Australian Broker Call

Morgan Stanley rates AD8 as Overweight (1) -

FY19 results beat Morgan Stanley's estimates at the revenue line, essentially implying stronger market penetration. However, the share price softened and the broker suspects guidance was likely to be the culprit.

The software pipeline is unclear and there was a lack of news on video. The broker also suspects legacy revenues are declining and the reinvestment trajectory is harder to ascertain.

Overweight rating maintained. Target is $10.30. Industry view is In-Line.

Target price is $10.30 Current Price is $6.84 Difference: $3.46
If AD8 meets the Morgan Stanley target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgans rates ADH as Add (1) -

Adairs' FY19 result was in line with Morgans' forecast and recently downgraded guidance but managed to increase its dividend by 7%.

Higher supply chain costs drove a -3% decline in EPS and Morgans expects this to continue across FY20/FY21, albeit at a lower level.

Like-for-like sales kicked up in the first few weeks of FY20, after a sharp fall in the final weeks of FY19.

Add rating retained. Target price rises to $1.95 from $1.73.

Target price is $1.95 Current Price is $1.69 Difference: $0.26
If ADH meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates ADH as Buy (1) -

Adairs' earnings were down -12% (yoy) in the second half but it was still the company's third best half in history, the broker notes. Online sales again provided the growth but forex pressure and supply chain stress dragged.

The positives are that NZ is now profitable and strong sales growth is again apparent in early FY20.

Adairs is a well-run retailer, the broker believes, offering expansion potential via both domestic and offshore online and category/store expansion. Buy and $2.25 target retained.

Target price is $2.25 Current Price is $1.69 Difference: $0.56
If ADH meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates BLD as Buy (1) -

FY19 results were in line with Citi's expectations. The domestic construction downturn and a slower uplift in North American fly ash supply remain key issues, in the broker's opinion.

The company will also acquire Knauf's USG Boral Australian operations and participate in an expanded Asian plasterboard JV. This will be internally funded and is expected to be accretive.

Citi believes the stock is oversold and retains a Buy rating, lowering the target to $5.00 from $5.85.

Target price is $5.00 Current Price is $4.07 Difference: $0.93
If BLD meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates BLD as Upgrade to Neutral from Underperform (3) -

FY19 results were broadly in line. Credit Suisse observes the North American business, combined with Headwaters, has underperformed market growth by around -25% since Boral made the acquisition.

The broker suggests this could prompt questions of a write-down to the US$3.2bn carrying value. In Australia, FY20 concrete volume forecasts are better than the declines envisaged in NSW by peers.

Credit Suisse upgrades to Neutral from Underperform and does not anticipate a re-rating until the North American earnings issue is resolved and the volume outlook for Australia improves. Target is reduced to $4.10 from $4.40.

Target price is $4.10 Current Price is $4.07 Difference: $0.03
If BLD meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates BLD as No Rating (-1) -

FY19 results were broadly in line with expectations. The company expects net profit to decline by -5-15% in FY20. Macquarie reduces FY20 and FY21 estimates by -17% and -22% respectively, largely because of reductions to Australian-based infrastructure earnings.

Macquarie is on research restrictions and cannot advise a rating and target at present.

Current Price is $4.07. Target price not assessed.

Current consensus price target is $4.80, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

FY19 results were weaker than expected. Guidance is for net profit to be down -5-15%, which implies meaningful downgrades to Morgan Stanley's forecasts. The company has signalled a weaker outlook in Australia and minimal growth in the US.

The broker is quite alarmed by the decline in Australian guidance, as it comes despite Boral remaining relatively upbeat on materials pricing. Infrastructure is not expected to offset the weakness in residential construction.

As the balance sheet is likely to come under scrutiny, Morgan Stanley finds no reason to own the stock at this stage and downgrades to Equal-weight from Overweight. Target is reduced to $4.50 from $6.50. Industry view is Cautious.

Target price is $4.50 Current Price is $4.07 Difference: $0.43
If BLD meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates BLD as Accumulate (2) -

FY19 net profit was below Ord Minnett's forecasts. Guidance for FY20 is also well short of expectations. The broker does not believe the decline in the share price following the result reflects the outlook for cash flow.

