Australian Broker Call

Citi rates ALL as Buy (1) -

Aristocrat Leisure maintained its leadership position in September across all key segments with its performance improving over August. Citt notes premium leased/WAP performance is down from pre-covid 19 levels but is still ahead of the rest of the market.

Citi notes Aristocrat is its preferred exposure within the gaming sector. The US land-based recovery is expected to drive consensus FY21 earnings upgrades. There is also upside to digital margins and earnings in FY21.

Citi retains its Buy rating with a target pice of $34.60.

Target price is $34.60 Current Price is $31.52 Difference: $3.08
If ALL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $32.89, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in September.

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 ALX as Outperform (1) -

Macquarie observes APRR’s September quarter saw traffic bouncing back quickly. This gives the broker confidence that traffic will rebound faster if there is a second wave of serious coronavirus restrictions in France.

Looking at the strength of APRR’s recovery, Macquarie expects a solid first-half dividend. A potential concession extension and a recovery at Greenway also offer upside.

Macquarie retains its Outperform rating with the target decreasing slightly to $6.98 from $6.99.

Target price is $6.98 Current Price is $6.30 Difference: $0.68
If ALX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.06, suggesting upside of 13.1% (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

Citi rates AMP as Neutral (3) -

Citi is disappointed by AMP's September quarter assets under management (AuM) and cashflows and reduces its core earnings estimates for FY21-22 by -5% and - 1%. 

There is more to come with -$450m of corporate super outflows (Australian Wealth Management) expected in the December quarter.

The broker expects AMP’s turnaround to likely be long and arduous but since its portfolio review outcome is still pending, the broker retains its Neutral rating with a $1.45 target price.

Target price is $1.45 Current Price is $1.36 Difference: $0.09
If AMP meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

Credit Suisse rates AMP as Outperform (1) -

AMP reported third quarter flows. Overall, trends remain negative with outflows across the board, points out Credit Suisse.

However, the broker notes outflows were largely expected and on the whole were only modestly weaker than the broker's forecasts.

Turning to a positive, the analyst explains Australian Wealth showed signs of improvement (excluding ERS), but AMP Capital saw outflows surface within the external business.

Credit Suisse makes modest downgrades to underlying profit forecasts and continues to see medium-term value in the company.

The Outperform rating is unchanged and the target price is decreased to $1.75 from $1.78.

Target price is $1.75 Current Price is $1.36 Difference: $0.39
If AMP meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

Macquarie rates AMP as Underperform (5) -

AMP's third-quarter noted outflows across Australian wealth management and AMP Capital. The bank mortgages contracted to $303m. The company has paused its share buyback until its portfolio review is complete.

Macquarie sees downside earnings risk across all of AMP’s divisions over the medium term.

Underperform retained, target falls to $1.25 from $1.30.

Target price is $1.25 Current Price is $1.36 Difference: minus $0.11 (current price is over target).
If AMP meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

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

AMP's September quarter update showed net outflows of -$1.95bn, flat versus last year but worse than Morgan Stanley's -$1.5bn forecast. Wealth's assets under management grew by only 0.3% on a quarterly basis despite stronger markets.

The company expects -$450m corporate super mandate losses in the December quarter (from its wealth management business).

Morgan Stanley sees modest downside risks to its forecasts from mark-to-market as well as the negative flow trends across AMP.

Equal-weight rating is maintained with the target price unchanged at $1.60. Industry view: In-line.

Target price is $1.60 Current Price is $1.36 Difference: $0.24
If AMP meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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 AMP as Hold (3) -

AMP has provided a third quarter fund flow/assets under management (AUM) update to the market.

Both the Wealth Management segment and AMP Capital (external mandates) saw outflows of -$1.1bn-$1.9bn for the quarter. However, funds under management (FUM) in both businesses was broadly flat for the quarter due to favourable market movements. explains Morgans.

The broker downgrades EPS forecasts for FY20 and FY21 by -1% and -5%, respectively.

The analyst believes righting the ship will take some time and contains significant execution risk, while some uncertainty exists tied to the current portfolio review.

The Hold rating is unchanged and the target price has decreased to $1.50 from $1.66.

Target price is $1.50 Current Price is $1.36 Difference: $0.14
If AMP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

Ord Minnett rates AMP as Hold (3) -

AMP reported its third-quarterly funds under management (FUM) and flow results by division. Ord Minnett notes the results were weaker than expected.

The broker thinks near-term prospects for the company will depend on the outcomes from its portfolio review.

Ord Minnett highlights over the last few years, adverse publicity has disenfranchised multiple stakeholders including clients, shareholders and planners. The broker believes a turnaround in these trends may lead to a rally in the shares while disappointments may lead to a further downward spiral.

Hold rating retained with the target price falling to $1.61 from $1.75.

Target price is $1.61 Current Price is $1.36 Difference: $0.25
If AMP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

UBS rates AMP as Neutral (3) -

AMP's revenue headwinds remain acute, the broker notes, with outflows remaining elevated and advisor numbers falling further. The broker expects such headwinds to continue to blow through FY21 as management attempts to execute a business transformation.

