Australian Broker Call

Morgans rates ADI as Add (1) -

APN Industria REIT will pay a fourth-quarter distribution of $0.0415, bringing the total FY20 distributions to $0.17275, slightly higher than Morgans' prediction ($0.17).

Near-term uncertainty stems from the impact of the Code of Conduct on earnings and distributions along with the expectation of a tougher leasing market. The REIT will release its FY20 result on August 19^th.

Morgans maintains its Add rating with a target price of $2.68.

Target price is $2.68 Current Price is $2.41 Difference: $0.27
If ADI meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

Macquarie assesses power pricing is a challenge for AGL Energy as falling fuel costs and weak demand have led to a drop in earnings.

There is also the issue of the Alcoa contract which is nearing expiry. The broker suggests any renewal is likely to reflect the soft forward market.

Rating is downgraded to Underperform from Neutral, as the broker says the decay in electricity pricing as well as expiry of historical gas contracts cannot be ignored. Target is raised to $15.91 from $15.87.

Target price is $15.91 Current Price is $16.97 Difference: minus $1.06 (current price is over target).
If AGL 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 $17.22, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

Credit Suisse rates BPT as Outperform (1) -

Uncertainty prevails regarding the company's upcoming FY21 guidance, Credit Suisse asserts, and this has weighed on the share price.

A lower five-year production outlook is a probability but once the uncertainty has disappeared, the broker finds the focus on value is likely to resume.

The broker envisages upside, even under more conservative production assumptions. Outperform rating maintained. Target rises to $1.79 from $1.73.

Target price is $1.79 Current Price is $1.45 Difference: $0.34
If BPT meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.76, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates CQR as Hold (3) -

Charter Hall Retail has purchased a 52% interest in a Coles ((COL)) distribution centre in Adelaide from a Charter Hall ((CHC)) fund. This will be co-owned with other Charter Hall direct managed funds.

Ord Minnett finds the move surprising as the strategy appears to be drifting from a pure retail neighbourhood and sub-regional A-REIT since stakes were acquired in BP petrol stations. Hold rating and $3.40 target.

Target price is $3.40 Current Price is $3.19 Difference: $0.21
If CQR meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates CSL as Buy (1) -

UBS reviews implications for plasma collection with the rise in coronavirus cases in certain US states. The broker expects a decline of -20% on average from April-September 2020 and then no growth until March 2021.

However, there are several items that should provide some mitigation and underpin earnings growth in FY21. Immunoglobulin price growth assumptions are increased to 8% in the second half and albumin sales in China are expected to normalise.

Buy rating maintained. Target is reduced to $331 from $335.

Target price is $331.00 Current Price is $280.75 Difference: $50.25
If CSL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $310.89, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY20:

Forecast for FY21:

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 DOW as Neutral (3) -

UBS reduces estimates for FY20-22. A lower FY20 forecast reflects the recently-announced Spotless class action settlement and FY21 takes into account the extension of coronavirus-related lockdown measures in Melbourne.

The broker does not expect a final dividend in FY20 but allows for a resumption in FY21. Neutral maintained. Target is raised to $4.20 from $3.88.

Target price is $4.20 Current Price is $4.34 Difference: minus $0.14 (current price is over target).
If DOW meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.85, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Citi increases gold estimates, expecting prices will outperform consensus forecasts. Gold stocks are expected to grind higher although value is now harder to find.

The broker downgrades Evolution Mining to Sell from Neutral on a relative basis and considers the re-rating overdone. Target is raised to $5.60 from $5.20.

Target price is $5.60 Current Price is $6.32 Difference: minus $0.72 (current price is over target).
If EVN 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 $4.92, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

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

Citi transfers to another analyst and resumes coverage of Goodman Group with a downgrade to Neutral from Buy.

Despite a strong growth outlook the broker assesses the current price is 70% above historical averages and this limits the upside over the next 12 months.

The pandemic has highlighted the need for more warehouse/logistics space and this is expected to drive development activity. Margins remain at elevated levels.

Investment earnings have lagged in recent years but an improved portfolio and lower disposal activity going forward should mean earnings growth increases to around 11% per annum, the broker assesses. Target is reduced to $16.50 from $18.50.

