Australian Broker Call

Macquarie rates AFG as Outperform (1) -

The broker has cut its Australian Finance Group earnings forecasts by -3% out to FY25 following a review of credit, hardship and investment risk. The broker notes the company has no debt and $50m in cash.

Outperform retained, target falls to $1.95 from $2.02.

Target price is $1.95 Current Price is $1.36 Difference: $0.59
If AFG meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

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 AHY as Buy (1) -

Asaleo Care has reiterated 2020 guidance for operating earnings in the range of $84-87m. While experiencing much stronger sales in March the company should also benefit from lower pulp prices.

Meanwhile, Citi notes the balance sheet is robust and the free cash flow yield is attractive. Still, the company is cautious about the stockpiling that may result in lower demand in future. Citi retains a Buy rating and $1.30 target.

Target price is $1.30 Current Price is $0.98 Difference: $0.32
If AHY meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.19, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in December.

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 AMC as Outperform (1) -

Credit Suisse expects Amcor's rigid plastics will be affected, envisaging a -5% drop in volume in the second half, given The Coca-Cola Co reported global volumes during April are down -25%.

The weakness is expected to be partially offset by growth in diversified products, based on increased demand for cleaning & personal care items.

Credit Suisse retains an Outperform rating and, on a weaker Australian dollar, raises the target to $16.90 from $16.25.

Target price is $16.90 Current Price is $13.10 Difference: $3.8
If AMC meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $16.71, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Macquarie rates APA as Neutral (3) -

APA Group has lowered its FY20 earnings guidance by -1.2% reflecting the difficulty with getting its Orbost plant up to nameplate production at this time.

While the virus is impacting operations, it is not impacting the overall earnings outlook, the broker notes. Growth capex guidance has also been lowered due to project delays, which the broker suspects is more to do with soft gas pricing.

APA remains a defensive asset at this time, as other infrastructure assets suffer, the broker notes. The opportunity to develop the US business remains, although will likely be slowed by the virus. Neutral retained. Target rises to $11.89 from $11.68 on a lower discount rate in DCF valuation.

Target price is $11.89 Current Price is $10.96 Difference: $0.93
If APA meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.30, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

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

APA Group has revised down FY20 operating earnings (EBITDA) guidance to $1635-1655m, i.e. 4-6% growth, as a result of delays in reaching commercial operations on the Orbost gas processing plant.

Distribution guidance is unchanged. Morgans notes since lifting the stock to Add on March 12 the share price has lifted 11%. Hence, the rating moves back to Hold. Target is reduced to $10.81 from $10.90.

Target price is $10.81 Current Price is $10.96 Difference: minus $0.15 (current price is over target).
If APA meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.30, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates APA as Hold (3) -

The company has slightly downgraded FY20 guidance but maintained its distribution guidance. Ord Minnett, while disappointed, is not overly surprised given the delays in getting the Orbost gas plant up and running.

Still, the stock offers a 4.5-5.0% dividend yield and there are opportunities emerging in M&A. Hold rating maintained. Target is reduced to $11.35 from $11.45.

Target price is $11.35 Current Price is $10.96 Difference: $0.39
If APA meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.30, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates APA as Buy (1) -

Following delays in commissioning the Orbost gas processing plant the company has reduced FY20 operating earnings (EBITDA) guidance by -2%. Accordingly, UBS reduces its estimates.

The broker is confident in the distribution profile growing at 3% over FY20-22 and providing a net yield of around 5%. Buy rating and $11.40 target maintained.

Target price is $11.40 Current Price is $10.96 Difference: $0.44
If APA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.30, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates AUB as Outperform (1) -

The company's trading update highlighted net profit growth of 25% is continuing in the third quarter.

While guidance was previously withdrawn, Credit Suisse did not consider this was a sign it would be missed but rather evidence the company was being careful.

There was 6.3% premium rate increase in Australia in the March quarter while NZ premium rates were flat.

The broker believes the underperformance of listed brokers is overdone and the stock is now at an attractive entry price. Outperform rating and $12.60 target retained.

Target price is $12.60 Current Price is $10.51 Difference: $2.09
If AUB meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates AUB as Outperform (1) -

AUB Group reported March quarter profit up 25% on the prior year, and premium rate increases of 6.3%, ahead of the broker's forecast.

