Australian Broker Call

Morgan Stanley rates ABC as Re-instate Coverage with Equal-weight (3) -

The end-market exposures of Australian building materials are diverse and Morgan Stanley considers the prospects of the various stocks are more differentiated than at any time in recent history.

Adelaide Brighton has been a consistent reliable performer, in the broker's opinion, and offers a high quality suite of assets. Despite the positive attributes, the broker considers the stock fairly valued  at current levels.

The broker re-initiates coverage with an Equal-weight rating and $6.00 target. Industry view: Cautious.

Target price is $6.00 Current Price is $6.12 Difference: minus $0.115 (current price is over target).
If ABC meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.50, suggesting downside of -10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Credit Suisse rates AHY as Downgrade to Neutral from Outperform (3) -

Credit Suisse downgrades 2018 forecasts for earnings per share by -15% on the back of its recent paper/pulp research. China's import restrictions on recycled paper are creating distortions in other paper commodities, the broker observes.

The broker suspects pulp price relief may come in December as China must ultimately relax its restrictions to avoid a shortage of paper products. Rating is downgraded to Neutral from Outperform. Target is reduced to $1.55 from $1.70.

Target price is $1.55 Current Price is $1.45 Difference: $0.1
If AHY meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.55, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Credit Suisse rates ALL as Neutral (3) -

September quarter game installation data for NSW have signalled to Credit Suisse that its estimates of shipments nationally may be light.

Hence, the broker adjusts its model to accommodate higher shipment volumes and makes offsetting adjustments for costs and price assumptions.

Neutral retained. Target is raised to $23.80 from $22.60.

Target price is $23.80 Current Price is $23.47 Difference: $0.33
If ALL meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $24.83, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgan Stanley rates ANN as Overweight (1) -

Morgan Stanley believes confidence in execution should improve after the company's presentations by key executives and product demonstrations.

The broker was pleased with the detail provided on the drivers of growth for the next three years.

Rating is Overweight. Target is $23.00. Sector view is In-Line.

Target price is $23.00 Current Price is $23.71 Difference: minus $0.71 (current price is over target).
If ANN meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.64, suggesting downside of -4.5% (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) -

Ord Minnett is encouraged by the company's strategy briefing. The company has outlined business targets and the expected savings from the transformation program should push it to the top end of earnings growth ranges, in the broker's opinion.

Around $12m of annualised savings are targeted for FY18, with $9m actioned so far. Accumulate. Target is $25.50.

Target price is $25.50 Current Price is $23.71 Difference: $1.79
If ANN meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $22.64, suggesting downside of -4.5% (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 ANN as Sell (5) -

Ahead of the tour of the company's manufacturing, UBS revisits the investment case. The broker is looking for more detail, given the company is in the process of a significant overhaul of its operations.

UBS suspects the company is maintaining its industrial momentum in the first half while growth in medical gloves is likely to be less robust.

While the company is considered a market leader in terms of its product quality and pricing, this is not leading to consistent organic growth in the past, the broker observes. Hence, UBS envisages a number of better value opportunities elsewhere.

Sell retained. Target is raised to $21.00 from $20.40.

Target price is $21.00 Current Price is $23.71 Difference: minus $2.71 (current price is over target).
If ANN 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 $22.64, suggesting downside of -4.5% (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

Morgan Stanley rates BLD as Re-instate Coverage with Overweight (1) -

Morgan Stanley re-initiates coverage with an Overweight rating and $8.50 target. The end-market exposures of Australian building materials are diverse and the broker considers the prospects of the various stocks are more differentiated than at any time in recent history.

Boral offers the best combination of exposures in the broker's coverage and, combined with US$125m in targeted synergies, provides a robust growth outlook. Industry view is Cautious.

Target price is $8.50 Current Price is $7.09 Difference: $1.415
If BLD meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.32, suggesting upside of 3.4% (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

Morgan Stanley rates CSR as Re-instate Coverage with Underweight (5) -

The end-market exposures of Australian building materials are diverse and Morgan Stanley considers the prospects of the various stocks are more differentiated than at any time in recent history.

The broker considers CSR carries the greatest exposure to new housing in Australia and FY18 earnings as a peak. The broker would need to witness a meaningful correction in the share price before envisaging an opportunity on a through-the-cycle view.

Morgan Stanley re-initiates coverage with a Underweight rating. Target is $4.00. Industry view: Cautious.

Target price is $4.00 Current Price is $4.86 Difference: minus $0.855 (current price is over target).
If CSR meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.39, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Ord Minnett rates CSR as Hold (3) -

Ord Minnett expects an underlying net profit of $145.1m at the first half results on November 1. This would represent a 41% rise on the prior year.