Target price is $16.50 Current Price is $15.21 Difference: $1.29
If GMG meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $15.50, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Citi increases gold estimates, expecting prices will outperform consensus forecasts. Gold stocks are expected to grind higher although value is now harder to find.

Newcrest Mining is downgraded to Neutral from Buy because of recent appreciation. According to Citi, further upside rests with the bellwether stock getting its historical premium back sooner via visibility on Red Chris. Target is raised to $37 from $35.

Target price is $37.00 Current Price is $33.69 Difference: $3.31
If NCM meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $32.66, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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 NWL as Underperform (5) -

Net inflows in the June quarter were ahead of guidance. Credit Suisse was pleased with the recovery that seems to suggest some level of normality is returning.

The company now expects to slightly exceed revenue and earnings guidance. However, FY21 revenue margins are likely to be under pressure following the cut to cash administration fees and the migration from back book to front book pricing.

Hence, Credit Suisse envisages minimal defence in terms of valuation against any shock and reiterates an Underperform rating. Target rises to $8.45 from $8.30.

Target price is $8.45 Current Price is $10.13 Difference: minus $1.68 (current price is over target).
If NWL meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.10, suggesting downside of -24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Macquarie rates NWL as Underperform (5) -

Macquarie notes the company performed strongly to end FY20 with $9.1bn of net inflows and an earnings boost from increased trading volumes and a higher percentage of cash allocations.

The share price movement has gone against the broker's call and investors are recommended to take profit, given future uncertainty. Underperform rating retained. Target is raised to $6.80 from $5.78.

Target price is $6.80 Current Price is $10.13 Difference: minus $3.33 (current price is over target).
If NWL meets the Macquarie target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.10, suggesting downside of -24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Morgans rates NWL as Hold (3) -

Netwealth Group reported fourth-quarter funds under administration (FuA) of $31.5bn, up by 13% over the last month with net inflows of $1.5bn. Morgans highlights if we exclude the ANZ transition, the core net inflows were down circa -10% on the pcp.

The company expects to exceed its FY20 guidance slightly. The broker forecasts growth of about 16% in FY21 driven by higher starting FuA and supported by strong net inflows along with a higher pooled cash balance.

Morgans retains its Hold rating with the target price increasing to $8.90 from $8.20.

Target price is $8.90 Current Price is $10.13 Difference: minus $1.23 (current price is over target).
If NWL meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.10, suggesting downside of -24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Citi rates ORA as Neutral (3) -

Citi updates its model to reflect the share consolidation. Dividend forecasts now include an FY20 base dividend of 13.5c and the capital returns to shareholders approved in June.

Underlying earnings forecasts are unchanged for FY20-22. Neutral rating and $2.80 target maintained.

Target price is $2.80 Current Price is $2.50 Difference: $0.3
If ORA meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

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

FY20 operating earnings are expected to be in the range of $14-16m and the company will also recognise a -$45m provision because of a write-down of land values related to assets it is looking to divest.

The delay in capital expenditure related to new projects pushes out the earnings recovery, Macquarie asserts, and downgrades to Neutral from Outperform. Target is lowered to $0.95 from $1.04.

Target price is $0.95 Current Price is $0.90 Difference: $0.05
If PPC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Citi increases gold estimates, expecting prices will outperform consensus forecasts. Gold stocks are expected to grind higher although value is now harder to find.

Citi downgrades Perseus Mining to Neutral from Buy after a 30% gain in the share price. Targets is raised to $1.60 from $1.40.

Target price is $1.60 Current Price is $1.51 Difference: $0.09
If PRU meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto will wind down its NZ aluminium smelter with closure slated for the September quarter of 2021. Tiwai Point is loss-making and has a negative value, Macquarie notes.

Macquarie incorporates a closure cost of -US$150m. Meanwhile, earnings upgrade momentum continues, the broker observes, driven by buoyant iron ore prices.

Outperform rating and $112 target retained.

