Australian Broker Call

Credit Suisse rates ANN as Underperform (5) -

Credit Suisse reviews activity trends over the June quarter, noting positive IP growth across key developed and developing regions. Currency changes were negative in the June quarter while pricing for raw material butadiene increased 22%.

The broker expects strong data from US distributors will translate to Ansell's top line but remains wary regarding organic sales growth being achieved at the top end of the 3-5% target. Underperform rating maintained. Target is raised to $24.50 from $23.60.

Target price is $24.50 Current Price is $28.14 Difference: minus $3.64 (current price is over target).
If ANN meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.81, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates ANN as Accumulate (2) -

June quarter sales growth was robust and Ord Minnett notes the positive statements from the three leading US industrial goods distributors. This suggests potential upside to the broker's second half sales growth forecasts of 4.5%.

Distributors have implemented their own price increases and these seem to have been well accepted. At this stage, Ord Minnett does not believe Ansell's products will be directly affected by tariffs.

Accumulate retained. Target is $29.50.

Target price is $29.50 Current Price is $28.14 Difference: $1.36
If ANN meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $26.81, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Macquarie rates AWC as Outperform (1) -

AWAC realised alumina pricing rose 25% in the June quarter, to US$471/t. Macquarie notes the upside to spot prices remains significant, with forward markets pricing in a premium at US $515/t.

Near-term operating margins relative to Atlantic/European producers are likely to be more competitive but should be supported to some extent by the effect of US trade tariffs, in the broker's opinion.

Outperform retained. Target reduced to $3.20 from $3.50.

Target price is $3.20 Current Price is $2.75 Difference: $0.45
If AWC meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Ord Minnett rates AWC as Accumulate (2) -

The AWAC alumina price of US$471/t in the June quarter was below Ord Minnett's forecasts, as legacy contracts and chemical grade sales drag down average pricing.

Despite reducing near-term forecasts the broker remains positive on the stock, as buoyant markets do not appear priced in.

Alumina Ltd offers a 10% dividend yield in 2018 leading the broker to maintain an Accumulate rating. Target is $3.20.

Target price is $3.20 Current Price is $2.75 Difference: $0.45
If AWC meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

UBS rates AWC as Sell (5) -

AWAC increased production of alumina and bauxite in the quarter but cash receipts were down -71%, the broker notes, largely due to the Suriname contractor settlement. After interest and tax, Alcoa posted a miss on earnings.

Alcoa now expects alumina to remain in global deficit for the rest of 2018 but bauxite to flip into surplus. A rise in the spot alumina price leads to a target increase for Alumina (the company) to $2.45 from $2.30 but as the market is pricing in a too-high implied alumina (the mineral) price, on the broker's forecasts, Sell retained.

Target price is $2.45 Current Price is $2.75 Difference: minus $0.3 (current price is over target).
If AWC meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.78, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Morgan Stanley rates AZJ as Underweight (5) -

The ACCC will seek to block the company's sale of its Queensland Intermodal assets, including an injunction against closing the business while the case is being determined. The ACCC has also instituted court proceedings against Aurizon and other parties.

The company intends to defend the proceedings. The development is closest to the bear case scenario Morgan Stanley identified previously, where share price downside in the order of -6-9% was estimated, based on a continuation of operating losses, lower sale proceeds and uncertainty.

Underweight. Target is $4.00. Industry view: Cautious.

Target price is $4.00 Current Price is $4.34 Difference: minus $0.34 (current price is over target).
If AZJ meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

Ord Minnett rates AZJ as Sell (5) -

The ACCC has decided to block the sale of the company's Acacia Ridge terminal and the Queensland Intermodal business. Ord Minnett was not surprised, although did not expect the allegations and court action, which could have serious implications in the longer term.

The broker expects the proceedings to be an ongoing drag on earnings growth noting, in the short term, Aurizon will miss out on receiving the outstanding $190m in agreed proceeds. Of greater concern to investors, the broker suggests, is the potential damage to the company's reputation. Sell rating and $3.90 target maintained.

Target price is $3.90 Current Price is $4.34 Difference: minus $0.44 (current price is over target).
If AZJ meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

UBS rates AZJ as Buy (1) -

The market would not be surprised the ACCC has blocked Aurizon's sale of Acacia Ridge and Qld Intermodal, but taking proceedings against the company for breach of competition law is indeed a surprise, the broker suggests. The regulator has also blocked the company's well-flagged "Plan B" of closing down Qld Intermodal.

The impact would not be financially material, the broker notes, but simply adds to negative sentiment. On a 7% free cash flow yield, the broker retains Buy and a $4.60 target.