Accumulate rating maintained. Target is lowered to $5.00 from $6.20.

Target price is $5.00 Current Price is $4.07 Difference: $0.93
If BLD meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates CDP as Hold (3) -

FY19 funds from operations were $25.7m. A final distribution of 8.1c per unit was declared, taking the full year pay-out to 36.2c.

The company has also secured Kmart for effectively all of the space vacated by David Jones at Westfield Carindale. This de-risks the leasing and is considered a good outcome for the asset.

Ord Minnett maintains a Hold rating. Target is lowered to $6.40 from $6.70. FY20 forecasts are lifted by 4.9%.

Target price is $6.40 Current Price is $6.60 Difference: minus $0.2 (current price is over target).
If CDP meets the Ord Minnett 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 FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates CTX as Buy (1) -

Upon initial review, Citi analysts believe the interim performance met expectations, but the company is now changing its convenience retail strategy which means previously predicted benefits won't be achieved.

The good news is the new CFO is making his influence felt through a more stringent focus on costs. Citi analysts consider this a positive offset. The analysts say their Buy rating is based upon the assumption this half marks the trough in earnings for the company.

Current Price is $24.75. Target price not assessed.

Current consensus price target is $25.55, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates FMG as Neutral (3) -

FY19 results were slightly ahead of Citi's estimates. The company has provided no change to guidance with costs expected to be in the range of US$13.25-13.75/wmt.

If steel prices hold up, Citi assesses mill margins will expand sharply and the benchmark 62% iron ore will be in higher demand versus the 58% grade. This keeps the broker on a Neutral rating with an $8.00 target.

Target price is $8.00 Current Price is $7.53 Difference: $0.47
If FMG meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Credit Suisse rates FMG as Neutral (3) -

Underlying earnings in FY19 were in line with Credit Suisse estimates. The broker notes another strong dividend of $0.24 takes total dividends for the year to $1.14, a 78% pay-out.

The broker observes the year has been "fantastic" for Fortescue Metal, with no change to FY20 guidance noted.

Credit Suisse retains a Neutral rating and $8 target, largely because of the commodity outlook. The balance of risks is envisaged between undemanding multiples and dividends versus macro and market uncertainty.

Target price is $8.00 Current Price is $7.53 Difference: $0.47
If FMG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Macquarie rates FMG as Outperform (1) -

FY19 earnings were in line with expectations. Another strong year is expected in FY20, with Macquarie calculating the spot price scenario generates a free cash flow yield of 16%.

The final dividend of $0.24 was lower than the broker expected. Macquarie retains an Outperform rating and reduces the target to $10.90 from $11.00.

Target price is $10.90 Current Price is $7.53 Difference: $3.37
If FMG meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

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

FY19 results were in line with expectations. The final dividend of $0.24 per share was ahead of Morgan Stanley's estimates. All FY19 metrics and FY20 were outlined previously.

Equal-weight maintained. Target is $7.65. Industry view is Attractive.

Target price is $7.65 Current Price is $7.53 Difference: $0.12
If FMG meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Morgans rates FMG as Reduce (5) -

Fortescue Metals' FY19 result seriously outpaced Morgans' estimates, thanks almost exclusively to strong iron-ore prices. The broker believe that now iron-ore prices are falling, the company is particularly vulnerable.

Fortescue returned a 15% dividend yield to shareholders on a 78% payout ratio. The company boasts a strong balance sheet, providing room for growth.

Reduce rating retained, Morgans noting the share price is outperforming the iron-ore price and demand for steel is slowing. Target price rises to $6.38 from $6.19.

Target price is $6.38 Current Price is $7.53 Difference: minus $1.15 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Ord Minnett rates FMG as Buy (1) -

FY19 operating earnings (EBITDA) were in line with Ord Minnett's forecasts. The broker believes the company offers sector-leading return metrics but acknowledges difficult macro economic conditions.

Nevertheless, the share price decline is considered a good buying opportunity. Buy rating maintained. Target is reduced to $9.70 from $9.80.

