Australian Broker Call

Citi rates A2M as Downgrade to Neutral from Buy (3) -

Citi downgrades to Neutral from Buy given the increased uncertainty around the short-term outlook. The planned transition to new infant formula packaging should be a one-off but the broker is concerned about re-seller price reductions.

Citi downgrades FY18-20 estimates for earnings per share by -9-10%. Target is reduced to $11 from $14.

Target price is $11.00 Current Price is $10.92 Difference: $0.08
If A2M meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Deutsche Bank rates A2M as Buy (1) -

The company provided FY18 guidance for sales between NZ$900-920m, a -5% miss relative to consensus. Gross margin is expected to be flat versus the first half and marketing expenditure between NZ$82-87m for the year.

Deutsche Bank maintains a target of NZ$14 and Buy rating, given the valuation gap in strong growth outlook.

Current Price is $10.92. Target price not assessed.

Current consensus price target is $11.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Macquarie rates A2M as Outperform (1) -

The company's trading update implies a revenue run rate that is slightly ahead of the first half, Macquarie observes. FY18 guidance is for group sales of NZ$900-920m, -5% below consensus estimates.

The company has indicated that transition to new packaging has had an impact on the second half. Macquarie suggests this probably explains a large amount of the shortfall to expectations.

The broker believes the fundamental thesis is intact and the share price has over-reacted. Outperform maintained. Target is reduced to $12.40 from $13.00.

Target price is $12.40 Current Price is $10.92 Difference: $1.48
If A2M meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Morgans rates A2M as Add (1) -

As the company manages the transition to new infant formula packaging,  FY18 revenue guidance of NZ$900-920m is weaker than expected.

Nevertheless, Morgans accepts the company is still on track to deliver an impressive performance and forecasts 112% growth in net profit in FY18.

As the stock is trading on a large PE multiple the broker highlights the fact there is no room for disappointment. Add rating maintained. Target is reduced to $12.48 from $14.40.

Target price is $12.48 Current Price is $10.92 Difference: $1.56
If A2M meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

UBS rates A2M as Neutral (3) -

The company expects FY18 revenue in the range of NZ$900-920m and gross margins to be in line with the first half.

UBS notes the outlook commentary is broadly consistent with that of the first half but implies downgrades of around -10% to estimates, as it had assumed stronger gross margins and lower marketing costs.

Neutral rating is retained. Target edges down to NZ$11.20 from NZ$11.70.

Current Price is $10.92. Target price not assessed.

Current consensus price target is $11.96, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.7

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

Deutsche Bank rates ALQ as Downgrade to Sell from Hold (5) -

The company has benefited from a recovery in mineral drilling activity but Deutsche Bank does not expect it can sustain above-industry growth. Life sciences is supported by structural growth drivers but this is being offset by price pressure across key markets.

Deutsche Bank downgrades to Sell from Hold as the stock appears expensive relative to the growth it offers. Target is $6.99.

Target price is $6.99 Current Price is $7.48 Difference: minus $0.49 (current price is over target).
If ALQ meets the Deutsche Bank target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.70, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in March.

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

Morgans rates APT as Hold (3) -

The company has started transactions in the US in a phased manner, signing Urban Outfitters as a launch partner and with over 50 retailers at various stages of integration. Morgans suggests, while only early days, upside potential from the US expansion could be significant.

The broker makes earnings changes to reflect the initial incorporation of the US expansion into modelling. FY20 EPS is lifted by 15%. Target is raised to $7.95 from $6.12 and a Hold rating is maintained.

Target price is $7.95 Current Price is $7.38 Difference: $0.57
If APT meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates AWC as Outperform (1) -

Macquarie suggests rising cost structures for Chinese refineries should be supportive of industry pricing. The company remains well-placed to capture the value from an alumina market that is progressively moving to spot/API-based pricing.

The broker suggests the strategic objective to roll over legacy LME-linked contracts to spot pricing is paying dividends in the current environment. The broker maintains an Outperform rating and $3 target.

