Australian Broker Call

UBS rates ABC as Buy (1) -

UBS has re-based its earnings forecasts for Australian listed building materials companies by -20-40% following revised Australian and US housing forecasts.

The broker notes the sector PE has fallen to 15x from 19x in February but applying new earnings forecasts brings that back to 19x.

That said, the broker believes current pricing assumes a very bearish set of assumptions, even compared to the broker's -12% below consensus forecasts.

Hence Buy ratings retained for all building material stocks under coverage. Adelaide Brighton target falls to $2.82 from $3.19.

Target price is $2.82 Current Price is $2.50 Difference: $0.32
If ABC meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.77, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in December.

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 APT as Sell (5) -

UBS stands alone among FNArena database peers in persisting with a somewhat contrarian Sell rating on Afterpay.

While noting that the virus may lead to longer term structural changes in consumer behaviour that would be positive for BNPL, and that Afterpay's balance sheet is strong, "we fundamentally view APT as an unsecured consumer lending business that is trading at ~9x book equity in the lead-up to a severe recession/possible depression".

The stock has rallied over 200% from the market bottom in March. The broker has added the stock to its APAC Key Call List (as a Sell). Target unchanged at $13.00.

Target price is $13.00 Current Price is $29.21 Difference: minus $16.21 (current price is over target).
If APT meets the UBS target it will return approximately minus 55% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.04, suggesting downside of -7.4% (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 AZJ as Add (1) -

Coal haulage volumes are steady and moving in line with FY20 guidance. Morgans highlights the fact the company did not withdraw FY20 earnings guidance.

A solid dividend yield, strong balance sheet and resilient earnings are expected to support the stock.

Continuation of the buyback at the current depressed share price should also add investor appeal, and Morgans retains an Add rating. Target is reduced to $5.46 from $5.71.

Target price is $5.46 Current Price is $4.58 Difference: $0.88
If AZJ meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting upside of 21.6% (ex-dividends)

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

UBS rates AZJ as Buy (1) -

Aurizon's coal volumes showed no sign of virus impact in the March quarter, rising 2% year on year.

From here, the broker notes a wide spread of coal mine customers means any virus cases could be contained and quarantined in those individual mines, suggesting unlikely disruption to the whole network.

A worst case scenario is one in which all mines are forced to shut down on government orders. Even in this case, the broker believes the company has sufficient liquidity available to see it through. Buy and $5.55 target retained.

Target price is $5.55 Current Price is $4.58 Difference: $0.97
If AZJ meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting upside of 21.6% (ex-dividends)

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

Credit Suisse rates BAP as Outperform (1) -

The trading update is considered generally positive by Credit Suisse, now the balance sheet issue has been resolved with a $210m capital raising. The company has pointed to declines in like-for-like sales of -12-15% across its Australian business.

Still, the broker assesses the business has held up well in both trade and retail, with no indication this is deteriorating further. Outperform rating maintained. Target is reduced to $5.70 from $5.85.

Target price is $5.70 Current Price is $4.91 Difference: $0.79
If BAP meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 27.9% (ex-dividends)

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 BAP as Outperform (1) -

Macquarie assesses the capital raising of $210m removes any doubts for the balance sheet and provides the capability to take advantage of growth options.

The broker expects the market will look through any further weakness in the fourth quarter, with a fast recovery likely once government restrictions are eased.

The broker assesses the valuation is undemanding and an Outperform rating is maintained. Target is $5.40.

Target price is $5.40 Current Price is $4.91 Difference: $0.49
If BAP meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 27.9% (ex-dividends)

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 BAP as Add (1) -

Bapcor has raised $180m in new equity in order to reduce debt. Morgans considers this is a sensible move.

Demand in the aftermarket automotive category is expected to recover more quickly than some other consumer-facing enterprises in the aftermath of the pandemic.

This supports an Add rating, in the broker's view, despite the uncertain timing of an earnings recovery. Target edges down to $5.34 from $5.35.

Target price is $5.34 Current Price is $4.91 Difference: $0.43
If BAP meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 27.9% (ex-dividends)

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 BEN as Underweight (5) -

Bendigo and Adelaide Bank has withdrawn its commentary regarding the second half outlook, highlighting the problem with making an assessment of credit provisions.

Morgan Stanley is not surprised and does not believe this will materially affect the share price. The broker understands the bank has flexibility and can vary its 3-year investment expenditure plan if required.

