Australian Broker Call

Credit Suisse rates ABC as Neutral (3) -

Credit Suisse suggests that South Australia's northern connector road will be a significant opportunity for cement demand over the next three years.

This is Adelaide Brighton's most profitable cement market and should support a return to positive earnings growth, offsetting the weakness in Western Australia.

However, the broker prefers to wait for the award of the project before incorporating this into forecasts. Target unchanged at $5.55 with Neutral rating.

Target price is $5.55 Current Price is $5.16 Difference: $0.39
If ABC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: -0.2

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

Deutsche Bank rates AHG as Buy (1) -

At the AGM the company has signalled that operating EBITDA for the first four months of FY17 is down 7.8%, with refrigerated logistics particularly weak.

The company expects the full year operating profit will exceed FY16, largely  underpinned by a significant turnaround in cold logistics in second half.

Deutsche Bank struggles to arrive at that guidance, even assuming cost reductions are achieved, given that implies a 40% recovery in logistics in the second half, year-on-year. The broker lowers FY17 net profit forecasts by 12% and FY18 by 6%.

A Buy rating is retained on the valuation. Target falls to $4.60 from $5.10.

Target price is $4.60 Current Price is $3.88 Difference: $0.72
If AHG meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates AHG as Outperform (1) -

Auto Holdings' AGM highlighted the ongoing theme of Auto performing well and Logistics performing poorly, such that the earnings run-rate is below that of last year. Guidance for FY17 to beat FY16 is nevertheless maintained, the broker notes, with Logistics stabilising and a better second half expected.

Auto has done well despite weakness in WA but there is no new news on ASIC's financing negotiations. A sale of Logistics would be a major catalyst, the broker suggests. Outperform retained, target falls to $4.50 from $4.93.

Target price is $4.50 Current Price is $3.88 Difference: $0.62
If AHG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Morgan Stanley rates AHG as Underweight (5) -

The company has signalled a weak start to the year, with the main problem cited as lying with the cold logistics division.

However, Morgan Stanley believes the automotive EBITDA growth of 8.4% over July-October was likely underpinned by acquisitions, and this implies a 5.3% decline when excluding these.

The weakness is blamed on Western Australia, where sales and margins are under pressure. Morgan Stanley expects conditions may get worse as the ASIC review and macro factors place more pressure on sales and margins.

 Underweight retained. Sector view is In-Line. Target is $3.15.

Target price is $3.15 Current Price is $3.88 Difference: minus $0.73 (current price is over target).
If AHG meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.61, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Morgans rates AHG as Add (1) -

The AGM update revealed a trend which the market has become accustomed to, Morgens observes. That is, stronger-than-expected automotive earnings growth and weaker-than-expected cold logistics.

The broker makes further modest downgrades to forecasts for earnings per share. A significant $20m cost-cutting program within cold logistics should bolster divisional earnings following a very weak first four months, but top line growth is also necessary, the broker observes.

And rating is maintained. Target falls to $4.74 from $4.87.

Target price is $4.74 Current Price is $3.88 Difference: $0.86
If AHG meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Ord Minnett rates AHG as Accumulate (2) -

Operating earnings for the first four months of FY17 were down 7.8% on a year ago. Much of the downgrade is attributed to the refrigerated logistics business.

Ord Minnett observes the company remains committed to the division but an update on its transformation project is expected at the first half result.

The broker believes regulatory concerns continue to weigh on the stock, with uncertainty surrounding the outcome from the ASIC review into commissions paid to dealerships.

Ord Minnett maintains an Accumulate rating and reduces its target to $4.84 from $5.10.

Target price is $4.84 Current Price is $3.88 Difference: $0.96
If AHG meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

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

Macquarie acknowledges the unforeseen plunge in the gold price post-Trump and while expecting further volatility, on a medium to long term outlook believes there's an 80% chance US economic outcomes will be positive for gold.

The broker thus believes some miners have been sold off too far. Alacer is upgraded to Outperform. Target unchanged at $3.40.

Target price is $3.40 Current Price is $2.30 Difference: $1.1
If AQG meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 85.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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 AST as Neutral (3) -

Citi saw a strong result, but the analysts also lament the lack of catalysts. They note the company has slightly increased (+1%) dividend guidance.

