of the approval is the sale of three medical packaging plants to Tekni-Plex for US$215m.

Deutsche Bank expects the acquisition of Bemis to be accretive and maintains a Buy rating, with the stock trading at a -13% discount to valuation. Target is $19. The broker forecasts three-year compound growth in earnings per share of 9%.

Target price is $19.00 Current Price is $16.10 Difference: $2.9
If AMC meets the Deutsche Bank target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $16.00, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.6

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

UBS rates APX as Neutral (3) -

The company has revised guidance, which UBS calculates is an effective upgrade of around 7% to previous estimates. The broker believes the company has a market-leading position which has been strengthened post the added capabilities of Figure Eight.

UBS continues to believe 2019 risks remain skewed to the upside. The broker maintains a Neutral rating and raises the target to $26.20 from $24.00.

Target price is $26.20 Current Price is $25.67 Difference: $0.53
If APX meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates ASL as Buy (1) -

Both divisions of the company experienced strong growth in the March quarter. Revenue uplift was driven by increased scope at key sites and the ramp up of Mt Colin. Barminco revenue is tracking slightly ahead of the broker's expectations.

Buy rating and $2.04 target maintained.

Target price is $2.04 Current Price is $1.38 Difference: $0.66
If ASL meets the Deutsche Bank target it will return approximately 48% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

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

The company has not explicitly confirmed guidance and, given weak residential activity in both Australia & the US and poor weather in the US, Credit Suisse suspects a result in line with guidance would be good.

Management has conceded the growth in infrastructure and non-residential activity would not be offsetting the decline in residential activity in FY20. Weakness is expected to be particularly acute in NSW, the company's largest revenue region.

Credit Suisse reduces FY20 estimates for earnings (EBIT) by -17% and downgrades to Underperform from Neutral. Target is reduced to $4.40 from $4.80.

Target price is $4.40 Current Price is $5.31 Difference: minus $0.91 (current price is over target).
If BLD meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates BLD as Buy (1) -

The company has provided no change to FY19 guidance, although Deutsche Bank notes a strong June is required. The broker is pleased with the operating efficiencies and property segment and continues to envisage long-term value in the stock.

Projects delayed in the first half are now largely on track. Deutsche Bank maintains a Buy rating and $6.70 target.

Target price is $6.70 Current Price is $5.31 Difference: $1.39
If BLD meets the Deutsche Bank target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Macquarie rates BLD as Outperform (1) -

No official guidance was provided at Boral's investor day other than to suggest progress is in line with expectation. The weather must behave itself nonetheless. Market conditions are slowing, implying a response required in costs.

The broker suggests delivering on FY19 expectations should lead to a re-rating given the stock is trading near a historical discount to the industrials index. Outperform and $5.95 target retained.

Target price is $5.95 Current Price is $5.31 Difference: $0.64
If BLD meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgan Stanley rates BLD as Overweight (1) -

No news is good news, Morgan Stanley asserts, after the company made no changes to guidance at its investor briefing. New cost reduction targets should help to offset softer Australian demand.

Longer term, Morgan Stanley likes the Australian infrastructure exposure and envisages upside from the US, particularly in fly ash.

Overweight rating reiterated. Target is $6.50. Industry view is Cautious.

Target price is $6.50 Current Price is $5.31 Difference: $1.19
If BLD meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Ord Minnett rates BLD as Accumulate (2) -

Ord Minnett expects growth to persist in the US and capital expenditure to moderate in Australia, allowing free cash flow to improve materially in FY20.

The broker notes, at the investor briefing, management was upbeat regarding plasterboard and an earnings accretive deal is looking likely.

The broker believes Boral is attractively priced relative to peers and maintains an Accumulate rating and $6 target.

Target price is $6.00 Current Price is $5.31 Difference: $0.69
If BLD meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

UBS rates BLD as Neutral (3) -

UBS believes, in response to weakening residential activity and a shift to infrastructure work, the company is "rightsizing" the business. Exposure to infrastructure work has grown to 46% of revenue from 36%.