The broker has responded with forecast earnings upgrades, noting the company's multi-sector exposure and diversified broker network is defensive at this time.

Outperform retained, target rises to $11.54 from $11.35.

Target price is $11.54 Current Price is $10.51 Difference: $1.03
If AUB meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates BAP as Buy (1) -

Bapcor has completed a $180m institutional placement which is expected to significantly reduce leverage. UBS notes the store network in Australia is fully operational and gross margins are steady.

UBS raises estimates for FY20 and FY21 to reflect a less significant earnings trough, offset by dilution.

The broker considers the company well-placed to deliver resilient earnings growth at an attractive valuation and retains a Buy rating. Target is reduced to $6.40 from $6.95.

Target price is $6.40 Current Price is $4.70 Difference: $1.7
If BAP meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $5.77, suggesting upside of 22.7% (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

Citi rates BHP as Buy (1) -

Citi notes production guidance is under review in terms of copper, given the smelter outage at Olympic Dam. Antamina and Cerrejon are also under review.

March quarter production, ex iron ore, was generally weaker than the broker expected. Importantly iron ore forecasts are unchanged, as is cost guidance.

Buy rating and $35 target retained.

Target price is $35.00 Current Price is $29.10 Difference: $5.9
If BHP meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Credit Suisse rates BHP as Outperform (1) -

March quarter operating conditions were sound for the main earnings contributors, Credit Suisse notes.

Olympic Dam has been downgraded again (unplanned smelter downtime) and guidance for Antamina and Cerrejon has been removed as both are placed on temporary care and maintenance as a result of government policy.

Some uncertainty exists for FY21 and the broker suspects lower production levels are likely at Escondida and any deferral of Jansen is likely to be a positive.

Outperform rating and $39 target maintained.

Target price is $39.00 Current Price is $29.10 Difference: $9.9
If BHP meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Macquarie rates BHP as Outperform (1) -

BHP Group's March quarter report revealed iron ore, copper and petroleum volumes all near the broker's forecasts. However the broker has incorporated into its valuation the impact of curtailed operations due to the virus, likely cuts to production and capex guidance, and an impact on commodity prices in lowering its near term earnings outlook.

Cash nevertheless continues to flow freely and the broker suggests this will flow to shareholders at a later date, but for now expects a drop in the dividend payout to 50% from 70% on a conservative approach at this time. Outperform retained, target falls to $36 from $38.

Target price is $36.00 Current Price is $29.10 Difference: $6.9
If BHP meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Morgan Stanley rates BHP as Overweight (1) -

Production was slightly softer than Morgan Stanley expected in the March quarter. Importantly, the broker notes capital expenditure guidance for FY21 is now likely to be lower than US$8bn.

Operations continue to run well amid some changes, with the deferral of non-critical activities. The broker notes guidance has been broadly maintained. Overweight rating, $36.65 target and In-Line industry view maintained.

Target price is $36.65 Current Price is $29.10 Difference: $7.55
If BHP meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Morgans rates BHP as Add (1) -

Morgans was pleased with the March quarter performance from the iron ore business. Copper was considered mixed, with Escondida and Antamina performing well but likely to come under pressure from restrictions stemming from the pandemic.

The broker was disappointed with Olympic Dam. Morgans maintains an Add rating, recognising the potential for short-term volatility but believing the dividend is a critical valuation support in a yield-starved market. Target is reduced to $36.04 from $36.46.

Target price is $36.04 Current Price is $29.10 Difference: $6.94
If BHP meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Ord Minnett rates BHP as Accumulate (2) -

The iron ore division performed in line with expectations in the March quarter while South American copper mines have been affected by restrictions. Other assets were generally soft, Ord Minnett notes, as the weather and reliability affected performance.

BHP Group has downgraded production guidance for copper and nickel and pointed to the bottom of the range for metallurgical coal and petroleum. Ord Minnett maintains an Accumulate rating and raises the target to $38.00 from $37.70.

Target price is $38.00 Current Price is $29.10 Difference: $8.9
If BHP meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

UBS rates BHP as Neutral (3) -

March quarter production was below expectations, affected by the weather. The company notes iron ore demand is resilient as China returned to work from mid February and this has provided price support despite the rest of the world being in the midst of mobility restrictions.

