Australian Broker Call

Citi rates ABC as Neutral (3) -

While Adelaide Brighton reported in line, a reduced dividend and margin concerns sparked selling yesterday, the broker suggests. Management expects infrastructure and non-residential construction will offset the housing downturn to keep volumes stable.

But intense competition and rising import costs means the company is more heavily reliant on price rises, the broker warns. Neutral retained, target falls to $4.50 from $4.70.

Target price is $4.50 Current Price is $4.74 Difference: minus $0.24 (current price is over target).
If ABC meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.47, suggesting downside of -5.7% (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

Credit Suisse rates ABC as Outperform (1) -

2018 earnings (EBIT) were weaker than Credit Suisse expected. Margins were affected by costs and SA import competition. The outlook is for stable demand and good pricing outcomes.

The company should deliver above-market volume growth, in the broker's view, because of the Northern Connector project, which was delayed into 2019. The broker maintains an Outperform rating and reduces the target to $5.00 from $5.30.

Target price is $5.00 Current Price is $4.74 Difference: $0.26
If ABC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting downside of -5.7% (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

Deutsche Bank rates ABC as Sell (5) -

2018 net profit was in line with Deutsche Bank's expectations, although there was some assistance from a lower-than-expected tax rate. Cement prices suffered from competition from imports.

Demand across most end markets is considered stable. Reduced FY19 forecasts are largely because there were no land sales in guidance. These are expected to recommence in FY20. Sell rating and $4 target.

Target price is $4.00 Current Price is $4.74 Difference: minus $0.74 (current price is over target).
If ABC meets the Deutsche Bank target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.47, suggesting downside of -5.7% (ex-dividends)

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 ABC as Neutral (3) -

2018 results were slightly below Macquarie's expectations. The broker observes a new management team will have to navigate weaker residential activity as well as the cost increases.

Margins have been under pressure because of rising clinker prices and higher import costs. The broker downgrades estimates for earnings per share by -10% and -26% for 2019 and 2020 respectively.

Neutral rating maintained. Target is lowered to $4.65 from $5.00.

Target price is $4.65 Current Price is $4.74 Difference: minus $0.09 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.47, suggesting downside of -5.7% (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

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

Morgan Stanley believes the 2018 performance was in-line, but the outlook is suggesting much tougher times lay ahead. The latter is seen at odds with the stock's premium valuation, suggesting weakness needs to follow to pull ABC stock back in line with its peers.

The analysts acknowledge the juicy yield will provide support, but also that investors should be in no hurry. They have time on their hands to watch a strategy evolve under the new CEO, Morgan Stanley suggests.

Rating remains Equal-weight. Target is steady at $4.75. Industry view: Cautious. Estimates have slightly increased.

Target price is $4.75 Current Price is $4.74 Difference: $0.01
If ABC meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting downside of -5.7% (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

Ord Minnett rates ABC as Hold (3) -

2018 net profit was broadly in line with Ord Minnett's forecasts. EBIT fell short of expectations. The broker believes the company is being conservative in outlining stable demand for construction materials in 2019.

Ord Minnett factors in 2% growth. 2020 is suspected to be more challenging, as lower activity in the multi-residential sector has an impact. Ord Minnett maintains a Hold rating with a $4.50 target.

Target price is $4.50 Current Price is $4.74 Difference: minus $0.24 (current price is over target).
If ABC meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.47, suggesting downside of -5.7% (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 ABC as Sell (5) -

UBS observes the company did not provides explicit guidance for 2019 but has highlighted cost pressures from energy and imports.

Management has cited stable volumes in 2019 as a fall in residential activity is cushioned by growth in non-residential and infrastructure work.

Management is less optimistic that this offset will be maintained in 2020. UBS reduces 2019 and 2020 net profit estimates by -10% and -8% respectively.

The broker believes a poor outlook for housing casts a long shadow and maintains a Sell rating. Target is reduced to $3.90 from $4.20.

Target price is $3.90 Current Price is $4.74 Difference: minus $0.84 (current price is over target).
If ABC meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.47, suggesting downside of -5.7% (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

Credit Suisse rates AIZ as Neutral (3) -

First half operating earnings (EBITDRA) were below Credit Suisse forecasts. The broker downgrades FY20 and FY21 estimates because of worsening cost inflation and reduced scale benefits from lower capacity.

Credit Suisse also remains wary of the potential for further earnings downgrades from weaker demand.

Neutral maintained. Target is reduced to NZ$2.55 from NZ$2.75.

Current Price is $2.40. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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

Deutsche Bank rates AIZ as Hold (3) -

A weaker operating environment has meant downgrades to earnings estimates. Deutsche Bank still forecasts an annual dividend of NZ$0.22, which provides a cash yield of 8.7% at the current price. Hold rating and NZ$2.61 target.

