Australian Broker Call

Morgans rates CIP as Hold (3) -

Propertylink ((PLG)) has withdrawn its proposal to acquire all outstanding Centuria Industrial units as, subsequently, an offer has been received for Propertylink which it intends to recommend.  Propertylink does reserve the right to proceed with a proposal to acquire Centuria Industrial in the event that this offer does not proceed.

Centuria Industrial has also announced the acquisition of Cargo Park in Victoria for $42m. Post acquisition Morgans estimates gearing will be around 39%. The broker retains a Hold rating and reduces the target to $2.71 from $3.03.

Target price is $2.71 Current Price is $2.75 Difference: minus $0.04 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

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

Citi rates DHG as Upgrade to Neutral from Sell (3) -

Data suggest Domain's market share has stabilised in key regions, particularly Melbourne, which leaves the company well positioned for when market conditions normalise, Citi suggests. The broker is forecasting a rapid recovery in Sydney listing volumes from FY20.

The stock's PE still looks expensive in FY19 given a dip in earnings but reasonable thereafter, the broker notes. It's still a premium to REA Group ((REA)) but Citi expects a more rapid recovery for Domain on a Sydney rebound.

Upgrade to Neutral from Sell. Target rises to $2.75 from $2.50.

Target price is $2.75 Current Price is $2.65 Difference: $0.1
If DHG meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.1

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

UBS rates DMP as Buy (1) -

After the company's investor briefing and focus on the use of data to drive efficiency, UBS is confident Domino's Pizza can better leverage its database and become a leaner business.

The broker considers Domino's Pizza a polarising stock, with the market divided over what to value for the long-term opportunity. UBS believes the long-term story is intact and near-term expectations are tapered post the FY18 result. With the risk to the upside the broker reiterates a Buy rating. Target is $57.

Target price is $57.00 Current Price is $56.27 Difference: $0.73
If DMP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $49.24, suggesting downside of -12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.1

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

Citi rates FLT as Neutral (3) -

A large fall in staff numbers, 90 store closures and 45 relocations, an adverse media investigation and higher staff costs have all conspired to provide for a disrupted FY19 for Flight Centre. Maiden guidance sees the broker cut its profit forecast and margin assumptions.

Earnings risk is no longer to the upside but valuation is no longer demanding after yesterday's drop. Target falls to $51 from $57, Neutral retained.

Target price is $51.00 Current Price is $47.91 Difference: $3.09
If FLT meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Credit Suisse notes guidance for FY19 is around -5% below market estimates and the cause appears to be an underestimating of the impact of labour costs in Australia as well as the absence of credit card surcharge revenue in the UK.

The broker expects the business to settle into a slower rate of productivity improvement in FY19 while the extent of re-basing in Australia is the main uncertainty. Rating is upgraded to Neutral from Underperform. Target is reduced to $43.67 from $44.17.

Target price is $43.67 Current Price is $47.91 Difference: minus $4.24 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates FLT as Hold (3) -

At the AGM management provided a weak trading update, in Deutsche Bank's view. First half pre-tax profit is expected to be $140-150m. FY19 underlying pre-tax profit is forecast at $390-420m.

Deutsche Bank maintains a Hold rating and $53 target.

Target price is $53.00 Current Price is $47.91 Difference: $5.09
If FLT meets the Deutsche Bank target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

Guidance provided at the AGM was below expectations, with Australia the source of weakness, Macquarie observes. FY19 pre-tax profit guidance is $390-420m.

With an FY19 PE of 16x the broker believes valuation is now largely addressed. Earnings risk is now more evenly balanced and, at current levels, Macquarie leans to being a buyer, although awaits a more compelling valuation and confidence that the Australian leisure market has stabilised.

Rating is upgraded to Neutral from Underperform. Target is reduced to $47.00 from $48.80.

Target price is $47.00 Current Price is $47.91 Difference: minus $0.91 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Morgan Stanley rates FLT as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley believes the pull back since the FY18 results provides an attractive entry point. The broker suggests US corporate business is under appreciated, noting Flight Centre now expects profits from overseas business to approach 50% during FY19.

The company is currently conducting a review of the balance sheet and the broker suggests there is scope for capital management. Morgan Stanley upgrades to Overweight from Equal-weight and reduces the target to $59 from $63. Industry view: Cautious.

Target price is $59.00 Current Price is $47.91 Difference: $11.09
If FLT meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

First half and FY19 guidance were weaker than Morgans expected. The broker observes the top line may be growing but margins are under pressure because of higher costs. Nevertheless, Morgans believes the stock has been oversold and is now trading at a material discount to the sector.

The balance sheet is also strong and the company has an impressive track record in cash flow generation. Still, the broker cautions that patience is required and any re-rating will not occur until evidence the Australian business has recovered.

