Australian Broker Call

UBS rates A2M as Upgrade to Buy from Neutral (1) -

The latest survey of pregnant women in China conducted by UBS has found being a premium and trusted brand remains of importance, but this year has seen a big increase in the importance of being sourced from a trusted country, especially online. 

New Zealand clearly gets a nod given A2 is rising rapidly up the charts on brand awareness and performance. A2 now rates sixth on "bought most often" and the broker sees this as highly encouraging as the company rolls out physical stores.

Encouraging enough to upgrade to Buy, despite the obvious regulatory risks in China. Target is raised to NZ$2.75 from NZ$2.38.

Current Price is $2.30. Target price not assessed.

Current consensus price target is $1.80, suggesting downside of -23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.3

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

Citi rates AMC as Buy (1) -

Amcor is scheduled to report on Monday, Feb 13 and Citi analysts, staunch supporters for a long while, point out investors should brace for a larger than usual skew to H2 this financial year.

Citi is forecasting a -6% fall in net profit, from $309m to $290m. This translates into a -3% fall in constant currency format. Acquisitions and restructuring should provide boost to H2. Price target decreases on the back of slight FX-triggered reductions; to $16.20 from $16.95. Buy.

Target price is $16.20 Current Price is $14.55 Difference: $1.65
If AMC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.32, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.3

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

Ord Minnett rates AMC as Hold (3) -

Ord Minnett expects first half results to benefit from acquisitions completed in FY16, but believes growth will be offset by de-stocking within the flexibles tobacco business as well as from costs associated with acquisition integration.

The broker forecasts net profit to decline -1.9% to US$300m. Earnings forecasts include a minor headwind relating to unfavourable currency movement.

Hold rating maintained. Target falls to $15.15 from $15.50.

Target price is $15.15 Current Price is $14.55 Difference: $0.6
If AMC meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $15.32, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.3

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

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

Citi had earlier slapped a Sell rating on the stock as it was deemed well overcooked, but now the share price has fallen -16% since the start of the year, the analysts think it's time to upgrade to Neutral.

Ahead of the upcoming interim report, forecasts have been left largely unchanged.

Target price is $16.26 Current Price is $15.59 Difference: $0.67
If ARB meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $16.48, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Citi rates BWP as Sell (5) -

Interim performance slightly missed, but Citi analysts see rising operational risks and that's why the Sell rating remains in place. Adjusting for higher beta sees the target price decline -6% to $2.64. This remains the broker's least preferred retail small cap exposure.

Target price is $2.64 Current Price is $2.86 Difference: minus $0.22 (current price is over target).
If BWP 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 $2.76, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Morgan Stanley rates BWP as Underweight (5) -

First half results were in line with Morgan Stanley's forecasts. The broker now introduces downtime from FY18 as Bunnings ((WES)) vacates several of the trust's properties.

Underweight rating, Cautious industry view and $2.50 target retained.

Target price is $2.50 Current Price is $2.86 Difference: minus $0.36 (current price is over target).
If BWP meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.76, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Ord Minnett rates BWP as Lighten (4) -

The first half result shows that around 20% of the portfolio will expire over the next  3-4 years. Ord Minnett observes this is reasonably modest by industry standards, but two thirds of the expiries are existing Wesfarmers ((WES)) tenants.

The broker expects, while the company should be able to address a number of these expiries in advance, there will be an impact on occupancy and comparable income growth. FY18 and FY19 will be most affected.

Lighten retained. Target rises to $2.83 from $2.78.

Target price is $2.83 Current Price is $2.86 Difference: minus $0.03 (current price is over target).
If BWP meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.76, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

UBS rates BWP as Neutral (3) -

BWP's distributable income beat the broker by 1% thanks to lower costs. Guidance of about 3% dividend growth is unchanged. 

The challenge for the trust is nevertheless the pending move by Bunnings to up and leave some old stores to move into the newer stores left behind by Masters in preferred locations. BWP has suggested some longer term ideas to counter this but in the near term has not de-risked the impact, the broker warns.

Neutral retained.Target falls to $2.91 from $3.05.