Current Price is $2.40. Target price not assessed.

Current consensus price target is N/A

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Macquarie rates AIZ as Underperform (5) -

First half results were well below Macquarie's estimates. FY19 pre-tax guidance of NZ$340-400m in profit has been reaffirmed.

Macquarie suggests the market will be looking at the outcome of the review to restore confidence in the airline's ability to improve returns without outsized growth in capacity.

This, as well as the result of a new domestic pricing structure, will be the catalyst that turns the broker positive again. Underperform. Target is reduced to NZ$2.40 from NZ$2.55.

Current Price is $2.40. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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 AIZ as Neutral (3) -

First half results revealed slightly stronger passenger and cargo revenue countered by a sharp increase in non-fuel operating costs.

UBS assesses Air New Zealand is stuck between falling FY19 earnings and the strong free cash flow expected from FY20 as the fleet modernisation finishes.

The broker maintains a Neutral rating and reduces the target to NZ$2.55 from NZ$2.70.

Current Price is $2.40. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. 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 ALX as Downgrade to Neutral from Outperform (3) -

Credit Suisse lowers 2020 distribution growth forecasts to 10% from 23%, estimating there is a significant risk that Dulles Greenway may not pass the one-year debt test in December 2019. This would prevent distributions until 2021.

Credit Suisse downgrades to Neutral from Outperform, having removed the option value for a favourable long-term toll regulation deal for Dulles Greenway. Target is lowered to $7.15 from $7.50.

Target price is $7.15 Current Price is $6.89 Difference: $0.26
If ALX meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates ALX as Buy (1) -

2018 operating earnings (EBITDA) were ahead of Deutsche Bank's forecasts. Growth continues to be supported by traffic, smaller declines on the Dulles Greenway and toll increases.

The broker continues to envisage strong distribution growth over the forecast period. FY19 distribution guidance was reaffirmed at $0.30 per security. Buy rating and $7.25 target.

Target price is $7.25 Current Price is $6.89 Difference: $0.36
If ALX meets the Deutsche Bank target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

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 ALX as Outperform (1) -

2018 results were in line with Macquarie's estimates. Despite the challenges of extreme weather and the industrial protests which affected the portfolio the core asset APRR continued to perform above peers.

Macquarie observes restructuring the Eiffage/MAF2/ALX relationship remains an important catalyst. Outperform rating maintained. Target is $7.31.

Target price is $7.31 Current Price is $6.89 Difference: $0.42
If ALX meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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

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

Morgan Stanley analysts note free cash flow in 2018 exceeded their expectations, but they stick with a "moderate conservative bias" for future growth. Equally important, the analysts highlight the transition to internal management is progressing well. Estimates have gone up.

Lots of moving factors continue to dominate this company's outlook and for this reason Morgan Stanley thinks investors will require a margin of safety. Equal-Weight rating retained, alongside Cautious industry view. Price target lifts to $7.27 from $6.66 (at least the number of the Beast is now gone).

Target price is $7.27 Current Price is $6.89 Difference: $0.38
If ALX meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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

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

Morgans found no major surprises in the results as toll revenue had already been published. The broker was hoping for news about the removal of the Eiffarie debt amortisation, as this accounts for 8-9c per security of its FY20-21 distribution forecast.

Of most concern to Morgans is a potential change of legislated tax rate reductions in France. The broker downgrades to Hold from Add, given recent strength in the share price. Target is reduced to $6.64 from $6.74.

Target price is $6.64 Current Price is $6.89 Difference: minus $0.25 (current price is over target).
If ALX meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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

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

2018 results revealed a doubling of cash flow that more than covered the distribution. UBS expects 2019 will be a year of transition as there are a number of traffic disruptions and temporarily elevated corporate costs.

Guidance is for a 25% rise in the 2019 distribution to $0.30 per security, which reflects an expected 10% increase in cash flow from APRR.

UBS downgrades to Neutral from Buy, given a period of strong outperformance and insufficient upside to valuation. Target is reduced to $6.90 from $7.10.

Target price is $6.90 Current Price is $6.89 Difference: $0.01
If ALX meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.09, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates AMA as Buy (1) -

First half results were ahead of UBS estimates. Panel repair margins were soft but the broker notes the acquisition responsible for this is being sorted.

Of more importance, the broker notes the acquisition pipeline is back to over $70m. The company has entered the heavy motor panel repair market and procurement negotiations continue.

A major customer is anticipated before the August results. UBS finds the valuation undemanding and maintains a Buy rating. Target is reduced to $1.35 from $1.40.

Target price is $1.35 Current Price is $0.95 Difference: $0.4
If AMA meets the UBS target it will return approximately 42% (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

Morgans rates AMS as Add (1) -

The maiden result represented 57% of the FY19 prospectus forecast. Strong growth was underpinned by the launch of the Ninja V as well as higher-than-forecast bundle sales across various products.