The analysts have lifted price target to $1.58 from $1.56. Neutral rating retained. Citi observes AusNet is higher priced than Spark Infra (SKI)) while it should trade at a discount in the analysts' opinion.

Target price is $1.58 Current Price is $1.48 Difference: $0.105
If AST meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Credit Suisse rates AST as Neutral (3) -

First half results were ahead of Credit Suisse forecasts. The main driver of the  performance was the re-profiling of seasonal tariffs which increased winter revenues. As a result the broker expects a lower second half contribution.

FY17 dividend growth estimates are increased to 3% from 2%. Credit Suisse still expects the company to be dependent on continued equity issuance from a discounted dividend reinvestment plan in order to fund growth. Neutral rating  and $1.65 target retained.

Target price is $1.65 Current Price is $1.48 Difference: $0.175
If AST meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Deutsche Bank rates AST as Hold (3) -

First half results slightly beat Deutsche Bank's forecast at the EBITDA level. The introduction of lower electricity distribution tariffs in Victoria has flowed through to the numbers, with total revenue down 4.5%.

The company has upgraded full year distribution guidance to 8.8 cents per security and expects franking at 50%. This represents an upgrade to 3% dividend growth from 2%. Deutsche Bank retains a Hold rating and $1.45 target.

Target price is $1.45 Current Price is $1.48 Difference: minus $0.025 (current price is over target).
If AST meets the Deutsche Bank target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Macquarie rates AST as Outperform (1) -

AusNet's result was better than expected, offset by higher funding cost and tax. With some 81% of revenue regulated or contracted, the onus is on the company to reduce costs, the broker suggests.

AusNet has been a laggard among peers on that front to date, the broker notes, but a program is now underway. This should provide a solid base for earnings to grow on a conservatively geared balance sheet. Outperform retained, target falls to $1.76 from $1.84.

Target price is $1.76 Current Price is $1.48 Difference: $0.285
If AST meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgan Stanley rates AST as Overweight (1) -

The company appears to have made strong progress towards its target of a reduction in operating expenditure of $20m by FY19, Morgan Stanley notes.

The broker also believes the company's measured approach is prudent, in view of its critical infrastructure role, asset base and the industry changes that are under way.

Distribution guidance for FY17 has been lifted, signalling to the broker that the company has greater certainty in its regulated electricity distribution revenue and the draft transmission determination. Overweight rating retained. Target is $1.55. Industry view: Cautious.

Target price is $1.55 Current Price is $1.48 Difference: $0.075
If AST meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgans rates AST as Hold (3) -

First half earnings and cash flow declined, but not to the extent that Morgans expected. The upgrade to FY17 distribution guidance, although minor, is a positive for investors in the broker's opinion.

Morgans believes yield, defensive earnings, a strong balance sheet and potential earnings upside from efficiency initiatives will attract investors to the stock. However, the distribution outlook is relatively low and earnings relatively flat. In this sense the market may view these as bond-like attributes.

In a rising interest rate environment such features may mean the share price comes under further pressure in the short term, the broker suspects. Hold rating retained. Target is reduced to $1.55 from $1.61.

Target price is $1.55 Current Price is $1.48 Difference: $0.075
If AST meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Ord Minnett rates AST as Accumulate (2) -

First half net profit was 21% ahead of Ord Minnett's forecast. FY17 distribution guidance is upgraded marginally to 8.8c per security from 8.7c.

The stock remains the broker's preference among the regulated utilities and an Accumulate rating is maintained. The target is raised to $1.88 from $1.86.

Target price is $1.88 Current Price is $1.48 Difference: $0.405
If AST meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Morgans rates BLA as Add (1) -

Updated FY17 net profit guidance is ahead of Morgans forecasts, likely based on higher performance fees embedded in the company's assumptions.

The broker believes the company is positioned to continue its strong growth in assets under management over FY17/18, supported by the deal pipeline and strong early traction in attracting institutional assets.

The valuation is considered attractive and the broker retains an Add rating. Target rises to $8.75 from $8.70.

Target price is $8.75 Current Price is $7.65 Difference: $1.1
If BLA meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates CSV as Neutral (3) -

CSG left FY17 revenue guidance unchanged at its AGM but earnings have been downgraded on a margin crunch. The company has faced several headwinds, the broker notes. Traditional print remains a drag.