UBS notes metallurgical coal has not fared as well, as there is a greater geographic dispersion of demand. Industrial weakness has affected copper demand but this has been offset by supply disruptions and depressed scrap prices. Neutral rating and $39 target maintained.

Target price is $39.00 Current Price is $29.10 Difference: $9.9
If BHP meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $37.10, suggesting upside of 27.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Credit Suisse rates COE as Neutral (3) -

March quarter production and revenue were below expectations, mainly because of a delay at Sole and also lower gas at Casino and lower oil at Cooper Basin.

The main risk, Credit Suisse assesses, is if the issue with H2S processing means Orbost struggles to reach nameplate.

While the business appears resilient to lower oil prices compared with its peers, Credit Suisse finds more compelling upside elsewhere. Neutral maintained. Target is reduced to $0.44 from $0.45.

Target price is $0.44 Current Price is $0.42 Difference: $0.02
If COE meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.55, suggesting upside of 29.8% (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

Macquarie rates COE as Outperform (1) -

Cooper Energy's March quarter featured a beat on the broker's production forecast but a miss on revenues due to lower oil prices. The company will provide new guidance once final testing of the Orbost gas plant is completed, which should be soon.

The ramp up of the Sole and Orbost plants remains the key catalyst, the broker suggests, ahead of production doubling in FY21. Outperform and 55c target retained.

Target price is $0.55 Current Price is $0.42 Difference: $0.13
If COE meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $0.55, suggesting upside of 29.8% (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

Macquarie rates CQR as Outperform (1) -

The broker has reviewed its thesis for Charter Hall Retail, cutting earnings by -9%. The broker likes the defensiveness of the REIT's neighbourhood/sub-regional portfolio at a time the big malls are empty, and stock is also trading at a -25% discount to book value compared to Scentre Group ((SCG)) at -4%.

The state of the balance sheet does offer the risk of asset sales and/or a raising and/or a DRP, the broker notes, but if so, the yield and valuation would remain attractive, the broker suggests. Outperform retained, target falls to $4.10 from $5.31, which includes a -10% discount for dilution risk.

Target price is $4.10 Current Price is $3.20 Difference: $0.9
If CQR meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting upside of 14.6% (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 CWY as Neutral (3) -

UBS reduces FY20 and FY21 estimates for net profit by -6% and -15% respectively, as the pandemic causes a temporary but material dislocation in business waste generation.

The main issue with investors, the broker assesses, is margin sensitivity. The pandemic closures threaten increased margins as route density/optimisation is key.

If pick-ups are unpredictable this leads to sub-optimal routes. UBS maintains a neutral rating. Target is reduced to $1.85 from $2.20.

Target price is $1.85 Current Price is $1.72 Difference: $0.13
If CWY meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.26, suggesting upside of 31.5% (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 DXS as Outperform (1) -

Credit Suisse revises earnings estimates down -2.3% in FY20 and -3.6% in FY21, although cannot quantify the downside risk with certainty.

Meanwhile, the capital position appears healthy and the company is not expected to require further equity in the short term.

Outperform maintained. Target is reduced to $10.37 from $13.32.

Target price is $10.37 Current Price is $8.80 Difference: $1.57
If DXS meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.14, suggesting upside of 26.6% (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 EBO as Buy (1) -

The company has signalled firm revenue growth across its business and continued momentum through the March quarter. The healthcare segment is experiencing high levels of demand, particularly in pharmacy distribution.

UBS notes there is no indication FY20 guidance will not be met. The impact on the animal care segment from the pandemic is less clear, as the company's joint venture closed its doors during the NZ level 4 lock-down and from April 28 will be operating in a "click and collect" capacity.

Buy rating maintained. Target is raised to NZ$27.20 from NZ$26.50.

Current Price is $21.60. Target price not assessed.

Current consensus price target is $24.08, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Citi rates FNP as Buy (1) -

Strong sales growth occurred in the March quarter, benefiting from the stockpiling in grocery, particularly dairy and cereals. Citi also expects margins will benefit from a reduction in retailer promotional activity.

Still, the company has experienced a decline in out-of-home sales from late March as a result of the lock-downs.

Citi expects the negative impact to persist throughout the fourth quarter because some level of social distancing is likely to remain in place.

Buy rating maintained. Target rises to $6.00 from $5.90.