The buyback is on hold until such time and while asset sales may unlock value, the broker sees limited near tem appeal. Target falls to $1.45 from $1.60, Neutral retained.

Target price is $1.45 Current Price is $1.36 Difference: $0.09
If AMP meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 11.4% (ex-dividends)

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

Morgan Stanley rates ANZ as Overweight (1) -

ANZ Bank is Morgan Stanley's preferred major bank and best poised for recovery given its improved franchise performance, revenue diversification benefits, cost reduction and adequate capital. The bank's dividend recovery prospects are better than the other majors, believes the broker.

In the second half, the broker thinks the focus will be on margin trends, cost control, credit quality, the level of provisioning and capital generation.  

Overweight. Target is unchanged at $20. Industry view is In-Line.

Target price is $20.00 Current Price is $19.50 Difference: $0.5
If ANZ meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.49, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

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 AOF as Accumulate (2) -

Australian Unity Office Fund's first-quarter operational update showed improvements to both its occupancy rate and rent collections.

Since the fund is focused on metropolitan markets and is underweight to Melbourne, Ord Minnett notes it is the only office REIT to report an increase in its occupancy rate in the September quarter.

The fund reported an increase in rent collections to 93% in the first quarter from 92% in the June quarter. The focus now, states Ord Minnett, is on recovering some of its rental arrears that had been written off during FY20.

Accumulate recommendation maintained with a target price of $2.28.

Target price is $2.28 Current Price is $2.11 Difference: $0.17
If AOF meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates APA as Hold (3) -

APA Group maintained FY21 earnings guidance at the AGM, but was silent on the FY21 distribution guidance, notes Morgans.

In making forecast changes, the broker factors in a less dire CPI outlook and assumes lower cost for new debt.

Morgans calculates, on the basis of a forecast FY21 DPS of 50 cents, the company is trading on a cash yield of 4.7% at current prices.

The Hold rating is maintained. The target price is increased to $10.88 from $10.45.

Target price is $10.88 Current Price is $10.68 Difference: $0.2
If APA meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $11.30, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates API as Upgrade to Buy from Neutral (1) -

Australian Pharmaceutical Industries' FY20 result showed a net loss of -$8m. The company declared a dividend of 2c (which had been suspended at its first-half result)

Citi notes the major highlight of Australian Pharmaceutical Industries' FY20 result was an extraordinary reduction in its working capital and net debt. The company did not provide any FY21 guidance and the broker has lowered its operating income forecast by -5%

Rating is upgraded to Buy from Neutral with the target price rising to $1.40 from $1.25.

Target price is $1.40 Current Price is $1.07 Difference: $0.33
If API meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $1.18, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates API as Neutral (3) -

Australian Pharmaceutical Industries reported underlying earnings (EBITDA), including AASB16, of $147m, which was ahead of Credit Suisse's forecast of $130m.

The key disappointment for the broker was the weakness in retail sales. The company's exposure to Victoria, CBD's, shopping centres, and its beauty offering has meant it has been impacted by covid-19, explains the analyst.  The company has closed 14 Priceline company stores (non-pharmacy) to lower its exposure to standalone retail stores, without the defensive element of pharmacy.

Credit Suisse lowers earnings -10% in FY21 on account of the weaker retail performance. The company's retail exposure is considered likely to continue to weigh on earnings in FY21 with cautious spending in a recessionary environment and lower foot traffic in the company's core locations.

The Neutral rating is unchanged and the target price is decreased to $1.05 from $1.10.

Target price is $1.05 Current Price is $1.07 Difference: minus $0.02 (current price is over target).
If API meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.18, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates CCL as Buy (1) -

Citi notes Coca Cola's business is stabilising with its balance sheet providing acquisition opportunities. Some of the options include Asahi’s Australian liquor assets and Kirin's Lion Dairy.

With a debt capacity of $400-$600m, the broker thinks the company will need to raise equity if it wishes to purchase both the assets. An acquisition is expected to be earnings accretive by circa 4-6%.

The broker retains its Buy rating with a target price of $9.85.

Target price is $9.85 Current Price is $10.75 Difference: minus $0.9 (current price is over target).
If CCL meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.11, suggesting downside of -5.9% (ex-dividends)

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

UBS rates CNI as Buy (1) -

Centuria Capital is raising $100m to provide the capacity to fund the acquisition of a Visy warehouse in Auckland, which will then be placed in a single-asset unlisted fund. Once the fund is sold down, the proceeds will be used for further growth on low gearing, the broker notes.

Centuria has upgraded guidance and remains the broker's preferred fund manager as assets under management grow faster than expected, although the dilutive raising has to be factored in in the short term. Target rises to $2.46 from $2.32, Buy retained.

Target price is $2.46 Current Price is $2.29 Difference: $0.17
If CNI meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Competitor Grifols expected plasma collections (impacted by covid-19) to decline by circa -10% for 2020. This has now further decreased to -15% for the year, reports Morgan Stanley.