The new Enterprise Solutions business provides a significant opportunity, the broker suggests, but will take time. Neutral retained, target falls to $1.00 from $1.30.

Target price is $1.00 Current Price is $0.79 Difference: $0.215
If CSV meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $0.95, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgan Stanley rates CSV as Downgrade to Equal-weight from Overweight (3) -

The broker downgrades to Equal-weight from Overweight after the company issued a second disappointment, within three months of FY17 guidance. FY17 EBITDA guidance is now reduced to $38-42m from the $44-48m provided in August.

The company has indicated pressure in the SME print business in Australasia, with page volumes likely under pressure, although the broker believes the customer count is stable and the up-selling of technology solutions is going to plan. In-Line sector view. Target falls to 90c from $1.70.

Target price is $0.90 Current Price is $0.79 Difference: $0.115
If CSV meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $0.95, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

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

Macquarie acknowledges the unforeseen plunge in the gold price post-Trump and while expecting further volatility, on a medium to long term outlook believes there's an 80% chance US economic outcomes will be positive for gold.

The broker thus believes some miners have been sold off too far. Doray is upgraded to Neutral. Target unchanged at 60c.

Target price is $0.60 Current Price is $0.51 Difference: $0.09
If DRM meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Morgans rates FND as Add (1) -

Construction and ramp up to production are taking longer than scheduled at the Wetar Island project in Indonesia. The company has closed up some of its hedges and issued 100m shares at 12c each, raising $12m.

Morgans now envisages the major risks will be the rate of copper extraction through the life of leach heap and the logistical and operational issues at such a remote site. The broker retains an Add rating and 28c target.

Target price is $0.28 Current Price is $0.15 Difference: $0.13
If FND meets the Morgans target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY13:

Forecast for FY14:

Market Sentiment: 1.0

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

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

Back when REITs were still in fashion, Macquarie had an Underperform rating on GPT due to its low earnings growth profile compared to peers. As REITs began to sell off, the broker upgraded to Neutral in September.

More recently, REITs have been trashed along with all bond proxy stocks. At its current share price, GPT is trading at net asset value while offering a 5.6% yield, Macquarie notes. Upgrade to Outperform. Target unchanged at $5.16.

Target price is $5.16 Current Price is $4.58 Difference: $0.58
If GPT meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: -0.2

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

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

The company expects net claims cost of $200m from the recent NZ storm and earthquake. Despite this, FY17 reported insurance margin guidance of 12.5-14.5% is maintained.

The broker believes the update highlights the strength of the company's reinsurance planning with guidance affirmed despite two significant recent events. Nevertheless, such events take away the potential upside in FY17, ex any particularly large reserve releases, in the broker's view.

Morgan's upgrades to Hold from Reduce, with the stock now looking closer to fair value. Target is raised to $5.11 from $5.10.

Target price is $5.11 Current Price is $5.43 Difference: minus $0.32 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.56, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

UBS rates IAG as Neutral (3) -

IAG has quantified the likely impact of the recent earthquake in New Zealand and other recent events for its FY17 earnings guidance. Insurance margin guidance is unchanged  at 12.5-14.5%, as reinsurance and allowances absorb these costs.

IAG has reported home and commercial claims numbering around 700 so far.

The broker believes this is likely to rise significantly and losses could exceed the original post-event retention of NZ$190m, although concedes this remains somewhat academic for FY17.

Neutral rating and $5.40 target retained.

Target price is $5.40 Current Price is $5.43 Difference: minus $0.03 (current price is over target).
If IAG meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.56, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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

Credit Suisse rates IDX as Outperform (1) -

The company has downgraded FY17 guidance to a modest earnings decline, from modest earnings growth anticipated previously. Credit Suisse expects conditions to remain volatile, with the onset of government incentive reductions to add another layer of uncertainty.

Despite the disappointment the stock is trading on an undemanding multiple and the balance sheet is healthy, the broker believes. Outperform rating retained. Target is reduced to $1.65 from $1.90.

Target price is $1.65 Current Price is $1.27 Difference: $0.38
If IDX meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Morgan Stanley rates IDX as Downgrade to Underweight from Overweight (5) -

While appreciating the long-term industry dynamics, given ongoing disappointment, Morgan Stanley no longer has confidence in Integral Diagnostic's earnings trajectory.