Underweight maintained. Industry view: In-Line. Target is $6.80.

Target price is $6.80 Current Price is $5.95 Difference: $0.85
If BEN meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 22.8% (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 BEN as Neutral (3) -

Bendigo & Adelaide Bank has withdrawn guidance. The broker assumes a sharp rise in credit impairments, slower credit growth in a declining housing market and compliance with APRA's dividend directive in cutting earnings forecasts by -6% and -36% in FY20-21.

Given the bank's next dividend is not due until August, the broker expects a cut (by half) rather than a suspension, but cannot rule out a suspension if the economic climate deteriorates further. Neutral and $6.50 target retained.

Target price is $6.50 Current Price is $5.95 Difference: $0.55
If BEN meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 22.8% (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 BLD as Buy (1) -

UBS has re-based its earnings forecasts for Australian listed building materials companies by -20-40% following revised Australian and US housing forecasts.

The broker notes the sector PE has fallen to 15x from 19x in February but applying new earnings forecasts brings that back to 19x.

That said, the broker believes current pricing assumes a very bearish set of assumptions, even compared to the broker's -12% below consensus forecasts.

Hence Buy ratings retained for all building material stocks under coverage. Boral target falls to $4.00 from $5.10.

Target price is $4.00 Current Price is $2.81 Difference: $1.19
If BLD meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.34, suggesting upside of 18.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates CAJ as Hold (3) -

Capital Health has announced a series of measures to mitigate the impact of the pandemic, including a $40m capital raising.

Ord Minnett expects the measures will be sufficient to allow the business to trade through the short-term disruption and emerge with capacity to recommence growth initiatives.

Hold rating retained. Target is reduced to $0.20 from $0.28.

Target price is $0.20 Current Price is $0.21 Difference: minus $0.01 (current price is over target).
If CAJ meets the Ord Minnett target it will return approximately minus 5% (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: 0.5

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

Citi rates CGC as Neutral (3) -

Costa Group has withdrawn guidance after a strong start to the year. The main areas of concern are Morocco and the future pricing environment.

Still, Citi considers the business relatively well placed in terms of demand. As the stock is fully valued the broker retains a Neutral rating and $3.20 target.

Target price is $3.20 Current Price is $2.96 Difference: $0.24
If CGC meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

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 CGC as Underperform (5) -

Costa Group has withdrawn guidance. Macquarie notes this comes despite the strong trading outcome in the March quarter. As seasonal conditions in Australia are better, the concern is likely to centre on Europe.

Prior guidance was dependent on the extent of any coronavirus impact on the Chinese business. The broker is also cautious about strong competition for European demand. Underperform rating. Target is $2.78.

Target price is $2.78 Current Price is $2.96 Difference: minus $0.18 (current price is over target).
If CGC meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.16, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

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 CGC as Buy (1) -

Costa Group posted a very strong March quarter, above budget, highlighted by strong local pricing, a lower A$ and easing cost pressures, the broker notes. But due to virus uncertainty, FY guidance has been withdrawn. (Note the ASX has advised all listed companies to withdraw guidance.)

The broker believes prior guidance looked reasonable and has not changed its forecasts, believing Costa will benefit from virus-driven strength in the grocery market and the shift to in-home meals. Buy and $3.25 target retained.

Target price is $3.25 Current Price is $2.96 Difference: $0.29
If CGC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.16, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CIP as Hold (3) -

Centuria Industrial has completed a $130m placement and will raise a further $10m via a unit purchase plan. Funds will be used to strengthen the balance sheet.

Morgans assesses the near-term catalysts relate to accretive acquisitions and potential inclusion in the ASX 200. Hold maintained. Target is reduced to $2.82 from $2.96.

Target price is $2.82 Current Price is $2.72 Difference: $0.1
If CIP meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting upside of 5.1% (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 COL as Outperform (1) -

As supermarket sales experience significant increases in demand from stockpiling and greater consumption of meals at home the main negatives from the pandemic, Credit Suisse assesses, are limited to convenience stores.

The broker believes Coles offers the best upside, with less exposure to the negative impacts compared with Woolworths ((WOW)). Outperform maintained. Target is raised to $18.68 from $17.80.

