Australian Broker Call

Morgan Stanley rates AHG as Upgrade to Overweight from Underweight (1) -

Auto Holdings has pulled off a game changer, Morgan Stanley believes, in selling its troublesome refrigerated logistics business for a much better than expected $400m. This will leave around $300m in the kitty for acquisitions and/or a special dividend while only representing around -2% in lost earnings.

The remaining auto division has had a slow start to the year but the worst is now behind WA, the broker suggests, and the new kitty provides greater confidence in growth. The end result is a double-upgrade from Morgan Stanley to Overweight from Underweight. Industry View is In-Line and target rises to $4.10 from $3.00.

Target price is $4.10 Current Price is $3.79 Difference: $0.31
If AHG meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgans rates AHG as Add (1) -

The company has announced the long-awaited divestment of its refrigerated logistics business, for $400m.

While this divestment is not accretive in itself, Morgans believes the company is now well able to fund further growth into higher-value automotive earnings opportunities.

The company has now transformed into an almost pure-play automotive dealer. Add rating retained. Target rises to $4.04 from $3.60.

Target price is $4.04 Current Price is $3.79 Difference: $0.25
If AHG meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

UBS rates AHG as Neutral (3) -

The company has entered into a binding agreement to sell its refrigerated logistics division to Chinese group HNA for $400m.

UBS believes the company now has a more certain earnings profile following the trading update in automotive and the divestment of refrigerated logistics.

Neutral rating retained. Target rises to $3.70 from $3.30. While the multiple is relatively undemanding the broker would like underlying growth to be more visible before taking a more positive view.

Target price is $3.70 Current Price is $3.79 Difference: minus $0.09 (current price is over target).
If AHG meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.78, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

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

Morgans rates AJD as Hold (3) -

360 Capital ((TGP)) now holds 67.31% of the units on issue following on-market purchases and acceptances of its bid at a $1.95 per security. NextDC ((NXT)) continues to hold a 29.1% stake.

The new board will now undertake a strategic review including implementing a capital distribution, assessing growth opportunities as well as reviewing operating costs.

Morgans maintains a Hold rating and $1.70 target.

Target price is $1.70 Current Price is $1.75 Difference: minus $0.05 (current price is over target).
If AJD meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Credit Suisse rates CCL as Outperform (1) -

Management has reiterated expectations for flat underlying net profit in 2017. A new $40m investment initiative for Australian beverages was also announced. Credit Suisse had been anticipating 2018 Australian earnings would fall by -2.5% and now suspects it may drop by near double that amount.

The broker does not assume revenue benefit from the newly announced growth initiative. Outperform is maintained as the company is the cheapest of global bottlers and trading on a historically high dividend yield. Target is reduced to $9.80 from $9.90.

Target price is $9.80 Current Price is $7.54 Difference: $2.26
If CCL meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CCL as Hold (3) -

2017 guidance for underlying net profit to be broadly in line with 2016 has been reiterated.

This may be a positive, but Morgans suggests structural headwinds continue to challenge Australian beverages and the company requires additional investment to stabilise the business.

The stock is trading at a material discount to peers and offers an attractive dividend yield but the broker does not believe this is sufficiently compelling.

Hold rating maintained and target is reduced to $8.10 from $8.75.

Target price is $8.10 Current Price is $7.54 Difference: $0.56
If CCL meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Neutral (3) -

The company has reiterated 2017 guidance for net profit growth to be flat with the medium-term target for mid-single digit growth. The company will pull forward a $40m investment in price and new products.

UBS suggests accelerated re-investment is a sign the company needs to spend more to stand still. The update implies around -7% downgrade to UBS estimates in 2018.

Neutral. Target is $8.60.

Target price is $8.60 Current Price is $7.54 Difference: $1.06
If CCL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates CL1 as Buy (1) -

Ord Minnett observes the sales campaign, aimed at pulling forward demand into a period that is less disrupted by changes to superannuation, appears to be delivering.

The broker is encouraged, as this reinforces the value proposition and the fact that the company may not have reached the limit in terms of its addressable SMSF opportunity.

The broker considers the stock at an attractive entry point and maintains a Buy rating, reducing the target to $3.60 from $3.80.