Morgan Stanley notes if these estimates are used for CSL, it would result in the December quarter being down -20% rather than flat as expected. The calculations also suggest material industry-wide immunoglobulin shortages will likely persist for a longer time than originally anticipated.

On the bright side, the fact that Grifols plans on increasing plasma centres to 435 by 2035 from 295 in 2019 gives the broker confidence in the long term strength of the market.

Equal-weight rating with a target price of $282. Industry view: In-line.

Target price is $282.00 Current Price is $296.34 Difference: minus $14.34 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $309.96, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 CSL as Hold (3) -

Ord Minnett believes the rise in covid-19 infections in the US over the last few weeks raises the risk of plasma collections recovery slowing down or reversing.

The broker reviews the locations of CSL's collection centres, comparing it to the covid-19 hot spots in the US. According to the broker, nearly 75% of CSL centres are in the "Red Zone" states (with more than 100 confirmed infections per 100,000 people).

CSL's competitors are in the same boat with 83% of Takeda's centres and 76% of Grifols' centres in these states.

Hold rating and $290 target retained.

Target price is $290.00 Current Price is $296.34 Difference: minus $6.34 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $309.96, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 CWN as Outperform (1) -

Credit Suisse highlights much-stronger-than-forecast Perth gaming and non gaming revenues for Crown Resorts. Additionally, the broker expects margins to be higher, given the better-than-expected mix shift toward main gaming and away from VIP and non-gaming.

Crown digital was also very strong with revenue up 34%, consistent with wagering and social casino trends observed in Australia and North America, cites the analyst.

The Outperform rating is unchanged and the target price is increased to $10.35 from $10.20, as a result of higher forecast Perth profit and lower net debt (from the Digital Division cash generation).

Target price is $10.35 Current Price is $8.55 Difference: $1.8
If CWN meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $9.98, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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) -

Ord Minnett retains its Hold rating with the target price trimmed to $8.10 from $8.60.

The broker has re-allocated the first-half closure-related costs to significant items (from operating earnings). This has resulted in its FY21 operating income forecast rising by 18.8%.

The broker is conservative around Melbourne’s recovery along with the Barangaroo opening and run rates.

Target price is $8.10 Current Price is $8.55 Difference: minus $0.45 (current price is over target).
If CWN 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 $9.98, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates CWN as Buy (1) -

Crown Resorts' AGM update noted Perth gaming was up 16% year on year in the September quarter and non-gaming down -21%. Melbourne is closed, and a Sydney launch is up in the air. The broker is assuming January 1 for now.

Given international borders will likely remain shut for some time, impacting on VIPs, the broker has cut its earnings forecast by -50% in FY21. Target falls to $10.00 from $10.65. But the broker notes the stock is trading at the lowest multiple of invested capital ever seen by an Australian casino, and below Star Entertainment ((SGR)) for the first time.

Buy retained.

Target price is $10.00 Current Price is $8.55 Difference: $1.45
If CWN meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.98, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates HLS as Neutral (3) -

Healius's September quarter group revenue was $493m, up 18% versus last year with operating earnings up 250%. The pathology segment was positively impacted by covid-19. 

The company expects the sale of the Medical Center business to be completed by the end of the year with $470m proceeds to be received in the first half of FY21. Dividends are also expected to resume from the first half.

Citi has increased its first-half covid-19 pathology testing revenue forecast to $125m, up from $100m.

Neutral rating with the target rising to $3.80 from $3.55.

Target price is $3.80 Current Price is $3.76 Difference: $0.04
If HLS meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates HLS as Outperform (1) -

Healius recorded an in-line revenue run-rate with the forecast of Credit Suisse.

The broker highlights base business performance is growing ahead of pre-covid levels in both Pathology and Imaging (ex. Victoria). Day Hospitals also continues to perform strongly above prior year levels, notes the analyst. Additionally, the first quarter FY21 earnings (EBIT) margin improvement to 16% from 7.7% in the previous corresponding period surprised the analyst positively.

The company has continued to benefit from covid testing, with up to 18k tests/day at the peak. While this has now moderated to 7-10k/working day, Credit Suisse believes testing rates will continue at similar levels until a vaccine is widely distributed.

The Outperform rating is unchanged and the target price is increased to $4 from $3.52.

Target price is $4.00 Current Price is $3.76 Difference: $0.24
If HLS meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates HLS as Outperform (1) -

Healius's September quarter was strong, observes Macquarie, with operating income up 151% year on year. Pathology was helped by covid-19 testing but the broker notes non-covid revenues were ahead of what they were last year.

Heading into the second quarter, Macquarie considers the exit rates favourable with progress on internal initiatives. The broker's positive view is predicated on better margins and opportunities for growth. 

Outperform retained. Target rises to $4.10 from $3.80.