The broker recognises the company has headwinds from the turn in the residential cycle and rising energy costs but considers the trading multiples for FY18 are undemanding along with an ungeared balance sheet.

Hold retained. Target is raised to $4.40 from $4.05.

Target price is $4.40 Current Price is $4.86 Difference: minus $0.455 (current price is over target).
If CSR meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.39, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in March.

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 DMP as Sell (5) -

Deutsche Bank has previously expressed concerns about Australian store targets because of the declining franchisee margins, but is also now concerned about a target for 2600 stores in Europe by 2025, which would entail building or buying around 1600 stores over the next eight years.

The broker highlights that the cost of growing via acquisition is high given conversion costs and store closures that are required. Sell rating retained. Target is reduced to $36 from $38.

Target price is $36.00 Current Price is $49.26 Difference: minus $13.26 (current price is over target).
If DMP meets the Deutsche Bank target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $46.56, suggesting downside of -5.5% (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

Ord Minnett rates EVT as Buy (1) -

First quarter operating earnings were down -1.3% but Ord Minnett considers this a strong outcome under the circumstances, given the weak start to the financial year for the domestic cinema division.

The first quarter outcomes point to tight cost control, the broker observes, despite the high fixed nature of the cinema business. Earnings estimates are upgraded by 4% for FY18 and 3% for FY19.

Ord Minnett maintains a Buy rating and raises the target to $15.01 from $14.32.

Target price is $15.01 Current Price is $13.55 Difference: $1.46
If EVT meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

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

Morgan Stanley rates FBU as Re-instate Coverage with Equal-weight (3) -

Morgan Stanley believes the NZ construction environment, while strong, has more questions than answers at this stage. The current share price is not yet providing a sufficient discount to allow for the uncertainty, in the broker's opinion.

Hence, Morgan Stanley re-initiates coverage with an Equal-weight rating. Target is NZ$8.50. Industry view is: Cautious.

Current Price is $7.22. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.5

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

Morgan Stanley rates JHX as Re-instate Coverage with Equal-weight (3) -

The end-market exposures of Australian building materials are diverse and Morgan Stanley considers the prospects of the various stocks are more differentiated than at any time in recent history.

The broker envisages solid earnings growth for James Hardie but requires further clarity the capacity issues are behind the company and services have not been left with an ongoing impact.

The broker re-initiates coverage with an Equal-weight rating and $20 target. Cautious industry view.

Target price is $20.00 Current Price is $18.90 Difference: $1.1
If JHX meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.32, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates LLC as Overweight (1) -

Morgan Stanley lowers FY18/19 construction forecasts by -10%, awaiting evidence of profitability from the engineering business.

The broker suspects that the $1.3bn North Connex will be the main cause of the company's disappointing first half Australian construction results, which are expected to be lower than the prior corresponding half.

Overweight. Target is reduced to $18.65 from $19.75. Industry view is Cautious.

Target price is $18.65 Current Price is $16.38 Difference: $2.27
If LLC meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $17.81, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Credit Suisse rates LNK as Underperform (5) -

The company has completed the necessary regulatory approvals to finalise the Capita acquisition. The Capita first half result indicated the divested businesses were growing faster than expectations.

Credit Suisse upgrades estimates by 8% for FY18 to reflect the early completion of the acquisition and upgrades FY19-20 by 2% to reflect better organic growth in Capita.

Underperform rating retained. Target is raised to $7.90 from $7.70.

Target price is $7.90 Current Price is $8.07 Difference: minus $0.175 (current price is over target).
If LNK 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 $8.67, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

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

Morgans downgrades to Hold from Add because of the strong share price performance recently. Target lifts to $1.10 from $0.86.

The broker notes the company continues to deliver strong quarterly revenue and remains hopeful of winning new enterprise customers for its Talent Community technology in coming months.

Target price is $1.10 Current Price is $1.02 Difference: $0.08
If LVH meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

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

Macquarie rates MIN as Outperform (1) -

The company has provided an update on its lithium business which includes an expansion of the Wodgina spodumene project and potentially higher production rates at Mount Marion.

The possible development of the lithium carbonate plant would provide a new revenue stream. This presents upside risks to Macquarie's forecasts but also demonstrates an increasing appetite for lithium exposure.

Outperform rating retained. Target rises to $22 from $21.

Target price is $22.00 Current Price is $18.07 Difference: $3.93
If MIN meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Citi rates MML as Neutral (3) -

September quarter production at Co-O was 4% better than the June quarter as grades matched reserves and costs fell.

The company maintains its FY18 target of 80-90,000 ounces of gold at an all-in sustainable cash cost of US$1080-1200/oz.