Typically, infrastructure work carries lower margins than residential, and challenges remain. With overall concrete volumes declining over the coming years, competition for work is likely to remain high and pricing power reduced.

UBS maintains a Neutral rating and $5 target. The broker believes forecasts unchanged at this time.

Target price is $5.00 Current Price is $5.31 Difference: minus $0.31 (current price is over target).
If BLD meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.77, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Morgan Stanley believes investors would be wise to focus on the potential for disruption in FY20. While some components of the bull case appear on track others look challenged and the pace of product launches is slowing.

If all five categories in plasma are disrupted, the broker envisages -8% downside risk to FY20 base case earnings estimates. Equal-weight retained. Target is reduced to $179 from $183. Industry view: In line.

Target price is $179.00 Current Price is $204.78 Difference: minus $25.78 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $207.96, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.4

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

Deutsche Bank rates CWN as Hold (3) -

Deutsche Bank believes the sale of a 19.99% interest in Crown Resorts to partner Melco will erode some of the takeover premium that has built into the stock.

The broker is intrigued the transaction is being conducted in two tranches and also about why Melco believes it does not require regulatory approval to go above 10%, particularly as Crown holds a casino license in NSW.

Probity approval may take some time to be received, the broker suspects. Hold rating maintained. Target is reduced to $13.

Target price is $13.00 Current Price is $12.31 Difference: $0.69
If CWN meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.87, suggesting upside of 4.5% (ex-dividends)

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

UBS rates CWN as Neutral (3) -

Melco has purchased a 19.99% stake in Crown Resorts, stating it welcomes the opportunity to increase its ownership of Crown.

The move to enter a mature market through a minority stake is a surprise to UBS, although the company has expressed interest in diversifying from its Macau-based operations.

UBS maintains a Neutral rating and $12.05 target. The broker suggests the sale may disappoint some shareholders that were hoping for a full takeover although does not rule out further corporate activity.

Target price is $12.05 Current Price is $12.31 Difference: minus $0.26 (current price is over target).
If CWN meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.87, suggesting upside of 4.5% (ex-dividends)

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

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

Credit Suisse believes a strong positive reaction in the share price to the first half result stems mainly from evidence that the underlying fleet and novated lease business is holding a relatively flat trajectory.

There is increased comfort that the company should be able to repair its balance sheet. Disposal of the non-core businesses, Right2Drive, Grays and commercial equipment finance, should enable a reduction in debt.

Credit Suisse upgrades to Outperform from Neutral and raises the target to $1.40 from $0.88.

Target price is $1.40 Current Price is $1.35 Difference: $0.05
If ECX meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Macquarie rates ECX as Outperform (1) -

Following a -62% drop in first haf profit, EclipX has signalled a simpler business model going forward. The broker is anticipating the completion of a capital structure review come Aug/Sep, a resetting of  debt facilities to reflect the new model and any news on asset sales.

The broker believes the company has corporate appeal and successful execution of the restructure should make the stock more attractive. Outperform retained, target rises to $1.66 from $1.06.

Target price is $1.66 Current Price is $1.35 Difference: $0.31
If ECX meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

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

First half results were well below expectations. Morgan Stanley observes the core fleet and novated lease business performed in line and, given the tough trading environment, provided a respectable result.

The non-core business did underperform and any potential disposal of these units should be taken positively, in the broker's view.

Equal-weight rating. Industry view In-Line. Target is $1.00.

Target price is $1.00 Current Price is $1.35 Difference: minus $0.35 (current price is over target).
If ECX meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.27, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Morgans rates FNP as Hold (3) -

Morgans updates forecasts to account for the capital raising and the capacity expansion in nutritionals as well as the downgrade to FY19 sales guidance. From the proceeds of the capital raising of $130.5m, $100m will be used to accelerate capital expenditure in nutritional ingredients.