Target price is $2.91 Current Price is $2.86 Difference: $0.05
If BWP meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.8

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

Citi rates CAR as Buy (1) -

Citi analysts have kept Carsales.com as their top pick in the media/tech sector on the expectation cost growth will moderate while top line trends are improving. The forecast is for 3yr CAGR of 11%.

The analysts expect current growth rates in online advertising to be sustainable in the longer term driven by both volume and yield in Dealer, increased demand in Display and Redbook expanding.

Estimates have been slightly increased. Price target lifts to $12.50. Buy rating retained. Interestingly, Citi's positive view is predominantly domestically based, with growth contribution from international expansion still seen as a medium to longer term prospect.

Target price is $12.50 Current Price is $10.83 Difference: $1.67
If CAR meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Credit Suisse rates CAR as Outperform (1) -

First half EBITDA was below Credit Suisse forecasts. This was because of higher-than-expected costs growth in the domestic business.

The company expects this cost growth to ease going forward, which signals to the broker that operating leverage will return and core earnings growth  accelerate.

Credit Suisse trims its target  to $12.00 from $12.25. Outperform rating retained.

Target price is $12.00 Current Price is $10.83 Difference: $1.17
If CAR meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Deutsche Bank rates CAR as Hold (3) -

First half results were in line with Deutsche Bank. Despite a solid domestic performance the broker lowers forecasts to reflect lower earnings at Stratton and the macro economic conditions impacting Webmotors.

With the business remaining highly leveraged to any movement in volumes, despite a cost reduction program, the broker now expects second half earnings to decline before a return to growth in FY18. Hold rating and $11.45 target retained.

Target price is $11.45 Current Price is $10.83 Difference: $0.62
If CAR meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Macquarie rates CAR as Outperform (1) -

Macquarie observes the first half results were solid, with encouraging revenue trends. As expected, Stratton revenues were negatively affected by supplier issues and the broker expects a gradual re-basing from here as the business adjusts.

Macquarie envisages scope for better earnings momentum in the second half, given the cost profile. Outperform rating and $13.20 target retained.

Target price is $13.20 Current Price is $10.83 Difference: $2.37
If CAR meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Morgan Stanley rates CAR as Overweight (1) -

First half results broadly met Morgan Stanley's expectations. The question for the broker is whether the company can return to double-digit growth in earnings per share.

The risks the broker envisages, if the company cannot accelerate earnings growth, is a de-rating in the price/earnings ratio. Overweight retained, as recent share price weakness reflects some of the broker's concerns.

Industry view is: Attractive. Price target is reduced to $12.50 from $13.50.

Target price is $12.50 Current Price is $10.83 Difference: $1.67
If CAR meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Morgans rates CAR as Hold (3) -

First half results were one of the weakest to date, Morgans asserts. Earnings were affected by an increase in advertising costs and the problems with Stratton Finance.

The broker notes management remains confident of returning to more robust earnings growth in the second half. Hold rating retained. Target raised to $11.14 from $11.07.

Target price is $11.14 Current Price is $10.83 Difference: $0.31
If CAR meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Ord Minnett rates CAR as Buy (1) -

First half results beat Ord Minnett's estimates at the EBITDA line by 2%, underpinned by growth in the dealer segment and resilience in display advertising.

The broker expects the fee increase in the dealer segment and strength in data & research will offset ongoing challenges in Stratton in the second half  to once again deliver a quality full year result.

Buy rating retained. Target rises to $13.07 from $12.06.

Target price is $13.07 Current Price is $10.83 Difference: $2.24
If CAR meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

UBS rates CAR as Neutral (3) -

Carsales' result was in line with the broker. The fact it wasn't a miss is what prompted the share price rally, the broker suggests.  Core earnings were pleasingly strong, offsetting forewarned substantial declines in finance revenues.

Second half guidance of solid growth is typically vague but the broker is happy with its FY17 earnings growth forecast of 10%. While the stock is not as expensive as it has been in the past, yesterday's rally has it at fair value as far as the broker is concerned.  

Neutral and $10.50 target retained.

Target price is $10.50 Current Price is $10.83 Difference: minus $0.33 (current price is over target).
If CAR meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.05, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Citi rates CIM as Sell (5) -

The FY report comprised several one-offs, point out Citi analysts. Their view remains: lack of clarity on top of lack of free float. Hence, the Sell rating remains in place.