The gross margin has been affected by higher component costs but Morgans believes this is not uncommon in the initial phases of launching a new product.

Prospectus operating earnings (EBITDA) were reiterated. Morgans maintains an Add rating and raises the target to $0.90 from $0.78.

Target price is $0.90 Current Price is $0.79 Difference: $0.11
If AMS meets the Morgans target it will return approximately 14% (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

Macquarie rates ASB as Outperform (1) -

First half earnings (EBIT) were ahead of Macquarie's estimates. A stronger second half is expected and management guidance implies revenue of $1.9bn with a 7-8% US shipbuilding margin.

Macquarie considers the results exceptional, with solid momentum and a positive outlook across both shipbuilding regions.

Valuation is undemanding and the broker maintains an Outperform rating. Target is steady at $2.60.

Target price is $2.60 Current Price is $2.20 Difference: $0.4
If ASB meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Ord Minnett rates ASB as Accumulate (2) -

First half net profit was below Ord Minnett's forecasts because of a higher tax rate. The number of contract wins in 2018 are expected to transfer into cash flow in coming years.

The negative share price reaction to the pre-guided result signals to the broker that the market was concerned about the company's remark that earnings would not increase as much as in the prior half-year.

Ord Minnett maintains an Accumulate rating and raises the target to $2.45 from $2.40.

Target price is $2.45 Current Price is $2.20 Difference: $0.25
If ASB 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 FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Deutsche Bank rates ASX as Sell (5) -

The company will sell its 18.6% shareholding in IRESS ((IRE)). The sale is expected to realise gross proceeds of $385m. The company invested in the business at the IPO in 2000.

ASX is still reviewing options for the proceeds of the sale and will provide an update on completion of the review. Sell rating and $57.60 target maintained.

Target price is $57.60 Current Price is $70.19 Difference: minus $12.59 (current price is over target).
If ASX meets the Deutsche Bank target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $59.84, suggesting downside of -14.7% (ex-dividends)

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 BIN as Outperform (1) -

The ACCC has provided conditional approval of the acquisition of DADI. The company has also announced a $75m buyback. Macquarie believes DADI will provide significant revenue diversification and longer-term growth options.

The broker includes the acquisition in its estimates from April 1, raising estimates for earnings per share by 3% in FY19 and by 16% in FY20. The broker maintains an Outperform rating and raises the target to $2.00 from $1.50.

Target price is $2.00 Current Price is $1.63 Difference: $0.37
If BIN meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 35.6% (ex-dividends)

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

Morgans rates BIN as Add (1) -

The ACCC has approved the company's acquisition of Dial-A-Dump Industries (DADI). Morgans includes the acquisition into forecasts and factors in a commitment to exit Banksmeadow.

The company chose to divest Banksmeadow recycling facility instead of DADI's Alexandria transfer station. The company is expected to transfer volumes previously processed through Banksmeadow to Alexandria.

The company has also announced an on-market buyback of up to $75m. The broker considers this a signal that management believes the stock is cheap following the recent sell-off.

Morgans maintains an Add rating and raises the target to $2.08 from $1.81.

Target price is $2.08 Current Price is $1.63 Difference: $0.45
If BIN meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 35.6% (ex-dividends)

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

UBS rates BIN as Buy (1) -

The proposed acquisition of Dial-A-Dump Industries (DADI) has been approved by the ACCC and the company will divest its recycling facility in Banksmeadow.

An on-market buyback of up to 75m has been announced. The share buyback surprised UBS, which expected this would only occur should the deal not proceed. Buy and $2.55 target retained.

Target price is $2.55 Current Price is $1.63 Difference: $0.92
If BIN meets the UBS target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 35.6% (ex-dividends)

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

Morgans rates BUB as Hold (3) -

First half results were largely in line with Morgans. Strong revenue growth occurred, reflecting a full six-month contribution from the NuLac Foods acquisition.

A large outflow in operating cash was reported, as inventory levels were increased to support future sales.

The company has recently announced a manufacturing agreement with Tatura to convert its fresh Australian goat milk supply directly into infant formula.

Morgans maintains a Hold rating and raises the target to $0.45 from $0.44.

Target price is $0.45 Current Price is $0.56 Difference: minus $0.11 (current price is over target).
If BUB meets the Morgans target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Macquarie rates CMW as Underperform (5) -

First half results were in line with Macquarie's forecasts. The cessation of two European mandates worth EUR900m has been delayed to FY20.

The broker observes earnings will continue to decline in the near term because of reduced assets under management and limited balance sheet capacity to rapidly change the trajectory.

Underperform rating maintained. Target is reduced to $0.91 from $0.98.

