Australian Broker Call

Macquarie rates ALL as Outperform (1) -

After a review of Aristocrat forecasts, the broker has decided digital, which currently represents some 28% of profit, may have reached an inflection point. Better growth is expected from FY20 and beyond supported by recent Social Casual releases and improvements in Social Casino.

The broker continues to believe the stock looks attractive, offering 17% two-year compound earnings growth on a 19x forward PE and a -10% discount to the All Industrials ex-financials. Outperform retained, target rises to $31.50 from $31.00.

Target price is $31.50 Current Price is $29.61 Difference: $1.89
If ALL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.11, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates AQR as Add (1) -

Morgans expects FY20 guidance to be provided with the results in August as well as updated revaluations on around half the portfolio. The broker is also looking for any commentary relating to potential acquisitions.

No acquisitions are forecast and the company is estimated to have around $8m in undrawn debt available. Morgans retains an Add rating, noting the stock offers an attractive distribution yield. Target is raised to $3.38 from $3.15.

Target price is $3.38 Current Price is $3.30 Difference: $0.08
If AQR meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Citi rates BHP as Neutral (3) -

June quarter production was in line with Citi's expectations. Oil equivalent production was 12% higher. Copper was 4% ahead as Spence and Cerro Colorado recorded record milling rates.

Iron ore was in line and metallurgical coal was weaker than expected, given weather impacts and lower washery yields.

Citi revises FY20 production estimates in line with the latest guidance which negatively affect FY19 and FY20 forecasts by -8% and -4%, respectively. Neutral rating retained. Target is steady at $44.

Target price is $44.00 Current Price is $41.06 Difference: $2.94
If BHP meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $40.87, suggesting downside of -0.5% (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: 0.1

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

Credit Suisse rates BHP as Neutral (3) -

Credit Suisse found the finish to FY19 in terms of production reasonable. Petroleum stood out, beating guidance. The outlook for FY20 is softer versus prior assumptions.

The extent to which the company can find growth post FY20 is of interest to the broker, given the soft outlook. Credit Suisse maintains a Neutral rating and $40 target.

Target price is $40.00 Current Price is $41.06 Difference: minus $1.06 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.87, suggesting downside of -0.5% (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: 0.1

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

Macquarie rates BHP as Outperform (1) -

BHP's June Q saw production beats in copper and petroleum and in-line for iron ore. FY20 guidance meets the broker's expectation.

FY19 will be impacted by one-offs, including Samarco costs, but otherwise it's all about the iron ore price, which, were the broker to input current spot into its model, would result in 35% and 80% earnings forecast increases for FY20-21. Outperform and $44 target retained.

Target price is $44.00 Current Price is $41.06 Difference: $2.94
If BHP meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $40.87, suggesting downside of -0.5% (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: 0.1

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

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

Morgan Stanley notes slightly better output in petroleum & copper in the June quarter was offset by slightly weaker iron ore and coal.

Guidance for the second half is somewhat less favourable versus the broker's expectations.

Equal-weight maintained. Industry view: In-Line. Target is 1840p.

Current Price is $41.06. Target price not assessed.

Current consensus price target is $40.87, suggesting downside of -0.5% (ex-dividends)

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: 0.1

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

Ord Minnett rates BHP as Hold (3) -

June quarter production was generally in line or ahead of Ord Minnett's forecasts. The broker lowers FY19 net estimates for earnings per share by -12% because of lower achieved iron ore prices, higher tax and a number of one-off charges.

The broker's net debt estimate is now US$10.3bn which provides no headroom for capital management in the August results.

Ord Minnett struggles to identify any material re-rating catalysts and maintains a Hold rating. Target is reduced to $40 from $41

Target price is $40.00 Current Price is $41.06 Difference: minus $1.06 (current price is over target).
If BHP 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 $40.87, suggesting downside of -0.5% (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: 0.1

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

UBS rates BHP as Neutral (3) -

UBS notes a strong finish to FY19 production. The company expects Queensland coal and NSW energy (steaming) coal unit costs will be marginally above prior guidance in FY19.  -$350m will be incurred in the second half for restructuring and closures.