Target price is $18.68 Current Price is $16.48 Difference: $2.2
If COL meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.85, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates CSR as Underperform (5) -

Credit Suisse reduces forecasts for FY21 net profit by -32% and expects a -30% decline in earnings (EBIT) in FY20-21. The broker reduces estimates for housing starts to 130,000 in 2022, in line with 30-year lows.

The broker assesses the company's cash position is balanced by low operating margins. Underperform maintained. Target is reduced to $2.80 from $3.10.

Target price is $2.80 Current Price is $3.28 Difference: minus $0.48 (current price is over target).
If CSR meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.03, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in March.

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 CSR as Buy (1) -

UBS has re-based its earnings forecasts for Australian listed building materials companies by -20-40% following revised Australian and US housing forecasts.

The broker notes the sector PE has fallen to 15x from 19x in February but applying new earnings forecasts brings that back to 19x.

That said, the broker believes current pricing assumes a very bearish set of assumptions, even compared to the broker's -12% below consensus forecasts.

Hence Buy ratings retained for all building material stocks under coverage. CSR target falls to $4.25 from $5.04.

Target price is $4.25 Current Price is $3.28 Difference: $0.97
If CSR meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.03, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in March.

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 CTX as Accumulate (2) -

The March 2020 Caltex refining margin was US$4.62/bbl, slightly below Ord Minnett's forecasts. This means the Lytton refinery was loss-making, justifying the decision to bring forward the turnaround and inspection process to May.

Capital expenditure and costs remain in focus, with further savings expected. Accumulate retained. Target is $26.00.

Target price is $26.00 Current Price is $23.57 Difference: $2.43
If CTX meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.31, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates CWN as Buy (1) -

The company has reinforced the balance sheet, positioning for an extended closure of casinos. Around 95% of employees have been stood down and so cash operating costs are reduced.

Citi factors in three months of closures, which would burn a total of -$350m in cash. Liquidity has been bolstered by additional debt facilities totalling $1bn.

Crown Sydney is expected to be completed on time and within the existing budget. Buy rating and $8.20 target maintained.

Target price is $8.20 Current Price is $8.18 Difference: $0.02
If CWN meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 13.4% (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

Credit Suisse rates CWN as Outperform (1) -

Credit Suisse has a base case for a 3-month shutdown of the company's casinos. Crown Resorts has formally announced that 95% of staff will be stood down.

Liquidity has improved, but this was never of concern for the broker. The interim dividend will be paid.

Management considers the settlement risk to Sydney apartment sales is low, given the profile of the buyers.

Credit Suisse models modest recovery in FY21 and FY22 for the Melbourne and Perth casinos. Outperform maintained. Target rises to $12 from $11.

Target price is $12.00 Current Price is $8.18 Difference: $3.82
If CWN meets the Credit Suisse target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 13.4% (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

Macquarie rates CWN as Outperform (1) -

Macquarie assesses Crown Resorts has enough liquidity to withstand a prolonged shutdown, now expected to be until July 1, and leverage is not a material risk.

Nevertheless, the broker is cautious about the fact that the business will re-open in a weak economic environment.

The company may still consider capital management and, despite the earnings uncertainty, Macquarie finds the valuation compelling. Outperform maintained. Target is reduced to $11.40 from $11.95.

Target price is $11.40 Current Price is $8.18 Difference: $3.22
If CWN meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 13.4% (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 CWN as Hold (3) -

The company has addressed its capital position, prepared to endure a long shutdown of its gambling operations.

Ord Minnett suspects consumer behaviour after re-opening will be subdued and pre-pandemic earnings will not be experienced until FY23.

Hold rating maintained. Target is reduced to $8.30 from $8.60.

Target price is $8.30 Current Price is $8.18 Difference: $0.12
If CWN meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 13.4% (ex-dividends)

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 FLT as Downgrade to Lighten from Hold (4) -

The capital raising has served to illustrate the severity of the impact of the pandemic on the travel sector. Ord Minnett remains unconvinced of whether Flight Centre has enough cash to survive the crisis, assuming little or no revenue for the next 12-18 months.

However, the prospect domestic travel opens up sooner than previously expected is a positive that could assist. Rating is downgraded to Lighten from Hold. The target is reduced to $8.96 from $21.54.

