Australian Broker Call

Citi rates A2M as Sell (5) -

Momentum remains strong although Citi reiterates a Sell rating, based on optimistic margin expectations for FY21 and beyond. The broker believes these expectations do not reflect the impact of the increased investment required to drive sales growth in China.

Moreover, competition is a risk, with multiple players entering the market. The company has revealed its direct China channels are expected to grow faster than the daigou channel.

Margin guidance for the first half has been raised to 32% from 31%, because of the delay to marketing expenditure. Citi's target is raised to $12.30 from $12.20.

Target price is $12.30 Current Price is $13.84 Difference: minus $1.54 (current price is over target).
If A2M meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 A2M as Outperform (1) -

a2 Milk provided solid revenue guidance and margin upgrades at its AGM, thanks to price increases, product launches and benefits from the Synlait Milk ((SM1)) contract renegotiation. Improved disclosure addressed a number of market concerns, Macquarie notes.

The broker has made only minor forecast adjustments but has lifted its target to $16.20 from $15.70. Outperform retained.

Target price is $16.20 Current Price is $13.84 Difference: $2.36
If A2M meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Morgan Stanley rates A2M as Underweight (5) -

Morgan Stanley assesses the company's upgraded margin guidance is driven by pricing/channel mix benefits. Sales guidance for the first half is in line with expectations.

The broker increases first half sales growth forecasts to 29% and FY20 revenue growth forecasts to 23%, driven by Chinese label sales and strong fresh milk in Australasia. This is offset by slower growth in infant formula in Australasia.

Underweight rating. The broker raises the target to $10.80 from $10.00. Industry view is Cautious.

Target price is $10.80 Current Price is $13.84 Difference: minus $3.04 (current price is over target).
If A2M meets the Morgan Stanley target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Morgans rates A2M as Hold (3) -

The company's update was more positive than Morgans expected because of lower cost expectations. Sales guidance for the first half was slightly below forecasts but operating earnings margin guidance of 31-32% was higher.

It seems to the broker that revenue growth will now come with a higher cost in the future as the company is not as reliant on the daigou channel. Large losses in the US are also a drag on the margin.

Continued strong growth remains a credible outcome in the light of peer results, the broker suggests. Hold rating maintained. Target is raised to $14.20 from $13.73.

Target price is $14.20 Current Price is $13.84 Difference: $0.36
If A2M meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 A2M as Lighten (4) -

The company has upgraded FY20 operating earnings margin guidance to 29-30%. The main surprise for Ord Minnett was the first half margin guidance of 31-32%, reflecting a skew to the second half in terms of costs, marketing activity and investment.

Ord Minnett assesses the required step up in investment to access the significant opportunity in Chinese infant formula and US liquid milk continues to dominate the stock and is now more likely to occur from 2020 onwards. Lighten rating and $12.92 target maintained.

Target price is $12.92 Current Price is $13.84 Difference: minus $0.92 (current price is over target).
If A2M meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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 A2M as Buy (1) -

UBS found the AGM update positive, with operating earnings margin (EBITDA) guidance upgraded. The fact that gross margin drove the upgrade is positive in the broker's opinion, as it suggests the company is not discounting in order to move product.

The broker lifts estimates by 5-6% to reflect first half revenue guidance of NZ$780-800m and EBITDA margin guidance of 31-32%. Buy rating maintained. Target is raised to NZ$17.00 from NZ$16.10.

Current Price is $13.84. Target price not assessed.

Current consensus price target is $13.28, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Morgan Stanley rates APE as Overweight (1) -

Weak vehicle sales are not a complete surprise to Morgan Stanley. However, the significant re-basing of earnings was not anticipated.

The strategic rationale and merger synergies are unchanged but questions remain over earnings quality at the recently-acquired Automotive Holdings.

Morgan Stanley suspects the 2019 starting point should have been lower while merger distractions likely affected sales efforts.

Overweight maintained. Target is reduced to $13.50 from $16.00. Industry view: In-Line.

