Australian Broker Call

Deutsche Bank rates ALL as Buy (1) -

Deutsche Bank believes the result and guidance from IGT supports its view that the North American gaming market is stable, and Aristocrat Leisure is continuing to gain share in the gaming operations segment and hold share in a very competitive outright sales segment.

The broker retains a Buy rating and $39.75 target as the share price is trading at a -39% discount to its valuation.

Target price is $39.75 Current Price is $23.65 Difference: $16.1
If ALL meets the Deutsche Bank target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $31.68, suggesting upside of 33.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.9

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

Deutsche Bank rates HPI as Initiation of coverage with Buy (1) -

Hotel Property is the owner/landlord of 42 hotels, of which 41 are leased by and operated by Coles ((COL)). Coles has entered a JV with Australian Venue Co in relation to its hotels business.

Deutsche Bank believes the value in Hotel Property is in its liquor and gaming licenses, assets that may be underutilised under the Coles JV arrangement.

Because of the size, relevance and client interest the broker initiates coverage with a Buy rating and $3.44 target.

Target price is $3.44 Current Price is $3.26 Difference: $0.18
If HPI meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Macquarie believes IPH is well-positioned in the three-way merger tussle, as the Qantm ((QIP)) merger deal with Xenith ((XIP)) remains subject to a number of hurdles.

Importantly, there is the opportunity for a competing proposal should it emerge and Macquarie calculates there is material accretion potential.

The broker upgrades to Outperform from Neutral and raises the target to $7.10 from $6.00. The broker factors in earnings upgrades driven by FX and a multiple re-rating, with M&A risk skewed to the upside.

Target price is $7.10 Current Price is $6.53 Difference: $0.57
If IPH meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

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

Deutsche Bank rates IVC as Sell (5) -

InvoCare has announced an underwritten placement to raise $65m and a share purchase plan to raise a further $20m. The funds will be raised via a book build at an underwritten price of $13.30 a share, a -7.3% discount to the last closing price.

The funds will be used to de-leverage the business. Deutsche Bank maintains a Sell rating and $11.70 target.

Target price is $11.70 Current Price is $13.91 Difference: minus $2.21 (current price is over target).
If IVC 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 $13.16, suggesting downside of -5.4% (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

Credit Suisse rates OGC as Underperform (5) -

After the strategy briefing, Credit Suisse notes visibility on the company's production profile now stretches to over five years, and longer if Macraes is extended as expected.

The joint ventures have potential, and the broker points to the company's aspiration of 1.0m ounces/year via corporate activity or greenfield/JV exploration.

Credit Suisse acknowledges actual mining and processed costs are above projections, but reserve and production growth has preserved returns.

The broker maintains an Underperform rating and raises the target to $4.20 from $4.00.

Target price is $4.20 Current Price is $4.69 Difference: minus $0.49 (current price is over target).
If OGC meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.85, suggesting upside of 3.4% (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: 0.1

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