The analysts do not yet want to assume higher margins, despite the potential for integration benefits from UGL. Price target jumps to $27.72 from $19.72. It appeared, to the analysts, that management didn't have a good grip on what the future actually holds.

Target price is $27.72 Current Price is $38.85 Difference: minus $11.13 (current price is over target).
If CIM meets the Citi target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.50, suggesting downside of -27.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

Deutsche Bank rates CIM as Sell (5) -

2016 results were at the top end of guidance and ahead of Deutsche Bank, demonstrating improved demand in end markets.

Nevertheless, Deutsche Bank is cautious, as 2017 guidance implies low or negative organic growth and low margin contracts could begin to affect earnings.

Group margins have reached peak levels and the stock appears expensive to the broker. Sell rating retained. Target rises to $31.39 from $27.48.

Target price is $31.39 Current Price is $38.85 Difference: minus $7.46 (current price is over target).
If CIM meets the Deutsche Bank target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.50, suggesting downside of -27.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

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

2016 net profit was above Macquarie's estimates and at the top end of guidance. FY17 net profit guidance is 14% ahead of the broker's previous estimates, at $640-700m.

The broker notes the company has now hit the upper end of guidance in each of the last two years, which provides a template for 2017. The project pipeline is robust with $100bn in relevant projects coming on stream in 2017.

The broker upgrades to Outperform from Neutral and raises the target to $42.50 from $35.02. 2017 and 2018 earnings per share estimates are upgraded by 17% and 15% respectively.

Target price is $42.50 Current Price is $38.85 Difference: $3.65
If CIM meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $28.50, suggesting downside of -27.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

Morgan Stanley rates CIM as Underweight (5) -

2016 headline net profit was strong, but adjusting for what Morgan Stanley believes are non-operating items taken above the line and the impact of UGL, net profit was actually below estimates. 2017 net profit guidance is ahead of estimates.

Moreover, if not for around $578m in pre-payments, cash flow would have been significantly weaker, the broker calculates. As a result, Morgan Stanley continues to envisage a disconnect between the headline figures and the underlying dynamics.

Morgan Stanley retains its Underweight rating and Cautious industry view. Target is steady at $12.40.

Target price is $12.40 Current Price is $38.85 Difference: minus $26.45 (current price is over target).
If CIM meets the Morgan Stanley target it will return approximately minus 68% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.50, suggesting downside of -27.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.5

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

Macquarie rates GMA as Outperform (1) -

2016 underlying net profit beat Macquarie's estimates. The outlook for 2017 is more cautious than the broker expected, specifically the claims ratio guidance of 40-50%.

The company also flagged customer re-contracting risk, while a lack of capital management in the form of special dividends disappointed the broker.

Macquarie expects earnings will support around a 10% dividend yield for 2017 and 2018 and the forecast trajectory of regulatory capital requirements supports a capital return of around $600m over the same period. Outperform retained. Target is reduced to $3.56 from $3.67.

Target price is $3.56 Current Price is $2.87 Difference: $0.69
If GMA meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

UBS rates GMA as Neutral (3) -

While Genworth's result was slightly better than the broker had expected, and delinquencies remained largely stable, weak full year guidance was the issue, highlighting the current challenge for insurers, the broker suggests, of negative operational leverage.

The likely loss of the company's second largest customer doesn't help either. In theory, there's a greater argument for capital returns, the broker notes, but Genworth is now citing a need to invest in new initiatives. Neutral retained. Target falls to $2.80 from $2.90.

Target price is $2.80 Current Price is $2.87 Difference: minus $0.07 (current price is over target).
If GMA meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.5

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

Citi rates GWA as Sell (5) -

Citi has updated its modeling for softening top line growth on modest growth expectations in GWA's core bathroomware business.

This update has not only reduced forecasts, there's an assumption built-in for no growth in the years ahead. Target remains $2.51. Sell.

Target price is $2.51 Current Price is $2.75 Difference: minus $0.24 (current price is over target).
If GWA meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.65, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: -0.3

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

Macquarie rates GXY as Underperform (5) -

The company has shipped its first spodumene concentrate. Open pit mining has commenced with the company guiding 260,000t of concentrate in 2017.

