Australian Broker Call

Macquarie rates A2M as Outperform (1) -

The company is expanding its US business across the north eastern region. This expansion follows the company achieving sales-based targets across other regions, notably in California and the south east.

Macquarie envisages upside from new product launches as the company proves up its opportunity. Outperform retained. Target is $8.29.

Target price is $8.29 Current Price is $7.61 Difference: $0.68
If A2M meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.57, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.4

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

Morgans rates ACK as Hold (3) -

December quarter funds under management were strong, Morgans asserts, and the only negative in the update was a minor lift in quarterly withdrawals to -$14m.

The broker lifts FY18 and FY19 forecasts for earnings per share by 37% and 85% respectively. Target rises to $1.68 from $1.07.

While the update reveals a significant step change in momentum under the new management, the broker requires further evidence of the trend that is emerging in order to be more positive. Hold rating maintained.

Target price is $1.68 Current Price is $1.57 Difference: $0.11
If ACK meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

UBS rates ALU as Neutral (3) -

The Altium Designer 18 (AD18) product was formally released on 15 December and UBS's assessment of feedback post the formal and updated release is highly supportive of strong earnings momentum medium-term.

In addition, the company's balance sheet allows for inorganic growth options, the broker points out. A change in analyst has changed the valuation methodology which now pushes up the price target to $14.20 (valuation $12.87) versus $9.10 previously.

As the stock is seen as fairly priced vis a vis peers, the Neutral rating remains in place, supported by higher forecasts.

Target price is $14.20 Current Price is $14.24 Difference: minus $0.04 (current price is over target).
If ALU meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.90, suggesting downside of -9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

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

The downgrade, explains UBS, is motivated by trying to balance the positives (new experienced CEO and still positive industry growth) with the negatives of increasing competition for contracts and a slowing in industry growth recently.

The company is scheduled to report 2017 results on Feb 20. Short term, UBS is not expecting much in terms of earnings growth as the company needs to absorb the loss of the Yarra Trams contract. Target remains $4.75.

Target price is $4.75 Current Price is $4.54 Difference: $0.21
If APO meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

UBS rates AZJ as Neutral (3) -

In December, The Queensland Competition Authority issued the draft decision on Aurizon's regulatory undertaking. UBS suggested at that time the draft is a materially lower position than previously expected.

The analysts have now incorporated lower forecasts into their modeling, from 2019 onwards. The price target loses 20c to $4.70 as a result.

Target price is $4.70 Current Price is $4.63 Difference: $0.07
If AZJ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.76, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

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

Morgans rates BAT as Add (1) -

The company has secured a maiden binding offtake agreement and MOU with Chinese graphite user, Qingdao Electronics Materials and Japanese trading house Meiwa.

Morgans incorporates a preliminary valuation for the company's Balama deposit, which sits alongside strike of the Syrah Resources ((SYR)) deposit of the same name. The broker maintains its speculative Add rating and raises the target to $0.26 from $0.23.

Target price is $0.26 Current Price is $0.07 Difference: $0.19
If BAT meets the Morgans target it will return approximately 271% (excluding dividends, fees and charges).

Forecast for FY16:

Forecast for FY17:

Market Sentiment: 1.0

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

Credit Suisse rates BPT as Re-instate Coverage with Neutral (3) -

Credit Suisse reinstates coverage with a Neutral rating and $1.25 target.  The broker likes the Lattice deal, particularly given both the oil price environment and the level of fixed price contracts.

While finding several positives in the stock, Credit Suisse does not consider the valuation cheap, and would like more detail on the financials surrounding the Lattice transaction. Valuation appears relatively stretched given the broker's oil price deck.

Target price is $1.25 Current Price is $1.30 Difference: minus $0.05 (current price is over target).
If BPT meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.03, suggesting downside of -20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.2

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

Credit Suisse rates CAJ as No Rating (-1) -

Credit Suisse updates its numbers to account for recent acquisitions. The broker believes the company has acquired a good franchise in Tasmania in a structurally attractive market and the Victorian diagnostic imaging market remains strong.

The broker is restricted on the stock at present and cannot provide a target or rating.

Current Price is $0.28. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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

Macquarie rates GNC as Neutral (3) -

Macquarie reduces FY18 and FY19 forecasts for earnings per share by -22% and -14% respectively to account for a weaker-than-expected harvest and exports outlook.

The broker expects the stock to be range bound heading into a probable soft update at the AGM, as the market absorbs the earnings impact from a low crop year and an uncompetitive Australian grains scenario.

Neutral retained. Target is reduced to $7.88 from $8.36.