Target is $0.35. Neutral/High Risk rating retained.

Target price is $0.35 Current Price is $0.36 Difference: minus $0.01 (current price is over target).
If MML meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.35, suggesting downside of -2.8% (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: 0.0

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

Morgans rates OTW as Add (1) -

The company has acquired NSW-based managed networks provider of VPN Solutions for an upfront consideration of $15.6m.

Morgans believes the deal offers good strategic value and boosts the company scale in NSW, also strengthening the product range. Estimates for earnings per share are upgraded by 10% for FY18 and 18% for FY19.

The broker retains an Add rating and raises the target to $2.76 from $2.43.

Target price is $2.76 Current Price is $2.45 Difference: $0.31
If OTW meets the Morgans target it will return approximately 13% (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

Ord Minnett rates PPT as Lighten (4) -

First quarter funds under management revealed negative net flows of -$700m, primarily in Australian equities in the institutional channel. Ord Minnett observes the stock price retraced over the past couple of months and underperformed the market as well as other listed fund managers.

The broker finds no sign of the flows outlook recovering in the near term. Lighten retained. Target is raised to $48.00 from $46.50.

Target price is $48.00 Current Price is $49.73 Difference: minus $1.73 (current price is over target).
If PPT 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 $50.94, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Macquarie rates RCR as Outperform (1) -

The company has been awarded a contract valued at around $110m for the 68MW Emerald solar farm and a contract valued at more than $75m to provide a combined cycle addition to a gas-fired power plant in Indonesia.

Macquarie believes the award of the Australian solar project will position the company well for any further projects that may be developed in Australia.

Outperform rating and $4.64 target maintained.

Target price is $4.64 Current Price is $4.27 Difference: $0.37
If RCR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.91, suggesting upside of 15.1% (ex-dividends)

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

Macquarie rates RSG as Outperform (1) -

The company has upgraded the Syama mineral resource. There is also a maiden resource for the Nafolo discovery. Macquarie is impressed with the upgrade  and believes Nafolo could be significant.

The broker expects the mine at Syama to underpin the company's production outlook. Outperform and target is $1.40.

Target price is $1.40 Current Price is $1.06 Difference: $0.34
If RSG meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.57, suggesting upside of 47.8% (ex-dividends)

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 SAR as Neutral (3) -

September quarter gold production was a record, with lower costs. Citi expects FY18 guidance to be met.

The broker retains a positive view of the stock and its operations. Nevertheless, it appears fairly valued for a mid-sized ASX producer and a Neutral rating and $1.35 target are maintained.

Target price is $1.35 Current Price is $1.48 Difference: minus $0.125 (current price is over target).
If SAR meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Macquarie rates SAR as Outperform (1) -

September quarter production was 4% ahead of Macquarie's forecasts. Both Carosue Dam and Thunderbox performed strongly.

The company has maintained guidance and the broker considers it well-placed to achieve its targets. Outperform rating retained. Target is lifted to $1.60 from $1.40.

Target price is $1.60 Current Price is $1.48 Difference: $0.125
If SAR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates SUL as Buy (1) -

The company's trading update revealed soft sports like-for-like sales growth of 2% while guidance for Rays is for an earnings loss of -$4m in FY18. The automotive division sales grew 4.0% for the first 16 weeks.

Citi observes the market has de-rated the stock similar to other discretionary retailers, ahead of the entry of Amazon. The broker considers this overdone, given the resilience of the automotive business.

Buy rating retained. Target is reduced to $9.00 from $9.10.

Target price is $9.00 Current Price is $8.28 Difference: $0.72
If SUL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Deutsche Bank rates SUL as Buy (1) -

The trading update highlights sales momentum in a challenging environment and Deutsche Bank also believes the margin momentum bodes well for FY18, especially considering the further $10m in cost benefits to come.

The company has stated that in the first 16 weeks like-for-like sales in automotive are up 4%, sports up 2% and leisure up 2%.

Buy rating retained. Target is $11.00.

Target price is $11.00 Current Price is $8.28 Difference: $2.72
If SUL meets the Deutsche Bank target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgan Stanley rates SUL as Overweight (1) -

Morgan Stanley considers the stock's deeply discounted valuation an attractive entry point. The company has signalled a slightly subdued performance in the first weeks of FY18.

Automotive and sports like-for-like sales growth is tracking in line with trend, the broker notes.

Overweight retained. Target is $10.00. Industry View: Cautious.

Target price is $10.00 Current Price is $8.28 Difference: $1.72
If SUL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgans rates SUL as Add (1) -

The AGM update was broadly in line with Morgans' expectations. The broker believes consensus earnings forecasts are readily achievable although, as always, Christmas trading is critical for leisure and sports.