Target price is $8.96 Current Price is $10.85 Difference: minus $1.89 (current price is over target).
If FLT meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.45, suggesting upside of 23.9% (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

Citi rates GUD as Buy (1) -

Bapcor ((BAP)) has signalled a slowing of the Australian automotive aftermarket. Citi's forecasts for GUD Holdings imply a weaker scenario, which could still come to pass as customers start to run down inventory and optimise cash flow.

Over the medium term, GUD Holdings is still considered well-placed to benefit from increased demand for automotive parts. Buy rating and $10.30 target maintained.

Target price is $10.30 Current Price is $9.11 Difference: $1.19
If GUD meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.52, suggesting upside of 15.5% (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

Morgans rates HPI as Hold (3) -

Hotel Property has withdrawn FY20 guidance. Management has indicated that around 7% of income is sourced from tenants that are not hotels but have been affected by the shutdowns and it is on this basis that the guidance is withdrawn.

The main uncertainty lies with the quantum of rent relief that is likely, and what form it could take and for how long, Morgans suggests.

Hold rating and $2.58 target maintained.

Target price is $2.58 Current Price is $2.39 Difference: $0.19
If HPI meets the Morgans target it will return approximately 8% (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

UBS rates JHX as Buy (1) -

UBS has re-based its earnings forecasts for Australian listed building materials companies by -20-40% following revised Australian and US housing forecasts.

The broker notes the sector PE has fallen to 15x from 19x in February but applying new earnings forecasts brings that back to 19x.

That said, the broker believes current pricing assumes a very bearish set of assumptions, even compared to the broker's -12% below consensus forecasts.

Hence Buy ratings retained for all building material stocks under coverage. James Hardie target falls to $30 from $36.

Target price is $30.00 Current Price is $19.19 Difference: $10.81
If JHX meets the UBS target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $29.83, suggesting upside of 55.5% (ex-dividends)

The company's fiscal year ends in March.

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: 0.8

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

Ord Minnett rates LYC as Buy (1) -

The financial performance and operations in the March quarter were better than Ord Minnett expected, considering there were two stoppages.

As Malaysia is in lockdown, the broker materially reduces production and earnings forecasts for the next six months.

The long-term outlook is unchanged. Buy retained. Target is reduced to $4.60 from $4.65.

Target price is $4.60 Current Price is $1.58 Difference: $3.02
If LYC meets the Ord Minnett target it will return approximately 191% (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 MQG as Neutral (3) -

Revenue diversification has been a feature of Macquarie Group's results in recent years, the broker notes, as the group has shifted further away from traditional investment banking and other areas.

Such diversification will continue to be beneficial, but not right now. Right now economic shock is impacting on several areas of business. The broker has cut earnings forecasts by -2% in FY20 (March year end) and -9% in FY21.

The broker believes Macquarie will reduce rather than defer its dividend, but deferral cannot be ruled out. Neutral retained, target falls to $105 from $142.

Target price is $105.00 Current Price is $101.52 Difference: $3.48
If MQG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $117.65, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in March.

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 MTS as Neutral (3) -

Credit Suisse upgrades food distribution earnings based on demand spikes. The Metcash warehouse has been operating 7 days a week. Normally it is five days a week.

Downgrades to FY21 forecasts are driven by hardware. The hardware business is exposed to reduced new housing construction and renovation activity.

In FY21, Credit Suisse assumes a -20% reduction in renovations, and that trade is 60% of the hardware sales. Neutral maintained. Target is raised to $2.95 from $2.64.

Target price is $2.95 Current Price is $3.05 Difference: minus $0.1 (current price is over target).
If MTS 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 $2.93, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in April.

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

Citi rates MYX as Neutral (3) -

Mayne Pharma has filed for marketing authorisation with the US FDA for a "next-generation" oral contraceptive. Launch of Estelle is expected in the first half of 2021.

Peak sales are forecast to be in excess of US$200m per year 3-4 years after the launch. Citi notes, on the surface, the deal partnership with Mithra Pharmaceuticals, is positive but it is too early to forecast.

The US pharmaceutical market, as is the case in Australia, has been experiencing stockpiling of existing prescriptions and it has been difficult for salespeople to access doctors.

It remains hard to predict the short-term impact this will have on Mayne Pharma, in the broker's opinion. Neutral/High Risk rating maintained. Target is $0.40.

Target price is $0.40 Current Price is $0.43 Difference: minus $0.03 (current price is over target).
If MYX meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.42, suggesting downside of -3.5% (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

Credit Suisse rates OZL as Underperform (5) -

March quarter production was in line with expectations. Guidance is unchanged, although Credit Suisse suspects cost guidance is on the conservative side, assuming no production disruption from the pandemic and a sustained elevated gold price.