Target price is $4.60 Current Price is $4.34 Difference: $0.26
If AZJ meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.1

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

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

On the expectation that tougher times in Indonesia and PNG will lead to weaker sales and earnings, Citi has downgraded to Neutral from Buy. EPS cestimates have been reduced by -0.5% and -1.4% for 2018/19.

As Indonesia is supposed to be the next growth engine for the company, the analysts (understandably) suggest investors awaiting a re-rating for the stock, will likely have to be more patient. Target loses -20c to $9.50.

Target price is $9.50 Current Price is $9.60 Difference: minus $0.1 (current price is over target).
If CCL 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 $8.83, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

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

First half net profit was up 12% and ahead of Credit Suisse estimates because of stronger margins. The company has reiterated 2018 net profit guidance of $720-780m.

The broker notes work in hand is stable and management expects a further $80bn of bidding opportunities during the year. The broker considers guidance is overly conservative and upgrades to Outperform from Neutral. Target is raised to $47.50 from $45.00.

Target price is $47.50 Current Price is $48.40 Difference: minus $0.9 (current price is over target).
If CIM meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.34, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Deutsche Bank rates CIM as Hold (3) -

Deutsche Bank has retained its Hold rating with increased price target of $41.95 (was $40.50) post what the analysts describe as a good quarterly update from the company.

Taking everything into account, there have been slight reductions in estimates. The analysts believe any upside surprise is likely to come from the Asian operations. Risks are considered to be project-specific.

Target price is $41.95 Current Price is $48.40 Difference: minus $6.45 (current price is over target).
If CIM meets the Deutsche Bank target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.34, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgans rates CMA as Add (1) -

Centuria Metropolitan has revalued its portfolio, resulting in a lift of 3.6% to $930.5m, mainly from NSW assets. Morgans believes the stock offers an attractive FY19 distribution yield of around 7.5%, underpinned by 96% of rental income having fixed annual increases of 3.6%.

Near-term catalysts are expected to be leasing outcomes and accretive acquisitions. The company reports its FY18 result on August 21. Add rating maintained. Target is raised to $2.59 from $2.55.

Target price is $2.59 Current Price is $2.50 Difference: $0.09
If CMA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Citi rates EVN as Buy (1) -

June quarter production was strong but costs exceeded Citi's expectations. The broker reduces estimates for FY19 but still expects the company's guidance to be beaten.

The company is maintaining a healthy dividend and free cash flow yield, with both expected to increase in FY20. Earnings still offer value, in Citi's view. Buy rating and target raised to $3.50 from $3.45.

Target price is $3.50 Current Price is $3.01 Difference: $0.49
If EVN meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Credit Suisse rates EVN as Underperform (5) -

June quarter and FY18 production results were in line with expectations. Credit Suisse notes exploration is delivering on expectations. FY19 guidance for 720-770,000 ounces is less than FY18 but reflects the divestment of Edna May.

Credit Suisse maintains an Underperform rating and $2.65 target.

Target price is $2.65 Current Price is $3.01 Difference: minus $0.36 (current price is over target).
If EVN meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Deutsche Bank rates EVN as Upgrade to Hold from Sell (3) -

Deutsche Bank has upgraded Evolution Mining to Hold from Sell, price target $3.00 (was $2.80).

Target price is $3.00 Current Price is $3.01 Difference: minus $0.01 (current price is over target).
If EVN meets the Deutsche Bank target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates EVN as Neutral (3) -

June quarter production beat Macquarie's forecasts. However, costs were 28% above forecasts. Macquarie acknowledges FY19 guidance has been upgraded to 720-770,000 ounces but notes costs are also forecast to be higher.

Despite this, the broker observes, the company will remain one of the lowest cost producers globally and its long-life assets are expected to continue delivering high margins. Neutral rating and $3.20 target maintained.

Target price is $3.20 Current Price is $3.01 Difference: $0.19
If EVN meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Morgan Stanley rates EVN as Underweight (5) -

FY18 production was in line with expectations. The company has guided to FY19 production of 720-770,000 ozs of gold at all-in costs of $850-900/oz.

Morgan Stanley assumes plant throughput at Cowal is increased from the second half of FY19, which aligns its production estimate with the top end of guidance.

Morgan Stanley maintains an Underweight rating. Target is $2.70. Industry view is: In-Line.

Target price is $2.70 Current Price is $3.01 Difference: minus $0.31 (current price is over target).
If EVN meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Ord Minnett rates EVN as Hold (3) -

Gold production was up 6% in the June quarter and ahead of Ord Minnett's expectations. This was offset by higher all-in costs which were up 7% on a year ago.