Target price is $13.50 Current Price is $9.62 Difference: $3.88
If APE meets the Morgan Stanley target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $13.12, suggesting upside of 36.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.8

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

UBS rates CLW as Neutral (3) -

The company has acquired three assets, funded by an institutional placement, entitlement offer and debt. The assets are located in Sydney and Melbourne and increase the office exposure to 35% from 28%.

A benign long-term outlook for interest rates makes the dividend yield of 5% attractive, UBS believes. Against this, limited opportunity is envisaged for meaningful upgrades or accretive acquisitions without increasing risk/leverage.

Neutral rating maintained. Target rises to $5.21 from $5.10.

Target price is $5.21 Current Price is $5.48 Difference: minus $0.27 (current price is over target).
If CLW meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.49, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates CRN as Outperform (1) -

The company has indicated 2019 operating earnings (EBITDA) will now be below the guidance range of US$687-737m. Softer metallurgical coal prices in the fourth quarter are being blamed along with a -3% reduction in saleable production.

Credit Suisse adjusts estimates down for 2019 by -5% but retains 2020 assumptions. Outperform rating and $4 target maintained.

The broker considers the downgrade, whilst disappointing, largely immaterial in the larger picture when considering the company's balance sheet and unchanged production plans at Curragh.

Target price is $4.00 Current Price is $2.09 Difference: $1.91
If CRN meets the Credit Suisse target it will return approximately 91% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 49.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.7

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

Morgans rates CRN as Add (1) -

The company has downgraded guidance to reflect materially softer metallurgical coal markets. Morgans trims estimates for 2019-21 by -6-7%. The broker still considers the stock cheap, but its valuation remains sensitive to the health of physical markets.

Therefore, the risks to 2020 volumes indicate that momentum investors should wait for a better opportunity. Add rating maintained. Target is reduced to $2.95 from $3.36.

Target price is $2.95 Current Price is $2.09 Difference: $0.86
If CRN meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 49.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.7

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

UBS rates HT1 as Neutral (3) -

Radio market revenues are down -5% in the year to date while the company's radio network was in line with the market in September. UBS now assumes Australian Radio Network revenues decline -7-8% in the second half.

The broker suspects the market was expecting the soft update and notes visibility on November and December remains limited. Thus risks to forecasts remain. Neutral rating maintained. Target is reduced to $1.70 from $1.80.

Target price is $1.70 Current Price is $1.63 Difference: $0.07
If HT1 meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: -0.3

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

UBS rates KGN as Neutral (3) -

UBS found the update positive as gross profit grew 23% and costs fell -9% year-on-year. Stronger profit growth was driven by exclusive brands, marketplace and advertising income.

The broker expects marketing efficiencies will now start to be cycled and forecasts 13% three-year compound growth in earnings per share. However, the near-term upside is considered priced in and a Neutral rating and $6.90 target are maintained.

Target price is $6.90 Current Price is $7.21 Difference: minus $0.31 (current price is over target).
If KGN meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

First half revenue guidance was weaker than expected, which Citi suspects may have been the result of delays to projects. The broker upgrades to Neutral from Sell, believing the company is well-placed to capitalise on the demand outlook in its core markets.

Nevertheless, Citi envisages downside risk to near-term earnings, given a lower conversion rate for the pipeline of work as well as lower margins. Target is raised to $15.90 from $15.50.

Target price is $15.90 Current Price is $16.06 Difference: minus $0.16 (current price is over target).
If MND meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.61, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Credit Suisse rates MND as Neutral (3) -

The company has provided initial guidance for FY20 at its AGM, indicating first half revenue of around $830m which will be broadly consistent with the prior corresponding half and noting margins will reflect heightened levels of competition.

Credit Suisse continues to expect strong growth into FY21, anticipating visibility will improve in the coming months as major projects are due to be awarded. Neutral rating maintained. Target is reduced to $16.20 from $18.00.