Target price is $6.00 Current Price is $4.31 Difference: $1.69
If FNP meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $5.82, suggesting upside of 35.0% (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 FNP as Add (1) -

Grocery sales are up and strong but the company has been affected by a slowing of the high-margin out-of-home channel, given government-imposed restrictions. Freedom Foods has increased short-term liquidity limits and so has additional flexibility.

Earnings are uncertain and remain dependent on the duration and severity of the pandemic. Still, Morgans expects solid earnings growth over the forecast period because of strong demand for the company's products.

Add rating maintained. Target is reduced to $5.05 from $5.16.

Target price is $5.05 Current Price is $4.31 Difference: $0.74
If FNP meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.82, suggesting upside of 35.0% (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 GOR as Downgrade to Neutral from Outperform (3) -

Gold Road's March quarter production was below expectation due to planned mill shutdowns. The company has maintained Gruyere guidance but warned the virus has the potential to drive downgrades or complete withdrawal.

However, management believes the shutdowns will add stability and consistency to progressing performance. Due to the run up in the share price, Macquarie pulls back to Neutral from Outperform. Target unchanged at $1.60.

Target price is $1.60 Current Price is $1.60 Difference: $0
If GOR meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates ICQ as Add (1) -

iCar Asia is conserving cash, by cutting back on personnel. Cash receipts in the March quarter were well below forecasts because of the slump in new and used car advertising.

Morgans observes the only consolation is that competitors are doing it tougher and the company is well-placed for a rebound once personal movement is relaxed across Southeast Asia.

Add rating maintained. Target is reduced to $0.42 from $0.45.

Target price is $0.42 Current Price is $0.19 Difference: $0.23
If ICQ meets the Morgans target it will return approximately 121% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 IPL as Outperform (1) -

Incitec Pivot commenced a review of its fertiliser business last September with any of sale, demerger or retention and further investment being on the table. Unsurprisingly, the broker notes, under current circumstances, the company has decided to keep it.

Otherwise Incitec has seen no significant virus impact given its mining and agri services are deemed essential. Outperform and $3.06 target retained.

Target price is $3.06 Current Price is $2.14 Difference: $0.92
If IPL meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 48.6% (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

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

Incitec Pivot has decided to retain its fertiliser business. This confirms Morgan Stanley's suspicions that a sale was unlikely to succeed.

The broker expects management will now focus on optimising the business. Meanwhile, the domestic crop season appears to be shaping up well and this should provide a boost to both FY20 earnings and the balance sheet.

First half results will be reported on May 12. Equal-weight. Cautious industry view. Target is steady at $3.20.

Target price is $3.20 Current Price is $2.14 Difference: $1.06
If IPL meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 48.6% (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

Ord Minnett rates IPL as Upgrade to Buy from Hold (1) -

Ord Minnett notes the near-term outlook for fertiliser prices is soft but the company should benefit from improved weather conditions in Australia and the US.

Currency movements are also favourable and the broker upgrades to Buy from Hold. Target is reduced to $2.95 from $3.40.

Target price is $2.95 Current Price is $2.14 Difference: $0.81
If IPL meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 48.6% (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

UBS rates IPL as Neutral (3) -

Incitec Pivot will retain its APAC fertiliser business after completing the strategic review. UBS believes, as part of retaining the business, the company should commit to investment in technology/data, specifically around precision agriculture.

The company has indicated its business operations have not been significantly affected to date by the pandemic. This is a reflection of the end-markets of mine production and agriculture largely been classified as essential services. Neutral rating maintained. Target is $2.30.

Target price is $2.30 Current Price is $2.14 Difference: $0.16
If IPL meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 48.6% (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

Morgans rates M7T as Add (1) -

March quarter results were solid although Morgans notes, while the sales pipeline is stable, the pandemic is lengthening the time for decisions to be made.

The broker maintains an Add rating, believing the business is well-placed to continue on its growth trajectory once the crisis has passed. Target is $1.16.

Target price is $1.16 Current Price is $0.56 Difference: $0.6
If M7T meets the Morgans target it will return approximately 107% (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

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

Despite meaningfully upgrading forecasts, Ord Minnett considers Magellan Financial is trading at fair value and downgrades to Hold from Buy. Target is raised to $48.60 from $44.25.