The broker does not believe there is an underlying cost issue in the FY19 guidance but simply more conservative grade and copper price assumptions. Hold rating maintained. Target is $3.00.

Target price is $3.00 Current Price is $3.01 Difference: minus $0.01 (current price is over target).
If EVN meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

UBS rates EVN as Neutral (3) -

FY18 has been a "bonanza" year for Evolution shareholders, the broker notes, featuring increases to production, margins and earnings and lower costs. FY19 should nevertheless see grades regress to average and costs per ounce increase.

Evolution is an attractive holding on gold price exposure and high cash flow generation at low risk, the broker believes, but given its share price re-rating, greater risk/reward is on offer from Northern Star ((NST)), OceanaGold ((OGC)) or Alacer Gold ((AQG)). Neutral retained, target falls to $3.20 from $3.40.

Target price is $3.20 Current Price is $3.01 Difference: $0.19
If EVN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Citi rates NHF as Neutral (3) -

Citi lowers forecasts to take into account the potential limits to price increases over the next three years, in the light of the Labor policy of a 2% cap. APRA data and private hospital commentary suggests claims inflation remain subdued over the year to date which indicates potential upside for the FY18 result.

The broker acknowledges some are concerned about higher capital requirements post the APRA review but points out this is some years away and there is likely to be a transition period in which the company can generate organic capital.

Neutral rating maintained. Target is reduced to $6.00 from $6.50.

Target price is $6.00 Current Price is $5.55 Difference: $0.45
If NHF meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.96, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates NVT as Upgrade to Outperform from Neutral (1) -

The company has announced the rationalisation of its careers & industry division and will convert SAE Indonesia to a licensed operation and close two sub-scale SAE US colleges. The remaining six US colleges will be divested or closed because of ongoing regulatory constraints and underperformance.

With earnings re-based, Macquarie believes visibility over FY19 has improved and value is beginning to emerge. The broker upgrades to Outperform from Neutral. Target is reduced to $4.55 from $4.60.

Target price is $4.55 Current Price is $4.30 Difference: $0.25
If NVT meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.54, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Citi rates OZL as Buy (1) -

Citi found the June quarter production almost flawless, with Prominent Hill, Carrapateena and West Musgrave all on schedule. There were no operating or corporate surprises.

The broker believes the stock is the best copper exposure and higher long-term prices should be driven by structural constraints on supply. Buy rating maintained. Target rises to $11.10 from $10.70.

Target price is $11.10 Current Price is $9.37 Difference: $1.73
If OZL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Credit Suisse rates OZL as Neutral (3) -

June quarter production was in line with expectations and Carrapateena remains on schedule. The acquisition of Avanco will be completed in August and, while no outlook was provided, Credit Suisse expects a detailed strategy for Brazil later this year.

Neutral rating and $9.50 target maintained.

Target price is $9.50 Current Price is $9.37 Difference: $0.13
If OZL meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Deutsche Bank rates OZL as Upgrade to Buy from Hold (1) -

Deutsche Bank has upgraded OZ Minerals to Buy from Hold while upping the price target to $10.25 from $9.10.

Target price is $10.25 Current Price is $9.37 Difference: $0.88
If OZL meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 11.5% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

UBS rates OZL as Neutral (3) -

The broker believes OZ should trade with a discount based on Carrapatena development risk but the share price has recently fallen -15% along with the copper price, driven by trade war fears. It may represent a good entry point but the broker would like to first better understand the value of the Avanco acquisition.

Otherwise, it was a consistent quarter of production at Prominent Hill and Carrapatena remains on track. Neutral and $10.50 target retained.

Target price is $10.50 Current Price is $9.37 Difference: $1.13
If OZL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Citi rates QBE as Upgrade to Buy from Neutral (1) -

The upgrade to Buy from Neutral comes with a slightly higher price target -$11.20 instead of $11- as further analysis suggests to Citi analysts that only a reasonable performance in H1 should now suffice to pull the share price a lot higher.

Meanwhile, compositional changes have been made to forecasts resulting in yet more reductions. Despite the latter, the analysts keep on pointing out the valuation discount remains larger than historical averages.

Target price is $11.20 Current Price is $9.91 Difference: $1.29
If QBE meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $11.10, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Credit Suisse rates QBE as Neutral (3) -

Credit Suisse believes a cost reduction plan is the next logical step for the business although more work also needs to be done on the underwriting side. The main issue the broker has regarding QBE is the high expense ratio. The company now finds itself around 500 basis points above its peer group.

Expenses need to be reduced by around US$400m on the broker's calculations. A more favourable premium rate environment could assist but the outlook for such is uncertain, Credit Suisse asserts. Neutral and $10.20 target.