Underperform rating maintained. Target is $8.00.

Target price is $8.00 Current Price is $8.99 Difference: minus $0.99 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.34, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

A reduction in Pendal Group's March quarter assets under management of -15.2% outpaced that of the MSCI world index of -9% due to record outflows, UBS notes.

The broker expects an improvement into FY21 as virus-related volatility subsides, but still sees headwinds for flows and performance fees in the higher margin JOHCM funds, posing a key risk to consensus forecasts.

Given revenue pressures UBS expects cost controls to be a feature in the second half, but as the stock has rallied 55% off its lows the broker downgrades to Neutral. Target unchanged at $5.55.

Target price is $5.55 Current Price is $5.14 Difference: $0.41
If PDL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.90, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in September.

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 PTM as Underweight (5) -

Morgan Stanley suspects outflows pose a de-rating risk for the stock, and does not believe the market fully appreciates the challenges. The broker targets outflows of -$2bn in the second half.

The performance of the key international fund continues to be weak. Outflows are expected to persist into FY21.

Underweight maintained. Target is reduced to $2.70 from $3.25. Industry view is In-Line.

Target price is $2.70 Current Price is $3.30 Difference: minus $0.6 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.77, suggesting downside of -16.1% (ex-dividends)

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

Macquarie rates QBE as Neutral (3) -

The company's FY19 ASIC accounts have been published. Macquarie assesses, post the capital raising, the balance sheet is in a strong position but there are growing downside risks for underwriting earnings.

The broker retains a Neutral rating and $8.80 target.

Target price is $8.80 Current Price is $9.01 Difference: minus $0.21 (current price is over target).
If QBE 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 $11.37, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

Morgans rates QBE as Add (1) -

QBE Insurance has completed a US$750m capital raising along with other moves to de-risk the balance sheet. This raises questions for Morgans about the target capital range and risk management of the investment portfolio.

The broker makes material downgrades to estimates. However, QBE is considered well-positioned to withstand any challenges in the current environment. Add rating maintained. Target is reduced to $11.86 from $16.23.

Target price is $11.86 Current Price is $9.01 Difference: $2.85
If QBE meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $11.37, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

UBS rates RHC as Neutral (3) -

The broker has looked at the SARS event to provide a guide to when elective surgery may be able to start up again, but the problem is SARS was all over quite quickly and thus provides little precedent for Covid-19.

Restart could only occur once virus risk is deemed manageable, there is enough protective clothing and enough health care workers on hand to wear it, the broker suggests.

As to when that might happen is unclear. The broker currently assumes volume normalisation from FY22. Neutral and $60 target retained for Ramsay Health Care.

Target price is $60.00 Current Price is $67.16 Difference: minus $7.16 (current price is over target).
If RHC meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $64.63, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

The company has updated on the Syama oxide project in Mali. Strong results have been returned from satellite projects.

The company is evaluating an underground sulphide operation, although Macquarie believes an extension of the high-grade oxide open pit would be more meaningful for the near term.

The broker downgrades to Neutral from Outperform following recent strength in the share price. Target is lifted 5% to $1.05.

Target price is $1.05 Current Price is $0.94 Difference: $0.11
If RSG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 SDG as Hold (3) -

Sunland Group has cancelled its proposed off-market buyback because of current market conditions and uncertainty.

Residential markets are expected to remain challenged over the short term although the company has recently settled several large asset sales and others will settle in the remainder of 2020.

Morgans retains a Hold rating, noting the balance sheet is not under threat. Target is reduced to $1.36 from $1.75.

Target price is $1.36 Current Price is $1.21 Difference: $0.15
If SDG meets the Morgans target it will return approximately 12% (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

Citi rates SGR as Buy (1) -

The company's lenders are willing to look through short-term gearing and covenant breaches, Citi points out. However this is conditional on the suspension of dividends until gearing is less than 2.5x.

Hence, Citi pushes out dividend resumption forecasts by six months. The Queen's Wharf project remains on track. Buy rating maintained. Target rises to $2.95 from $2.40.

Target price is $2.95 Current Price is $2.62 Difference: $0.33
If SGR meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Credit Suisse rates SGR as Outperform (1) -

Star Entertainment has announced an additional $200m in funding, which will underwrite the interim dividend, and has negotiated covenant waivers.