Target price is $3.00 Current Price is $2.76 Difference: $0.24
If AWC meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.2

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

Credit Suisse rates BHP as Neutral (3) -

The process of offloading US shale is still on track, BHP noted at a conference yesterday, while insisting conventional oil still has a place in the company's portfolio. Higher energy costs have lifted medium term costs for met coal and copper production.

BHP is still targeting a 20% return on capital employed by 2022, the broker notes, using FY17 realised commodity prices. A raft of opportunities in the portfolio are clear but execution will be the ultimate value driver, the broker suggests. Neutral and $31 target retained.

Target price is $31.00 Current Price is $34.58 Difference: minus $3.58 (current price is over target).
If BHP 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 $32.87, suggesting downside of -5.0% (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: 0.8

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

Macquarie rates BHP as Outperform (1) -

The company is progressing with the exit from shale and a single trade sale is the most preferred outcome. Macquarie suggests the update on future growth plans demonstrates the options that lie in the asset portfolio.

The company has identified seven key projects to unlock latent capacity, including de-bottlenecking iron ore, throughput increases at Escondida and Spence, and Queensland coal.

Macquarie suggests upgrade momentum for the stock remains strong. Outperform rating and $36.10 target maintained.

Target price is $36.10 Current Price is $34.58 Difference: $1.52
If BHP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $32.87, suggesting downside of -5.0% (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: 0.8

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

Ord Minnett rates BHP as Hold (3) -

The company has presented a further update on its new growth projects, signalling a range of options to improve or replace mine capacity.

Brownfield and greenfield projects could generate US$15bn in NPV with an average internal rate of return of 17% and Ord Minnett notes many of these projects are there to sustain production or replace minor well depletion, and are not incremental.

Hold rating and $30 target maintained.

Target price is $30.00 Current Price is $34.58 Difference: minus $4.58 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.87, suggesting downside of -5.0% (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: 0.8

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

Citi rates BLD as Neutral (3) -

The investor briefing highlights a solid outlook for the Australian operations and Citi notes organic growth initiatives and an extended construction cycle.

Given the implications of the Knauf takeover bid for USG and Boral's options to either sell out, buy out or stay in the joint venture the broker suggests the most likely scenario is for Boral to remain.

Neutral rating maintained. Target is $7.23.

Target price is $7.23 Current Price is $6.74 Difference: $0.49
If BLD meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 15.4% (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

Deutsche Bank rates BLD as Buy (1) -

The company hosted an investor briefing and made no changes to FY18 guidance. Management said demand for construction materials is robust and expects a strong number of infrastructure projects until 2022.

While the industry is operating near capacity, price increases are only expected to offset costs. Nevertheless, Deutsche Bank still expects some improvement in margins.

Buy rating retained. Price target is $7.65.

Target price is $7.65 Current Price is $6.74 Difference: $0.91
If BLD meets the Deutsche Bank target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 15.4% (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 BLD as Outperform (1) -

The company's investor briefing was greeted positively. Macquarie notes Boral Australia is driven by infrastructure activity although evidence of an uplift in prices is relatively scant

Management has stated it will not seek to raise equity to fund a buy-out of USG Corp's (currently under a bid by Knauf) 50% share of the joint venture should the opportunity arise.

Outperform rating and $8.45 target maintained.

Target price is $8.45 Current Price is $6.74 Difference: $1.71
If BLD meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 15.4% (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 BLD as Overweight (1) -

The company has maintained guidance. Morgan Stanley notes a turnaround from recent operating issues in the US is continuing.

The company has indicated it will look to protect the plasterboard joint venture and has no intention to raise equity to buy out USG Corp. If funding is required asset sales will be considered.

Overweight rating. Target is $8.00 and Industry view is Cautious.

Target price is $8.00 Current Price is $6.74 Difference: $1.26
If BLD meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 15.4% (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

Credit Suisse rates CCL as Outperform (1) -

Following the AGM, the broker has not changed its forecasts for Australian beverages. The company noted the NSW container deposit scheme is having an impact. Indonesia/PNG has had a subdued start to the year while NZ/Fiji is performing ahead of expectation.

No change to alcohol and coffee guidance. No change to the broker's Outperform rating and $9.80 target.