Target price is $10.20 Current Price is $9.91 Difference: $0.29
If QBE meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.10, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Citi rates S32 as Upgrade to Buy from Neutral (1) -

Citi's upgrade to Buy from Neutral was inspired by higher forecasts for commodities prices. With EPS estimates receiving a boost, also from buybacks and the weakening AUD, the price target lifts to $4.30 from $3.80.

The analysts saw a rather mixed production report with thermal coal, aluminium and alumina all disappointing. Cost pressures are real too, in particular for the aluminium smelters.

In addition, with a projected US$2.2bn in free cash flows, management should have plenty of options to please shareholders, suggest the analysts.

Target price is $4.30 Current Price is $3.54 Difference: $0.76
If S32 meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Credit Suisse rates S32 as Neutral (3) -

There were no surprises in the June quarter and Credit Suisse notes a strong finish to FY18 with both Illawarra and Cannington beating guidance.

The balance sheet is in strong shape and, in a buoyant commodity environment, the broker expects healthy cash flow. With no clear catalyst, Credit Suisse maintains a Neutral rating and $3.95 target.

Target price is $3.95 Current Price is $3.54 Difference: $0.41
If S32 meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Macquarie rates S32 as Outperform (1) -

June quarter production was strong and output of all key commodities was ahead of Macquarie's expectations, with the exception of alumina.

The recovery of two of the problem assets, Illawarra and Cannington, was encouraging and the broker considers the stock cheap on earnings multiples, with material upside risk to base case forecasts at spot prices. Outperform rating and $4.10 target.

Target price is $4.10 Current Price is $3.54 Difference: $0.56
If S32 meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

Ord Minnett rates S32 as Hold (3) -

The June quarter production report showed Illawarra and Cannington beating revised guidance but cost pressures were flagged at a number of assets, particularly Hillside and South African Coal.

Ord Minnett's FY18 EPS forecast is unchanged, with higher production offsetting cost inflation, but medium term estimates are reduced as higher costs roll forward.

As the stock is trading close to the broker's valuation a Hold rating is maintained. Target is reduced to $4.00 from $4.10. Ord Minnett sees better value in BHP Billiton ((BHP)) and Rio Tinto ((RIO)) in the sector.

Target price is $4.00 Current Price is $3.54 Difference: $0.46
If S32 meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

UBS rates S32 as Neutral (3) -

Outside of alumina, South32's June Q production numbers met or beat the broker's individual commodity expectations. It was a sound quarter, the broker suggests, noting the underground mines are also performing.

The company very active with acquisitions in the quarter and US$380m of US$1bn of capital returns remain to be paid before April, the broker notes. Target rises to $3.85 from $3.70, Neutral retained.

Target price is $3.85 Current Price is $3.54 Difference: $0.31
If S32 meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.3

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

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

June quarter production was 7% above Citi's estimates. Citi observes the Cooper Basin is staging a revival, with a sustained period of reserves and production growth.This has led to an increase in valuation and near-term earnings forecasts.

The broker remains aware of the risks of over extending the expected growth in the Cooper Basin, as it has disappointed the market before, but no longer believes a Sell is the right call and upgrades to Neutral. Target is raised to $6.04 from $5.81.

Target price is $6.04 Current Price is $6.16 Difference: minus $0.12 (current price is over target).
If STO 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 $5.71, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Macquarie rates STO as Neutral (3) -

GLNG's Fairview volumes were flat, with a number of high-rate wells off-line while Roma continues to ramp up.

Macquarie believes, after rejecting the Harbour bid, the company needs to show proof why $7/share is an undervaluation. Success in the Cooper, higher drill counts with less capital expenditure and the farm-in offer for P'nyang support the case.

The broker maintains a Neutral rating and reduces the target to $6.00 from $6.05.

Target price is $6.00 Current Price is $6.16 Difference: minus $0.16 (current price is over target).
If STO 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 $5.71, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Ord Minnett rates STO as Hold (3) -

Production, sales volumes and prices were in line with Ord Minnett's estimates. The broker believes the next step should be to address the lack of medium-term growth options.

Other than the company's share of the PNG LNG expansion project the asset portfolio offers limited medium-term growth.  Hold rating maintained. Target rises to $6.00 from $5.95.

Target price is $6.00 Current Price is $6.16 Difference: minus $0.16 (current price is over target).
If STO meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.71, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

UBS rates STO as Sell (5) -

The key takeaways from Santos' June Q production report, the broker suggests, were lowered capex guidance, a potential upgrade to production guidance, and a proposal to farm in to P'nyang to provide greater alignment for PNG expansion. Revenue was boosted by a higher LNG price.