Target price is $0.91 Current Price is $1.12 Difference: minus $0.21 (current price is over target).
If CMW meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.04, suggesting downside of -6.8% (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

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

First half operating profit was below Ord Minnett's forecasts because of lower rental income and higher corporate costs. The company has maintained earnings guidance for FY19 of not less than 8c per share.

Over time, Ord Minnett expects capital to be realised in the company's office portfolio ias assets are re-positioned and re-deployed into aged care or into Europe via co-investment.

This is an opportunistic strategy that the company believes is justified by higher returns, although it carries increased complexity that the broker believes will not appeal to some investors.

Rating is downgraded to Hold from Accumulate. Target rises to $1.13 from $1.10.

Target price is $1.13 Current Price is $1.12 Difference: $0.01
If CMW meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.04, suggesting downside of -6.8% (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

Citi rates DCG as Buy (1) -

Citi does not indicate how Decmil's result stacked up against forecasts but we'll take a retained Buy rating, target prices increase to $1.25 from $1.10 and positive commentary as a beat. The broker sees the company as well placed to capitalise on road projects on the east coast, social infrastructure projects in NZ and iron ore projects in WA.

The broker expects Decmil's non-core accommodation services business to be divested, has lifted forecasts on stronger margins and believes a -22% discount to E&C peers should reduce.

Target price is $1.25 Current Price is $0.87 Difference: $0.38
If DCG meets the Citi target it will return approximately 44% (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

Morgan Stanley rates ELO as Overweight (1) -

Deducing from the bullet points response to yesterday's interim report release, it appears Morgan Stanley has been negatively surprised by the company's intent to continue reinvesting heavily in the business. The report showed higher growth, but also higher costs.

EBITDA guidance has effectively be lowered (that's a profit warning in anyone's lingo), while the number of net customer additions was nowhere near the 155 Morgan Stanley had penciled in. Investing in R&D proved well above expectations.

Strong sales were one of the report's highlights, suggest the analysts. Overweight rating retained, alongside In-Line industry view and $8.00 target.

Target price is $8.00 Current Price is $5.90 Difference: $2.1
If ELO meets the Morgan Stanley target it will return approximately 36% (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 FNP as Buy (1) -

Freedom Foods' earnings result missed the broker by -15% due to the one-off impact from a strategic decision to terminate private label manufacturing in Cereals & Snacks in order to free up capacity for higher margin brands. Otherwise, Dairy performed well and marketing was stepped up, but is still low as a percentage of sales, the broker notes.

On the negative side, margins were flat and capex higher than expected but should lead to second half earnings growth. Buy retained on the expectation of medium term margin expansion. Target unchanged at $7.65.

Target price is $7.65 Current Price is $4.85 Difference: $2.8
If FNP meets the Citi target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $6.79, suggesting upside of 39.9% (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

UBS rates FSF as Neutral (3) -

The company has lowered FY19 guidance for earnings per share to NZ15-25c. The company has also raised the FY19 farmgate milk price range to NZ$6.30-6.60/kg milk solids. No interim dividend will be paid.

UBS suggests the scope of the strategy review has widened and most likely reflects greater earnings and balance sheet pressure.

The company statement has pointed to a fundamental change in direction. An update will be provided at the interim results on March 20.

UBS retains a Neutral rating and NZ$5.05 target.

Current Price is $4.03. Target price not assessed.

The company's fiscal year ends in July.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: -0.3

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

Citi rates GXY as Buy (1) -

Yesterday, upon early assessment, Citi analysts commented the company's interim performance was broadly in-line expectations. Today, Citi analysts suggest, post conclusion of the POSCO deal, the key question now remains what potential strategic partnership and/or offtake opportunity to further unlock Sal de Vida value?

Target price lost -20c to $3.80. Buy/High Risk.

Target price is $3.80 Current Price is $2.17 Difference: $1.63
If GXY meets the Citi target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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: 0.8

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

Credit Suisse rates GXY as Outperform (1) -

2018 results were largely in line with expectations. There was no operating update or spodumene price update, nor a change in 2019 guidance.

Cash generation was limited by the soft Mount Cattlin operating performance. The broker maintains an Outperform rating and reduces the target to $3.00 and $3.15.

Target price is $3.00 Current Price is $2.17 Difference: $0.83
If GXY meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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: 0.8

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

Macquarie rates GXY as Neutral (3) -

2018 results fell short of expectations. There was a one-off boost to net profit of US$149m from the sale of the northern tenements of Sal de Vida.

Finding a development partner or the balance of funding for Sal de Vida remain the key catalysts for the company. Macquarie maintains a Neutral rating and $2.20 target.

Target price is $2.20 Current Price is $2.17 Difference: $0.03
If GXY meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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: 0.8

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

Morgan Stanley rates GXY as Overweight (1) -

Morgan Stanley saw an in-line 2018 result. The broker also continues to favour Galaxy Resources in the Australian lithium segment, though Mineral Resources ((MIN)) remains its Top Pick in the sector.