Target price is $4.10 Current Price is $3.76 Difference: $0.34
If HLS meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates HLS as No Rating (-1) -

Healius posted a 151% increase in earnings in the September quarter on a 16.5% increase on margins. It's all about testing, but management warned it doesn't expect such volumes to be maintained, and already they are beginning to ease.

The broker is currently restricted from making a recommendation.

Current Price is $3.76. Target price not assessed.

Current consensus price target is $3.78, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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 Investments has provided FY21 DPS guidance of 19.2 cents versus Morgans' estimate of 19 cents.

The broker relays there has been minimal impact from covid-19. Most of the company's assets are located in Queensland where stage 3 restrictions came into play from July 3, which was positive for the company's key tenant.

The portfolio is valued at approximately $786m across 45 assets with a weighted average cap rate (WACR) of 6.1%, a weighted average lease expiry (WALE) of 11 years and occupancy of 100%.

The Hold rating and target price of $3.15 are unchanged.

Target price is $3.15 Current Price is $3.04 Difference: $0.11
If HPI meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates HRL as Add (1) -

HRL Holdings delivered a stronger-than-expected first quarter trading update, according to Morgans. This was considered to be the result of revenue recovering from a challenging fourth quarter to be in-line with the previous corresponding period. Additionally, earnings (EBITDA) were higher, assisted by JobKeeper, explains the broker.

First half earnings guidance was better than Morgans expected and reflected strong food testing volumes from Analytica, flat environmental volumes and initial signs of a recovery in Geotech.

The broker increases the FY21 earnings forecast  by 13% and notes the group’s typical 1H/2H seasonality would imply upside risk to the broker's estimates.

With a strong medium-term growth outlook and further upside from accretive M&A, the Add rating is maintained.

 The target price is raised to $0.16 from $0.15.

Target price is $0.16 Current Price is $0.12 Difference: $0.04
If HRL meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates ILU as Overweight (1) -

Excluding Deterra, Morgan Stanley values Iluka Resources at $4.85. This includes the 20% of Deterra that Iluka will retain post the demerger.

Morgan Stanley expects Iluka to trade at a premium to its listed mineral sands peers given its ownership in Deterra and its dominant position in the global zircon market, both of which will enhance the stability in its earnings. 

A pickup in mineral sands production and sales in 2021 will benefit Iluka Resource, adds the broker.

Overweight rating. Target price reduced to $5 from $10.35. Industry view: Attractive.

Target price is $5.00 Current Price is $9.90 Difference: minus $4.9 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 49% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.01, suggesting upside of 75.6% (ex-dividends)

The company's fiscal year ends in December.

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 IRE as Hold (3) -

Iress has been successful in acquiring Onevue Holdings ((OVH)) for $115m - subject to court approval on October 28.

Morgans sees strategic merit in the acquisition over the long term, with the opportunity to integrate Xplan (front end planning software) with investment execution (platform services) and registry services. However. it's considered heightened investment may be required.

The company will fund the acquisition via existing cash and debt facilities. The broker details Onevue had net cash of $8.5m as at June 20.

The rating of Hold is unchanged. The target price is decreased to $11.70 from $12.05.

Target price is $11.70 Current Price is $9.95 Difference: $1.75
If IRE meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.32, suggesting upside of 14.3% (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 MCR as Outperform (1) -

Mincor Resources has commenced development activities at Durkin North and Cassini. Successful exploration activities at Cassini North may present a potential positive catalyst for the company, adds the broker.

Macquarie expects project development to be Mincor's core focus in 2021 with production commencing in early 2022.

The Outperform rating is maintained with a target price of $1.05.

Target price is $1.05 Current Price is $1.00 Difference: $0.05
If MCR meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates MGR as Outperform (1) -

A first quarter update highlighted to Credit Suisse generally positive trends relative to the June 2020 quarter. Relative to the broker's expectations, the update did not present any meaningful negative surprise.

Consistent with other REITs that have reported, the group's Office and Industrial collections were resilient, while Retail was the laggard – particularly due to Victorian and CBD assets, highlights the analyst.

The Outperform rating is retained and the target price of $2.41 is also unchanged.

Target price is $2.41 Current Price is $2.23 Difference: $0.18
If MGR meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Mirvac Group released its September quarter update. Rent collections/residential sales showed positive momentum but office developments were muted. The group sold circa 400/month, a slight decline from the circa 500 sales reported in June. 

Morgan Stanley notes the group has $921m worth of contracts on hand, the weakest since 2012 but reflective of Mirvac Group's shift to land lots rather than apartments.

No guidance was provided for FY21. Morgan Stanley maintains its Equal Weight rating with a target of $2.30. Industry view is In-Line.

Target price is $2.30 Current Price is $2.23 Difference: $0.07
If MGR meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates MGR as Buy (1) -

Mirvac's September quarter residential sales were up 53% on the prior quarter, continuing the strong rebound seen at the end of FY20. The developer's first build-to-rent project has seen good leasing momentum, the broker notes, at rents in excess of expectation.