The stock is expected to remain depressed, with risk of further negative earnings revisions. The broker prefers the IVF companies in the sector. Rating is downgraded to Underweight from Overweight. Target is lowered to $1.28 from $2.20. Industry view: In-Line.

Target price is $1.28 Current Price is $1.27 Difference: $0.01
If IDX meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Deutsche Bank rates KMD as Buy (1) -

The company's trading update for the first 15 weeks to November 13 highlights total sales growth of 2.8% and like-for-like growth of 1.4% at a constant currency rate. Lower promotions in the first quarter were indicated, although gross margins are down because of currency headwinds.

Deutsche Bank believes the strategic initiatives around targeted marketing and new product management could elevate like-for-like sales over the near-term and management has a credible strategy for pursuing low-risk offshore expansion. Buy rating retained. Target Is NZ$2.25.

Current Price is $1.71. Target price not assessed.

Current consensus price target is $1.98, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

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

Estimates have been reduced by 2% this year, with small reductions for future years. The reason, Citi analysts explain, is because the fee income in Link’s corporate markets division will be affected by weak equity markets.

Of more importance, in the analysts' opinion, is the fact the Superpartners integration continues to track ahead of the original schedule. Citi is not a big believer in that the ACCC will allow an acquisition of NSW's Pillar.

Neutral rating retained alongside price target of $8.30.

Target price is $8.30 Current Price is $7.37 Difference: $0.93
If LNK meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $8.39, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Macquarie rates LNK as Outperform (1) -

No specific trading update was provided at Link's AGM but the group is on track to deliver on the broker's growth forecasts. The broker had not factored in valuation for the Pillar or Tricor acquisitions but these appeared to be part of the premium applied by the market to Link previously.

Now the stock has been sold off the broker believes Link is worth revisiting on organic growth, given a strong market position and a high proportion of recurring revenues, for which a premium is warranted. Outperform and $8.40 target retained.

Target price is $8.40 Current Price is $7.37 Difference: $1.03
If LNK meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.39, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates MYR as Buy (1) -

Buy rating and $1.40 price target reiterated post a better-than-expected sales update. Citi analysts have increased their estimates and now expect comparable store sales growth to "accelerate" (their choice of word) to 2%-3%.

Underlying growth and the fact that Myer is now outperforming David Jones are seen as two key factors to remain positive on the future.

Target price is $1.40 Current Price is $1.19 Difference: $0.21
If MYR meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Credit Suisse rates MYR as Outperform (1) -

First quarter sales were stronger than Credit Suisse expected, given the slowing consumer spending environment. The company still expects earnings to grow faster than sales in FY17, and expects growth in profit before the New Myer implementation costs.

Credit Suisse reduces comparable sales growth forecast by 40 basis points for the remainder of FY17, to reflect a softer consumer environment.

The broker believes it likely that profit will grow at a faster pace than sales because of Myer's low profit margin. Outperform rating and $1.40 target retained.

Target price is $1.40 Current Price is $1.19 Difference: $0.21
If MYR meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Deutsche Bank rates MYR as Hold (3) -

First quarter like-for-like sales were up 1.6%, which beat Deutsche Bank's expectations. The broker considers the update modestly positive and reasonable in the context of a difficult comparable period and unfavourable weather.

The broker leaves estimates unchanged. Forecasts imply sales growth of 2.3% in the second quarter, which would require an acceleration but comparables become easier and the refurbishment of Warringah should provide a tailwind.

Hold rating retained. Target falls to $1.25 from $1.30.

Target price is $1.25 Current Price is $1.19 Difference: $0.06
If MYR meets the Deutsche Bank target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Macquarie rates MYR as Neutral (3) -

Myer's AGM revealed sales growth is more resilient than expected, the broker notes. Guidance has been maintained and the broker's forecasts are intact, despite a possible risk from spring clearances impacting on margins.

The broker believes the earlier sell-off was overdone and retains Neutral and a $1.29 target.

Target price is $1.29 Current Price is $1.19 Difference: $0.1
If MYR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

The company reported a slowdown in like-for-like sales growth in the first quarter as it laps a tough comparable. Morgan Stanley observes Myer's performance is stronger than peers, which indicates the New Myer strategy is gaining traction.