Target price is $3.60 Current Price is $2.52 Difference: $1.08
If CL1 meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 32.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

UBS rates CL1 as Downgrade to Neutral from Buy (3) -

UBS observes sales momentum has improved after the addition of the Class Super accounts in the first quarter. The December and March quarters are typically quieter, but 3300 accounts have been added in the December quarter so far, 50% above the prior corresponding period.

The broker does not expect these customers to stop using the Class Super product when fees begin on July 1, 2018 but does suspect the move will hit the top line by -2-3%.

Rating is downgraded to Neutral from Buy. Target is reduced to $2.85 from $3.30.

Target price is $2.85 Current Price is $2.52 Difference: $0.33
If CL1 meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.33, suggesting upside of 32.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates COH as Re-instate Coverage with Underperform (5) -

Macquarie believes the current valuation is factoring in a more material market share improvement relative to its forecasts.

In order to justify the share price the broker believes market share would need to increase to around 70%, from around 56% currently, which implies a five-year cochlear implant unit sales growth rate of around 13.5%.

Macquarie re-initiates coverage with an Underperform rating and $161 target.

Target price is $161.00 Current Price is $180.24 Difference: minus $19.24 (current price is over target).
If COH meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $146.26, suggesting downside of -18.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.6

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

Morgan Stanley rates DHG as Initiation of coverage with Overweight (1) -

The Domain brand has been around for 20 years but became a standalone business in the Fairfax group only three years ago, hence the broker argues it's more akin to a tech start-up. The broker remains bullish on the growth of online classifieds, and believes Domain can outpace REA Group ((REA)) on growth, coming from a lower base.

To that end the broker initiates coverage with an Overweight rating and a $4.50 target. Industry View is Attractive.

Target price is $4.50 Current Price is $3.52 Difference: $0.98
If DHG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 4.0% (ex-dividends)

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 EGH as Add (1) -

The company is in the process of readying a number of underperforming assets for sale and this is expected to free up $20-30m in cash over the next few years.

While this will be used to fund village acquisitions it creates an earnings hole in the short term, Morgans observes. The broker reduces forward operating earnings assumptions in line with the sale of a number of large villages.

Management has pointed to a tough first half on an underlying basis but a stronger second half as occupancy levels get back to 90%. Add rating retained. Target drops to $0.41 from $0.49.

Target price is $0.41 Current Price is $0.34 Difference: $0.07
If EGH meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates EVN as Neutral (3) -

Credit Suisse found the exploration update for both Cracow and Cowal encouraging. FY18 guidance is unchanged.

A maiden resource at Cracow is to be included in the December statement. Continued mineralisation in the E41 West zone sits outside the currently defined resource at Cowal, supporting the broker's expectations of operating longevity.

Neutral rating and $2.22 target maintained.

Target price is $2.22 Current Price is $2.57 Difference: minus $0.35 (current price is over target).
If EVN 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 $2.47, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

UBS rates EVN as Buy (1) -

Exploration success has caused an increase in planned expenditure and the company has lifted its budget by 10%. Additional funds are earmarked for Cowal and Cracow.

UBS is now more confident that Cracow will continue to be mined beyond the current reserves and would not be surprised if the exploration budget is increased again.

Buy and $2.45 target retained.

Target price is $2.45 Current Price is $2.57 Difference: minus $0.12 (current price is over target).
If EVN meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.47, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Morgan Stanley rates FXJ as Overweight (1) -

Fairfax is now left with only 60% of Domain, rather than 100%, making it basically a "holding company", the broker notes. Similarly, News Corp's ((NWS)) premier asset is a 62% stake in REA Group ((REA)). The market applies a -10-20% valuation discount to News as that holding company, and consensus suggests the same should apply to Fairfax.

The broker disagrees. Unlike News, Fairfax's share register is open, and management has declared it would be interested in possible divestments or M&A. Were valuation to drop too low below sum-of-the-parts, the broker believes new media laws will put Fairfax in the sights of a suitor.

Overweight retained, with an 85c target post spin-off. Industry View is Attractive.

Target price is $0.85 Current Price is $0.68 Difference: $0.17
If FXJ meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Ord Minnett rates HSN as Buy (1) -

The company has maintained its full year outlook and Ord Minnett believes the AGM update will preface a positive tailwind of synergies from Enoro that should be delivered in FY18 and FY19.