Neutral rating and $37 target price retained. The company reports financial results on August 20.

Target price is $37.00 Current Price is $41.06 Difference: minus $4.06 (current price is over target).
If BHP 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 $40.87, suggesting downside of -0.5% (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: 0.1

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

Macquarie rates CIM as Neutral (3) -

Cimic reported weaker than expected first half profit. The broker had anticipated weakness in construction and strength in mining but was surprised at the extent of both. Mining provides less upfront cash flow benefit hence cash conversion fell well short of forecast.

The broker suspects there may be some timing issue with construction but greater leverage to the infrastructure cycle needs to be exhibited. Neutral retained, target falls to $43.80 from $48.28. The broker prefers Downer EDI ((DOW)) and WorleyParsons ((WOR)) in the space.

Target price is $43.80 Current Price is $37.11 Difference: $6.69
If CIM meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $46.25, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates CIM as Neutral (3) -

First half results were weaker than UBS expected. The company has reiterated 2019 guidance for net profit of $790-840m.

UBS retains a Neutral rating and a -10% discount to the ASX200 ex financials. The broker believes this is appropriate at this point in the cycle where outperformance is skewed to the successful execution of work in hand.

Target is reduced to $46 from $50.

Target price is $46.00 Current Price is $37.11 Difference: $8.89
If CIM meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $46.25, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in December.

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 COE as Outperform (1) -

Cooper Energy's June Q production slightly missed the broker on weaker Casino gas and Cooper Basin oil volumes. FY20 guidance meets expectation but capex will be 20% higher than the broker assumed.

The broker sees a number of catalysts ahead in  project developments and believes Cooper Basin production guidance to be conservative. The broker retains Outperform and a preference for the stock in the small-cap energy space. Target unchanged at 60c.

Target price is $0.60 Current Price is $0.53 Difference: $0.07
If COE meets the Macquarie target it will return approximately 13% (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

Citi rates COH as Downgrade to Sell from Neutral (5) -

Citi expects net profit in FY19 of $275m, at the top end of guidance. The broker suspects market growth in North America will be lower than the prior corresponding period as Cochlear may have been more focused on protecting market share.

Net profit is expected to be up 14% in FY20. Given the increase in the share price the broker downgrades to Sell from Neutral. Target is steady at $198.

Target price is $198.00 Current Price is $221.69 Difference: minus $23.69 (current price is over target).
If COH meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $175.13, suggesting downside of -21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.7

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

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

Citi downgrades to Neutral from Buy on recent share price appreciation. The target is increased slightly to $239.60 from $236.60.

The main issues during reporting season are expected to be centred on immunoglobulin market share gains. The broker forecasts FY19 net profit of US$1.94bn, slightly ahead of guidance.

Target price is $239.60 Current Price is $224.41 Difference: $15.19
If CSL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $212.83, suggesting downside of -5.2% (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

Citi rates EBO as Neutral (3) -

Citi expects FY19 net profit of $145m, noting guidance was opaque and just stated more growth was expected. Acquisitions made in the first half are expected to contribute to the second half.

The broker notes the small capital raising completed in May reduced debt and provided more flexibility for acquisitions. Citi maintains a Neutral rating and raises the target to $22 from $21.

Target price is $22.00 Current Price is $22.50 Difference: minus $0.5 (current price is over target).
If EBO 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 $23.04, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.3

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

Macquarie rates GEM as Downgrade to Neutral from Outperform (3) -

Data suggest occupancy trends are improving in the sector post Child Care Subsidy implementation, but Macquarie expects this tailwind to ease. Supply growth is persisting though moderating.

The broker believes G8 Education is doing the right things regarding operational improvement, but it will take time to turn the ship around. It is also unlikely the company will be given the benefit of the doubt on a second half skew when it reports first half earnings, Macquarie suggests. Downgrade to Neutral. Target falls to $2.80 from $3.45.

Target price is $2.80 Current Price is $2.63 Difference: $0.17
If GEM meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in December.