These are strong catalysts for the stock and Macquarie believes the successful re-design and re-commissioning of Mt Cattlin is a significant achievement.

Whether longer-term demand conditions are strong enough to incentivise the construction of Sal de Vida remains to be seen, in Macquarie's opinion. The broker maintains an Underperform rating. Target rises to $0.46 from $0.30.

Target price is $0.46 Current Price is $0.56 Difference: minus $0.1 (current price is over target).
If GXY meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY16:

Forecast for FY17:

Market Sentiment: -1.0

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

Morgans rates IPD as Add (1) -

Revenue was lumpy in the December quarter, with clinical data expected to be important this year in driving private payer support.

Morgans notes the cash position is solid and more than sufficient to fully commercialise the company's technology. The broker retains an Add rating and slightly reduces the target to $2.04 from $2.08.

Target price is $2.04 Current Price is $0.86 Difference: $1.185
If IPD meets the Morgans target it will return approximately 139% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Deutsche Bank rates NST as Hold (3) -

Deutsche Bank observes the company is confident that higher grades over the next six months will allow Jundee to reach full year guidance. Recent drilling efforts have defined a significant discovery within the Armada trend.

The broker also notes the lifting of plant capacity by 50% appears to be a capital-light and low risk option.  Deutsche Bank retains a Hold rating. Target rises to $4.10 from $3.50.

Target price is $4.10 Current Price is $4.23 Difference: minus $0.13 (current price is over target).
If NST meets the Deutsche Bank target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.6

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

Citi rates PMV as Neutral (3) -

Countering market speculation no doubt, the company decided to pre-release preliminary sales indications. On Citi's assessment, adjusted for the extra trading week in the pcp, the numbers suggest some 10% underlying EBIT growth.

This is sufficient to trigger mild upgrades to forecasts. Target price remains unchanged at $13.80. Neutral. Citi is of the view the company has essentially de-risked the upcoming H1 release.

Target price is $13.80 Current Price is $14.01 Difference: minus $0.21 (current price is over target).
If PMV 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 $15.17, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Credit Suisse rates PMV as Neutral (3) -

The company's trading update suggests it has successfully navigated a difficult first half. Credit Suisse observes guidance may be below market estimates but is significantly better than the bearish market sentiment.

The broker considers the stock a solid story, with profit upside driven by Smiggle. The broker's FY17 net profit estimates are largely unchanged.

Neutral rating and $14.50 target maintained.

Target price is $14.50 Current Price is $14.01 Difference: $0.49
If PMV meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.17, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Deutsche Bank rates PMV as Hold (3) -

The market update suggests sales for the half year ending January 28 were only around -1% below Deutsche Bank's estimates. EBIT of $92-93m is -7% off the broker's forecasts.

Deutsche Bank is encouraged by the update, which highlights the resilience of the group against a weak Australian apparel backdrop. The broker believes initiatives around branding and the supply chain are delivering more stable sales in established brands, as well as supporting offshore expansion.

Hold rating and $14.25 target retained.

Target price is $14.25 Current Price is $14.01 Difference: $0.24
If PMV meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.17, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

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

The company has released unaudited results for its retail business following speculation the first half was weak. The first half is not as bad as feared, in Macquarie's view, with the headline numbers largely in line.

The broker had previously believed there was downside risk to forecasts, as the company was cycling a strong previous corresponding half as well as currency headwinds, and there has been mixed feedback regarding the apparel sector over Christmas.

With the perceived earnings risk subsiding, the broker takes the opportunity to upgrade to Outperform from Neutral. Target is raised to $16.84 from $16.43.

Target price is $16.84 Current Price is $14.01 Difference: $2.83
If PMV meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $15.17, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

UBS rates PMV as Upgrade to Buy from Neutral (1) -

Pre-announced first half numbers from Premier show sales in line with UBS' expectation and earnings exceeding. The broker had previously warned of downside risk from lagged A$ hedges. 

With the result offering relief, investors can now focus on gross margin improvement and the Smiggle rollout, UBS suggests. Aside from more stores, Smiggle is looking at new geographies as well. With Premier now out of danger, the broker upgrades to Buy. 

Target rises to $16.85 from $16.60.