Target price is $9.70 Current Price is $7.53 Difference: $2.17
If FMG meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

UBS rates FMG as Neutral (3) -

Fortescue's 195% profit increase, thanks to a 48% gain in realised iron ore prices over the period, slightly beat the broker, but only due to a forex gain.

The dividend was in line. FY20 guidance is unchanged but capex will double as the miner continues its push to develop higher grade projects.

UBS retains Neutral, cutting its target to $6.40 from $6.60 as the iron ore price has since pulled back.

Target price is $6.40 Current Price is $7.53 Difference: minus $1.13 (current price is over target).
If FMG meets the UBS target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.15, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Macquarie rates GEM as Neutral (3) -

First half results were largely in line with estimates. The 2019 risks flagged previously by Macquarie have been confirmed, with guidance downgraded for earnings (EBIT) by -7% versus consensus forecasts.

Improvement in industry conditions is lagging expectations, in the broker's view. This is expected to weigh on valuation and the broker retains a Neutral rating. Target is reduced to $2.20 from $2.80.

Target price is $2.20 Current Price is $2.20 Difference: $0
If GEM meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates GEM as Overweight (1) -

First half results were below Morgan Stanley's estimates at the EBIT line. The 2019 guidance range of $140-$145m is also lower than the broker's forecasts.

2019 is expected to be loss-making. Occupancy improved 1.5% and management expects the second half to be more challenging. Overweight rating, $4 target and In-Line industry view maintained.

Target price is $4.00 Current Price is $2.20 Difference: $1.8
If GEM meets the Morgan Stanley target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates GEM as Hold (3) -

G8 Education posted a mixed first-half result. Occupancy targets fell due to supply constraints, although organic occupancy rose. Higher depreciation and expenses also dragged following refurbishments and the call-centre rollout.

Guidance missed consensus forecasts and Morgans' estimates, although the company expects near-term supply issues should abate by the end of 2019. Strategic rollout is on track, the company eyeing acquisitions.

Target price falls to $2.54 from $3.16 on valuation. Hold rating retained.

Target price is $2.54 Current Price is $2.20 Difference: $0.34
If GEM meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates GEM as Downgrade to Hold from Buy (3) -

First half earnings (EBIT) were slightly below forecasts. Growth in costs and the reduced outlook for greenfield assets disappointed Ord Minnett.

The broker materially reduces its forecasts, lowering the target to $2.40 from $3.40. Rating is downgraded to Hold from Buy.

Target price is $2.40 Current Price is $2.20 Difference: $0.2
If GEM meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in December.

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

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

G8 Education's earnings came in ahead of UBS and a number of metrics, particularly organic centre performance and increased occupancy, but there the good news ends.

Acquisitions and greenfield projects materially underperformed expectation and management's FY20 earnings guidance falls well below prior consensus.

UBS continues to believe in the long term story and notes the stock appears cheap at the level, but consistent headwinds cannot be ignored and the broker admits having been too optimistic on earnings growth.

Downgrade to Neutral from Buy and target slashed to $2.25 from $3.80.

Target price is $2.25 Current Price is $2.20 Difference: $0.05
If GEM meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting upside of 21.7% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates GMG as Downgrade to Neutral from Outperform (3) -

FY19 results were largely in line with expectations. Credit Suisse expects FY20 will be another strong year and the business is well-positioned to deliver development margins and growth in funds under management.

While earnings growth is strong, the broker considers this is reflected in the price and downgrades to Neutral from Outperform. Target is raised to $14.43 from $14.04.

Credit Suisse notes the conundrum of whether to view the stock as an expensive A-REIT or a fund manager. At a time when many A-REITs lack earnings catalysts the broker suspects the stock will retain investor support.

Target price is $14.43 Current Price is $14.83 Difference: minus $0.4 (current price is over target).
If GMG 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 $15.44, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Credit Suisse rates IDX as Outperform (1) -

FY19 results were in line with expectations. Credit Suisse assesses the investment case is a combination of organic growth and business improvement initiatives.

The acquisition of Imaging Queensland is a sensible deal, in the broker's view, with around 2% accretion to earnings per share expected on a pro forma FY20 basis.