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 HUB as Hold (3) -

The company has entered FY19 with funds under administration of $12.9bn, slightly ahead of Morgans' forecasts. Adviser numbers grew 6% in the June quarter.

The company signed two major advice groups and a large stockbroking network. The share price has fallen and created meaningful upside to valuation but Morgans is cautious about the challenges surrounding cash margin earnings. Hold rating maintained. Target is reduced to $13.84 from $14.19.

Target price is $13.84 Current Price is $11.32 Difference: $2.52
If HUB meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $13.16, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates MFG as Downgrade to Underperform from Neutral (5) -

June quarter funds management performance was supported by a strong market, albeit not as strong as March, Macquarie notes, and 1-8% increases in funds under management across the sector. Magellan was the only major manager to experience funds inflows, while Perpetual suffered the biggest outflows.

Magellan continues to deliver a strong market performance but retail inflows are stabilising and Macquarie believes the share price has run too hard. Target rises to $45 from $39. Downgrade to Underperform.

Target price is $45.00 Current Price is $56.52 Difference: minus $11.52 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.44, suggesting downside of -23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.4

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

Morgan Stanley rates MIN as Overweight (1) -

Morgan Stanley notes press commentary regarding potential for tailings seepage in the water table at Wodgina. The company has reportedly stated it would continue to ensure issues are appropriately managed.

The broker considers it too early to estimate any delay to ramp up. However, assuming a delay of one year and 250,000t production from FY20, operating earnings (EBITDA) estimates would drop to $645m from $680m.

Overweight rating, $19.50 target maintained. Industry view: Attractive.

Target price is $19.50 Current Price is $14.77 Difference: $4.73
If MIN meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $20.00, suggesting upside of 35.4% (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

Macquarie rates MPL as Underperform (5) -

After reviewing its approach to forecast investment income, the broker has concluded forecasts are too optimistic in the face of bond yield pressure. This could lead Medibank Private to push harder on cost-outs and claims inflation. earnings forecasts have been trimmed.

Given a lack of organic growth, the broker believes a 23x forward PE is a stretch. Underperform retained, target falls to $2.85 from $3.05.

Target price is $2.85 Current Price is $3.58 Difference: minus $0.73 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.89, suggesting downside of -19.3% (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 NSR as Hold (3) -

The company has recently raised $170m via an institutional placement. Funds are to be used for new acquisitions across Australasia.

Post the placement, the company expects to deliver FY19 earnings per security of 9.6c. FY20 guidance for earnings per share is expected to be not less than 4% growth.

Morgans retains a Hold rating and raises the target to $1.73 from $1.69.

Target price is $1.73 Current Price is $1.73 Difference: $0
If NSR meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.73, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

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

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

Macquarie visited OceanaGold's NZ operations and came away expecting a substantial extension to mine life at Macraes and ongoing exploration at Waihi to offer production upside.

The broker sees NZ as the key earnings driver in the medium term, and expects the stock's discount to the sector to unwind as projects gain momentum.

Upgrade to Outperform. Target unchanged at $5.00.

Target price is $5.00 Current Price is $4.07 Difference: $0.93
If OGC meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 17.2% (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: 0.5

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

Macquarie rates PDL as Outperform (1) -

June quarter funds management performance was supported by a strong market, albeit not as strong as March, Macquarie notes, and 1-8% increases in funds under management across the sector. However, Magellan was the only major manager to experience funds inflows, while Perpetual suffered the biggest outflows.

Pendal Group suffered net outflows but flows out of JOHCM slowed, the broker notes. These would need to swing to positive to drive a re-rating, and Brexit uncertainty may well prevent that. Target falls to $8.75 from $9.00. Outperform retained.

Target price is $8.75 Current Price is $7.31 Difference: $1.44
If PDL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.44, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.4

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

Macquarie rates PPT as Underperform (5) -

June quarter funds management performance was supported by a strong market, albeit not as strong as March, Macquarie notes, and 1-8% increases in funds under management across the sector. However Magellan was the only major manager to experience funds inflows, while Perpetual suffered the biggest outflows.