Target price is $16.20 Current Price is $16.06 Difference: $0.14
If MND meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates MND as Neutral (3) -

Monadelphous Group's AGM provided guidance to flat revenue growth in the first half, but progressive FY growth on a second half skew. The broker has trimmed forecasts but believes FY19 likely saw the bottom of the cycle as the resource sector recovery continues along with ongoing maintenance growth.

The issue is nevertheless one of timing, with revenue recoveries continually shifting out in time. The broker cuts its target to $16.34 from $17.28 and prefers Downer EDI ((DOW)) and Worley ((WOR)) in the sector.

Target price is $16.34 Current Price is $16.06 Difference: $0.28
If MND meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

UBS rates MND as Buy (1) -

Monadelphous expects first half revenue to be similar to the prior corresponding half. UBS assesses this implies a flat result vs prior forecasts for modest growth.

A skew to the second half is expected, in line with the broker's view that a step up in iron-ore mine replacement activity will occur. Buy rating maintained. Target is reduced to $18.00 from $18.15.

UBS trims FY20-21 estimates by -4%, mainly because of project phasing revisions.

Target price is $18.00 Current Price is $16.06 Difference: $1.94
If MND meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $16.61, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates OGC as Accumulate (2) -

Ord Minnett assesses the company's target for a medium-term increase in production of 50% could largely come from New Zealand, but after incorporating a 15-month production hiatus at Waihi earnings forecasts have been reduced by -20% for 2020 and -19% for 2021.

The broker continues to believe this mine as well as Macraes can be operating for some time yet. Accumulate rating maintained. Target is reduced to $4.10 from $4.40.

Target price is $4.10 Current Price is $2.80 Difference: $1.3
If OGC meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 61.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.9

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

Citi rates QAN as Buy (1) -

Qantas has provided ambitious targets for a number of its operating segments. Qantas domestic margin targets of 18% have been set for beyond FY24 with Jetstar domestic targets of 22%. Loyalty earnings targets of $500-600m by FY22 have also been reiterated.

Citi assumes the Australian domestic airline market will remain rational in the near term. Further movements in the share price are likely to be driven by earnings revisions, the broker asserts, as well as multiple expansion as the earnings streams become more visible. Buy rating and $6.90 target maintained.

Target price is $6.90 Current Price is $7.21 Difference: minus $0.31 (current price is over target).
If QAN meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.30, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates QAN as Neutral (3) -

Qantas is targeting increased earnings (EBIT) margins in its domestic business from cost reductions, employee engagement and a focus on customers. EBIT margin targets of 18% have been set for Qantas domestic and 22% for Jetstar domestic, to be achieved by FY24.

A $500-600m earnings target for loyalty has been reiterated for FY22. Returns of over 10% for Qantas international and 15% for Jetstar International have been flagged.

Credit Suisse suspects the targets are not sustainable, although could be achieved in a "lucky year". Neutral maintained. Target is raised to $6.60 from $6.00.

Target price is $6.60 Current Price is $7.21 Difference: minus $0.61 (current price is over target).
If QAN meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.30, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Macquarie rates QAN as Outperform (1) -

Qantas' investor day highlighted the ongoing transformation of the business, which continues to provide for improved earnings quality and sustainability. The airline's targets for domestic margins imply 9% compound growth out to FY24. While this assumes ongoing rational competition, the figure is well ahead of the broker's forecast.

The broker retains Outperform, noting Qantas is currently trading at a -24% discount to global peers. The broker's $8.00 target price, up from $7.90, implies a narrowing of that discount to -20%.

Target price is $8.00 Current Price is $7.21 Difference: $0.79
If QAN meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Morgan Stanley rates QAN as Overweight (1) -

The company's strategy briefing signalled to Morgan Stanley international resilience and ongoing momentum in loyalty. There was also a focus on profitability upside in domestic.