Outperform rating retained. Target is reduced to $3.40 from $3.45.

Target price is $3.40 Current Price is $3.15 Difference: $0.25
If IDX meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

FY19 operating earnings (EBITDA) were below Morgan Stanley's estimates. The company intends to acquire Imaging Queensland, which operates 18 radiology sites with 16 radiologists in major centres, for $104m. Morgan Stanley expects low single-digit accretion.

The broker forecasts underlying revenue growth of around 7% with increased operating expenditure, leading to around -50 basis points of margin compression in FY20. Coupled with an expected bump up in net interest, the broker suspects net profit growth may be challenged.

Equal-weight rating maintained. Target is raised to $3.36 from $3.22. Industry view: In-Line.

Target price is $3.36 Current Price is $3.15 Difference: $0.21
If IDX meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Ord Minnett rates IDX as Downgrade to Accumulate from Buy (2) -

Operating earnings were slightly below forecasts in FY19. The implied market share gains demonstrate the value of a strong regional focus and geographical diversification, in Ord Minnett's view.

This was bolstered by the acquisition of Imaging Queensland, a large practice with a strong regional presence. The broker believes the acquisition is a good one and should yield strong benefits in FY21.

Ord Minnett raises the target to $3.41 from $3.31. Rating is downgraded to Accumulate from Buy on valuation.

Target price is $3.41 Current Price is $3.15 Difference: $0.26
If IDX meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates IFL as Sell (5) -

The company envisages its challenges are more about stabilisation rather than a significant re-vamp of the business but Citi suspects there are major hurdles to overcome, including the need to restructure advice.

The broker envisages risks to the idea of a small buyback, despite the sale of the Ord Minnett holding, if the ANZ P&I deal does not go ahead.

Citi assesses, with a significant remediation charge affecting distributable profits, the unusual structure of the second half dividend seems to borrow from FY20 profits, in order to keep it fully franked.

Sell/High Risk rating maintained. Target is reduced to $4.40 from $4.80.

Target price is $4.40 Current Price is $4.86 Difference: minus $0.46 (current price is over target).
If IFL meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.01, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Credit Suisse rates IFL as Neutral (3) -

FY19 results beat estimates. Credit Suisse notes the company is still committed to the ANZ P&I acquisition but the mid October deadline is fast approaching. No deal would not necessarily be negative, in the broker's view, as a re-priced deal could then be on the cards.

However, clarity on the re-vamped business could still be over 12 months away. While the broker envisages valuation upside under a range of scenarios, the lack of certainty in the near term is expected to put pressure on the share price.

Neutral maintained. Target is lowered to $5.05 from $5.90.

Target price is $5.05 Current Price is $4.86 Difference: $0.19
If IFL meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Macquarie rates IFL as Neutral (3) -

FY19 headline results were broadly in line. An overhang has been removed, as advice remediation provisions were raised and Macquarie is incrementally more positive.

However, with uncertainty still overhanging the stock from completion of the ANZ P&I transaction and a material earnings gap emerging in FY20, a Neutral rating is maintained. Target is reduced to $5.80 from $6.10.

Target price is $5.80 Current Price is $4.86 Difference: $0.94
If IFL meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

FY19 results were in line with estimates. Morgan Stanley notes operating metrics are deteriorating. The company is seeking to transform the business and the broker suggests the stock is cheap on historical metrics but the path to unlocking value demands patience.

The company expects benefits from platform consolidation by the first half of FY22, which will help navigate fee pressure. A likely lower dividend pay-out ratio of 70% is the less impressive aspect to the outlook, in the broker's view.

Equal-weight rating maintained. Target is $4.95. Industry view: In Line.

Target price is $4.95 Current Price is $4.86 Difference: $0.09
If IFL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

UBS rates IFL as Upgrade to Neutral from Sell (3) -

IOOF posted a big miss on profit, reflecting remediation provisions, but net of those it was still a miss of UBS' forecast, with the benefit of stronger markets in the period offset by declining revenue margins.

The broker has cut its earnings forecasts, suggesting significant operating headwinds remain in FY20, and dropped its target to $4.85 from $5.15. But as the stock has already traded down to this price, UBS upgrades to Neutral from Sell.