Credit Suisse assumes a 3-month closure of casinos. The broker suspects, with operations reduced and liquidity improved, the company can move into 2021 without further calls for capital.

A recovery is envisaged through FY21 and FY22. Outperform maintained. Target is reduced to $3.75 from $3 90.

Target price is $3.75 Current Price is $2.62 Difference: $1.13
If SGR meets the Credit Suisse target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Morgans rates SGR as Add (1) -

Morgans assesses management has moved quickly to cut the operating costs following the closure of gambling venues. A waiver has been received from lenders for June 30, 2020 debt covenant testing.

Current liquidity is expected to be sufficient to withstand a significant period of closure. The broker assesses the business has an attractive suite of assets and maintains an Add rating. Target is reduced to $3.58 from $5.08.

Target price is $3.58 Current Price is $2.62 Difference: $0.96
If SGR meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Ord Minnett rates SGR as Hold (3) -

The company has addressed its capital position, prepared to endure a long shutdown of its gambling operations.

Ord Minnett suspects consumer behaviour after re-opening will be subdued and pre-pandemic earnings will not be experienced until FY23.

Hold rating maintained. Target is raised to $2.45 from $2.25.

Target price is $2.45 Current Price is $2.62 Difference: minus $0.17 (current price is over target).
If SGR meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.15, suggesting upside of 20.4% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

UBS rates SGR as Buy (1) -

Star Entertainment has implemented a number of measures to shore up its liquidity position during the closure period, including an increased debt facility and securing covenant waivers from lenders.

The company has also put a number on estimated cash burn in a six month shutdown at -$320m. All is consistent with the broker's assumptions, such that Star will be able to start up again with sufficient liquidity.

The company is also pursuing a business interruption insurance claim. Buy and $3.00 target retained.

Target price is $3.00 Current Price is $2.62 Difference: $0.38
If SGR meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.9

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

Macquarie rates TCL as Outperform (1) -

Traffic is down -40-50% on Australian roads and US traffic is down -70%. A recovery is in sight for Australian roads but Macquarie suspects US roads are at higher risk of a prolonged lockdown.

While the recession will hurt, low fuel prices could mitigate the cost of tolls. The upside for investors, the broker assesses, is that the dividend can normalise quickly.

Outperform maintained. Target is raised to $15.21 from $14.49.

Target price is $15.21 Current Price is $13.25 Difference: $1.96
If TCL meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting downside of -0.5% (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 TCL as Equal-weight (3) -

Traffic in early April was down -47% and run rates are broadly in line with Morgan Stanley's forecasts. Modest positives include increased customer investment in working capital debt facilities.

Equal-weight. Industry view: Cautious. Target is $15.

Target price is $15.00 Current Price is $13.25 Difference: $1.75
If TCL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting downside of -0.5% (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

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

Morgans makes further slight downgrades to reflect a deteriorating traffic profile. FY20-21 operating earnings (EBITDA) estimates are downgraded -2-3%. The broker now assumes 2022 will be the year when traffic will fully recover.

While the traffic risk is heightened, the broker believes there is sufficient long-term value at current prices to accumulate the stock. Rating is upgraded to Add from Hold. Target is reduced to $13.71 from $13.78.

Target price is $13.71 Current Price is $13.25 Difference: $0.46
If TCL meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting downside of -0.5% (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 TCL as Buy (1) -

Transurban reported a -5% drop in traffic across its toll roads in the March quarter, but the real story is -47% decline in the two weeks to April 9. While significant, the deterioration appear to have stabilised at this level, and is consistent with the broker's base case of three months of such disruption.

The company still intends to go ahead with contracted toll increases, but will offer concessions to qualifying customers. Following a successful eurobond issue and working capital facility increase, potential debt covenant breaches should be avoided, the broker believes. Buy and $13.85 target retained.

Target price is $13.85 Current Price is $13.25 Difference: $0.6
If TCL meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.19, suggesting downside of -0.5% (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

Citi rates TWE as Neutral (3) -

Citi suspects the drop in Australian exports of wine is likely to be greater in the June quarter. Australian red wine exports to China fell by -15% in the March quarter and -43% in the month of March alone.

The broker considers it possible there will be a longer ramp up for Treasury Wine demand as retailers and distributors work through existing inventory.