Target price is $7.88 Current Price is $7.51 Difference: $0.37
If GNC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.84, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.4

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

Credit Suisse rates IDX as No Rating (-1) -

The company has upgraded guidance and now expects FY18 net profit growth of around 20%. Credit Suisse adjusts for the new guidance and upgrades forecasts for earnings per share by 7.8% for FY18 and 5-6% for FY19-20.

The broker is restricted on the stock at present and cannot provide a target or rating.

Current Price is $2.29. Target price not assessed.

Current consensus price target is $2.12, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.0

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

Citi rates MGX as Neutral (3) -

December quarter production and sales were broadly in line with Citi's estimates. The broker marks to market changes to iron ore and FX, resulting in an upgrade for FY18 forecasts to a net profit of $19m, from a loss of -$5m previously. FY19 net profit estimates increase to $27m from $12m.

Neutral/High Risk rating. Target is raised $0.45 from $0.42.

Target price is $0.45 Current Price is $0.42 Difference: $0.03
If MGX meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Macquarie rates MGX as Outperform (1) -

Macquarie observes a consistent December quarter from Iron Hill, with the increase in lump sales enabling the company to counter the significant discounts in the iron ore market.

Updates on the progress of Koolan Island present the most significant near-term catalyst for the company, in Macquarie's view, while a decision to deploy the significant cash balance on an acquisition is also possible in the medium term

Outperform rating. Target is $0.50.

Target price is $0.50 Current Price is $0.42 Difference: $0.08
If MGX meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.46, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

UBS rates MGX as Neutral (3) -

As it turned out, the production ramp up at Iron Hill did not eventuate as UBS had expected and thus the December production report proved disappointing.

However, the analysts add the addition of a third daily train service in November lifts the yearly capacity from 2.9Mtpa to ~circa 4Mtpa, implying the company can still achieve its sales target of 3.5Mt to 3.8Mt for FY18.

Realised fines price also proved below expectation. Given the market is not yet prepared to pay up for the Koolan Island Restart project (28% completed), UBS continues to incorporate a discount in its valuation.

Price target moves to 44c from 42c. Neutral rating retained.

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

Current consensus price target is $0.46, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Deutsche Bank rates ORE as Hold (3) -

The company has announced a $282m placement to Toyota Tsusho at $7.50 a share and a fully underwritten 1-for-20 entitlement offer at $6.55 a share to raise $79m.

Funds will be used to scale up Olaroz. Deutsche Bank considers the stock fairly valued and maintains a Hold rating. Target is raised to $7.40 from $6.80.

Target price is $7.40 Current Price is $7.17 Difference: $0.23
If ORE meets the Deutsche Bank target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

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

Although the company has solved funding problems for stage 2 and the hydroxide plant, with its placement to Toyota Tsusho along with an entitlement offer, Macquarie points out this comes with two large caveats.

The first is that management broke a promise in 2017 that it would not raise capital. The second is the implied acknowledgement that stage 2 was underestimated.

Still, the broker notes the placement at a premium highlights a belief that lithium prices will be higher for longer. Rating is upgraded to Neutral from Underperform.  Target is raised to $7.35 from $6.50.

Target price is $7.35 Current Price is $7.17 Difference: $0.18
If ORE meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Morgan Stanley rates ORE as Underweight (5) -

Morgan Stanley is favourably disposed to the company's equity raising of $361m, which includes a  $282m placement with Toyota Tsusho. However, the broker suspects stage 2 marketing rights, a lucrative revenue stream, were key to the deal.

The broker believes the equity is trading above fair value, even after incorporating growth projects and retains an Underweight rating, an Attractive industry view and raises the target to $5.10 from $4.50.

Target price is $5.10 Current Price is $7.17 Difference: minus $2.07 (current price is over target).
If ORE meets the Morgan Stanley target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.30, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

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

Citi rates OZL as Buy (1) -

December quarter production was strong in terms of both copper and gold. Citi believes progress at Carrapateena and regional exploration should support the share price through 2018.

The broker notes a promising West Musgrave project will require a $20-30m investment in FY18  for a pre-feasibility study which could be completed during this year. Citi is also encouraged by the exploration efforts at Jericho and expects a steady flow of results from this as well as other projects.

Buy rating retained. Target is raised to $11.50 from $11.40.

Target price is $11.50 Current Price is $9.15 Difference: $2.35
If OZL meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Credit Suisse rates OZL as Neutral (3) -

December quarter and 2017 production was in line with expectations. Credit Suisse notes 2018 copper guidance is up 10,000t and Carrapateena's timetable is unchanged.

Neutral rating and $8.25 target.

Target price is $8.25 Current Price is $9.15 Difference: minus $0.9 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Deutsche Bank rates OZL as Hold (3) -

The company produced 30,000t of copper in the December quarter, 15% ahead of Deutsche Bank's estimates. Gold production was 36% ahead of estimates.