Target price is $4.85 Current Price is $4.86 Difference: minus $0.01 (current price is over target).
If IFL 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 $5.01, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Ord Minnett rates IFN as Buy (1) -

FY19 results were broadly in line with forecasts. Additional disclosure has led to some reductions to Ord Minnett's estimates. Nevertheless, the broker envisages corporate appeal, as the stock price implies a value for the wind assets that is below the replacement cost.

The broker estimates an acquirer could generate a return on equity of 20% or more. Buy rating maintained. Target is reduced to $0.69 from $0.80.

Target price is $0.69 Current Price is $0.55 Difference: $0.14
If IFN meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates ING as Sell (5) -

Upon initial assessment, Citi analysts believe the FY19 report missed consensus forecasts, plus the FY20 guidance is for a decline in profits when market consensus is positioned for circa 5% growth.

The analysts suggest Inghams' management will have some explaining to do. Meanwhile, the share price is likely to respond negatively, in their view. Company is still struggling with rising costs.

Target price is $3.85 Current Price is $3.35 Difference: $0.5
If ING meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 19.4% (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 IPL as Neutral (3) -

Citi analysts warn investors there is downside risk to the company's guidance for FY19 as fertiliser prices remain depressed. The company is organising an Investor Day for the 4th September and management is expected to provide an update.

On Citi's assessment, the share price already largely reflects the risk for a downgrade to guidance, otherwise known as a profit warning. While lowering commodity prices forecasts, the analysts have reduced FY19-FY21 forecasts for the company by -10%, -5% and -9% respectively.

Neutral rating and $3.45 price target retained.

Target price is $3.45 Current Price is $3.13 Difference: $0.32
If IPL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting upside of 14.7% (ex-dividends)

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

Macquarie rates IRE as Neutral (3) -

First half results revealed segment profit growth of 10%. 2019 guidance has been maintained. Macquarie notes Xplan is gaining share in segment revenue and is now 26%, driven by new and existing clients.

QuantHouse made a positive contribution and the company expects new and existing client project activity to drive revenue in the second half. Neutral rating maintained. Target is reduced to $13.25 from $13.69.

Target price is $13.25 Current Price is $12.43 Difference: $0.82
If IRE meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $13.86, suggesting upside of 11.5% (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

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

FY19 net profit was in line with estimates. Macquarie notes difficult operating conditions and inflated net debt provide for a tough investment case. This is likely to persist as the industry awaits the Royal Commission interim report in October.

As the share price has reached the target the broker upgrades to Neutral from Underperform. Estimates for earnings per share are cut by -40% and -18% for FY20 and FY21 respectively. Target is reduced to $1.05 from $1.10.

Target price is $1.05 Current Price is $1.09 Difference: minus $0.04 (current price is over target).
If JHC meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.08, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates JHC as Hold (3) -

Japara Healthcare's FY underlying result beat Morgans estimates by a nose, thanks to a one-off government subsidy, which was offset by lower occupancy.

Top line results proved a miss and the company guides to a -5% to -10% weaker FY20 as funding challenges and the Royal Commission constrain activity.

Morgans expects higher costs will hit margins, and downgrades profit forecasts across FY20 and FY21 substantially. Target price falls to $1.15 from $1.37. Hold retained.

Target price is $1.15 Current Price is $1.09 Difference: $0.06
If JHC meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates JHC as Hold (3) -

FY19 net profit was below Ord Minnett's forecasts. The company has guided to a contraction in operating earnings (EBITDA) in FY20 because of slower funding growth versus wages growth.

However, the broker assesses, with higher operating leverage, the company is significantly more exposed compared with peers and reduces FY20 net profit forecast by -42%.

With no sign from the government as to when and how it may reform the current system, the broker believes the near-term outlook is bleak and the risks are heightened by rising gearing.

Hold rating maintained. Target is reduced to $1.00 from $1.35.

Target price is $1.00 Current Price is $1.09 Difference: minus $0.09 (current price is over target).
If JHC meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.08, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates JHC as Neutral (3) -

Japara's -30% fall in profit was as expected, and boosted by one-off government funding received in the fourth quarter. Management expects FY20 earnings to be -5-10% lower than FY19, with occupancy at a five-year low.