Target price is $9.80 Current Price is $8.61 Difference: $1.19
If CCL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Deutsche Bank rates CCL as Hold (3) -

The company provided no definitive guidance or trading update at its AGM. Deutsche Bank observes, so far, Indonesia and PNG have made a subdued start to the year. New Zealand and Fiji are tracking ahead of expectations.

The company is investing in long-term growth opportunities which suggests to the broker that margins are falling. Hold rating retained. Target is $8.50.

Target price is $8.50 Current Price is $8.61 Difference: minus $0.11 (current price is over target).
If CCL meets the Deutsche Bank target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgan Stanley rates CCL as Underweight (5) -

The company has confirmed the negative impact of the container deposit scheme and weak Indonesian business, which Morgan Stanley suggests should be well known.

The broker expects the trading update from the AGM will create pressure on full year guidance and, after a strong run, suspects the stock will pull back as earnings risks intensify.

Target is $8. Underweight. Cautious industry view.

Target price is $8.00 Current Price is $8.61 Difference: minus $0.61 (current price is over target).
If CCL meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgans rates CCL as Hold (3) -

The company provided limited commentary on the outlook at its AGM. Morgans notes stronger-than-expected trading in New Zealand and Fiji and a subdued start for Indonesia and PNG.

At present, the broker suggests there is little evidence to suggest that structural and cyclical headwinds are easing. Hold rating maintained. Target is raised to $8.96 from $8.68.

Target price is $8.96 Current Price is $8.61 Difference: $0.35
If CCL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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 provided no quantitative guidance at its AGM but UBS suggests the outlook is softer. Macro conditions in Indonesia remain subdued and operating issues have been affecting the PNG business. The broker envisages risks to the company's 10% earnings margin target in Indonesia.

Management suggests the rolling out of the container deposit scheme has been negative on Australian beverages and further pressure is expected as this is rolled out in ACT, Queensland and WA.

The broker suspects heightened investment will continue into 2019 and trims forecast by -1%. Neutral rating and $8.40 target maintained.

Target price is $8.40 Current Price is $8.61 Difference: minus $0.21 (current price is over target).
If CCL 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 $8.86, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Citi rates CPU as Neutral (3) -

Citi suggests, at face value, the acquisition of Equatex is sensible and will add to growth, although the synergies are relatively long dated and the price full.

The broker's accretion forecast for FY20 is 3%. With some offset from a stronger US dollar Citi adjusts estimates down by -0.3% for FY18 and by -0.9% for FY19. FY20 estimates are increased by 1.6%.

Neutral maintained. Target rises to $19.90 from $18.00.

Target price is $19.90 Current Price is $18.12 Difference: $1.78
If CPU meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.04, suggesting downside of -6.0% (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: -0.4

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

Credit Suisse rates CPU as Neutral (3) -

Computershare has acquired Equatax from private equity at an implied multiple of 19x earnings pre-synergies. The broker sees a long dated but logical and accretive acquisition.

The company's debt ratio has been falling to provide acquisitive power, with low rates providing for earnings accretion, the broker notes. Management remains focused on further growth and cost-out opportunities but the broker believes growth is priced in. Neutral retained, target rises to $18.50 from $17.60.

Target price is $18.50 Current Price is $18.12 Difference: $0.38
If CPU meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $17.04, suggesting downside of -6.0% (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: -0.4

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

Macquarie rates CPU as Neutral (3) -

The company will acquire a European share plan business, Equatex, for EUR354.5m. On a full year basis the acquisition is around 6% accretive to EPS, post synergies.

Macquarie suggests this is a sensible acquisition and aligned with an existing business vertical. At the current multiple the broker considers the stock is fairly valued and retains a Neutral rating. Target is raised to $18 from $16.

Target price is $18.00 Current Price is $18.12 Difference: minus $0.12 (current price is over target).
If CPU 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 $17.04, suggesting downside of -6.0% (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: -0.4

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

Morgan Stanley rates CPU as Underweight (5) -

The acquisition of Equatex for EUR355m makes strategic sense and diversifies the business away from the core ex-growth registry, Morgan Stanley concedes. Yet the broker believes substantial synergies are required to justify the stock's expensive multiple.