Sales are now targeted at $480-490m for FY19, while margins in the second half are expected to be higher than the first half. Morgans maintains a Hold rating and raises the target to $5.52 from $4.90.

Target price is $5.52 Current Price is $5.05 Difference: $0.47
If FNP meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Ord Minnett rates IRE as Downgrade to Hold from Accumulate (3) -

The company will acquire QuantHouse, which provides low-latency market data feeds, hosting infrastructure and algorithms services. While the business is currently generating a slight loss, Ord Minnett suggests this is likely a reflection of being sub-scale.

As cost synergies and scale benefits should drive improvement, the broker believes the risk is low for IRESS achieving an acceptable return from the purchase.

Rating is downgraded to Hold from Accumulate, given the performance of the stock of late. Target is reduced to $12.92 from $13.09.

Target price is $12.92 Current Price is $13.20 Difference: minus $0.28 (current price is over target).
If IRE meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.34, suggesting upside of 1.1% (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

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

Citi lowers estimates for earnings per share by -12% for FY19 and by -16% for FY20. The company has downgraded forecasts, predominantly because of factors outside its control, such as Brexit and the earlier-than-anticipated implementation of superannuation legislation.

Citi believes the issue for the company is the decreased perception of earnings predictability. Rating is downgraded to Neutral from Buy and the target lowered to $6.00 from $8.20.

Target price is $6.00 Current Price is $5.59 Difference: $0.41
If LNK meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Credit Suisse rates LNK as Outperform (1) -

The company expects FY19 operating earnings (EBITDA) to be in a range of $350-360m. Credit Suisse observes revenue has slowed down as expenses have picked up in the UK.

The company has brought forward some costs but management is reluctant to provide any specific details and, hence, the broker fears some issues may be caught up in the re-basing of earnings for outer years.

Credit Suisse lowers estimates for earnings per share by -11% in FY19. The broker maintains an Outperform rating and reduces the target to $7.60 from $8.20.

Target price is $7.60 Current Price is $5.59 Difference: $2.01
If LNK meets the Credit Suisse target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates LNK as Outperform (1) -

Link provided an update for Corporate Markets division, which the broker saw as benign compared to expectations, an impact in Funds Administration which the broker sees as timing related, and a material downgrade in FY19-20 for LAS due to Brexit uncertainty.

The broker acknowledges the stock is unlikely to re-rate in the near term but retains Outperform on current valuation after applying a -10% risk discount for Brexit. Target falls to $7.10 fom $8.40.

Target price is $7.10 Current Price is $5.59 Difference: $1.51
If LNK meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates LNK as Overweight (1) -

The company advises that FY20 will be a flat earnings year, and FY19 guidance of $350-360m in operating earnings is -10% below Morgan Stanley's estimates. The broker downgrades forecasts, to reflect the earnings impact from superannuation reforms brought forward 6-9 months and the cost blow-out from client migrations.

The broker also observes weakness in corporate activity in Europe. Nevertheless, concerns are considered overdone and the valuation discount is expected to unwind. Overweight rating maintained and the target is lowered to $8.20 from $8.50. Industry view is In-Line.

Target price is $8.20 Current Price is $5.59 Difference: $2.61
If LNK meets the Morgan Stanley target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgans rates LNK as Add (1) -

The company has revised FY19 operating earnings guidance (EBITDA) to $350-360m and operating net profit to $195-205m. This is below Morgans' estimates. Issues reflect the impact of Brexit on the asset services business and headwinds in funds administration from client migration, as well as elevated resourcing costs.

While the issues are largely cyclical/one-off, the broker observes they do flow into FY20 in varying degrees and create some uncertainty. Morgans maintains an Add rating and believes the stock offers significant long-term value. Target is reduced to $7.34 from $8.27.