Crunching the numbers, the broker comes up with a profit forecast some -33% below prior consensus forecasts.

In the current funding environment the broker sees FY20 execution on occupancy and developments as critical to any valuation upside near term. Neutral retained, target falls to $1.10 from $1.20.

Target price is $1.10 Current Price is $1.09 Difference: $0.01
If JHC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Linday Australia's FY19 result met guidance thanks to a one-off fuel tax credit, but otherwise the result was well below Morgans' forecasts.

The company reports weak trading across all divisions, thanks to fuel-price volatility, the North Queensland floods and weather-inspired falls in produce freight volumes. Operating cash flow proved a beat, the company posting 107% conversion thanks to strong working capital management.

No FY20 guidance was provided for the rail expansion and the company will exit Connect this September quarter citing barriers to entry into China.

Morgans cuts profit forecasts and the target price falls to 39c from 50c. Rating downgraded to Hold from Add, the broker appreciating the company's good management and undemanding valuation, but noting the lack of catalysts.

Target price is $0.39 Current Price is $0.35 Difference: $0.04
If LAU meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates MSV as Add (1) -

Mitchell Services delivered a no-surprises FY19 result, and Morgans increases earnings forecasts 8% to 15% across FY20 to FY22 to account for new contracts and a strong outlook.

The broker retains a Speculative Buy (Add) rating, believing the company appears "too cheap", and expects a re-rating as the company approaches a net cash position in FY20 (with strong cash generation thereafter) and adds that it is accelerating its de-gearing.

Guidance was uncertain, reflecting the major global market uncertainty. Target price eases to 94c from 95c.

Target price is $0.94 Current Price is $0.07 Difference: $0.87
If MSV meets the Morgans target it will return approximately 1243% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates MVF as Overweight (1) -

FY19 results were broadly in line with expectations. Morgan Stanley considers the correction in the stock overdone. Diagnostic trends may be soft but the broker suspects these are turning around.

The launch of the non-invasive pre-implantation genetic screening in June may have arrested the decline, the broker suggests. However, the departure of five non-contracted IVF specialists has to be negotiated.

Overweight rating maintained. Target is reduced to $1.24 from $1.44. Industry view: In-Line.

Target price is $1.24 Current Price is $1.02 Difference: $0.22
If MVF meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Morgans rates MVF as Hold (3) -

Monash IVF's FY19 result met Morgan's forecasts, thanks to strong growth from the Malaysian business and good cash-flow conversion.

On the downside, Victorian operations underperformed following the departure of five fertility specialists to set up an independent operation.

Morgans lowers FY20 and FY21 profit forecasts by -13% and cuts the target price to $1.09 from $1.37. Hold rating retained.

Target price is $1.09 Current Price is $1.02 Difference: $0.07
If MVF meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Credit Suisse rates NHC as Outperform (1) -

The company has had a record production year, as evidenced in the July quarter, Credit Suisse notes.

The excellent operating performance at Bengalla is countered somewhat by Acland, where despite the "good progress" the broker points out, if approvals for stage 3 are not secured by the end of August, a reduction in mining activity and personnel will be forthcoming.

Credit Suisse maintains an Outperform rating and reduces the target to $3.00 from $3.50.

Target price is $3.00 Current Price is $2.24 Difference: $0.76
If NHC meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 33.5% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates NTD as Hold (3) -

National Tyre and Wheel's FY19 result beat Morgans' forecast and the company declared a special dividend, bringing the total FY19 dividend to 4.8c.

Morgans forecasts a -12% decline in earnings over FY20 to reflect import pricing and foreign-exchange headwinds.

The company plans to expand it product range and implement operational initiatives, which is forecast to flow through into FY21, the broker describing FY20 as a transitional year. Risks abound and the broker is holding out for the FY20 first-half figures despite the strong dividend yield.

Hold rating retained. Target price falls to 44c from 48c.