Target price is $112.00 Current Price is $98.67 Difference: $13.33
If RIO meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $100.79, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

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

Rio Tinto will wind down its NZ aluminium smelter at Tiwai Point following the conclusion of the strategic review because it is no longer viable due to aluminium price and energy costs. The wind-down is expected to be completed in August 2021.

Morgan Stanley values the company's primary aluminium business at $11.50 a share, or $18.6bn. Tiwai Point is not valued separately and the impact of the closure is likely to be negligible as the smelter is loss-making.

The broker considers the decision reflects a more assertive approach to low-returning assets. Equal-weight rating retained. Industry view is In-Line. Target is $93.50.

Target price is $93.50 Current Price is $98.67 Difference: minus $5.17 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $100.79, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Ord Minnett rates RIO as Accumulate (2) -

Rio Tinto will close its Tiwai Point aluminium smelter in New Zealand in August 2021. Ord Minnett assesses the closure will help tighten aluminium markets next year.

The broker estimates closure costs could be in the vicinity of -US$300-400m. Given the low profitability and high emissions intensity of Pacific Aluminium, Ord Minnett suggests other assets could also be subject to strategic review.

Ord Minnett retains an Accumulate rating and $112 target.

Target price is $112.00 Current Price is $98.67 Difference: $13.33
If RIO meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $100.79, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

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

Citi increases gold estimates, expecting prices will outperform consensus forecasts. Gold stocks are expected to grind higher although value is now harder to find.

Citi has downgraded Saracen Mineral Holdings to Neutral. Target is raised to $6.10 from $5.30.

Target price is $6.10 Current Price is $6.24 Difference: minus $0.14 (current price is over target).
If SAR 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 $5.56, suggesting downside of -9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Morgans rates SDG as Hold (3) -

Sunland Group has announced the sale of Mariners Cove which is a retail and marina asset located in Main Beach on the Gold Coast, for $28m.

The broker notes the transaction, expected to be settled in the first half of FY21, is one of the many non-core assets that have been divested by the group over the last year, with proceeds to support FY20 earnings.

The group will report its FY20 results on August 26^th and the broker assumes no final dividend for the year. Residential markets are expected to remain challenging but the group’s balance sheet looks strong.

Morgans reaffirms its Hold rating with the target price reducing to $1.24 from $1.36.

Target price is $1.24 Current Price is $1.18 Difference: $0.06
If SDG meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates SUL as Outperform (1) -

Macquarie considers the $200m capital raising prudent as it removes the primary risk from the investment thesis. Solid trading has occurred across most brands, in line with expectations.

The company now has additional capacity to manage any consumer weakness that may eventuate. Outperform rating maintained. Target is $9.

Target price is $9.00 Current Price is $8.00 Difference: $1
If SUL meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.26, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Citi rates TWE as Neutral (3) -

Treasury Wine's FY20 earnings (EBITS) guidance of $530-540m suggests second half earnings were down -50% on average.

Citi is cautious, given a lower luxury wine intake and the likely exit of brands. To be more optimistic the broker requires a recovery in Chinese demand and on-premises sales.

The company has reiterated its strategic priority is to fix its US business and evaluate a de-merger of Penfolds. Citi retains a Neutral rating and raises the target to $10.90 from $10.60.

Target price is $10.90 Current Price is $10.95 Difference: minus $0.05 (current price is over target).
If TWE meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates TWE as Neutral (3) -

Treasury Wine expects to close FY20 with cash conversion of over 80%. Credit Suisse upgrades estimates by 6% for FY21 and 2% for FY22.

The broker expects a premium/luxury wine recovery will drive earnings in FY22. Meanwhile, the company seems to have its inventory under control.

A -30% drop in the 2020 Australian vintage intake has occurred which will enable Treasury Wine to re-allocate surplus 2018 inventory into the years affected by the curtailed 2020 vintage. Neutral maintained. Target rises to $10.45 from $9.35.

Target price is $10.45 Current Price is $10.95 Difference: minus $0.5 (current price is over target).
If TWE meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates TWE as Upgrade to Neutral from Underperform (3) -

Macquarie observes the company has experienced an unprecedented second half, with wine volumes affected by the bushfires, oversupply in the US and the impact of the virus in China.