Several items in the report, including cash, were above expectations. The analysts remind investors management has flagged a move to 6-monthly pricing in 2019.

Overweight rating retained, alongside unchanged price target of $2.50. Industry View: Attractive.

Target price is $2.50 Current Price is $2.17 Difference: $0.33
If GXY meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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: 0.8

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

UBS rates GXY as Buy (1) -

2018 net profit was below UBS estimates. Higher operating costs and rehabilitation expenses were the cause. The company has reiterated production guidance of 40-45,000t for the March quarter and 180-210,000t for 2019.

The driver of the stock remains the price of lithium as well as operating improvements at Mount Cattlin and progress on the Sal de Vida project. UBS maintains a Buy rating and reduces the target to $2.50 from $2.70.

Target price is $2.50 Current Price is $2.17 Difference: $0.33
If GXY meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.80, suggesting upside of 29.0% (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: 0.8

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

Citi rates HVN as Sell (5) -

In the wake of Harvey Norman's result the broker warns the Australian outlook continues to deteriorate, with inventory building and sales growth turning negative in the period November-February. Earnings declined by -5% in the first half and -14% is expected in the second.

Offshore nevertheless surprised to the upside and a lack of special dividend, which the broker had expected, lifts earnings forecasts. Target rises to $3.20 from $2.85, Sell retained.

Target price is $3.20 Current Price is $3.72 Difference: minus $0.52 (current price is over target).
If HVN meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Credit Suisse rates HVN as Neutral (3) -

Credit Suisse observes profitability generally follows the housing cycle, which suggests a deterioration in coming periods. A soft January and February trading update is consistent with this, in the broker's view.

Franchisee receivables were up $100m and the broker is not sure that the increase is entirely about inventory. As a result, Credit Suisse is not confident that profitable sell-through of franchisee inventory will be achieved.

Meanwhile, diversifying earnings for Harvey Norman is likely to be increasingly positive in the longer term. The broker maintains a Neutral rating and raises the target to $3.81 from $3.53.

Target price is $3.81 Current Price is $3.72 Difference: $0.09
If HVN meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Deutsche Bank rates HVN as Buy (1) -

Deutsche Bank observes the weakness in housing and consumer sentiment is starting to show up and this is reflected in the first half results for Harvey Norman.

The broker suspects it could get worse, although the margin outcome in the first half was better-than-expected.

Profit is still expected to grow, driven by the high-performing offshore businesses, which constitute 26% of earnings.

While cash flow was weak the company is considered to have a strong track record in this regard and the shortfall has always reversed in following periods. Buy rating and $4.60 target.

Target price is $4.60 Current Price is $3.72 Difference: $0.88
If HVN meets the Deutsche Bank target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Macquarie rates HVN as Outperform (1) -

Macquarie observes the company is successfully turning its business to focus on the global operations. First half profit in the Australian division was slightly below Macquarie's estimates and, clearly, conditions are challenging.

Still, the broker considers this a credible result. International and property should shield the Australian business from the impact of a challenging consumer and housing market, in the broker's view. Outperform rating maintained. Target is $4.10.

Target price is $4.10 Current Price is $3.72 Difference: $0.38
If HVN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Morgan Stanley rates HVN as Underweight (5) -

On Morgan Stanley's observation, the interim report showed slowing business in Australia as the housing cycle has turned, but offshore operations are performing well. It's the slowdown in Australia that keeps the rating at Underweight.

The price target was reduced in January to $3.00 from $3.10, but now has moved back up to $3.20 as the international operations support higher forecasts. With no data to support their thesis, the analysts "think" Harvey Norman is losing market share in Australia. Cautious industry view maintained.

Also, Morgan Stanley has now pinned down DPS forecasts at 28c per annum for as far as the eye can see.

Target price is $3.20 Current Price is $3.72 Difference: minus $0.52 (current price is over target).
If HVN meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Ord Minnett rates HVN as Hold (3) -

First half underlying pre-tax profit was in line with Ord Minnett's forecast. The broker notes the core franchising operation is facing a difficult external environment.

International operations remain a current and future source of growth, particularly in Malaysia. The broker envisages valuation support at the current share price but retains a cautious stance because of downside earnings risk.

Hold rating and $3.50 target retained.

Target price is $3.50 Current Price is $3.72 Difference: minus $0.22 (current price is over target).
If HVN meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

UBS rates HVN as Neutral (3) -

First half pre-tax profit was ahead of UBS estimates. The international business was the highlight. The broker observes positive operating results were overshadowed by news of the acquisition of the remaining stake in the KEH partnership.

Cash conversion was also weak, owing to build in company stock and franchisees. UBS maintains a Neutral rating and raises the target to $3.25 from $3.00.