Target price is $0.44 Current Price is $0.40 Difference: $0.04
If NTD meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates OML as Outperform (1) -

First half results were in line with the recent update and guidance has been reiterated. Credit Suisse retains an Outperform rating with the view that current headwinds are transient and the industry structure has materially improved.

While the company is confident in its capital position, the broker suspects the market requires less volatile trading conditions to share that view.Target rises to $3.70 from $3.50.

Target price is $3.70 Current Price is $3.09 Difference: $0.61
If OML meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates OML as Accumulate (2) -

First half earnings were in line with the recent trading update. The September trading outlook is now better than expected. Ord Minnett expects the share price will remain under pressure until management can reduce the current gearing level.

The recent trading update highlighted significant operating leverage but also a lack of visibility on advertising expenditure in the business, leaving investors to assess what level of financial gearing should be retained.

Accumulate rating and $3.70 target maintained.

Target price is $3.70 Current Price is $3.09 Difference: $0.61
If OML meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates PLS as Outperform (1) -

FY19 results were in line. Credit Suisse notes cash is clearly tight for a single-asset operation, with uncertain cash inflows stemming from market weakness.

FY20 is expected to be a year of two halves. The first half is likely to be soft because of weak sales into an oversupplied market while shutdowns will affect production.

This situation should materially improve in the second half. Outperform rating and $0.90 target maintained.

Target price is $0.90 Current Price is $0.35 Difference: $0.55
If PLS meets the Credit Suisse target it will return approximately 157% (excluding dividends, fees and charges).

Current consensus price target is $0.70, suggesting upside of 100.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgans rates PPT as Hold (3) -

Perpetual's FY19 result fell just shy of consensus and Morgans' estimates, as lower fees, big institutional net outflows and higher costs took their toll.

The one highlight was a major cost-out plan, but the broker says growth will remain a constraint. Funds under management rose for the sixth consecutive year.

The company's balance sheet is solid, with gearing sitting at 11.6% and free cash at $200m.

Hold rating retained. Target price falls to $38.20 from $41.72 to reflect lower margin forecasts.

Target price is $38.20 Current Price is $34.68 Difference: $3.52
If PPT meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.09, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

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

Morgan Stanley observes, while general economic activity is challenged, the company has moved to consolidate its market share and invested $572m in a range of growth initiatives.

A third tenant has been announced for Moorebank. Much of the growth expenditure is being used to support contracts and around a third is for new acquisitions. The investment adds conviction to the broker's forward earnings forecasts.

Target is raised to $3.38 from $3.21. Equal-weight rating, Cautious industry view retained.

Target price is $3.38 Current Price is $3.22 Difference: $0.16
If QUB meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.96, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Credit Suisse rates RIC as Neutral (3) -

FY19 net profit was marginally ahead of estimates. Credit Suisse believes the new CEO has sensible objectives and if executed successfully these should drive good earnings growth in the next few years.

The broker continues to assume growth in agriculture but has somewhat moderated expectations. Neutral rating maintained. Target is reduced to $1.05 from $1.20.

Target price is $1.05 Current Price is $0.99 Difference: $0.06
If RIC meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates RMS as Add (1) -

Ramelius Resources' FY19 result pleased the broker as the higher gold price and lower costs flowed through into a forecast dividend (the first since 2010), payable in FY20.

Management reiterated production guidance but guided to higher labour costs from FY20 onward. The company has no debt and $106.8m in cash and equivalents, which are likely to be drawn on to bring a new acquisition online.

The gold price is at a record level and the company has 40% of production hedged at an average price of A$1,875 oz for FY20 and FY22.

The broker says fundamentals for the gold price are strong given expected continued global financial markets volatility. Hold rating retained. Target price rises to $1.12 from 95c.

Target price is $1.12 Current Price is $1.29 Difference: minus $0.17 (current price is over target).
If RMS meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates RRL as Underperform (5) -

The company has acquired a tenements package surrounding its Duketon operations. This effectively triples the landholding and includes prospects along strike from current operations.

The cost of the tenements is $20m in cash and up to $5m in contingent payments. Macquarie considers any additional resource definition and extension to mine life at Duketon through exploration would be a key positive catalyst.