The company's targets are predicated on a favourable market structure and continued discipline in terms of capacity, the broker suggests. Overweight retained. Target is raised to $7.50 from $7.00. Industry view is Cautious.

Target price is $7.50 Current Price is $7.21 Difference: $0.29
If QAN meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

UBS rates QAN as Buy (1) -

UBS considers the most material disclosure at the company's investor briefing was a five-year target for the Qantas domestic earnings (EBIT) margin of 18%, and 22% for Jetstar domestic.

While the targets appear optimistic at first glance, UBS believes they are based on realistic assumptions for 2.5% unit revenue growth per annum and unit costs growth of 1% per annum.

However, disciplined capacity growth from all domestic competitors is critical. Buy rating and $7.50 target maintained.

Target price is $7.50 Current Price is $7.21 Difference: $0.29
If QAN meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.30, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates RHC as Neutral (3) -

Credit Suisse expects subdued volume growth in the Australian private hospital industry will continue, as the government has little appetite for significant reforms. The broker assesses Ramsay Health is best positioned to grow above the market.

The broker is wary, nonetheless, that a weaker case-mix may dilute the Australian margin over the medium term. Neutral. Target is steady at $65.

Target price is $65.00 Current Price is $72.19 Difference: minus $7.19 (current price is over target).
If RHC 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 $68.67, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

Citi upgrades to Buy from Neutral, given the likely acquisition of Barrick Gold's 50% stake in the Kalgoorlie Central Gold Mine JV and a pullback in the Saracen Mineral share price. Target is raised to $4.10 from $3.90.

The broker cautions that the acquisition has downside risk for the near term, but on its gold price estimates the deal is accretive, with opportunities to exercise the company's underground expertise.

Target price is $4.10 Current Price is $3.03 Difference: $1.07
If SAR meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates SAR as Outperform (1) -

Saracen Mineral has agreed to buy Barrick Gold's half of the Super Pit in WA for US$750m, funded by a -13% discounted equity raise and debt. The acquisition is transformative, the broker suggests, as extension of the miner's production growth trajectory is a key catalyst for a re-rating.

The stock may also be up for inclusion in the ASX100, which would also provide for a re-rate of its net asset value premium in line with other ASX100 producers, the broker notes. Target rises to $4.40 from $4.30, Outperform retained.

Target price is $4.40 Current Price is $3.03 Difference: $1.37
If SAR meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Morgan Stanley rates SHL as Overweight (1) -

Sonic Healthcare has reaffirmed FY20 operating earnings (EBITDA) guidance, expecting 6-8% growth at constant currency rates. Interest expense is now expected to decrease rather than increase, and Morgan Stanley calculates a net interest expense of $78.3m, -8% below its current forecasts.

Such an outcome would increase net profit and earnings per share by 1%. The broker retains an Overweight rating and $32.38 target. Industry view: In Line.

Target price is $32.38 Current Price is $29.83 Difference: $2.55
If SHL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.40, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Ord Minnett rates SHL as Accumulate (2) -

Ord Minnett notes improving conditions and a lack of near-term funding or regulatory headwinds as well as the potential for M&A.

The broker increases net profit estimates by 1% and maintains an Accumulate rating with a $32 target.

Target price is $32.00 Current Price is $29.83 Difference: $2.17
If SHL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.40, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

UBS rates SHL as Sell (5) -

At the AGM, the company has reaffirmed FY20 guidance for operating earnings (EBITDA) growth of 6-8%. Despite the improvement in industry growth in both Australian pathology and imaging services, UBS considers the valuation full.

Ultimately, service providers remain price takers and this should be reflected in the company's valuation, in the broker's opinion. Sell rating and $26.50 target maintained.

Target price is $26.50 Current Price is $29.83 Difference: minus $3.33 (current price is over target).
If SHL meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.40, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Morgans rates TNE as Hold (3) -

FY19 results were marginally ahead of expectations. The report was somewhat messy, Morgans observes, because it was the first full year of new accounting standards. No quantifiable commentary on FY20 was provided other than expectations of strong profit growth.