The broker believes the view of Harvey Norman as an Australian electrical/furniture retailer is changing, although, while Australian earnings exposure is falling, the leverage to housing and new competition online is not.

Target price is $3.25 Current Price is $3.72 Difference: minus $0.47 (current price is over target).
If HVN meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.67, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates ING as Sell (5) -

Inghams' 3% increase in first half earnings reflects good price pass-through, the broker suggests, but the feed cost headwind is blowing harder in the second half and there is a risk of weaker volumes. The broker lowers forecasts and no longer expects any capital management beyond the buyback.

Cost savings can help offset rising feed costs but the broker retains Sell, looking forward to the unveiling of the new CEO's strategy in June. Target unchanged at $3.85.

Target price is $3.85 Current Price is $4.09 Difference: minus $0.24 (current price is over target).
If ING meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -2.2% (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

Credit Suisse rates ING as Neutral (3) -

First half results were in line with Credit Suisse estimates. The broker believes the slump in the share price is probably the result of recent outperformance and caution about overhang on the register.

Having successfully passed through much of the input price increases and carrying a weak NZ performance, amid further efficiency gains, the broker retains a positive stance on the business.

This is tempered by timing and the current valuation, and a Neutral rating is maintained. Target is raised to $4.25 from $3.66.

Target price is $4.25 Current Price is $4.09 Difference: $0.16
If ING meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting downside of -2.2% (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 ING as Neutral (3) -

First half net profit was broadly in line with Macquarie's estimates. Improved margins in Australian poultry were observed from efficiency benefits and the passing through of pricing that offset rising operating expenses.

As expected, New Zealand was weak in a challenging operating environment, although management expects an improved result in the second half. Neutral rating maintained. Target rises to $4.10 from $4.00.

Target price is $4.10 Current Price is $4.09 Difference: $0.01
If ING meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting downside of -2.2% (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

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

Morgan Stanley welcomes the resilience of the Australian operations, but admits weakness in New Zealand took off all the gloss from the interim report. And it was all about input costs pressure. Changes to forecasts remain benign.

Given the shares are relatively cheaply priced, say the analysts, the risks are seen as fairly balanced. They do point out risk remains regarding the Woolworths ((WOW)) contract renewal. Rating remains Equal-weight. Target moves to $4.30 (was $4.40). Industry view: Cautious.

Target price is $4.30 Current Price is $4.09 Difference: $0.21
If ING meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting downside of -2.2% (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

Morgans rates ING as Hold (3) -

Morgans found the first half result commendable, in light of the challenging industry conditions and headwinds on costs. Australia was a highlight while the smaller operation in New Zealand was disappointing.

The broker considers the outlook commentary vague. No FY19 earnings guidance was provided and the broker notes the first half is seasonally stronger than the second.

Morgans maintains a Hold rating and the target is raised to $4.10 from $3.75.

Target price is $4.10 Current Price is $4.09 Difference: $0.01
If ING meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting downside of -2.2% (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

UBS rates ING as Sell (5) -

First half operating earnings (EBITDA) were up 4%. No guidance was provided for the second half. UBS found the composition of the first half mixed, suspecting it included one-off timing benefits from price increases versus realised feed cost increases.

The broker suspects significant improvements in New Zealand are unlikely until FY20. UBS believes the market is overestimating the company's pricing power and retains a Sell rating. Target is raised to $3.40 from $3.30.

Target price is $3.40 Current Price is $4.09 Difference: minus $0.69 (current price is over target).
If ING meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.00, suggesting downside of -2.2% (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

UBS rates LYC as Buy (1) -

First half earnings were ahead of UBS estimates. The new separation circuit has been commissioned and first production is now underway. The broker expects this to drive an uplift in realised revenue of around 3%.

Management has indicated it is still working with the Malaysian government to find a solution. UBS maintains a Buy rating, predicated on improved pricing over time and a resolution of regulatory permits. Target is reduced to $2.80 from $2.90.

Target price is $2.80 Current Price is $1.67 Difference: $1.13
If LYC meets the UBS target it will return approximately 68% (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 NCK as Neutral (3) -

Looking back upon the retailer's 2018 performance, Citi analysts find there is a lot to like, but they are not prepared to turn into buyers. Too many risks is probably the most apposite summation of Citi's considerations.

Among other potential headwinds, Citi points out the upcoming Federal election has the potential to adversely impact sales. Estimates have been cut with the analysts predicting margin pressure. With acquisitions increasingly unlikely short term, suggest the analysts, the next share price catalyst could be the scheduled trading update in early May.

Neutral rating retained, while reduced forecasts pull back the price target to $5.60 from $6.75. DPS estimates have been increased.