That said, the business remains one of the best performing global managers under coverage, in the broker's view, with a strong foundation for growth in retail flows as the business emerges from the pandemic crisis.

Target price is $48.60 Current Price is $46.48 Difference: $2.12
If MFG meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $43.77, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Morgans rates MVF as Hold (3) -

The federal government has flagged a resumption of 25% of elective surgery, including IVF procedures, as of next week. This is a positive for Monash IVF and, Morgans believes, a best-case scenario.

The broker assesses the balance sheet is in a reasonable position and there is capacity to handle an extended downturn but does not rule out the need for additional capital. Hold retained. Target rises to $0.83 from $0.66.

Target price is $0.83 Current Price is $0.81 Difference: $0.02
If MVF meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

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 NEA as Buy (1) -

While growth for Nearmap has not been materially affected to date, Citi expects weak conditions will impact over the next 6-12 months. The broker lowers FY20 estimates by -5% and FY21 by -16%.

Given this outlook, the broker considers the efforts to reduce cash burn are prudent. As a base case, Citi does not believe that Nearmap will require additional capital, assuming conditions revert to normal in 2021.

Buy/High Risk rating maintained. Target is reduced to $1.90 from $2.70.

Target price is $1.90 Current Price is $1.26 Difference: $0.64
If NEA meets the Citi target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 58.7% (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 NEA as Outperform (1) -

Nearmap has provided a trading update, noting no material impact to the business so far, hence guidance has been maintained with another update to follow in May. The company has nevertheless reduced its cost base for the next six months with the aim of becoming cash flow breakeven by the end of FY20.

This should provide increased confidence, the broker suggests, Nearmap can withstand virus impact and be well positioned for growth when the world recovers. Some risks remain, but the broker retains Outperform.

Target falls to $1.80 from $2.90 not due to reduced revenue assumptions but revised D&A, a lower sector PE multiple and a greater cost of capital.

Target price is $1.80 Current Price is $1.26 Difference: $0.54
If NEA meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 58.7% (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 NEA as Overweight (1) -

The company's trading update revealed no material impact from the current crisis. Guidance has not yet been withdrawn. Cost management initiatives are being deployed, Morgan Stanley observes.

Nearmap is deemed as an essential service as it helps customers adapt to remote working by reducing the need for site visits.

Overweight rating and In-Line industry view maintained. Target is $2.30.

Target price is $2.30 Current Price is $1.26 Difference: $1.04
If NEA meets the Morgan Stanley target it will return approximately 83% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 58.7% (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 NSR as Hold (3) -

FY20 guidance has been revised lower because of current market conditions as well as the impact from the deferring of projects and acquisitions. Debt facilities were recently increased and the company has undrawn capacity of $314m.

Storage, while enduring less of an impact than customer-facing business, is still not immune from the uncertainty surrounding non-discretionary expenditure and lower residential activity, the broker points out.

Morgans retains a Hold rating and reduces the target to $1.72 from $2.40.

Target price is $1.72 Current Price is $1.58 Difference: $0.14
If NSR meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates ORI as Upgrade to Hold from Lighten (3) -

Ord Minnett upgrades to Hold from Lighten based on valuation, supported by favourable currency movements for the company's US earnings.

Target is reduced to $17.80 from $18.10.

Target price is $17.80 Current Price is $16.52 Difference: $1.28
If ORI meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.58, suggesting upside of 24.6% (ex-dividends)

The company's fiscal year ends in September.

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 OSH as Neutral (3) -

Production in the March quarter was in line with Citi's estimates. The main issue is, the broker points out, if Oil Search cannot access buyers then it risks LNG production being shut in because there is nowhere to store condensate.

The broker does understand that Gobe's storage is underutilised, equivalent to around 10 days of storage cover. Moreover, the company's blend of liquids should be well bid by Asian buyers.

Hence, Citi suggests only a prolonged period of regional crude excess will threaten LNG production. Neutral/High Risk rating retained. Target is $3.16.

Target price is $3.16 Current Price is $2.42 Difference: $0.74
If OSH meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

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

Credit Suisse found  no major surprises in the March quarter result. The sell-off in the stock has brought back the value proposition and the broker considers growth is now appropriately priced.

The main concern is that growth may not return even if oil prices recover. In 2021 PNG government negotiations could once again weigh on the share price.