Perpetual enjoyed a positive quarter for market performance, the broker notes, but posted its ninth consecutive quarter of net outflows. Target falls to $36 from $38, Underperform retained.

Target price is $36.00 Current Price is $38.19 Difference: minus $2.19 (current price is over target).
If PPT meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.13, suggesting upside of 2.5% (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 PTM as Neutral (3) -

June quarter funds management performance was supported by a strong market, albeit not as strong as March, Macquarie notes, and 1-8% increases in funds under management across the sector. However, Magellan was the only major manager to experience funds inflows, while Perpetual suffered the biggest outflows.

Platinum Asset Management's performance metrics have been under pressure, the broker notes, and outflows accelerated over the quarter. target falls to $4.60 from $4.85, Neutral retained.

Target price is $4.60 Current Price is $4.75 Difference: minus $0.15 (current price is over target).
If PTM 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 $4.33, suggesting downside of -8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.4

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

UBS rates QUB as Neutral (3) -

UBS notes industrial land in south west Sydney is at its lowest vacancy rate on record.

The results of the broker's survey supports tenant signings at Moorebank, but some may prefer to wait until the site is operational in the December quarter.

UBS suggests the delayed decision making process is often because of costs although, on analysis, there is a cost advantage for those co-located at Moorebank. Neutral maintained. Target is raised to $3.10 from $2.75.

Target price is $3.10 Current Price is $3.11 Difference: minus $0.01 (current price is over target).
If QUB meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.90, suggesting downside of -6.6% (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

Morgans rates REA as Downgrade to Reduce from Add (5) -

The shares are now trading well above Morgans' valuation and the rating is downgraded to Reduce from Add. REA Group shares have risen 21% since the broker last reported on the stock in May.

Morgans suspects there will be near-term disappointment if the FY20 outlook commentary at the results on August 9 is subdued, or even negative. The broker likes the longer term story but considers the valuation stretched. Target is steady at $91.94.

Target price is $91.94 Current Price is $97.53 Difference: minus $5.59 (current price is over target).
If REA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.29, suggesting downside of -9.5% (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

UBS rates RIO as Neutral (3) -

The June quarter was softer than UBS expected. Earnings estimates for 2019 are lifted 3%.

The company expects first sustainable production from Oyu Tolgoi in FY22-23 with capital expenditure of $6.5-7.2bn. The company is still evaluating the optimal design.

Target price steady at $101.00. Neutral rating retained.

Target price is $101.00 Current Price is $102.15 Difference: minus $1.15 (current price is over target).
If RIO meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $104.33, suggesting upside of 2.1% (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 SYR as Outperform (1) -

The orebody performed reliably in the June quarter with sales exceeding production amid strong customer demand and new offtake contracts, Credit Suisse observes.

The company now has a more sturdy balance sheet. Depletion of low-price legacy contracts appears offset by a decline in the fines price. 

Target is $2.40. Outperform retained.

Target price is $2.40 Current Price is $1.00 Difference: $1.4
If SYR meets the Credit Suisse target it will return approximately 140% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 31.3% (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 SYR as Downgrade to Underperform from Outperform (5) -

June Q production and costs at Balama both missed Macquarie's forecasts, while sales were in line. Improving production and product mix remain key to stabilising Syrah's balance sheet, the broker suggests.

Macquarie has also pushed back its timing expectation for the Battery Anode Material project, which is key to longer term valuation. Downgrade straight to Underperform from Outperform. Target falls to 90c from $1.20.

Target price is $0.90 Current Price is $1.00 Difference: minus $0.1 (current price is over target).
If SYR meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.31, suggesting upside of 31.3% (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

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

The June quarter was affected by issues with equipment, which are now resolved, and the company expects to get to 80% recoveries by the end of 2019.

Production guidance is reduced to 205-245,000t. Morgan Stanley suggests evidence of operating improvements will be crucial in the second half.

Equal-weight rating maintained. Target is $1.05. Industry view is Attractive.

Target price is $1.05 Current Price is $1.00 Difference: $0.05
If SYR meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 31.3% (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