Target price is $5.60 Current Price is $6.15 Difference: minus $0.55 (current price is over target).
If NCK meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Macquarie rates ONE as Outperform (1) -

Contract momentum has lagged expectations. Macquarie observes this is a nascent market with lengthy sales cycles. The balance sheet requires replenishment, although management is confident of securing a deal.

The board anticipates around 40-50% revenue growth in 2019. The stretched balance sheet raises the risk profile in the near term, in the broker's opinion, while the launch of Android and senior living are key to the outlook.

Just a couple of catalysts could move the dial materially and Macquarie maintains an Outperform rating, while reducing the target to $0.98 from $3.50.

Target price is $0.98 Current Price is $0.56 Difference: $0.42
If ONE meets the Macquarie target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 1.0

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

Citi rates ORE as Buy (1) -

Looking back at the H1 report, it appears published financials were above Citi's expectations, but H2 is expected to be a lot weaker. Hence why estimates have been pulled back. This leads to a cut in the price target to $4.90.

Buy/High Risk rating remains in place, also because of expectations of high volatility in pricing, performance and share price. The analysts suggest H2 will be weak on both volume and product price.

Target price is $4.90 Current Price is $3.81 Difference: $1.09
If ORE meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 27.6% (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 QUB as Neutral (3) -

First half net profit was ahead of Macquarie's estimates. A special dividend was also declared. Macquarie is now forecasting net profit to rise 15% in FY19.

The broker believes the company has an attractive growth profile, supported by recent acquisitions, Moorebank and increased associate income from Patrick.

Still, the stock continues to trade on a high PE as investors are taking into account the long-term value from Moorebank, which is still being de-risked, as well as investment properties and Patrick.

Macquarie maintains a Neutral rating and raises the target to $2.80 from $2.75.

Target price is $2.80 Current Price is $2.80 Difference: $0
If QUB meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.78, suggesting downside of -0.7% (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

Morgans rates RAP as Add (1) -

First half results were largely in line with forecasts. Morgans observes the focus is on the catalysts that are expected over the next few weeks, including children's croup results and the Australian adults study.

Because of the delays in FDA submissions, as a result of the US government shutdown, and CE mark clearance estimates as Brexit uncertainty continues, the broker pushes out initial customer revenue by six months.

Morgans maintains an Add rating and reduces the target to $0.19 from $0.24.

Target price is $0.19 Current Price is $0.09 Difference: $0.1
If RAP meets the Morgans target it will return approximately 111% (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 RHC as Downgrade to Neutral from Buy (3) -

Ramsay delivered a solid result, in line with Citi's forecast. Revenue growth in Australia suggests Ramsay continues to take market share and by continuing to invest in hospital capex, the company is attracting more doctors and driving market share gains, the broker notes.

France surprised to the upside and weakness in the UK reduced in the Dec Q. Capio integration is now the focus, Citi believes, but could take time. On recent share price strength the broker pulls back to Neutral from Buy. Target rises to $65.00 from $61.25.

Target price is $65.00 Current Price is $64.08 Difference: $0.92
If RHC meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $63.02, suggesting downside of -1.6% (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

Credit Suisse rates RHC as Underperform (5) -

First half earnings were above Credit Suisse estimates. While the broker finds positive aspects in France and the UK, offshore regions make up around 30% of earnings and warrant a lower multiple.

The broker does not believe the recent rally in the share price is justified and retains an Underperform rating.

With subdued market conditions in Australia, Credit Suisse envisages downside risk to earnings with the upcoming election and the renegotiation of key health insurance contracts. Target is raised to $54.80 from $51.10.

Target price is $54.80 Current Price is $64.08 Difference: minus $9.28 (current price is over target).
If RHC meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.02, suggesting downside of -1.6% (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

Deutsche Bank rates RHC as Downgrade to Hold from Buy (3) -

First half results pleased Deutsche Bank, demonstrating the Australian business can achieve decent revenue growth and margin expansion, while European profitability is improving.

The broker expects the the company to benefit from increased tariffs in France and the UK, amid synergies from the Capio acquisition. The broker downgrades to Hold from Buy on valuation. Target is $64.90.

Target price is $64.90 Current Price is $64.08 Difference: $0.82
If RHC meets the Deutsche Bank target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $63.02, suggesting downside of -1.6% (ex-dividends)

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Macquarie rates RHC as Outperform (1) -

First half earnings were ahead of Macquarie's expectations. FY19 guidance is reaffirmed. The broker notes Australian hospital revenue growth remains ahead of system and brownfield projects completed in FY19 should support growth from FY20.

The broker maintains a positive investment view on the stock, expecting more favourable tariff outcomes in France and the UK as well as benefits from the Ascension JV. Outperform maintained. Target rises to $72.00 from $68.50.

Target price is $72.00 Current Price is $64.08 Difference: $7.92
If RHC meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $63.02, suggesting downside of -1.6% (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

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

Morgan Stanley found the H1 performance "slightly ahead", with management retaining guidance for up to 2% growth in FY19. The latter is pleasing as it now includes a slightly negative impact from acquired Capio due to delayed timing of achieving control.