Deutsche Bank lifts 2017 forecasts for earnings per share by 34% on the better-than-expected result. A Hold rating is maintained on valuation. Target rises to $8.70 from $8.60.

Target price is $8.70 Current Price is $9.15 Difference: minus $0.45 (current price is over target).
If OZL meets the Deutsche Bank target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Macquarie rates OZL as Outperform (1) -

December quarter production was strong with copper exceeding Macquarie's forecasts. The company also performed strongly on costs, assisted by high gold production.

Macquarie expects the positive trend to continue, noting increased production guidance for 2018 and 2019.

Outperform rating. Target is raised to $11 from $10.

Target price is $11.00 Current Price is $9.15 Difference: $1.85
If OZL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

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

In the wake of the December quarter production numbers and higher copper prices, Morgans makes material upgrades to forecasts.

The broker believes several approaching catalysts, including the anticipated receipt of the Carrapateena mining lease and an update on Prominent Hill's long-term power strategy, have potential to create interest in coming months.

The stock remains a preferred copper exposure but the broker downgrades to Hold from Add following recent price strength. Target rises to $9.40 from $8.87.

Target price is $9.40 Current Price is $9.15 Difference: $0.25
If OZL meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Ord Minnett rates OZL as Hold (3) -

Ord Minnett observes 2018 will be a big year for capex, with the company flagging around $650m in expenditure. The broker also notes that more than half of its valuation relates to Carrapateena, a project that still carries development risk.

Hold rating maintained, given a strong run up in the share price. Target rises to $8.70 from $8.60.

Target price is $8.70 Current Price is $9.15 Difference: minus $0.45 (current price is over target).
If OZL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

UBS rates OZL as Neutral (3) -

Performance during the December quarter has surprised in a positive sense and UBS analysts observe management has upgraded guidances for copper volumes, with costs surprising to the downside (which is a positive).

UBS says it recently downgraded to Neutral from Buy as the shares are considered more fair value at current level. Price target is $9.73.

Also, the analysts add mining lease approval at Carrapateena and a progress update on power strategy are expected in Q1 2018.

Target price is $9.73 Current Price is $9.15 Difference: $0.58
If OZL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.54, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.4

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

Credit Suisse rates RMD as Neutral (3) -

Credit Suisse reviews assumptions, which results in minor upgrades to earnings estimates for FY18. The broker forecasts revenue growth of around 6% in the second quarter on a constant currency basis.

The broker observes risks include protracted competitor litigation and escalation of ASP discounting, while the potential upside to forecasts could arise from better operating cost leverage and US tax reform.

Neutral retained. Target rises to $10.60 from $10.40.

Target price is $10.60 Current Price is $11.02 Difference: minus $0.42 (current price is over target).
If RMD meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.82, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Morgan Stanley rates RMD as Overweight (1) -

Morgan Stanley envisages high single-digit growth in devices in FY18 and mid-teen masks growth. Gross margin is expected to improve to 59.4% in FY19  from 58.4% in FY17.

The broker suspects FY18 guidance for a flat gross margin,  which seems to assume no acceleration in mask sales, is conservative. The primary catalyst for positive revisions to earnings per share is still expected to be a sustained improvement in the product mix.

Overweight rating. Industry view is In-Line. Price target is raised to US$88.20 from US$82.70.

Current Price is $11.02. Target price not assessed.

Current consensus price target is $10.82, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: 0.6

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

Citi rates S32 as Downgrade to Neutral from Buy (3) -

Citi makes modest upgrades to FY18 and FY19 forecasts for earnings per share, driven by marking to market commodity prices and the accretion from buybacks.

The broker notes the December quarter production was mixed with manganese, nickel and metallurgical coal all above estimates but thermal coal, silver and alumina below. After a strong rally in the share price, Citi downgrades to Neutral from Buy and maintains a target of $3.75.

Target price is $3.75 Current Price is $3.83 Difference: minus $0.08 (current price is over target).
If S32 meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Credit Suisse rates S32 as Downgrade to Underperform from Neutral (5) -

Strength in commodity prices has meant the stock has rallied almost 17% since Christmas and Credit Suisse now looks for a lower entry point. Rating is downgraded to Underperform from Neutral.

The broker concedes that, if commodity prices hold up, value will remain compelling given the state of the balance sheet and the capacity for further shareholder returns.

Target is raised to $3.50 from $3.10.

Target price is $3.50 Current Price is $3.83 Difference: minus $0.33 (current price is over target).
If S32 meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Deutsche Bank rates S32 as Sell (5) -

December quarter production improved modestly in copper equivalent terms and was slightly ahead of Deutsche Bank's forecasts.

Carrington disappointed the broker because of lower grades while manganese stood out, increasing around 20% quarter on quarter to meet strong demand.