Rating is upgraded to Add from Hold and the target is reduced to $51 from $59.

Target price is $51.00 Current Price is $47.91 Difference: $3.09
If FLT meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

UBS rates FLT as Buy (1) -

The $390-420m in pre-tax profit guidance implies growth of 1-9%, UBS suggests. The broker leaves estimates unchanged and believes guidance is conservative, estimating Flight Centre is cycling over $50m of one-of costs in the second half of FY19 that were taken above the line previously.

The broker suspects the market is viewing the Australasian business as structurally challenged. Yet, following the fall in the share price over the last month, UBS reiterates a Buy rating. Target is $67.

Target price is $67.00 Current Price is $47.91 Difference: $19.09
If FLT meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $54.62, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Credit Suisse rates HUB as Neutral (3) -

HUB24 reported funds under administration of $9.1bn in the first quarter, up 10%. Market movements made a small positive contribution to growth.

Credit Suisse believes the business will attract significant flows in coming years because of a superior offering and a shift to specialist platform providers. However, with the share price rising substantially this year valuation appears full and a Neutral rating and $13.20 target are maintained.

Target price is $13.20 Current Price is $11.65 Difference: $1.55
If HUB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

Deutsche Bank rates JHX as Buy (1) -

Deutsche Bank updates currency forecasts but, following the changes, FY19 net profit estimates are largely unchanged with slight reductions made to FY20.

Buy rating and $23.60 target maintained.

Target price is $23.60 Current Price is $18.91 Difference: $4.69
If JHX meets the Deutsche Bank target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $24.09, suggesting upside of 27.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.9

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

Ord Minnett rates KDR as Buy (1) -

Kidman Resources has published a pre-feasibility study on its integrated lithium business which includes a mine and concentrator at the Mount Holland tenements and the lithium refinery in Kwinana, Western Australia. The study assumes an integrated business producing 45,000 tpa of lithium hydroxide with capital costs of US$601m and first production in the second half of 2020.

Ord Minnett expects weak global sentiment towards the lithium market and legal proceedings related to the mining tenements will create obstacles for the stock. Nevertheless, the study should go some way towards establishing the valuation appeal of the project which can be more appropriately priced once sentiment improves.

Speculative Buy rating maintained and the target is $2.80.

Target price is $2.80 Current Price is $1.02 Difference: $1.78
If KDR meets the Ord Minnett target it will return approximately 175% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Macquarie rates MIN as No Rating (-1) -

Mineral Resources has acquired the Kumina iron ore project for $27m. This acquisition expands the company's iron ore footprint in the Pilbara but, given the location, Macquarie finds it unclear if Mineral Resources will be able to incorporate the project into its infrastructure system.

Macquarie is currently on research restrictions and cannot advise a rating or target.

Current Price is $15.32. Target price not assessed.

Current consensus price target is $18.17, suggesting upside of 18.6% (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

Morgan Stanley rates MIN as Overweight (1) -

The company has acquired Kumina Iron Ore from BC Iron ((BCI)). Morgan Stanley notes the cash expenditure was $27m so the implications for the balance sheet are limited.

There is no feasibility available but the resources have indicated potential for product grades above 60% including a proportion as lump ore. Morgan Stanley retains an Overweight rating, In-Line industry view and $21 target.

Target price is $21.00 Current Price is $15.32 Difference: $5.68
If MIN meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $18.17, suggesting upside of 18.6% (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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanley believes Macquarie Group can continue to grow fees in a higher rate environment. The broker is increasingly confident in FY19 earnings growth and suggests guidance is likely to be upgraded at the first half result.

Morgan Stanley believes there is a role for infrastructure investment in a rising rate environment and, while tailwinds from lower rates may dissipate, as long as interest rate rises are gradual, inflation is higher and economic growth stronger, this may not necessarily create headwinds.

Overweight. Industry view is In-Line and the target is $130.

Target price is $130.00 Current Price is $113.90 Difference: $16.1
If MQG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $122.10, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates OGC as Outperform (1) -

Credit Suisse has factored in a mine life to the end of 2021 for Macraes but exploration suggests the current mine life may be exceeded.

The broker calculates a year of additional life of similar calibre to the current production could add 6-10c per share to value.

Outperform rating and $3.80 target maintained.

Target price is $3.80 Current Price is $4.30 Difference: minus $0.5 (current price is over target).
If OGC meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.72, suggesting upside of 9.7% (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: 0.8

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

Morgans rates PWH as Add (1) -

Morgans is impressed with the company's latest technology, demonstrated as part of the AGM. As a result of increased confidence in the outlook the broker upgrades its target to $4.25 from $3.60. Add rating maintained.

The broker observes the pipeline of work up to 2022 is very strong and the company has been awarded a number of OEM contracts.