The company has reiterated guidance for EBITDA margin growth in FY17. The broker retains an Equal-weight rating and In-Line industry view. Target is $1.

Target price is $1.00 Current Price is $1.19 Difference: minus $0.19 (current price is over target).
If MYR meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Ord Minnett rates MYR as Hold (3) -

Like-for-like sales were up 1.6% in the first quarter and the company has guided to expansion in its operating earnings margin.

 Ord Minnett acknowledges the opportunity to re-shape Myer after its poor financial performance over many years. Yet, the retailer is envisaged still facing a challenging outlook and industry environment.

The broker observes the company lacks a focus on "discount value" customers, which make up around 40% of sales, but also faces tougher competition in the high-value customer segment.

Hold rating retained. Target is $1.50.

Target price is $1.50 Current Price is $1.19 Difference: $0.31
If MYR meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

UBS rates MYR as Neutral (3) -

First quarter sales were ahead of UBS' expectations. Guidance for FY17 profit has been reiterated. This pleases the broker, given recent commentary suggested market trends had slowed.

The broker has become incrementally more positive on the stock following the update and believes management is making good progress in the turnaround, with scope for upside risk if medium-term targets are met.

Neutral rating and $1.30 target retain.

Target price is $1.30 Current Price is $1.19 Difference: $0.11
If MYR meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.31, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

Market expectations of US fiscal stimulus should lead to higher 10-year bond yields and an increase in inflation, although not at the same pace, Deutsche Bank believes. As a result real interest rates are likely to rise.

Despite this outlook, the Australian dollar gold price is only 10% below its record high of $1820/oz, the broker notes, and the sector has de-rated 25% in the last four months to be on the lowest multiples since early 2016.

Deutsche Bank upgrades Northern Star to Hold from Sell. Target rises to $3.70 from $3.50.

Target price is $3.70 Current Price is $3.60 Difference: $0.1
If NST meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.62, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.2

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

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

Market expectations of US fiscal stimulus should lead to higher 10-year bond yields and an increase in inflation, although not at the same pace, Deutsche Bank believes. As a result real interest rates are likely to rise.

Despite this outlook, the Australian dollar gold price is only 10% below its record high of $1820//oz, the broker notes, and the sector has de-rated 25% in the last four months to be on the lowest multiples since early 2016.

Rating is upgraded to Buy from Hold. Target steady at $4.30.

Target price is $4.30 Current Price is $3.62 Difference: $0.68
If OGC meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.82, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

Credit Suisse rates OZL as Underperform (5) -

The company has increased reserve and resource conversion expectations, which delivers an extension to the life of Prominent Hill.

Credit Suisse adopts the new profile in its modelling, extending mine life expectations by three years and reducing life-of-mine operating cost assumptions. This adds 48 cents per share to valuation.

Underperform rating retained. Target increases to $6.80 from $6.35.

Target price is $6.80 Current Price is $7.74 Difference: minus $0.94 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.34, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.1

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

Macquarie rates RIO as Outperform (1) -

A site tour to Rio's copper-gold mine in Mongolia left the broker with increasing confidence Oyu Tolgoi could increase to 40% of the company's copper production from a current 10% and outstrip Escondida within 20 years. Outperform and $68 target retained.

Target price is $68.00 Current Price is $57.37 Difference: $10.63
If RIO meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $56.98, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

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

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

Market expectations of US fiscal stimulus should lead to higher 10-year bond yields and an increase in inflation, although not at the same pace, Deutsche Bank believes. As a result real interest rates are likely to rise.

Despite this outlook, the Australian dollar gold price is only 10% below its record high of $1820//oz, the broker notes, and the sector has de-rated 25% in the last four months to be on the lowest multiples since early 2016.

The stock's rating is upgraded to Hold from Sell. Target is steady at $2.90.

Target price is $2.90 Current Price is $2.74 Difference: $0.16
If RRL meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

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

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

Macquarie acknowledges the unforeseen plunge in the gold price post-Trump and while expecting further volatility, on a medium to long term outlook believes there's an 80% chance US economic outcomes will be positive for gold.

The broker thus believes some miners have been sold off too far. Regis is upgraded to Outperform. Target unchanged at $3.70.