Private-label pressures are expected to continue in the short term as oversupply builds in America. However, Macquarie assesses some confidence around consumption levels is starting to return in China. The broker downgrades estimates for FY20-22.

Rating is upgraded to Neutral from Underperform and the target lifted to $11.50 from $9.30.

Target price is $11.50 Current Price is $10.95 Difference: $0.55
If TWE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Morgan Stanley notes guidance for FY21 has been removed, given the uncertainty, while Treasury Wine expects FY20 earnings of $530-540m. This implies a -57% decline in the second half in the Americas, -46% in EMEA, -47% in Asia and -41% in Australasia.

The poor Australian vintage in 2020 has been quantified as a cost headwind of -$50m in FY21. No further detail was provided on the Penfolds de-merger with the focus on managing the business through the pandemic.

Equal-weight rating and Cautious industry view maintained. Target is $12.50.

Target price is $12.50 Current Price is $10.95 Difference: $1.55
If TWE meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Morgans rates TWE as Hold (3) -

Treasury Wine Estates’ FY20 operating income guidance was -6-8% below consensus, notes Morgans, implying a particularly weak second half led by the impact of covid-19 and a tough US market.

The broker has reduced operating income forecasts for FY21-22 and predicts FY20 operating income to fall -21.5% to $535m which is the mid-point of the company’s guidance.

With no FY21 guidance, there is uncertainty around recovery in its key markets. The broker expects cost pressure across all regions and particularly on commercial and masstige sales in ANZ and Europe, the Middle East and Africa (EMEA).

A global economic downturn expected in FY21 is likely to impact luxury wine sales and the broker predicts only modest earnings growth in FY21. The Penfolds demerger looks unlikely in the short term.

Morgans retains its Hold rating with the target price increasing to $11.55 from $10.50.

Target price is $11.55 Current Price is $10.95 Difference: $0.6
If TWE meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates TWE as Downgrade to Lighten from Hold (4) -

FY20 EBITS guidance is well below Ord Minnett's forecasts. The broker reduces estimates by -15% for FY20 and by -26% for FY21.

The broker observes the wine oversupply in the US has weighed while the recovery in the Americas, exposed to pandemic restrictions, is likely to be slow, creating a risk for the first half of FY21.

The poor 2020 vintage in Australia also reduces future potential revenue. Rating is downgraded to Lighten from Hold. Target is reduced to $10 from $11.

Target price is $10.00 Current Price is $10.95 Difference: minus $0.95 (current price is over target).
If TWE 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 $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

UBS rates TWE as Downgrade to Neutral from Buy (3) -

FY20 earnings (EBITS) guidance of $530-540m is below expectations and raises several questions for UBS.

These include whether earnings in the Americas will fully recover. The broker envisages several areas of risk, given accelerating market share loss and uncertainty around industry oversupply. Margins also remain under pressure.

With few upside catalysts for the short term and plenty of uncertainty, UBS downgrades to Neutral from Buy. Target is reduced to $11.80 from $14.80.

Target price is $11.80 Current Price is $10.95 Difference: $0.85
If TWE meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.24, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates VCX as Hold (3) -

Ord Minnett updates its modelling to account for the share purchase plan take-up. The $32.6m achieved was just 16% of the target of $200m and well below assumptions.

The broker is disappointed by the outcome and notes the share price has fallen -18% from pre placement levels.

The stock screens attractive to valuation and a share price recovery is expected as the market gains confidence that earnings will stabilise. Hold rating and $1.70 target maintained.

Target price is $1.70 Current Price is $1.33 Difference: $0.37
If VCX meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates VOC as Upgrade to Buy from Neutral (1) -

The share price has underperformed and UBS upgrades to Buy from Neutral on valuation grounds. The broker expects valuation will become more compelling once FY20-21 expenditure is cycled.

However, estimates for earnings per share are lowered by -9% to reflect higher interest costs post the recent re-financing and more difficult execution against growth targets. Target is reduced to $3.60 from $3.85.

Target price is $3.60 Current Price is $3.05 Difference: $0.55
If VOC meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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