Of more surprise is a drop in Australian wine exports to other markets, as most of the orders would have happened before the disruption from the pandemic hit sales.

Citi retains a Neutral rating. Target is $11.05.

Target price is $11.05 Current Price is $10.48 Difference: $0.57
If TWE meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.46, suggesting upside of 9.3% (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

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

Morgan Stanley forecasts a -25% decline in net sales revenue for the company's Asian business in the second half.

The broker acknowledges scope for re-rating associated with the proposed Penfolds separation but has a number of questions that are yet to be answered.

Moreover, the broker considers it difficult to build conviction on the short and medium-term earnings profile.

Equal-weight rating and Cautious industry view maintained. Target is $12.50.

Target price is $12.50 Current Price is $10.48 Difference: $2.02
If TWE meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.46, suggesting upside of 9.3% (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 TWE as Buy (1) -

Total Australian wine export data showed a fall of -7% year on year in the March quarter, driven by a -14% fall to China, including -43% in the month of March.

This is consistent, the broker notes, with Treasury Wines Estates claim all was fine before the virus, ahead of a considerable slowing. The good news is despite the China drop-off, Australia still won market share, increasing exports year on year to February when France saw a -39% fall.

The broker nonetheless sees risk to the downside, while retaining Buy and a $14.80 target pending detail on the possible Penfolds demerger.

Target price is $14.80 Current Price is $10.48 Difference: $4.32
If TWE meets the UBS target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $11.46, suggesting upside of 9.3% (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

Morgan Stanley rates WBC as Underweight (5) -

Morgan Stanley expects a -50% dividend reduction in the first half. The dividend is not expected to rebound to prior levels, such as it did in 2010-11.

The broker assigns a 25-35% probability to a more pessimistic scenario, given guidance from APRA that banks should seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer.

Underweight. Target is $17.20. Industry view: In Line.

Target price is $17.20 Current Price is $16.00 Difference: $1.2
If WBC meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $19.16, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Citi rates WHC as Neutral (3) -

Managed run of mine production was up 8% in the March quarter at Narrabri, despite a weighting event coinciding with mechanical failure. Maules Creek production was up 39%.

Coal production guidance is unchanged for FY20 but sales guidance has been revised lower. Citi considers the stock cheap against mining peers on FY22 estimates but not for FY21.

Neutral maintained. Target is reduced to $2.00 from $2.20.

Target price is $2.00 Current Price is $1.80 Difference: $0.2
If WHC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates WHC as Outperform (1) -

March quarter production was "messy" in Credit Suisse's view, with mechanical and weighting issues prompting a -20-day outage at Narrabri and Maules Creek is still ramping up to full staff.

The broker assesses a very strong June quarter is required to reach guidance but management is sticking to the numbers, although now pointing towards the lower end of the range. Outperform maintained. Target is reduced to $3.10 from $3.30.

Target price is $3.10 Current Price is $1.80 Difference: $1.3
If WHC meets the Credit Suisse target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates WHC as Downgrade to Underperform from Neutral (5) -

The March quarter result was weak, in Macquarie's view, with production from all four operating mines below forecasts. Production guidance is unchanged and sales volume guidance has been reduced.

The broker expects Whitehaven Coal will miss production forecasts but achieve sales guidance in FY20.

Falling coal prices have heightened the downside risk to the broker's forecasts and the rating is downgraded to Underperform from Neutral. Target is reduced to $1.80 from $2.10.

Target price is $1.80 Current Price is $1.80 Difference: $0
If WHC meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgan Stanley rates WHC as Overweight (1) -

Production underperformed in the March quarter although guidance is unchanged. Morgan Stanley assesses this requires a big push in the fourth quarter, which could be in doubt.

Run of mine coal production was 4.9mt in the March quarter, -17% below estimates. Saleable coal production was also softer than expected. The company has indicated there will be no final investment decision on expansion projects in 2020.

Overweight rating and In-Line industry view maintained. Target is $2.90.

Target price is $2.90 Current Price is $1.80 Difference: $1.1
If WHC meets the Morgan Stanley target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Morgans rates WHC as Add (1) -

Morgans finds it frustrating that sales guidance has slipped for FY20, given the business was recovering strongly from prior staffing and weather-related disruptions.

The broker is not surprised by delays to the possible sanctioning of growth projects, given current circumstances and coal market risks.