Underperform and $5.10 target retained.

Target price is $5.10 Current Price is $5.14 Difference: minus $0.04 (current price is over target).
If RRL meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.86, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.7

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

Ord Minnett rates SSG as Buy (1) -

FY19 results were at the upper end of guidance and ahead of Ord Minnett's estimates. The broker notes FY20 will mark the first year in some time where the business is not cycling transitory revenue. Guidance is expected post Christmas trading.

Ord Minnett also welcomes the paring back of the roll-out profile for greenfield stores. Buy rating maintained. Target is raised to $61 from $57.

Target price is $0.61 Current Price is $0.52 Difference: $0.09
If SSG meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

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

Interim results were below expectations. Macquarie finds the retail outlook negative, with margins to remain under pressure from competition. Refining is not expected to show an improvement until the fourth quarter of 2019 at the earliest.

Macquarie reduces 2019 and 2020 estimates for earnings per share by -58% and -42%, respectively, to reflect lower fuel volumes, lower retail margins, a higher corporate cost base and the lower ramp-up of the Geelong refinery.

Target is lowered to $2.06 from $3.10 and the rating is downgraded to Neutral from Outperform.

Target price is $2.06 Current Price is $1.99 Difference: $0.07
If VEA meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates VEA as Hold (3) -

Viva Energy Group's first-half result met June guidance and Morgans' forecasts as tough operating conditions persisted across retail, refining and commercial. 

Discounting on petrol prices across its Coles Alliance ((COL)) to recapture market share met strong competition, and higher oil prices did not help. The refining business took a big hit as regional margins contracted, a trend only slightly ameliorated by improved up-time.

The company doesn't expect a recovery in the second half but believes it can leverage stronger margins once retail volumes regain momentum. Regional refining margins are showing signs of recovery.

Hold retained. Target price falls to $2.06 from $2.07.

Target price is $2.06 Current Price is $1.99 Difference: $0.07
If VEA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates VEA as Accumulate (2) -

First half net profit was ahead of forecasts. Ord Minnett was disappointed with the second half retail guidance, noting all the retail fuel margin acquired by Coles ((COL)) as part of the new alliance was reinvested.

Volume stabilisation is pleasing and a necessary first step, in the broker's opinion. The broker suspects a recovery in industry dynamics may not be as quick as hoped, given the lower cost and different return-on-capital priorities of independents.

Accumulate rating maintained. Target is reduced to $2.30 from $2.40.

Target price is $2.30 Current Price is $1.99 Difference: $0.31
If VEA meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates VEA as Buy (1) -

Viva Energy Group's profit beat on forex gains but the underlying result was broadly in line with expectations. Management's outlook was soft, citing competitive pressures, but retail volumes are moving the right way, the broker notes, and customer response has been positive to Coles Express re-pricing.

Refiner margins are also improving so the broker believes management is being conservative. Buy retained, target rises to $2.65 from $2.55.

Target price is $2.65 Current Price is $1.99 Difference: $0.66
If VEA meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates WES as Sell (5) -

Upon initial review, Citi analysts suggest today's FY19 report is largely in-line. Kmart remains disappointing, but Bunnings continues to perform well. Industrial and Safety earnings missed Citi's forecasts by -22% on margin pressure.

No concrete guidance has been provided but the analysts believe the share price remains supported by improved trading in Kmart and a solid Bunnings performance with an improving backdrop.

Target price is $33.80 Current Price is $38.98 Difference: minus $5.18 (current price is over target).
If WES meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.11, suggesting downside of -15.1% (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

Ord Minnett rates Z1P as Accumulate (2) -

FY19 earnings were slightly ahead of Ord Minnett's forecasts. The company has made several acquisitions and investments in recent days and the broker observes near-term momentum remains significant.

The next issue centres on what the company may be able to achieve in the UK, with the broker noting that growth does not come for free and there will be some additional fixed costs in the short term.

Accumulate rating maintained. Target rises to $3.80 from $3.70.

Target price is $3.80 Current Price is $3.42 Difference: $0.38
If Z1P 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 FY20:

Forecast for FY21:

Market Sentiment: 0.8

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