Target price is $16.85 Current Price is $14.01 Difference: $2.84
If PMV meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $15.17, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 0.3

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

Citi rates REH as Buy (1) -

Ahead of the upcoming interim report, Citi analysts re-calibrate their modeling slightly upwards, in line with management's guidance for the year. This pushes up the broker's target price by 3% to $51.34.

The analysts see upside potential from the company leveraging its new Perth and Sydney distribution centres and speculate whether the company is starting to look offshore? Buy rating retained.

Target price is $51.34 Current Price is $44.00 Difference: $7.34
If REH meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY17:

Forecast for FY18:

Market Sentiment: 1.0

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

Citi rates RIO as Neutral (3) -

Citi analysts spotted a strong 2016 result and both EPS and DPS estimates have been lifted. For 2017 the new DPS forecast is now US311c.

The analysts continue to see scope for further capital management. Neutral rating retained as the house view remains that iron ore prices will decline from H2 2017 onwards, and into 2018. Price target moved to $70 from $65.

Target price is $70.00 Current Price is $65.69 Difference: $4.31
If RIO meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Deutsche Bank rates RIO as Buy (1) -

2016 earnings were in line with Deutsche Bank's estimates. Aluminium and iron ore divisions beat on lower costs.

The broker believes a relentless focus on cost-cutting has continued, which means the US$2bn target should be achieved at least six months early.

The broker believes Rio Tinto has the best balance sheet, free cash flow and growth of the big miners. Buy rating retained. Target rises to $70 from $66.

Target price is $70.00 Current Price is $65.69 Difference: $4.31
If RIO meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Macquarie rates RIO as Outperform (1) -

2016 earnings were broadly in line with Macquarie's expectations. The company is seen delivering on its commitment by announcing a strong final dividend and a US$500m buy-back.

Macquarie believes there is potential for more capital management in 2017, with buoyant iron ore prices and the pending sale of Coal  & Allied. This suggests to the broker that Rio Tinto could return over  US$5bn in 2017, an effective cash return yield of 6%.

Outperform maintained. Target rises to $79 from $77.

Target price is $79.00 Current Price is $65.69 Difference: $13.31
If RIO meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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

Market Sentiment: 0.7

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

Morgan Stanley rates RIO as Overweight (1) -

2016 numbers were in line with Morgan Stanley's estimates. The broker suspects the buy-back of US$500m may marginally disappoint some. More importantly, the cash dividend was better than the broker estimated.

The broker believes the shares remain vulnerable to changes in sentiment around the rate of Chinese steel consumption. Moreover, after a long period of disposals, Morgan Stanley suspects the company is likely to start re-investing and the return on those investments will be the main value driver going forward.

The broker retains Overweight rating and a $71 target. Industry view: Attractive.

Target price is $71.00 Current Price is $65.69 Difference: $5.31
If RIO meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Hold (3) -

2016 net profit was in line with Morgans. A highlight was increased shareholder returns, with a US$1.25 final dividend and plans for a US$500m buy-back.

Morgans believes a multi-year recovery phase for commodity markets is developing but, in the short term, iron ore and coal have overshot on the upside.

The broker recommends adding to positions on share price weakness, but maintains a Hold rating as the stock is trading close to its target. Target is revised up to $62.85 from $57.16.

Target price is $62.85 Current Price is $65.69 Difference: minus $2.84 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Accumulate (2) -

2016 underlying earnings beat Ord Minnett's forecast. The broker continues to believe the mining sector can re-rate and valuations are not stretched, while Chinese macroeconomic data remain positive.

The broker believes Rio Tinto is one of the standout stocks in the sector, offering a 2017 estimated dividend yield of around 7%. Ord Minnett reiterates a Accumulate rating and raises the target to $71 from $70.

Target price is $71.00 Current Price is $65.69 Difference: $5.31
If RIO meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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 RIO as Buy (1) -

A brief first-look by the broker reveals a strong result for Rio, with returns exceeding consensus expectations on asset sales and lower capex. Dividend well exceeded consensus.

The broker had not expected any buyback but with gearing at a below-target 17%, now expects more of the same ahead. Buy and $71 target retained.

Target price is $71.00 Current Price is $65.69 Difference: $5.31
If RIO meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $70.61, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY17:

Forecast for FY18:

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