Target price is $4.25 Current Price is $3.81 Difference: $0.44
If PWH meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 1.0

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

Credit Suisse rates RMD as Neutral (3) -

Credit Suisse reviews assumptions ahead of the company's first quarter results on October 26. The broker expects weaker growth in US masks because of competition and suspects a cyclical challenge in Europe in FY19, as 12 months ago existing CPAP users in France upgraded to cloud connected devices to take advantage of higher reimbursement tariffs.

The broker maintains a Neutral rating and raises the target to $14.30 from $13.60.

Target price is $14.30 Current Price is $14.35 Difference: minus $0.05 (current price is over target).
If RMD meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.66, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.3

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

Deutsche Bank rates RWC as Hold (3) -

Following changes to currency forecasts Deutsche Bank increases underlying net profit estimates marginally for FY19 and FY20, to $165m and $197m respectively.

Hold retained. Target is $4.80.

Target price is $4.80 Current Price is $4.68 Difference: $0.12
If RWC meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.89, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.5

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

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

First quarter revenue beat expectations and management expects second quarter revenue to rise 10% and underlying pre-tax profit to be at least $100m in the first half. Credit Suisse increases first half estimates to $120m. Rating is upgraded to Neutral from Underperform. Target is steady at $0.20.

The broker suspects Virgin Australia may be benefiting from the capacity cuts in the Qantas ((QAN)) domestic business. The broker raises FY19 pre-tax profit estimates by 17% but expects a weaker profit outcome in FY20 because of higher fuel costs.

Target price is $0.20 Current Price is $0.22 Difference: minus $0.02 (current price is over target).
If VAH meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.21, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Deutsche Bank rates VAH as Hold (3) -

First quarter operating results were supported by solid domestic demand, revenue growth and hedging.

Deutsche Bank upgrades forecasts but retains a Hold rating because of higher fuel prices amid concerns price rises will start to affect demand. Target is raised to $0.24 from $0.23.

Target price is $0.24 Current Price is $0.22 Difference: $0.02
If VAH meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.21, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

Ord Minnett rates VAH as Lighten (4) -

The better first half guidance indicates to Ord Minnett Virgin Australia is gaining ground on Qantas ((QAN)) but the second half of FY19 is likely to prove more challenging.

Fuel prices are likely to strengthen and, at spot prices, Ord Minnett estimates the fuel costs could increase to $1.23bn over FY19.

The broker also notes HNA Group is still considered to be a seller of its 19.9% stake as it divests assets in the bid to cut debt. This remains an overhang on the stock. Lighten rating and $0.20 target maintained.

Target price is $0.20 Current Price is $0.22 Difference: minus $0.02 (current price is over target).
If VAH meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.21, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

UBS rates VAH as Sell (5) -

Virgin Australia has announced revenue was up around 10% in the September quarter and forward bookings imply growth of around 10% in the December quarter. The company has also guided to underlying pre-tax profit of at least $100m in the first half.

Regardless, UBS reduces forecasts by -12-17% over the next three years to reflect rises in the fuel price and increases in underlying cost assumptions. The broker maintains a Sell rating and 19c target.

Target price is $0.19 Current Price is $0.22 Difference: minus $0.03 (current price is over target).
If VAH meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.21, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.5

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

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

Vocus is in a transition year, Citi suggests, with new management in place which should provide for a rebase for earnings growth from FY20. The broker sees a meaningful step-up in earnings over the longer term but it is a three year recovery story.

With no meaningful upgrades likely this year and the stock price approaching Citi's target, the broker downgrades to Neutral from Buy. Target unchanged at $3.65.

Target price is $3.65 Current Price is $3.49 Difference: $0.16
If VOC meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting downside of -18.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates WHC as Neutral (3) -

The first quarter was weaker, as expected. Going forward, Macquarie notes consensus expectations factor in a fall in seaborne thermal coal prices in the face of rising Chinese coal production, and switching to gas and renewables.

However, Macquarie is cautious and believes, while the structural shift from coal will eventually arrive, for those willing to risk a delay for yet another year there is potential dividend and cash flow yield on offer. Neutral rating and $5.20 target maintained.

Target price is $5.20 Current Price is $5.22 Difference: minus $0.02 (current price is over target).
If WHC meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.86, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

Citi rates WOR as Buy (1) -

Citi locally notes that Citi US has upgraded Jacobs ECR to Buy given the premium Worley is set to pay for a selection of the company's assets. Citi locally retains Buy for Worley given the acquisition will diversify sector and geographical exposure, make Worley the leader in certain sectors and position the company for a recovery in key markets.

Everyone's a winner. The broker believes synergy targets can be achieved. The flipside is Worley is likely no longer itself a takeover target, the broker notes. Target falls to $20.70 from $21.45 on dilution.