Morgans is becoming increasingly nervous about a further correction in thermal coal prices. Add rating maintained. Target is reduced to $2.90 from $3.12.

Target price is $2.90 Current Price is $1.80 Difference: $1.1
If WHC meets the Morgans target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

UBS rates WHC as Buy (1) -

Whitehaven Coal's March quarter production was down -19% year on year and sales were down -29% reflecting weather and mechanical issues, the broker notes. The company's operations have not been impacted by the virus but movement restrictions in India and other export destinations has crimped demand.

Whitehaven said it was not going to seek financial investment decisions on any of its growth projects right now which the broker assumes reflects a slowed down government approval process, given other distractions, rather than a change of heart from management. Buy and $3.00 target retained.

Target price is $3.00 Current Price is $1.80 Difference: $1.2
If WHC meets the UBS target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $2.63, suggesting upside of 46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates WOW as Neutral (3) -

Credit Suisse upgrades supermarket earnings to account for spikes in demand as cost increases only partly offset the impact of higher sales volume.

The closure of hotels from March partly offsets the increase in Woolworths' supermarket business. Neutral rating maintained. Target is raised to $39.92 from $39.70.

Target price is $39.92 Current Price is $37.53 Difference: $2.39
If WOW meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $38.35, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Credit Suisse rates WPL as Outperform (1) -

Credit Suisse found few surprises in the first quarter production report, although oil production was lower because of a cyclone. The collapse of the oil price is more likely to be felt in the second and third quarters, given the time lag in LNG contracts.

The broker assesses Woodside Petroleum can withstand oil prices as low as US$10/bbl for FY20 and US$15/bbl throughout 2021, without risking debt covenants. Outperform rating maintained. Target is reduced to $27.16 from $28.89.

Target price is $27.16 Current Price is $21.20 Difference: $5.96
If WPL meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Macquarie rates WPL as Outperform (1) -

First quarter production was lower than Macquarie expected. The broker assesses the company has a cash-flow break-even price of US$26/bbl but the dividend is under pressure after 2020 at spot prices.

Meanwhile, the balance sheet is robust and the Scarborough/Pluto T2 final investment decision is expected in 2021. No updated timeline for Browse has been provided. Outperform maintained. Target is reduced to $23 from $24.

Target price is $23.00 Current Price is $21.20 Difference: $1.8
If WPL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

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

Morgan Stanley believes the changes in the way the company is reporting create uncertainty as to the LNG revenue generated by each asset, particularly at a time when price reviews are underway.

Sales revenue in the March quarter was lower than estimated. Equal-weight retained.

While Woodside Petroleum is a defensive business, unless oil recovers to around US$50/bbl the LNG growth outlook is challenged, in the broker's view. Target is $21.60. Industry view: Cautious.

Target price is $21.60 Current Price is $21.20 Difference: $0.4
If WPL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Morgans rates WPL as Add (1) -

Woodside Petroleum's production in the March quarter was below estimates, while sales revenue was in line.

The move to hedge 2020 output of oil and fix some LNG volumes should build a defendable profit base, in the broker's opinion, even if energy prices continue to drop.

The relative strength of the business should mean it can become an opportunistic acquirer in the current environment, Morgans assesses. Add maintained. Target is reduced to $26.61 from $26.71.

Target price is $26.61 Current Price is $21.20 Difference: $5.41
If WPL meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Ord Minnett rates WPL as Hold (3) -

Production, sales volumes and realised prices were all below Ord Minnett's forecasts in the March quarter. Woodside has reiterated a reduced capital expenditure target of US$1.7-1.9bn in 2020.

Final investment decisions on Scarborough and Pluto T2 projects have been delayed until 2021. Browse has been delayed indefinitely. Ord Minnett retains a Hold rating and reduces the target to $26.00 from $26.50.

Target price is $26.00 Current Price is $21.20 Difference: $4.8
If WPL meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

UBS rates WPL as Buy (1) -

Woodside Petroleum's March quarter production was in line with the broker with sales -2% below. 

The company has a strong balance sheet to weather a low oil price environment, the broker notes, and with a breakeven production cost of US$20/bbl should produce a profit in 2020 and pay a dividend.

Buy and $22.60 target retained.

Target price is $22.60 Current Price is $21.20 Difference: $1.4
If WPL meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $24.41, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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