Outside of resi, CBD retail remains weak while office is a little better. The broker sees further support on the way at both a federal and Victorian state level, with a fist home builder grant likely for the latter along with federal tax relief.  Buy and $2.72 target retained.

Target price is $2.72 Current Price is $2.23 Difference: $0.49
If MGR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates ORA as Hold (3) -

Orora provided a better-than-expected trading update with first quarter Australasian Beverage earnings (EBIT) in line with the Morgans forecast. Meanwhile in North America, earnings for both Orora Packaging Solutions (OPS) and Orora Visual (OV) beat the broker's estimates.

Morgans lifts the FY21 underlying earnings forecast by 2% due to upgrades to North America earnings, while forecasts for this period are unchanged for Australasia.

However, the broker warns the outlook (particularly in North America) remains highly uncertain. The company's ability to achieve the analyst's forecasts over the medium term is considered to depend on future operating conditions, the impact of covid-19 and management’s ability to drive sales growth, margin improvement and cost efficiency.

The Hold rating is unchanged and the target price is increased to $2.67 from $2.37.

Target price is $2.67 Current Price is $2.69 Difference: minus $0.02 (current price is over target).
If ORA 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 $2.77, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse describes the September quarter result for OZ Minerals as solid and believes the value is underpinned by spot pricing. However, the company is considered expensive if copper and/or gold prices retreat.

The Prominent Hill performance was ahead of the broker's forecast on strong grade-driven gold production. Additionally, forecast FY20 costs being revised lower was seen as a positive.

The Underperform rating is retained with the target price rising to $12.55 from $11.15.

Target price is $12.55 Current Price is $15.97 Difference: minus $3.42 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.29, suggesting downside of -3.5% (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

Macquarie rates OZL as Outperform (1) -

Macquarie notes OZ Minerals' September quarter gold production result was strong leading the miner to reduce its gold cost guidance and increase its gold production guidance. Copper production was in line with expectations.

December quarter presents many catalysts for the company, notes Macquarie. This includes expansion on Prominent Hill and a re-assessed pre-feasibility study on West Musgrave.

Strong gold and copper prices are expected to drive earnings momentum over 2021-22.

Outperform is retained. Target price rises to $18 from $15.80.

Target price is $18.00 Current Price is $15.97 Difference: $2.03
If OZL meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $15.29, suggesting downside of -3.5% (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

Morgan Stanley rates OZL as Overweight (1) -

September quarter production of copper and gold were -3% and -4% lower than Morgan Stanley expected. OZ Minerals expects the Prominent Hill expansion study to be released in November, in-line with the guidance.

OZ Minerals has increased gold production guidance by 5% to 251koz. This brings it in line with Morgan Stanley's 252koz. Prominent Hill gold guidance has also increased 7% driven by gold grades and recoveries.

Morgan Stanley maintains its Overweight rating with a target price of $15.80. Industry view: Attractive.

Target price is $15.80 Current Price is $15.97 Difference: minus $0.17 (current price is over target).
If OZL meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.29, suggesting downside of -3.5% (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

Morgans rates OZL as Hold (3) -

OZ Minerals reported stronger gold production, reports Morgans, thereby enabling lower 2020 cost guidance, helped by a higher gold price. Gold production guidance was raised by 7% at Prominent Hill.

The broker materially lifts the company's valuation, reflecting upgrades to copper and gold price assumptions, lower costs and Carrapateena de-risking.

The analyst highlights a continuing acceleration in a pro-growth agenda, and the company is approaching key development milestones at Prominent Hill and West Musgrave in coming months.

The Hold rating is unchanged and the target price is increased to $14.37 from $13.24.

Target price is $14.37 Current Price is $15.97 Difference: minus $1.6 (current price is over target).
If OZL meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.29, suggesting downside of -3.5% (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

Ord Minnett rates OZL as Lighten (4) -

Ord Minnett observes OZ Minerals' operational performance continued in the September quarter with gold production beating the broker's forecast and pushing costs to new lows. Ord Minnett notes the outperformance is due to a combination of high commodity prices, project execution and growth re-rates.

Ord Minnett prefers to maintain a cautious outlook since the stock appears expensive versus its peers and retains its Lighten recommendation. The target price is unchanged at $14.5.

Target price is $14.50 Current Price is $15.97 Difference: minus $1.47 (current price is over target).
If OZL meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.29, suggesting downside of -3.5% (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

UBS rates OZL as Buy (1) -

OZ Minerals' gold production was better than expected in the quarter and guidance has been raised for the third time since July. The backdrop for copper remains favourable, the broker notes, with 2020 set to be a record year of supply outages in Chile.

Despite a share price rally of 70% since June, the broker sees further upside on catalysts ahead. Buy retained, target rises to $17.60 from $15.75.

Target price is $17.60 Current Price is $15.97 Difference: $1.63
If OZL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $15.29, suggesting downside of -3.5% (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 RSG as Buy (1) -

Citi notes September quarter costs were higher than expected with Syama impacted by the strike action. Production was 4% ahead of the broker's forecast.