Target price is $20.70 Current Price is $17.84 Difference: $2.86
If WOR meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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

Deutsche Bank rates WOR as Hold (3) -

WorleyParsons will acquire Jacob's Engineering's energy, chemcials and resources business for $4.6bn. Deutsche Bank observes the company is paying a full price although the transaction creates global leadership with exposure to the US chemicals and downstream market.

The broker calculates the acquisition to be 3-4% accretive. Deutsche Bank retains a Hold rating. Target is $19.10.

Target price is $19.10 Current Price is $17.84 Difference: $1.26
If WOR meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates WOR as No Rating (-1) -

WorleyParsons will acquire the energy, chemicals and resource business of Jacob's Engineering for US$3.3bn.

Cost synergies of $130m per annum are expected within two years of completing the transaction. The deal is to be funded by an entitlement offer, share issue and debt.

Macquarie is on research restrictions and cannot offer a rating or target.

Current Price is $17.84. Target price not assessed.

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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 WOR as Equal-weight (3) -

WorleyParsons has acquired the energy, chemicals & resources division from Jacob's Engineering for US$3.3bn. The company plans to fund the acquisition via a non-renounceable entitlement offer, stock and additional debt.

Jacob's Engineering will own around 11% of the enlarged group. The transaction will increase exposure to downstream engineering and chemicals and Morgan Stanley notes a strong geographical advantage in North America and parts of Europe. The broker estimates the transaction could double WorleyParsons net profit.

The broker believes WorleyParsons has been trading at a premium to international peers after Dar Group made a formal offer for the company 12 months ago, subsequently building a stake. Dar Group has confirmed it will take up its entitlement.

Morgan Stanley retains an Equal-weight rating and downgrades the target to $18.33 from $20.13. Industry view is Attractive.

Target price is $18.33 Current Price is $17.84 Difference: $0.49
If WOR meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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 WOR as Buy (1) -

WorleyParsons will pay US$3.3bn to acquire the energy, chemicals and resources division of US-listed Jacob's Engineering, which is expected to more than double the size of the Australian company.

Ord Minnett is positive about the transaction as the assets complement the existing WorleyParsons business. This is the largest transaction to date for the company and should expand its geographical footprint to include the US, Canada and Europe. Ord Minnett maintains a Buy rating and $22.50 target.

Target price is $22.50 Current Price is $17.84 Difference: $4.66
If WOR meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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 WOR as Neutral (3) -

WorleyParsons will purchase the energy, chemicals and resources division of Jacob's Engineering. The acquisition its expected to deliver around 20% accretion to earnings per share, which increases to around 50% upon the inclusion of $130m in identified cost synergies.

UBS observes the combined entity will provide customers with an integrated end-to-end solution. The broker maintains a Neutral rating and $19.30 target, noting WorleyParsons reiterated FY19 outlook commentary.

Target price is $19.30 Current Price is $17.84 Difference: $1.46
If WOR meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.41, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

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 WSA as Outperform (1) -

The definitive feasibility study at Odysseus has revealed a larger, long-life project with lower operating expenditure but higher capital expenditure. First production is expected in 2022.

Credit Suisse believes the commitment to Odysseus addresses the market's concerns over the short reserve life at Flying Fox and adds long-term visibility to production. Outperform rating and $3 target maintained.

Target price is $3.00 Current Price is $2.35 Difference: $0.65
If WSA meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Macquarie rates WSA as Outperform (1) -

Macquarie observes the Odysseus definitive feasibility study has outlined a larger scale, longer life project which underpins the company's outlook.

Pre-production capital expenditure of $299m is 25% higher than the broker expected because of a change in mining methodology. However, this is largely offset by lower life-of-mine operating costs.

Macquarie maintains an Outperform rating and reduces the target by 3% to $3.30.

Target price is $3.30 Current Price is $2.35 Difference: $0.95
If WSA meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

Morgan Stanley rates WSA as Underweight (5) -

Morgan Stanley is increasingly confident now that improved resource numbers for Odysseus have been confirmed by a definitive feasibility study. Processing capacity has increased to 900,000 tpa with mine life extended to 10 years. A maiden reserve of 164,000t of nickel was declared.

Underweight retained. Industry view is In-Line. Target is steady at $2.55.

Target price is $2.55 Current Price is $2.35 Difference: $0.2
If WSA meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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

UBS rates WSA as Neutral (3) -

UBS notes the Odysseus definitive feasibility study has indicated the project is economic. A decision to mine has been made. First concentrate is scheduled for 2022.

Project scope has been lifted with mine life extended through to the early 2030s and, the broker suspects, possibly towards 2040. UBS likes the nickel exposure but considers the share price in line with valuation, retaining a Neutral rating. Target is reduced to $2.65 from $2.85.

Target price is $2.65 Current Price is $2.35 Difference: $0.3
If WSA meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.6

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