Management has done a good job of reducing costs, accelerating debt reduction and progressing growth opportunities, the broker believes, but its share price implies the highest oil price among the majors. Sell retained. Target rises to $5.55 from $5.45.

Target price is $5.55 Current Price is $6.16 Difference: minus $0.61 (current price is over target).
If STO meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.71, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Citi rates TCL as Sell (5) -

The ACCC has delayed its decision date on whether Transurban is allowed to participate in the Westconnex tender until September 6 and Citi analysts reiterate their view that a negative call will put pressure on Transurban's trading multiples.

Sell rating retained, alongside a price target of $10.52, unchanged, with the additional insight there is currently no value ascribed for potential Westconnex success.

Target price is $10.52 Current Price is $11.97 Difference: minus $1.45 (current price is over target).
If TCL meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.82, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

UBS rates TCL as Buy (1) -

The ACCC has delayed its decision on whether Transurban can acquire WestConnex which can't be good news for the company, the broker suggests. It implies there are indeed competition concerns and with the NSW government wanting to press on, Transurban may simply miss out.

On the other hand, there won't be a raising if they do indeed miss out. But in the wider picture, the broker sees the acquisition as very important for Transurban's ongoing pipeline given a knock-back would bring new competition into the market vis-a-vis future opportunities.

Buy and $13.35 target retained for now.

Target price is $13.35 Current Price is $11.97 Difference: $1.38
If TCL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.82, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.6

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

Ord Minnett rates WES as Lighten (4) -

Ord Minnett believes Coles will remain a key driver of the share price for Wesfarmers even with the pending de-merger. Still, the broker finds the risk/reward equation no longer compelling, despite the exit from Bunnings UK & Ireland and the reduced emphasis on Target.

Ord Minnett suggests there is a lack of valuation support and Coles remains challenged in terms of like-for-like sales growth. While Bunnings is executing well it faces a more challenging external environment that should moderate sales growth and margins. Ammonia nitrate oversupply will weigh on the industrial segment.

The broker retains a Lighten rating and raises the target to $45.00 from $42.50.

Target price is $45.00 Current Price is $49.93 Difference: minus $4.93 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.11, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.4

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

Citi rates WPL as Sell (5) -

Citi is unconcerned that the LNG sales volume and realised price at North West Shelf were weaker than estimates, as this appears to be centred on the timing of cargoes as well as the mix. This is expected to normalise over the course of the year.

The broker believes agreement of commercial terms with the NWS joint venture for tolling third-party gas is an important milestone. In the context of Browse the risk weight is increased to 75% from 50% and, in isolation, this increases valuation by $0.46 a share. Sell rating maintained. Target is raised to $30.07 from $29.67.

Target price is $30.07 Current Price is $34.35 Difference: minus $4.28 (current price is over target).
If WPL meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.29, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Macquarie rates WPL as Neutral (3) -

Production and sales for the June quarter were in line with expectations, although revenue was lower than forecasts because of weak North West Shelf pricing. The company believes it has found an answer for third-party tolling of volumes that could have positive implications for Browse.

However, Macquarie suggests a toll deal, while close, is yet to be finalised and remains mindful that in 2016 the tolling of Equus was talked of positively before it was scrapped. Neutral rating maintained. Target is $34.90.

Target price is $34.90 Current Price is $34.35 Difference: $0.55
If WPL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $33.29, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Ord Minnett rates WPL as Hold (3) -

June quarter production was in line with estimates, with Wheatstone T2 ramping up faster than expected. However, realised LNG pricing was soft and did not follow the higher benchmark oil prices, leading to lower than expected revenue.

Key news was the alignment of North West Shelf JV partners on the tolling of third party gas through the Karratha gas plant, a key precursor to the development of the Browse fields.

Ord Minnett believes the macro environment is positive for Woodside and maintains a Hold rating and $35.20 target.

Target price is $35.20 Current Price is $34.35 Difference: $0.85
If WPL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $33.29, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

UBS rates WPL as Buy (1) -

The key takeaway from Woodside's quarterly, the broker suggests, is confirmation the North West Shelf partners are in agreement with regard terms and pricing for the processing of gas from other resource owners. With a preliminary agreement expected between NWS and Browse this quarter, the broker's confidence in the commercial viability of Browse increases.

Production was flat quarter on quarter. The broker retains Buy on the basis of Woodside's growth options. Target rises to $37.50 from $37.00.

Target price is $37.50 Current Price is $34.35 Difference: $3.15
If WPL meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $33.29, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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