The broker thinks Resolute Mining will need to achieve its revised guidance and add cash to its balance sheet or investor confidence could wane.

Resolute Mining expects production to be at the lower end of 400-430koz. Costs are expected to be at the upper range of US$980-1080/oz.

Buy/High Risk retained. Target is reduced to $1.30 from $1.50.

Target price is $1.30 Current Price is $0.88 Difference: $0.42
If RSG meets the Citi target it will return approximately 48% (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 RSG as Outperform (1) -

Macquarie notes Resolute Mining's September quarter was mixed, with production 3% ahead of the broker's forecast while costs were 11% higher. Syama sulphide plant recoveries remained resilient despite the interruptions from strikes.

The broker expects stronger grades from Syama operations along with a better performance from the sulphide plant. The last quarter of 2020 is expected to be solid.

Outperform rating maintained. Target price falls to $1.40 from $1.50. The price target in GBP is 0.76.

Target price is $1.40 Current Price is $0.88 Difference: $0.52
If RSG meets the Macquarie target it will return approximately 59% (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

Citi rates SAR as Neutral (3) -

Saracen Mineral Holdings had a strong start to the financial year, observes Citi. About $100m was added to the balance sheet in the September quarter versus June quarter's modest $30m.

Saracen's September quarter gold production was at a record 154.4koz. This was better than expected with costs also lower than anticipated. The outperformance was driven by Thunderbox with production at Carosue Dam steady.

In the broker's view, the merger with Northern Star Resources ((NST)) looks likely to proceed and Saracen is Citi's preferred deal exposure. Guidance for FY20 is maintained at 600-640koz.

Citi reaffirms its Neutral rating with a target price of $6.20.

Target price is $6.20 Current Price is $6.08 Difference: $0.12
If SAR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.98, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SAR as No Rating (-1) -

Saracen Mineral Holdings's first-quarter production result was strong at 154.4koz, 5% ahead of Macquarie's estimate. The costs were lower than anticipated. With higher processed volumes and stronger grade, Thunderbox was the driver of the production beat.

The broker highlights Saracen's growth projects are underway with $106m capital deployed in the quarter.

Higher production and lower cost led to $98m in free cash being generated in the quarter, in line with Macquarie's forecast.

Macquarie is subject to research restrictions and cannot advise a rating or target.

Current Price is $6.08. Target price not assessed.

Current consensus price target is $5.98, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Saracen Mineral Holdings' September quarter gold production was in-line with operating costs 12% ahead of Morgan Stanley's estimate. Production at Thunderbox beat the broker's cost forecast by 38%.

The broker notes mine developments and ramp-ups continue according to plan. FY21 guidance remains intact.

Morgan Stanley reaffirms its Equal-weight rating with a target price of $5.65. Industry view: Attractive.

Target price is $5.65 Current Price is $6.08 Difference: minus $0.43 (current price is over target).
If SAR meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.98, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates SAR as Hold (3) -

Saracen Mineral Holdings September quarter delivered a solid result, observes Ord Minnett. Production of 154koz was in-line with the broker's expectations with costs beating the broker's forecast by 15% mostly to a strong performance from the Thunderbox mine.

FY21 guidance has been retained.

Ord Minnett maintains its Hold recommendation with the target price rising to $5.30 from $5.20.

Target price is $5.30 Current Price is $6.08 Difference: minus $0.78 (current price is over target).
If SAR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.98, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates SAR as Buy (1) -

Saracen Mineral Holdings reported 7% higher gold production in the quarter than the broker's forecast on -14% lower costs. Production and cost guidance is retained, despite being ahead of consensus estimates.

The broker would have a Buy on a standalone basis on Saracen, but approval of the proposed merger with Northern Star ((NST)) will be a game-changer. Buy and $6.75 target retained.

Target price is $6.75 Current Price is $6.08 Difference: $0.67
If SAR meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.98, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Citi downgrades Star Entertainment Group to Neutral from Buy with the target price rising to $4 from $3.60.

The downgrade comes ahead of competition ramping up with the opening of Crown Sydney ((CWN)) in the second half of FY21. Supporting catalysts have played out, believes the broker, prompting the downgrade.

Star’s domestic gross gaming revenue declined by -25% year to date (till 15 October). Citi expects Sydney domestic's gross gaming revenue to come down by circa -40-50% driven by restrictions.

The broker continues to prefer Star Entertainment over Crown Resorts but believes positive catalysts from the reopening of state borders are likely to be offset by increased competition and the regulatory focus shifting to the broader VIP market.

Target price is $4.00 Current Price is $3.57 Difference: $0.43
If SGR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates SGR as Outperform (1) -

Credit Suisse upgrades near-term EPS estimates for FY21 and FY22  by 43% and 5%, respectively, on stronger-than-expected gaming and non-gaming revenue. The target price is not changed as Queensland and Sydney changes were offsetting in FY23.