The broker envisages 10% potential upside to the base business value. Price target is raised to $4.15 from $3.93. Buy rating maintained.

Target price is $4.15 Current Price is $3.45 Difference: $0.7
If HSN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Citi rates JBH as Sell (5) -

Citi suggests JB Hi-Fi needs to re-accelerate growth to hit sales guidance. Momentum needs to improve to 3.7% from the 2.2% growth seen in recent months.

The Good Guys needs to accelerate to 2.7% over the balance of FY18 from the 1.7% growth witnessed in recent months.

Sell rating retained. Target is $19.00.

Target price is $19.00 Current Price is $22.07 Difference: minus $3.07 (current price is over target).
If JBH 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 $24.58, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates MIN as Outperform (1) -

Management has guided to an increase in lithium DSO shipments and guidance for FY19 is also higher than Macquarie expected.

Crushing capacity is expected to grow by a further 15-20mt in FY18. Macquarie is encouraged by the upgrade which should alleviate concerns over the acceptance of the DSO product in the market, and further growth in crushing capacity presents material upside risks to its base case earnings.

Outperform rating retained. Target is $23.

Target price is $23.00 Current Price is $19.46 Difference: $3.54
If MIN meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.7

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

Macquarie rates MLX as Outperform (1) -

Macquarie observes the stock has enjoyed a strong performance since the de-merger of Westgold Resources ((WGX)).

Exploration drilling at Nifty has delivered a material improvement in the mine life and the broker expects further upside to the reserve and resource base. Hitting production targets remain a near-term catalyst.

Outperform retained. Target is $1.20.

Target price is $1.20 Current Price is $1.04 Difference: $0.16
If MLX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Macquarie rates MQA as Outperform (1) -

Macquarie updates on the changes to French taxes. APRR is directly affected by a super tax which will mean a EUR22m increase in Eiffarie taxes.

The broker believes a simple fundamental of a stronger French economy and growth resuming at Greenway from 2019 justifies its price target, but internalisation of management also improves corporate appeal.

Outperform retained. Target is $6.64.

Target price is $6.64 Current Price is $6.22 Difference: $0.42
If MQA meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.38, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.8

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

Morgans rates NXT as Add (1) -

At its AGM the company has noted a strong start to FY18 and has reaffirmed FY18 guidance with confidence. The company's relationship with Amazon Web Services continues to deepen and this business has now established three new Australian points of presence in the company's M1, C1 and P1 centres.

Morgans makes no material changes to immediate forecasts but increases its valuation on the back of rising peer multiples and higher medium-term earnings forecasts.

Add rating retained. Target rises to $6.25 from $5.38.

Target price is $6.25 Current Price is $5.76 Difference: $0.49
If NXT meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

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

Credit Suisse rates OZL as Neutral (3) -

The company's chief operating officer, Bob Fulker, has resigned and will take the same role at Evolution Mining ((EVN)). Credit Suisse believes his departure is a significant loss, as he leaves at a stage when Prominent Hill open pit is nearing completion.

The broker believes management change at Oz Minerals has been a troubling constant and is concerned by the risks associated with losing corporate experience from key personnel. Neutral rating and $8.25 target.

Target price is $8.25 Current Price is $8.50 Difference: minus $0.25 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.69, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates PRY as Neutral (3) -

Citi suggests the top end of the company's guidance for underlying net profit of $92-97m in FY18 is optimistic.

The broker notes confirmation at the AGM of prior items that were flagged such as slow GP recruitment, reduced growth in pathology centres rent and negatives from investments in new clinics and IT.

Citi maintains a Neutral rating and $3.30 target.

Target price is $3.30 Current Price is $3.48 Difference: minus $0.18 (current price is over target).
If PRY 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 $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

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

A flash update from the broker following Primary's AGM notes GP recruitment continues to be an issue for medical centres and it could be 12-18 months before this division is "firing". Pathology revenues are nevertheless growing faster than collection centre growth and diagnostic imaging has been a solid performer year to date.

The broker retains Equal-weight and a $3.78 target. Industry View is In-Line.

Target price is $3.78 Current Price is $3.48 Difference: $0.3
If PRY meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Ord Minnett rates PRY as Hold (3) -

The company's update suggests transition to a new medical centre model will be challenging and potentially, in Ord Minnett's opinion, a multi-year task.