Underweight rating. Target is $13.50. Industry view: In-Line.

Target price is $13.50 Current Price is $18.12 Difference: minus $4.62 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.04, suggesting downside of -6.0% (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: -0.4

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

Morgans rates CPU as Hold (3) -

The company will acquire Equatex, a European employee share plan business. Morgans considers the acquisition a good strategic fit. The solid strategic rationale and accretion offsets the risks. The broker makes no changes to EPS forecasts and awaits regulatory approval for the acquisition.

Morgans remains impressed by the turnaround in the business but considers the stock fair value. Hold rating maintained. Target rises to $16.65 from $16.53.

Target price is $16.65 Current Price is $18.12 Difference: minus $1.47 (current price is over target).
If CPU meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.04, suggesting downside of -6.0% (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: -0.4

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

UBS rates CPU as Neutral (3) -

The company has announced the acquisition of Equatex, a European employee share plan administration business headquartered in Zurich. This represents a key growth segment for the company and UBS suggests it should add significant outer year accretion based on synergies across the combined platform.

While the deal does enhance the growth outlook, the broker envisages growth reverting back to the low-mid single digit range. Hence, various limited value appeal on a longer term basis and UBS retains a Neutral rating. Target is raised to $18.45 from $17.40.

Target price is $18.45 Current Price is $18.12 Difference: $0.33
If CPU meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $17.04, suggesting downside of -6.0% (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: -0.4

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

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

Ord Minnett reviews its investment thesis and downgrades to Hold from Buy. The share price has increased 12.2% in the year to date and VIPs appear to have have shifted in favour of Star Entertainment ((SGR)).

Crown must rebuild its turnover, or gain slots, the broker suggests. CrownBet was a key driver of Ord Minnett's upgrade in July last year and its subsequent sale has removed that growth opportunity. Target is unchanged at $13.50.

Target price is $13.50 Current Price is $13.32 Difference: $0.18
If CWN meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $13.15, suggesting downside of -1.3% (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

Morgans rates CYB as Hold (3) -

First half underlying pre-tax profit of GBP158m was less than Morgans expected. The miss was a result of soft revenue, reflective of intense competition in the UK mortgage and current-account market.

The broker remains wary of the risk of further PPI provision top ups and potential legal action. There is also downside risk to the share price if the preliminary proposal made to Virgin Money does not proceed.

Hold rating maintained. Target is $5.28.

Target price is $5.28 Current Price is $5.42 Difference: minus $0.14 (current price is over target).
If CYB meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.93, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

This company reports in GBP. 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

Deutsche Bank rates GNC as Buy (1) -

Deutsche Bank considers the first half result a positive, as it was delivered in line with expectations and the oils division showed signs of improvement.

The broker re-bases its forecasts for FY19 to reflect the increased risk of another year of below-average crop production. Buy rating and $9.10 target maintained.

Target price is $9.10 Current Price is $7.76 Difference: $1.34
If GNC meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.50, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates GXY as Underperform (5) -

The company has provided an updated definitive feasibility study for the Sal de Vida lithium potash project in Argentina. Production estimates are largely unchanged. Capital expenditure is up 26%.

Macquarie re-incorporates a development scenario in its valuation. Funding the project is the near-term catalyst. Underperform. Target is $3.

Target price is $3.00 Current Price is $3.27 Difference: minus $0.27 (current price is over target).
If GXY meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.48, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in December.

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 MIL as Buy (1) -

Ord Minnett is more confident that the second half could be the low point and FY19 will benefit from operating leverage, improved cash generation and, ultimately, debt reduction. The broker suggests, if its forecasts prove accurate, the recovery is not being priced into the stock.

Delivering a quality FY18 result could be a catalyst, in the broker's opinion. Buy rating maintained. Target is raise to $1.43 from $1.14.

Target price is $1.43 Current Price is $0.94 Difference: $0.49
If MIL meets the Ord Minnett target it will return approximately 52% (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

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

Morgan Stanley believes the company presents a complex, but ultimately positive, opportunity for investors based on the fundamental value of APRR relative to the share price, although recent share price gains may temper further gains in view of the performance fee accruing to Macquarie ((MQG)).