The analyst models first half domestic revenue for Queensland will be 90% of the previous corresponding period and expects that level to hold sequentially. This drives a 50% upgrade to the broker's segment earnings (EBITDA).

Star Entertainment Group retired $145m of debt in the September quarter, notes the broker.

The Outperform rating and target price of $3.85 are retained.

Target price is $3.85 Current Price is $3.57 Difference: $0.28
If SGR meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SGR as Outperform (1) -

Domestic gaming revenues are at 70% of pre-covid levels with the Queensland casinos at around 100% and The Star Sydney at around 60%.

Near term catalysts that can drive a re-rating include easing social distancing, assets recycling and improving cash flows. In fact, easing social distancing could double capacity at the casinos although this is not reflected in Macquarie's second-half forecasts.

Macquarie considers the valuation attractive and retains its Outperform rating, raising the target to $4.05 from $3.90.

Target price is $4.05 Current Price is $3.57 Difference: $0.48
If SGR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates SGR as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades its rating to Hold from Accumulate with the target price increasing to $3.50 from $3.25.

Star Entertainment Group provided its first-half FY21 update. The broker is pleased to note deleveraging plans appear to be successfully addressing the debt overhang.

The broker feels Sydney’s competitive environment may benefit Star more than expected. On the flip side, domestic revenue trends have softened to about 75% from 80% a year ago.

Ord Minnett has increased its FY21 operating earnings forecasts by 10.7% due to stronger Queensland revenues and better margins.

Target price is $3.50 Current Price is $3.57 Difference: minus $0.07 (current price is over target).
If SGR meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.76, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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 reported domestic gaming revenue down -30% from July to mid-October on the prior period with the contribution from VIP negligible, as expected. The fall from the prior period is largely due to restrictions in Sydney, the broker notes.

Queensland met expectations, hence the broker awaits a lifting of restrictions in Sydney a la Queensland. The casino's lenders have agreed to a covenant waiver for now but while debt is being repaid, there will be no dividends. Target rises to $4.00 from $3.90, Buy retained.

Target price is $4.00 Current Price is $3.57 Difference: $0.43
If SGR meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SKI as Outperform (1) -

Macquarie notes pressure building around the dividend over the last 24 months reflecting the low-interest rate environment. The broker believes Spark Infrastructure Group is at the bottom of its dividend cutting cycle.

A partial win around a tax matter will add to its cash flow, highlights the broker, along with a potential rule change around Transgrid and a more moderate final VPN decision.

Macquarie maintains its Outperform rating with the target price rising to $2.42 from $2.28.

Target price is $2.42 Current Price is $2.08 Difference: $0.34
If SKI meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.31, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in December.

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 STO as Buy (1) -

Santos' third-quarter production at 25.1mmboe was in-line with Citi's forecast. Sales at 29.1mmboe were also along expected lines. Total revenue missed the broker's estimate by -8% due to lower crude premiums versus Brent, weaker LPG pricing, and slightly softer LNG pricing.

Santos continues to be Citi's top pick due to higher returns from projects.

Buy rating maintained with the target price falling slightly to $7.02 from $7.29.

Target price is $7.02 Current Price is $5.08 Difference: $1.94
If STO meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 23.3% (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: 0.9

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

Credit Suisse rates STO as Outperform (1) -

Credit Suisse believes an in-line third quarter report for Santos indicates full-year production is tracking towards the higher end of 83-88 mmboe guidance. This is as the Western Australia Alcoa contract kicks in.

The company cut 2020 upstream opex guidance by US$0.2/boe to around US$8.5/boe (worth $0.07cps if sustained).

The analyst thinks the balance sheet balancing act required to fund growth has started to weigh on Santos sentiment recently. The analyst warns if the oil price continues a lower-for-longer outlook and further sell downs don’t materialise, Credit Suisse can’t 100% rule out a capital raise, given credit rating risk.

The Outperform rating and target price of $6.63 are unchanged.

Target price is $6.63 Current Price is $5.08 Difference: $1.55
If STO meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 23.3% (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: 0.9

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

Morgans rates STO as Add (1) -

Santos recorded a softer third quarter with production -4% below the Morgans estimate. Sales revenue was also -7% shy of the broker's forecast in a quarter where weak oil prices flowed through to lagged LNG prices.

Guidance for 2020 upstream opex was reduced to US$8.25-$8.75/boe (from US$8.50-$8.90/boe). LNG sales declined in the third quarter on falling seaborne demand and lower prices. With development work on the backburner while energy prices remain depressed, the company maintained positive cash flow in the third quarter, explains the broker.

The analyst sees attractive upside potential to the $6.25 target price, while also preferring the company's lower oil price exposure relative to close peers on the ASX.

The Add rating and $6.25 target price are unchanged. 

Target price is $6.25 Current Price is $5.08 Difference: $1.17
If STO meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 23.3% (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: 0.9

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

Ord Minnett rates STO as Buy (1) -

Santos reported growth across its entire operating portfolio in the September quarter, with production and sales both ahead of Ord Minnett’s estimates. Revenue was also higher versus the last quarter with the impact of weak LNG prices offset by higher crude prices.