Morgans lifts estimates marginally and increases capital expenditure assumptions in outer years. Add retained. Target is reduced to $9.00 from $9.17.

Target price is $9.00 Current Price is $8.28 Difference: $0.72
If SUL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Ord Minnett rates SUL as Lighten (4) -

Sales are been affected by a softer consumer environment although Ord Minnett notes margins have been supported by efficiencies and cost control. Earnings in automotive are resilient while improvements have been made in leisure.

The broker considers the outlook is subdued for Super Cheap Auto and the prospect of retaining forecast synergies in sports and cost efficiencies may prove optimistic.

 Given this backdrop, a Lighten rating and $8 target are retained.

Target price is $8.00 Current Price is $8.28 Difference: minus $0.28 (current price is over target).
If SUL 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 $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

UBS rates SUL as Buy (1) -

Sales growth was recorded across all divisions over the first 16 weeks of FY18. This is broadly in line with UBS forecasts for the first half, with automotive business a touch stronger and sports a touch softer.

The broker is pleased that the Amart conversions are on track and Rays is generating strong traffic growth. UBS believes the market is taking an overly pessimistic view on the medium-term outlook for the stock.

Buy rating retained. Target is $9.50.

Target price is $9.50 Current Price is $8.28 Difference: $1.22
If SUL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.22, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates VOC as Neutral (3) -

Citi believes a rapid improvement in the core business is needed. The company has articulated a new transformation plan, targeting $120m in cost savings by FY20. Savings will be partially offset by the impact of lower margins on NBN.

Asset sales will be undertaken to provide time to turn around the core business and sign up customers for the Australia-Singapore cable.

Citi's main concern is the magnitude of the transformation plan and the risk of the timelines slipping in key projects. Neutral rating and $2.85 target retained.

Target price is $2.85 Current Price is $2.69 Difference: $0.16
If VOC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 3.1% (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 VOC as Neutral (3) -

Macquarie believes a planned sale of the NZ assets and Australian data centres will relieve balance sheet pressures. The company has outlined a new transformation plan, targeting $90m in operating earnings benefits by the end of FY20.

Macquarie believes, if the transformation ambitions come to fruition, this would be a positive but more detail is required. Neutral rating and $2.95 target maintained.

Target price is $2.95 Current Price is $2.69 Difference: $0.26
If VOC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 3.1% (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 VOC as Equal-weight (3) -

The company has confirmed plans to sell its NZ assets and Australian data centres. All Australian telcos are confronting higher competition and lower margins but Morgan Stanley observes, for Vocus, the risk is amplified by company-specific factors such as poor execution, strategic gaps in the business mix and high debt.

If the planned asset sales are completed at acceptable values this should go a considerable way to improving the balance sheet, in the broker's opinion.  Target is raised to $2.75 from $2.55. Equal-weight rating and In-Line industry view retained.

Target price is $2.75 Current Price is $2.69 Difference: $0.06
If VOC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 3.1% (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

Morgans rates VOC as Upgrade to Hold from Reduce (3) -

Morgans is now more confident that management is making progress on reshaping the business. FY18 guidance is unchanged and the company has announced plans to sell the NZ business.

Morgans calculates a divestment would mean operating earnings drop by -17% but gearing would also fall and take pressure off the balance sheet.

Morgans upgrades to Hold from Reduce. Target is raised to $2.78 from $2.22.

Target price is $2.78 Current Price is $2.69 Difference: $0.09
If VOC meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 3.1% (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 VOC as Neutral (3) -

UBS welcomes the affirmation of FY18 guidance. The broker notes the company's expanded transformation program could deliver around $90m in uplift to operating earnings between FY18 and FY20.

However, this assumes NBN economics per customer do not deteriorate further. The company has also now explicitly flagged the potential sale of its NZ assets and Australian data centres.

Neutral retained. Target is $2.80.

Target price is $2.80 Current Price is $2.69 Difference: $0.11
If VOC meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 3.1% (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 WSA as Sell (5) -

September quarter production was below Deutsche Bank forecasts. This stemmed from plant maintenance and blending in low-grade fines from the prior year's ore sorter trial. Lower grade material will continue to be fed until the end of the year.

The broker notes the stock is up around 40% since the start of the Sept quarter on the back of a 30% gain in the nickel price.  Deutsche Bank maintains a Sell rating and $2.40 target.

Target price is $2.40 Current Price is $2.95 Difference: minus $0.545 (current price is over target).
If WSA meets the Deutsche Bank target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.57, suggesting downside of -12.7% (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