Target price is $7.34 Current Price is $5.59 Difference: $1.75
If LNK meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates LNK as Accumulate (2) -

FY19 guidance has been adjusted lower to reflect pressures in the asset services business, because of uncertainty around Brexit, and the funds administration unit.

Ord Minnett factors in revenue pressures in funds administration and lowers FY20 net profit forecasts by -18%. The broker maintains an Accumulate rating, believing the valuation is undemanding. Target is reduced to $7.16 from $8.00.

Target price is $7.16 Current Price is $5.59 Difference: $1.57
If LNK meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

UBS rates LNK as Buy (1) -

At face value, UBS suggests the downgrade to FY19 guidance reflects short-term issues relating to Brexit and an earlier-than-expected revenue lost in funds administration.

While envisaging significant valuation upside and retaining a Buy rating, the broker acknowledges realising value could take some time as issues will only subside from October and there are questions around management's credibility in setting reliable expectations. Target is reduced to $7.75 from $8.60.

Target price is $7.75 Current Price is $5.59 Difference: $2.16
If LNK meets the UBS target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $7.18, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Ord Minnett rates OSH as Hold (3) -

PNG's government has elected James Marape as the new prime minister. Ord Minnett understands the government will not review the recently-signed Papua LNG gas agreement.

The broker remains cautious, nevertheless, as the election has drawn a focus on potential changes to resources law that could mean the PNG government looks to increase its share of project benefits.

This could mean greater scrutiny on the P'nyang gas agreement. The biggest risk is that JV partners may consider prioritising other global development opportunities. Hold rating maintained. Target is reduced to $7.80 from $8.50.

Target price is $7.80 Current Price is $6.94 Difference: $0.86
If OSH meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.34, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.0

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

Macquarie rates PNV as Initiation of coverage with Outperform (1) -

PolyNovo is focused on its proprietary NovoSorb polyurethane technology for the treatment of acute wounds. The broker believes near term revenues will be underpinned by uptake in the US.

Additional upside is on offer from launches into other markets and use in other medical situations. The broker initiates coverage with an Outperform rating and $1.50 target.

Target price is $1.50 Current Price is $1.25 Difference: $0.25
If PNV meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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 has conducted a review of the Jadar lithium-borates project in Serbia. Potential board approval is due in 2020 and production is possible in 2024.

Overall, the broker believes this project presents a number of challenges in terms of its market impact, although economic returns are sufficient.

It makes sense to the broker for Rio Tinto to keep the project on the back burner until market requirements are higher and confidence in economic returns improves. Hold rating and $103 target.

Target price is $103.00 Current Price is $97.13 Difference: $5.87
If RIO meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $97.92, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Credit Suisse rates SBM as Upgrade to Neutral from Underperform (3) -

The company downgrades FY19 production guidance to around 355,000 ounces, back to where it started at the beginning of the year prior to guidance revisions in January and March. The reason is a slippage of around a month in accessing the high-grade stopes at Gwalia.

No explicit revisions to costs have been provided other than acknowledging lower production will affect unit costs. Credit Suisse upgrades to Neutral from Underperform, on share price weakness. Target is steady at $2.72. The broker notes a strong performance has continued at Simberi.

Target price is $2.72 Current Price is $2.57 Difference: $0.15
If SBM meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

Macquarie rates SBM as Underperform (5) -

St Barbara has downgraded FY19 production guidance for its flagship Gwalia mine as. While relatively minor, it does highlight constraints on the mine as upgrades are completed, the broker suggests. It comes at an awkward time as St Barbara bids for Atlantic Gold.

Gwalia will continue to be the miner's "engine room" even assuming the takeover progresses, the broker notes, but the outlook for the mine has moderated considerably in recent times. Target falls to $2.50 from $2.70, Underperform retained.

Target price is $2.50 Current Price is $2.57 Difference: minus $0.07 (current price is over target).
If SBM 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 $3.22, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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