The main point of debate will remain in Australia, suggest the analysts. Overall industry dynamics for private insurance and private hospital operators remain negative in their view. The valuation is not seen as compelling and this keeps the rating on Equal-weight. Price target lifts to $64 from $59. Industry view is In-Line.

Target price is $64.00 Current Price is $64.08 Difference: minus $0.08 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.02, suggesting downside of -1.6% (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 RHC as Hold (3) -

First half underlying results were ahead of expectations. Morgans notes domestic admissions growth is above the market, although still below trend. France is considered to be moving in the right direction, although revenue is fairly flat and unlikely to improve.

The broker notes margins at Capio are contracting and the integration risk is still large. However, progress in the UK is encouraging. Hold rating maintained. Target rises to $59.69 from $58.28.

Target price is $59.69 Current Price is $64.08 Difference: minus $4.39 (current price is over target).
If RHC meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.02, suggesting downside of -1.6% (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

Ord Minnett rates RHC as Hold (3) -

First half net profit was below Ord Minnett's forecasts. A solid result was reported from domestic hospitals because of further efficiency gains and restructuring benefits.

Offshore operations fell short of the broker's forecast but the news of higher tariffs in both the UK and France support an optimistic outlook.

The broker also holds a more positive view on top-line growth from the Capio acquisition. Hold rating and $60 target maintained.

Target price is $60.00 Current Price is $64.08 Difference: minus $4.08 (current price is over target).
If RHC meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.02, suggesting downside of -1.6% (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

UBS rates RHC as Neutral (3) -

First half net profit was ahead of UBS estimates. The broker observes reasonable growth in Australia, while Capio's contribution was less than expected. Earnings quality was again affected by non-core items.

Management has reaffirmed FY19 guidance, although this now includes a small dilutive impact from Capio. UBS maintains a Neutral rating and raises the target to $63.80 from $56.00.

Target price is $63.80 Current Price is $64.08 Difference: minus $0.28 (current price is over target).
If RHC 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 $63.02, suggesting downside of -1.6% (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

Credit Suisse rates RIO as Neutral (3) -

Credit Suisse was pleased with the 2018 results and the US$4bn special dividend. The broker believes the company will get credit for being flexible with its method of returning cash to shareholders in the face of recent rises in the share price.

However, Credit Suisse believes the stock is fully priced and there is difficulty justifying building a position at these levels. Neutral rating and $79 target maintained.

Target price is $79.00 Current Price is $95.05 Difference: minus $16.05 (current price is over target).
If RIO 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 $91.02, suggesting downside of -4.2% (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: 0.4

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

Citi rates SBM as Neutral (3) -

Looking back at the released interim report, Citi found the performance in-line, assisted by a strong gold price in AUD. Target price $4.60. Neutral rating retained.

The analysts suggest potential share price catalysts short term include release of the feasibility study for the Leonora GMX as well as the prefeasibility study for the Simberi sulphide project.

Target price is $4.60 Current Price is $4.38 Difference: $0.22
If SBM meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.62, suggesting upside of 5.5% (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

Citi rates SGM as Neutral (3) -

Looking back at the released H1 financial performance numbers, Citi analysts believe it was all in line with management's earlier profit warning guidance. H2 should see improvement. Neutral rating retained, while the price target moves to $11.50.

While noting scrap markets have been improving, the analysts emphasise risks equally remain on the horizon. Uncertainty remains around the clarification of the quota system relating to Category 6 restrictions in China.

Target price is $11.50 Current Price is $11.18 Difference: $0.32
If SGM meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.03, suggesting upside of 7.6% (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

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

Ord Minnett has reassessed the prospects for the company. The focus on prime shopping centres in wealthy catchments is likely to mean the business is a long-term winner but the broker envisages few near-term catalysts in a tough retailing environment.

Ord Minnett downgrades to Hold from Accumulate and lowers the target to $12.60 from $13.00. The broker notes 2019 earnings growth guidance was lowered for several reasons.

The company is aiming to sell EUR4bn in property and the broker is unsure how much was incorporated in guidance.

Target price is $12.60 Current Price is $11.38 Difference: $1.22
If URW meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $11.61, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

This company reports in EUR. 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 XF1 as Buy (1) -

Ord Minnett found no significant surprises in the first half results and continues to envisage credit usage and credit sales growth across all markets.

The broker still expects break-even during FY20. Meanwhile, the international opportunity remains compelling, with Canada now contributing 11% of revenue.

Buy rating maintained. Target is $0.90.

Target price is $0.90 Current Price is $0.48 Difference: $0.42
If XF1 meets the Ord Minnett target it will return approximately 88% (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