Morgan Stanley downgrades to Equal-weight from Overweight. Target is raised to $6.36 from $6.26. Industry view: Cautious.

Target price is $6.36 Current Price is $5.98 Difference: $0.38
If MQA meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.64, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in December.

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

Deutsche Bank rates MYR as Sell (5) -

Third quarter sales of $635.3m represented a decline -2.7%, or -3.1% on a comparable basis, Deutsche Bank notes, allowing for the sales associated with Marcs and David Lawrence. Online sales grew by 49%, consistent with the first half.

Sell rating maintained. Target is $0.38.

Target price is $0.38 Current Price is $0.42 Difference: minus $0.04 (current price is over target).
If MYR meets the Deutsche Bank target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.37, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in July.

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

Ord Minnett rates MYR as Lighten (4) -

Ord Minnett awaits the significant change from a strategy perspective under the new CEO, John King. Lighten rating and $0.37 target maintained.

The company announced a weak third quarter with sales down -3.1%, citing warm autumn weather and less successful promotional strategies. No guidance was provided for FY18 and the New Myer targets were not reiterated.

Target price is $0.37 Current Price is $0.42 Difference: minus $0.05 (current price is over target).
If MYR meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.37, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in July.

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 MYR as Sell (5) -

Third quarter sales were below UBS estimates. Management suggests that the unseasonably warm start to winter was the main driver of the weakness, despite previously flagging improving second half trends from price investment.

UBS observes weaker foot traffic and consumer conditions were not noted, which suggests these have not worsened. The main risk, in the broker's opinion, is margins, given the strong growth in online and the potential for markdowns in the fourth quarter.

Sell rating maintained. Target is reduced to $0.37 from $0.40.

Target price is $0.37 Current Price is $0.42 Difference: minus $0.05 (current price is over target).
If MYR meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.37, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in July.

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 NXT as Buy (1) -

UBS believes the company's next wave of expansion will underpin a very strong earnings growth profile over the next decade. Demand for the cloud is undeniably strong and appears to be accelerating and this, in turn, is driving demand for data centres.

The broker will look to the FY18 result for confirmation that contracted capacity momentum can support the company's expansion plans. Buy rating maintained. Target rises to $9.05 from $7.70.

Target price is $9.05 Current Price is $7.67 Difference: $1.38
If NXT meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.78, suggesting upside of 1.4% (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

Ord Minnett rates PDL as Hold (3) -

First half net profit was below Ord Minnett's forecasts. The result, up 10.9%, was assisted by a gain on the sale of investments of $8m versus zero a year ago.

Ord Minnett observes the stock has de-rated meaningfully over the past six months but is likely to remain under pressure given the flagged sell-down by Westpac ((WBC)).

The broker maintains a Hold rating and raises the target to $11.00 from $10.70.

Target price is $11.00 Current Price is $10.26 Difference: $0.74
If PDL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.98, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates RIO as Outperform (1) -

The company is focused on maximising cash returns and Macquarie suggests the recent divestments totalling US$5bn are set to boost returns in 2018.

Beyond existing projects the growth options appear modest, in the broker's view, and the company is considered likely to undertake material acquisitions. Macquarie suggests the stock looks cheap on cash flow multiples despite the recent rally.

Outperform rating retained. Target is $93.

Target price is $93.00 Current Price is $86.24 Difference: $6.76
If RIO meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $85.69, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in December.

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: 0.9

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

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

Morgan Stanley anticipates continued growth in the retail and accommodation development for the business. The passenger outlook remains constructive.

The broker suggests if the airport could move from its current movement/minutes base to a more modern time-based separation system then on-time performance and longer-term capacity would improve materially.

Morgan Stanley downgrades to Equal-weight from Overweight, amid a lack of near-term catalysts, and raises the target to $7.27 from $7.07. Cautious industry view.

Target price is $7.27 Current Price is $6.95 Difference: $0.32
If SYD meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

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