On the back of the sell-off in the stock the broker upgrades to Neutral from Underperform. Target is reduced to $2.45 from $2.47.

Target price is $2.45 Current Price is $2.42 Difference: $0.03
If OSH meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

Macquarie rates OSH as No Rating (-1) -

Oil Search's March quarter saw sales volumes lower than expected but revenues higher, given the lag in realised oil-indexed prices.

Because of research restrictions Macquarie cannot advise of a rating or target at present.

Current Price is $2.42. Target price not assessed.

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

Morgans rates OSH as Add (1) -

Morgans observes the stock is trading at its deepest discount since 2007. This is considered unsustainable as it is below the value attributed to existing operations.

First quarter results were considered fair, given the current weak oil price. The broker considers Oil Search has adequate capital to sustain its business but falls short on growth funding without a turnaround in the oil price.

Add maintained. Target is raised to $3.55 from $3.53.

Target price is $3.55 Current Price is $2.42 Difference: $1.13
If OSH meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

Ord Minnett rates OSH as Accumulate (2) -

March quarter production was "reasonable", in Ord Minnett's view. The broker remains positive about the long-term and highlights the strong asset quality and corporate appeal.

Accumulate retained. Target is trimmed to $3.35 from $3.40.

Target price is $3.35 Current Price is $2.42 Difference: $0.93
If OSH meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

UBS rates OSH as Buy (1) -

March quarter sales revenue was in line with UBS estimates but down -10% year-on-year as realised prices for both liquids and gas were down by -20% and -10% respectively.

The US$700m equity raising has eased potential concerns about the balance sheet, enabling Oil Search to focus on internal operations, suggest the analysts.

In Alaska, Oil Search has confirmed that the three exploration wells have yielded results ahead of expectations. Buy rating and $3.10 target maintained.

Target price is $3.10 Current Price is $2.42 Difference: $0.68
If OSH meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 26.8% (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: 0.4

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

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

Store closures are being extended in Australasia until at least May 11. Premier Investments will not pay rent globally for the duration of the shutdown. Online trading will continue.

Morgan Stanley believes the company has strong liquidity and is well-positioned to manage extended period of closures.

Equal-weight rating, In-Line industry view. Target is $14.

Target price is $14.00 Current Price is $12.95 Difference: $1.05
If PMV meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $13.90, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in July.

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 RHC as Neutral (3) -

The Australian government has announced a return of certain elective surgery for both public and private hospitals. This includes all category 2 procedures and a number of category 3.

This is expected to result in around 25% of elective surgery operating lists re-opening.

UBS finds a lack of detail and a number of unanswered questions as it relates to Ramsay Health Care, such as whether all states will move at the same pace and whether there are sufficient items such as masks and gowns in place to resume surgeries.

The broker assumes a zero earnings (EBIT) outcome in the fourth quarter of FY20 but increases FY21 forecasts. Neutral maintained. Target rises to $63.50 from $60.00.

Target price is $63.50 Current Price is $64.29 Difference: minus $0.79 (current price is over target).
If RHC meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $65.13, suggesting upside of 1.3% (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

Ord Minnett rates RHP as Accumulate (2) -

Ord Minnett updates its modelling to account for the capital raising of $34m. This appears rather opportunistic to the broker, although management pointed out it would strengthen the balance sheet and allow the pursuit of future acquisitions.

The broker retains an Accumulate rating and reduces the target to $2.45 from $2.55.

Target price is $2.45 Current Price is $1.64 Difference: $0.81
If RHP meets the Ord Minnett target it will return approximately 49% (excluding dividends, fees and charges).

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

Macquarie rates SLK as Outperform (1) -

The accelerating spread of the virus in London has led to middle door-only access to buses to protect the driver, which makes fare evasion simpler, and this will not be policed.

But despite reduced patronage, Transit Systems, which represents 81% of SeaLink Travel's forecast earnings, operates under contract, the broker notes, hence revenues continue to be recovered.

This makes Transit Systems a defensive proposition at this time, with the potential for further contract wins and renewals. The broker retains Outperform, ticking up its target to $3.99 from $3.97.

Target price is $3.99 Current Price is $3.26 Difference: $0.73
If SLK meets the Macquarie target it will return approximately 22% (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