FY18 production guidance is maintained. Deutsche Bank retains a Sell rating on valuation. Target is $3.10.

Target price is $3.10 Current Price is $3.83 Difference: minus $0.73 (current price is over target).
If S32 meets the Deutsche Bank target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Macquarie rates S32 as Neutral (3) -

The December quarter production numbers showed strength in manganese ore offset by weaker output from Worsley and Cannington. FY18 production guidance for South African manganese has been upgraded by 9%.

Guidance for Cannington has been maintained, but a weak first half suggests to Macquarie that guidance could be at risk.

Neutral rating and $3.50 target maintained.

Target price is $3.50 Current Price is $3.83 Difference: minus $0.33 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Ord Minnett rates S32 as Hold (3) -

While South32 has a strong outlook for cash flow because of buoyant commodity markets Ord Minnett finds the stock trading near fair value. December quarter numbers were mixed, with Cannington weak on lower grades and manganese volumes strong.

Hold rating retained. Target is raised to $3.85 from $3.40.

Target price is $3.85 Current Price is $3.83 Difference: $0.02
If S32 meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

UBS rates S32 as Neutral (3) -

While management has stuck with its guidance for FY18, UBS analysts believe both alumina and aluminium will struggle to meet guidance this financial year. In addition, Cannington is currently mining lower grade and there is risk of weaker domestic demand continuing into 2H FY18 at South Africa Energy Coal.

UBS notes South32 has commenced the process to transition the South African coal asset as a stand-alone business from April onwards.

Also, the analysts believe the current buyback program won't be executed in full and thus a higher dividend payout ratio is assumed to compensate for the shortfall. Neutral rating and $3.45 price target retained.

Target price is $3.45 Current Price is $3.83 Difference: minus $0.38 (current price is over target).
If S32 meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.50, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

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

Market Sentiment: -0.1

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

Citi rates SAR as Sell (5) -

December quarter production was in line, or slightly softer, than expectations but Citi finds no threat to FY18 guidance.

While the stock is a high-quality producer the broker maintains a Sell rating based on valuation. Target is reduced to $1.34 from $1.38.

Target price is $1.34 Current Price is $1.56 Difference: minus $0.22 (current price is over target).
If SAR meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Macquarie rates SAR as Neutral (3) -

December quarter production was in line with Macquarie's expectations. The broker expects mining costs to fall at Carosue Dam as new underground contractors take effect along with improvement in ounces per vertical metre.

Falling strip ratios are also expected to deliver strong production at Thunderbox. Neutral rating and $1.90 target maintained.

Target price is $1.90 Current Price is $1.56 Difference: $0.34
If SAR meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.5

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

Macquarie rates SKI as Outperform (1) -

Macquarie makes minor downward revisions to reflect an update of Transgrid assumptions. The broker suggests there is upside in the quantum of opportunities for Transgrid, as well as the non-regulated areas of the South Australian and Victorian networks.

Outperform rating. Target is reduced to $2.65 from $2.69.

Target price is $2.65 Current Price is $2.41 Difference: $0.24
If SKI meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.1

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

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

Morgan Stanley suggests the lower end of FY18 EBITDA guidance is achievable on annualised cost reductions alone. The broker retains a "wait & see" approach to the stock until new initiatives gain traction.

The company's trading update forecasts FY18 operating earnings in the $75-85m range, which implies a strong skew to the second half.

Equal-weight rating, In-Line industry view retained. Target is raised to $17.70 from $16.20.

Target price is $17.70 Current Price is $18.23 Difference: minus $0.53 (current price is over target).
If SRX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.13, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

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

Morgan Stanley rates TWE as Overweight (1) -

Morgan Stanley lifts estimates based on a lower US corporate tax rate and surging demand in Asia. The broker expects very strong underlying results from the Asian business based on channel checks and peers in that region.

The broker believes the market will soon begin to focus on the company's very strong FY19 outlook, which will be aided by healthy vintages, traction for French brands and the tax cuts.

Target is raised to $18 from $16. Overweight rating retained. Industry outlook is Cautious.

Target price is $18.00 Current Price is $15.16 Difference: $2.84
If TWE meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.09, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.1

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

Macquarie rates WBC as Upgrade to Outperform from Neutral (1) -

Macquarie expects banks to return capital to shareholders via special dividends and buybacks despite a more subdued underlying earnings growth profile.

The broker continues to believe the medium-term outlook for banks is challenging, as growth will be constrained by the highly leveraged household sector and margins affected by competition.

Nevertheless, the broker finds relative value at current levels, upgrading Westpac to Outperform from Neutral. Target is raised to $35.00 from $34.50.

Target price is $35.00 Current Price is $31.07 Difference: $3.93
If WBC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $33.76, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

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