Guidance for the medium term was reiterated, implying a 15% compound growth rate in the target for earnings per share.

While the stock is high-quality and another strong year is expected, Morgans believes it is fairly priced at current levels and maintains a Hold rating. Target is raised to $8.26 from $7.33.

Target price is $8.26 Current Price is $8.69 Difference: minus $0.43 (current price is over target).
If TNE meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.64, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates TNE as Hold (3) -

Ord Minnett found the FY19 result mixed, with lower costs but softer revenue. Management is now targeting a pre-tax profit margin of 35% vs 30% previously. FY20 guidance continues to suggest strong growth.

Ord Minnett revises cash flow forecasts lower by -12-30% for the near term but raises these for the longer term. This increases the target to $7.50 from $6.90. Hold maintained.

Target price is $7.50 Current Price is $8.69 Difference: minus $1.19 (current price is over target).
If TNE meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.64, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.3

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

Ord Minnett rates WEB as Buy (1) -

Ord Minnett is increasingly confident in its Buy rating. Although FY20 guidance was broadly in line with expectations it appears the market's conviction in the numbers is low.

The broker assesses the market was expecting further downgrades and, in reality, the opposite seems to have occurred.

This suggests Webjet is well-positioned to deliver above guidance or, Ord Minnett asserts, at worst-case at the top end of guidance. Target is raised to $21.05 from $20.20.

Target price is $21.05 Current Price is $12.88 Difference: $8.17
If WEB meets the Ord Minnett target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $15.06, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates WPL as Neutral (3) -

Woodside Petroleum and BHP Group ((BHP)) have agreed a tolling price for Scarborough gas at Pluto LNG, removing what the broker saw as a major hurdle to Woodside's long term production outlook. Scarborough can now move through to a final investment decision on the first half of 2020.

Meanwhile, agreement with the North West Shelf JV and Browse JV remain key hurdles to Woodside's medium term production and here the broker sees risk in the timelines. Neutral retained, target rises to $35 from $33.

Target price is $35.00 Current Price is $34.01 Difference: $0.99
If WPL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $34.51, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

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

Morgan Stanley observes progress is being made on Scarborough and Senegal projects while it appears Browse requires further negotiation and remains uncertain.

Valuation has increased, owing to the incorporation of more resource at Scarborough and a longer tail of production. This is offset to some extent by expenditure phasing for the project.

Morgan Stanley also reduces the risk weighting for the Senegal asset as a final investment decision appears imminent.

Equal-weight maintained. Target is raised to $34.00 from $32.70. Industry view: In-Line.

Target price is $34.00 Current Price is $34.01 Difference: minus $0.01 (current price is over target).
If WPL meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.51, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

Ord Minnett rates WPL as Upgrade to Accumulate from Hold (2) -

Ord Minnett suggests the Scarborough/Pluto project has been materially de-risked through the 52% increase in the Scarborough resource and the agreement with BHP Group ((BHP)) over a tolling price.

The next step is to progress with the Browse/North West Shelf development, which appears delayed somewhat. As the outlook is clearer, Ord Minnett upgrades to Accumulate from Hold. Target is raised to $38.50 from $34.00.

Target price is $38.50 Current Price is $34.01 Difference: $4.49
If WPL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $34.51, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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

UBS rates WPL as Neutral (3) -

Woodside has reiterated production growth forecasts of more than 6% over 2019-28. The next major phase of growth, UBS assesses, is tied to realising the Burrup hub vision and delivering on Scarborough and Browse.

With BHP Group ((BHP)) agreeing on the Scarborough tolling fee, the broker is more comfortable the company can realise its Burrup hub expectations. Neutral rating maintained. Target rises to $34.10 from $32.60.

Target price is $34.10 Current Price is $34.01 Difference: $0.09
If WPL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $34.51, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY19:

Forecast for FY20:

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

Market Sentiment: 0.2

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