Target price is $3.70 Current Price is $2.74 Difference: $0.96
If RRL meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.2

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

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

Market expectations of US fiscal stimulus should lead to higher 10-year bond yields and an increase in inflation, although not at the same pace, Deutsche Bank believes. As a result real interest rates are likely to rise.

Despite this outlook, the Australian dollar gold price is only 10% below its record high of $1820//oz, the broker notes, and the sector has de-rated 25% in the last four months to be on the lowest multiples since early 2016.

St Barbara's rating is upgraded to Buy from Hold. Target is steady at $2.90.

Target price is $2.90 Current Price is $2.21 Difference: $0.69
If SBM meets the Deutsche Bank target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 33.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.7

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

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

Macquarie previously held an Underperform rating on Stockland given the longer term structural headwinds the broker expects a number of Stockland's commercial assets will face. On a combination of rising bond yields and the assumption the housing cycle is maturing the stock has since been sold off heavily.

There is no change in the broker's view but having fallen to a reasonable valuation, Macquarie upgrades to Neutral. Target falls to $4.34 from $4.47.

Target price is $4.34 Current Price is $4.15 Difference: $0.19
If SGP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Morgan Stanley rates SIP as Downgrade to Underweight from Equal-weight (5) -

The sector has de-rated since August and Morgan Stanley observes some value is emerging. Yet, while Sigma has maintained its business momentum this is considered to be more than captured in the share price.

The broker believes longer-term risk is not reflected in the multiple and on a sector-relative basis prefers to hold IVF names. Rating is downgraded to Underweight from Equal-weight. In-Line sector view retained. Target is reduced to $1.20 from $1.28.

Target price is $1.20 Current Price is $1.33 Difference: minus $0.125 (current price is over target).
If SIP meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.32, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.0

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

Macquarie rates SIV as Neutral (3) -

When Silver Chef released its earnings result in August the broker highlighted a concern over the growing bad debt provision for GoGetta, signalling diminishing credit quality. Such concern has proven founded as the company has revealed a complex fraud event involving GoGetta vendors, costing the company $2.3m.

Elsewhere the business is going well and FY17 will see a more pronounced second half earnings skew than normal, the broker notes. Target thus rises to $10.26 from $9.82 but Neutral retained as better credit quality is sought.

Target price is $10.26 Current Price is $9.90 Difference: $0.36
If SIV meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Morgans rates SIV as Upgrade to Add from Hold (1) -

The company has announced a material fraud loss within its GoGetta division, which will impact FY17 net profit by $2.3m. Morgans believes the quantum of this event is a one-off and the company can rectify the operational gaps which have been exploited.

The broker expects further expansion pains over the medium term but this is in the context of a solid growth profile. Morgans upgrades to Add from Hold. Target is steady at $11.05.

Target price is $11.05 Current Price is $9.90 Difference: $1.15
If SIV meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Macquarie rates WFD as Upgrade to Outperform from Underperform (1) -

Westfield began underperforming the REIT sector following its August earnings result, Macquarie notes, on Brexit concerns and the plunge in the pound. The REIT sector has since been sold off heavily on rising bond yields.

The market has been waiting a long time for signs of earnings accretion from Westfield's pipeline but the broker believes the income will eventually arrive. Risks remain to FY17 earnings guidance but funds are being allocated to "the best retail product in the world", Macquarie claims, and the stock is now offering an attractive shareholder return.

Upgrade to Outperform from Underperform. Target falls to $9.58 from $10.17.

Target price is $9.58 Current Price is $8.94 Difference: $0.64
If WFD meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.40, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 0.6

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

Credit Suisse rates WHC as Outperform (1) -

China's state planner has issued a ruling allowing all coal mines verified by production safety rules to operate 330 days a year, up from 276 days previously.

The new limit will be effective until the end of the winter heating season. Adding to supply concerns Credit Suisse notes some producers have not ramped up production as fast as expected ahead of winter.

The broker considers Whitehaven Coal a primary beneficiary of China's stimulus, and remains very confident the company will have normalised its debt levels by the end of June  2017.

Outperform  rating and $3.60 target retained.

Target price is $3.60 Current Price is $2.55 Difference: $1.05
If WHC meets the Credit Suisse target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.1

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