The improvement in earnings from the diagnostics division is encouraging for the broker and should ensure sufficient cash flow to support the business through the transition.

Ord Minnett maintains a Hold rating and lowers the target to $3.40 from $3.50.

Target price is $3.40 Current Price is $3.48 Difference: minus $0.08 (current price is over target).
If PRY meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

UBS rates PRY as Buy (1) -

UBS observes the new CEO, Malcolm Parmenter, has categorised the company's results to date in FY18 as "mixed" and underlying net profit guidance has been set at $92-97m.

Given the propensity for new healthcare CEOs to re-base market expectations, UBS is not surprised guidance has been set to the downside of consensus expectations.

Another disappointment was news that GP recruitment was softer than expected so far in FY18, and this was a surprise for the broker after an acceleration was reported over FY17. UBS maintains a Buy rating and $3.90 target.

Target price is $3.90 Current Price is $3.48 Difference: $0.42
If PRY meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Citi rates RCG as Upgrade to Buy from Neutral (1) -

Green shoots are emerging, declare analysts at Citi. They have decided it's time to upgrade to Buy from Hold, encouraged by like-for-like sales momentum leading into Christmas, while year-on-year comparison should get easier from here onwards due to lacklustre performance last year.

An undemanding valuation, as Citi sees it, further supports the move. Q1 performance proved slightly above expectations, and is consistent with industry feedback, report the analysts.

Citi acknowledges Amazon represents downside risk to earnings, but licenced brands (40% of the company's retail sales) should provide some protection, argue the analysts. Target increases by 6% to $0.95.

Target price is $0.95 Current Price is $0.77 Difference: $0.18
If RCG meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Morgan Stanley rates REA as Overweight (1) -

The broker has initiated coverage on REA competitor Domain ((DHG)) with an Overweight rating, suggesting Domain can grow faster from a lower base. The market is taking the view a win by Domain means a loss for REA, but the broker disagrees.

The Australian real estate ad revenue pool will continue to grow at a 10% compound rate for the next five years, the broker forecasts. REA may lose some market share to Domain but will retain number one position. Both companies are busy lifting prices, so the risk of a price war is remote.

Overweight retained for REA. Target rises to $85 from $72. Industry View is Attractive.

Target price is $85.00 Current Price is $77.43 Difference: $7.57
If REA meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $72.94, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Macquarie rates RRL as Neutral (3) -

Macquarie believes the company is well-positioned heading into 2018 as it has a growth outlook that is led by McPhillamys, while drilling for an underground inventory at Rosemont is also a highlight.

Duketon operations continue to perform, the broker adds, delivering a $0.15 per share dividend over FY17.

Target is $4.00. Neutral.

Target price is $4.00 Current Price is $4.07 Difference: minus $0.07 (current price is over target).
If RRL 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 $3.52, suggesting downside of -13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.6

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

Macquarie rates S32 as Neutral (3) -

Management has provided an update on operating issues at Illawarra and Cannington at its AGM but no changes to guidance.

Macquarie expects the capital markets briefing on December 5 will provide a more detailed outlook for production from these operations.

Neutral maintained. Target is $3.30.

Target price is $3.30 Current Price is $3.37 Difference: minus $0.07 (current price is over target).
If S32 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 $3.23, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.0

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

Morgan Stanley rates WEB as Underweight (5) -

Webjet has cut FY18 earnings guidance to below the consensus range, on soft cash flow and higher than expected costs, as the company attempts to restructure the B2B platform and management. New guidance looks conservative, the broker suggests, but execution risk remains elevated.

The broker retains Underweight and cuts its target to $9.40 from $11.35. Industry View is In-Line.

Target price is $9.40 Current Price is $9.70 Difference: minus $0.3 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.93, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Ord Minnett rates WEB as Buy (1) -

The company has given specific FY18 operating earnings guidance of $80m, below consensus and Ord Minnett estimates. Despite the downgrade, the broker believes the number is likely to be exceeded as the underlying performance of the business is sound.

The broker understands the concerns regarding seasonality in the B2B business that will result in a negative first half, and a reversal in the second half, but suggests this is amplified by the timing of the JacTravel acquisition.

Buy rating retained. Target is reduced to $14.35 from $15.00.

Target price is $14.35 Current Price is $9.70 Difference: $4.65
If WEB meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $11.93, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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