Ord Minnett notes the strong third-quarter result gives some room for December quarter production to decline and still achieve the full-year production guidance.

The broker expects fourth-quarter cash flow to improve with rising spot LNG prices. Santos remains the broker's preferred stock in the sector.

Ord Minnett maintains its Buy rating with the target price rising to $7.30 from $7.25.

Target price is $7.30 Current Price is $5.08 Difference: $2.22
If STO meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 23.3% (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: 0.9

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

UBS rates STO as Buy (1) -

Santos posted a solid quarter, the broker suggests, featuring increased production on a new supply contract with Alcoa and lower production costs. The offset was lower relaised prices, but the broker believes these have troughed ahead of the northern hemisphere winter.

Given the lowest spot exposure among peers, Santo's prices were nevertheless the highest. Near term catalysts include final investment decisions on Moomba CCS and Barossa.

The broker prefers Santos in the sector. Target rises to $6.60 from $6.50, Buy retained.

Target price is $6.60 Current Price is $5.08 Difference: $1.52
If STO meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $6.49, suggesting upside of 23.3% (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: 0.9

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

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

Morgan Stanley notes Suncorp Group’s AGM points to the possibility of a further cost out program. 

Suncorp Bank will be closing 20 out of its circa 140 branches. The broker thinks going cashless could save the bank about $20m across all branches. On business interruption claims, Suncorp is confident about the exclusion wordings in its policies.

Morgan Stanley rates the stock as Equal-weight with a target price of $9.50. Industry view: In-line.

Target price is $9.50 Current Price is $8.80 Difference: $0.7
If SUN meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $10.48, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates WEB as Buy (1) -

No point in talking revenues, but Webjet has done a particularly good job in minimising and transforming its cost base, the broker suggests, providing for solid operationaly leverage once travel picks up again.

The stock is one of the broker's favoured virus laggards, as pent-up demand will drive a rebound once domestic borders reopen.

The broker has its fingers crossed for Christmas. In Europe, not much in lost revenue is anticipated unless no improvement by the northern summer next year. Buy and $4.95 target retained.

Target price is $4.95 Current Price is $3.94 Difference: $1.01
If WEB meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates WPL as Neutral (3) -

Woodside Petroleum's September quarter production was in-line with Citi's forecast while sales beat the broker's estimate by 6%. However, the total operating revenue was a -14% miss.

Even with the company trading at a -7% discount to its base valuation, the broker is less comfortable on the execution of growth than for its peers.

Citi retains its Neutral rating with the target price falling slightly to $21.64 from $21.67.

Target price is $21.64 Current Price is $18.27 Difference: $3.37
If WPL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $22.83, suggesting upside of 23.4% (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

Credit Suisse rates WPL as Outperform (1) -

The third quarter results for Woodside Petroleum were consistent with Credit Suisse forecasts.

The broker considers a possible equity raise to fund growth, and North West Shelf decline risk continue to weigh on the company. But those scenarios are considered as increasingly priced in.

Credit Suisse awaits an investor briefing in November for potential positives. The Outperform rating is unchanged and the target price is lowered to $24.57 from $24.70.

Target price is $24.57 Current Price is $18.27 Difference: $6.3
If WPL meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $22.83, suggesting upside of 23.4% (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) -

Third quarter production was 1% above Morgans estimate, while group sales revenue was -6% below.

The broker speculates if the company can farm down its interest in Scarborough, and shelves Browse, it will be able to fund its growth aspirations with existing capital resources.

However, this view by the analyst is sensitive to any acquisitions the company makes (a stated objective) and/or if the company is the successful bidder on Chevron’s stake in the North West Shelf.

The Add rating is unchanged and the target price is decreased to $23.30 from $23.40.

Target price is $23.30 Current Price is $18.27 Difference: $5.03
If WPL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $22.83, suggesting upside of 23.4% (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 Buy (1) -

Woodside Petroleum's September-quarter production report was somewhat soft versus Ord Minnett’s estimates.

Weak LNG prices have had a material impact on revenue over the last two quarters. The broker expects this to improve but is somewhat cautious looking at what the broker considers to be overly optimistic consensus earnings forecasts.

Buy recommendation maintained with the target price declining to $23.30 from $23.55.

Ord Minnett prefers Santos ((STO)) and Beach Energy ((BPT)) in the sector.

Target price is $23.30 Current Price is $18.27 Difference: $5.03
If WPL meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $22.83, suggesting upside of 23.4% (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 September quarter was positive on balance, the broker suggests, with increased production at Pluto offsetting lower realised LNG prices. Revenue was broadly in line.

The company plans to offload -8% of its workforce but the broker awaits news on further cost savings at the upcoming investor day. The broker retains a $23.50 target and a Buy rating on valuation.

Target price is $23.50 Current Price is $18.27 Difference: $5.23
If WPL meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $22.83, suggesting upside of 23.4% (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